Xata Corp., which provides fleet management software to the trucking industry, reported results for its fiscal 2012 third quarter, which saw a drop in revenue for the quarter but a level revenue stream for the past nine-month period.
For its quarter, ending June 30, total revenue for Xata was $15.6 million, compared to $17 million for the same period in fiscal 2011. This quarter, net loss to common shareholders was $6.3 million, compared to $500,000 for the same period in fiscal 2011, due largely to impairment and realignment charges of $5.7 million to update legacy systems and realign its mobile-based platform.
For the quarter, Xata saw its software revenue increase $500,000 to $11.8 million. The 4 percent overall growth was fueled by revenue increases for its Xata Turnpike (31 percent) and XataNet (8 percent) software. The company said for the third quarter, software revenue accounted for roughly 76 percent of total revenues, compared to 67 percent for the same period of fiscal 2011.
For the nine months, total revenue however remained relatively flat compared to the same period of the prior year, sitting at roughly $48 million. Software revenue over the same nine-month period increased by 3 percent, again led by Xata Turnpike and XataNet.
Jay Coughlan, chairman and president of Xata, said the future looks good for his company because of the passage of the Moving Ahead for Progress in the 21st Century Act (MAP-21) bill that requires regulations to be created around using electronic logs for hours of service. “With our current no upfront hardware cost Xata Turnpike solution, Xata is well-positioned to handle the increased demand once the regulation goes into effect,” he said.
Xata sees software gains, revenue holds still
