FOR IMMEDIATE RELEASE
Chief Financial Officer, XRS Corporation
XRS Corporation Reports Fiscal 2014 First Quarter Results
Mobile software revenue grew 14 percent in first quarter 2014.
First quarter net income drove free cash flow of $0.6 million.
Non-GAAP earnings of $1.9 million, or $0.07 per diluted share in first quarter 2014.
MINNEAPOLIS, February 6, 2014 — XRS Corporation (NASDAQ:XRSC) reported results for its fiscal 2014 first quarter ended December 31, 2013.
“The first quarter of fiscal 2014 was our fifth consecutive quarter of profitability, with mobile growth of 14 percent,” said Jay Coughlan, chairman and chief executive officer of XRS Corporation. “We are committed to the ongoing success in transitioning to our no upfront hardware cost XRS mobile solution. We continue to enhance functionality of our XRS solution, including aligning with strategic third-party providers to meet the integration requirements of larger, more complex fleets. During this time of continued investment in our XRS mobile solution we are closely controlling costs, which resulted in decreased costs of $0.7 million year-over-year. This positions us well to support the long-term growth of the Company."
First Quarter Results
For the three months ended December 31, 2013, mobile software revenue increased 14 percent, while total software revenue decreased $0.9 million with the comparable fiscal period in 2013. Total revenue was $13.3 million for the three months ended December 31, 2013, compared to $14.2 million for the comparable period in fiscal 2013 as a result of new customers selecting the Company's mobile solutions, as well as by attrition in the legacy subscription base.
Gross margin percentage decreased 4 percentage points to 59 percent for the three months ended December 31, 2013. Software gross margins drove the decline in total gross margin percent. Software gross margins declined 4 percentage points to 70 percent for the three months ended December 31, 2013. The decline is reflective of the Company's commitment to continue to support its legacy solutions while it transitions customers to its mobile solutions.
Selling, general and administrative expenses decreased to $4.9 million, compared to $5.5 million for the comparable period in fiscal 2013. Overall selling, general and administrative expenses decreased as a
The following information was filed by Xrs Corp (XRSC) on Thursday, February 6, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.