FOR IMMEDIATE RELEASE
Mark Ties, CFO
XATA Reports Fourth Quarter and Fiscal Year-End Results
XATANET Sales Grow 39 Percent in FY2007 As Software Margins Expand
MINNEAPOLIS, November 21, 2007XATA Corporation (Nasdaq:XATA), today reported sales for the fourth
quarter ended September 30, 2007 of $6.8 million versus $8.3 million for the same period in fiscal
2006. The decrease in sales for the quarter on a year-over-year basis was due to sales of the
Companys legacy OpCenter product being down $1.5 million.
Sales for the 12 months ended September 30, 2007 were relatively flat at $30.7 million. XATANET
sales increased $6.2 million, or 39 percent, while OpCenter sales decreased $6.2, or 42 percent, on
a year-over-year-basis. For fiscal 2007, XATANET system and subscription sales contributed 72
percent of total net sales 2007 compared to 52 percent for fiscal 2006.
The Companys fourth quarter financial performance also reflected one-time legal costs of $1.1
million relating to the settlement of a patent infringement lawsuit and a $1.8 million write-off of
capitalized system development costs. As a result of these charges the Company reported a net loss
for the quarter of $4.5 million, or $0.57 per share, compared to a net loss of $543,000, or $0.07
per share, in the comparable period of fiscal 2006.
For the fourth quarter of fiscal 2007, Modified EBITDA (earnings before interest, taxes,
depreciation, amortization, stock based compensation, impairment losses, litigation costs and
preferred stock dividends and deemed dividends) was a loss of $0.15 per share compared to a loss of
$0.04 per share for the same period of fiscal 2006.
success of our recent XATANET 4.0 launch reaffirms the strategic
direction we are taking XATA, said Jay Coughlan, XATA chairman and
CEO. The continued growth of our XATANET software as a service
business model now generates 72 percent of our total revenue and
margins continue to improve.
Operationally, total gross margins as a percentage of sales increased to 44 percent for fourth
quarter fiscal 2007 compared to 39 percent for the same period of fiscal 2006, as the result of
increased XATANET subscription margins. Overall XATANET gross margins as a percentage of sales for
the fourth quarter of fiscal 2007 increased to 37 percent, compared to 23 percent for the same
quarter of fiscal 2006, due to XATANET subscription margins improving to 57 percent for the fourth
quarter of fiscal 2007 in comparison to 51 percent in the same period last year.
- more -