XRS Corporation (NASDAQ:XRSC)

First Quarter Fiscal 2014 Results

• 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.
• The company reported non-GAAP EPS of $0.07, compared to $0.08 for the same quarter last year.

"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."

Fourth Quarter 2013 Financial Results

• Net income to common shareholders was $0.1 million, an increase of $0.3 million compared to a net loss to common shareholders of $0.2 million for the same period in fiscal 2012.
• Non-GAAP earnings of $2.1 million, or $0.07 per diluted share for the fourth quarter of fiscal 2013, compared to a non-GAAP earnings of $2.0 million, or $0.07 per diluted share for the same period in fiscal 2012.

"This past fiscal year, our financial performance generated four consecutive quarters of profitability with strong mobile software growth of 20 percent," said Jay Coughlan, chairman and chief executive officer of XRS Corporation. "In addition, we launched our new XRS mobile solution and strengthened our management team, which improves our leadership position in the mobile trucking intelligence market. The mobile trucking intelligence market continues to expand as the trucking industry begins to anticipate the impact of the new federal mandate requiring commercial trucks to have an electronic logging device beginning in calendar 2015.

"Fiscal 2014 will be a year of significant transition for the Company as we begin the migration of our legacy customers to the XRS mobile solution. As we transition from our legacy hardware-based solutions to our no upfront cost mobile solutions, we expect soft overall revenue. We expect accelerating mobile revenue growth with consistent margins and will continue to invest in the further development of the XRS mobile solution with key integrations to strategic third-party providers thereby creating a whole product that will position us to capitalize on this expanding market."

XRS Corporation Outlook
Looking ahead to fiscal 2014, the Company plans to focus on the following strategic objectives:

1. Invest resources to ensure continued success in the deployment of the XRS mobile solution, which offers a cost-efficient, easy to install electronic logging device to small and mid-size fleets.
2. Align with strategic third-party providers to broaden the capabilities of the XRS mobile solution to meet the more complex demands of larger fleets.
3. Continue to drive near-term mobile-based sales to small to mid-sized fleets with the XRS solution and offer on-going support and service to our existing Turnpike, XataNet and MobileMax customers.
4. Remain diligent in positioning XRS Corporation for long-term financial success that strives to capitalize on a growing market as the result of the mobile revolution converging with the recent government mandates.

MINNEAPOLIS, MN--(Marketwired - August 21, 2013) -  XRS Corporation, (NASDAQ: XRSC) the leader in trucking intelligence, announced during its annual XRS User Event (XUE) in Minneapolis that it is working with Samsung Telecommunications America, LLC (Samsung Mobile) to develop an integrated mobile device and software package designed specifically for the trucking industry.

The new solution will bring together powerful XRS compliance and performance tools with Samsung Mobile's industry leading and high-performing mobile devices. The collaboration will allow drivers to receive select Samsung Mobile devices that will come with XRS trucking intelligence available for download. The integrated solution is expected to be available later this year.

"We have a responsibility to ensure all drivers and fleets are compliant, and it's our goal to make compliance accessible, convenient and easy to use for everyone on the road," said Jay Coughlan, chairman and chief executive officer of XRS Corporation. "Samsung Mobile and its devices are on the leading edge of this revolutionary movement, and we are proud to be working together to bring these best-in-class mobile solutions to market."

The Samsung Mobile devices will be equipped with Samsung for Enterprise (SAFE™) enhanced security features, specifically configured to ensure every user's mobile workforce has enterprise-focused IT policy controls, mobile device management protocols, virtual private network connectivity and on-device encryption. The Samsung Mobile SAFE program ensures enterprise mobile security for businesses, regulated and non-regulated industries.

"Enterprise customers have increasingly unique requirements by line of business for both company owned and bring-your-own-device (BYOD) users," said Tim Wagner, vice president and general manager, enterprise business unit -- Samsung Mobile USA. "The onboard trucking solution to be provided by XRS and Samsung is a fantastic example of how we are working closely with our rapidly growing ecosystem of mobile solution providers to meet specific customer needs."

The new XRS mobile platform, which entered general release in March 2013, runs on more than 50 types of devices and automatically transmits vehicle and operator data directly to a management dashboard, preparing for compliance with the pending MAP-21 compliance mandate for recording hours-of-service. Nearly 90 percent of drivers already use mobile devices, meaning no additional hardware costs associated with the XRS platform. Furthermore, XRS Corporation has partnership agreements with several leading brands in mobile communications.

"Our industry is just now starting to realize the incredible potential of mobile computing to improve the bottom line for fleets and drivers alike," said Christian Schenk, senior vice president, product and market strategy for XRS. "With this new, integrated fleet solution, the entire trucking industry can rest assured that their drivers and operations staff will always be in communication, in compliance and in the process of delivering value to customers."

Third Quarter 2013 Results

• The Company reported total software revenue and total revenue of $11.3 million and $13.4 million, respectively, for the third quarter of fiscal 2013, compared to total software revenue and total revenue of $11.8 million and $15.6 million, respectively, for the comparable period in fiscal 2012.
• The Company reported non-GAAP earnings of $2.1 million, or $0.07 per diluted share for the third quarter of fiscal 2013, compared to a non-GAAP loss of $0.3 million, or $0.03 per diluted share for the same period in fiscal 2012.

"A significant highlight this past quarter was bringing our new XRS mobile solution to market and the high level of interest it has already received," said Jay Coughlan, XRS Corporation chairman and chief executive officer. "At the same time, we were able to achieve three consecutive quarters of profitability and positive cash flow."

"Consistent with our strategy, XRS Corporation will continue to invest in mobile revenue growth while continuing to meet the current needs of our existing customers and working with them to transition to the XRS solution," said Coughlan.