Xplore Technologies, a provider of 'rugged' tablets, has grown its revenue to a 'record' $100.5 million in fiscal 2016, representing 136% growth from its $42.6 million it gained in 2015. The company now takes the #2 global market share spot in the rugged tablet market, reflecting its success.
The company's gross margin reached 31.2% due to changes in product mix and gross margin improvement in its Motion product lines. Meanwhile, its GAAP net loss equalled $362,000 - the loss includes costs attributed to the Motion Computing acquisition.
“We are pleased to report another strong year of revenue growth as we execute on our strategy to gain market share. Xplore is now well positioned as the #2 worldwide provider of rugged tablets, having significantly expanded our customer base and addressable markets through the addition of complementary products and new sales channels acquired from Motion Computing," says Philip Sassower, Xplore chairman and CEO.
We have also implemented a number of marketing strategies to broaden awareness of our rugged solutions and the lower total cost of ownership they offer to an ever-widening range of customers," Sassower continues.
The company's operating expenses sit at $30.3 million this year, a 116% increase from its $14 million gained last year. Again, the growth was attributed to the Motion acquisition.
“Xplore made significant progress in fiscal 2016 as we continued to execute on our plans to bring new, lighter weight products to market that best suit customer needs for price, performance and ruggedness. We continue to focus on not only gaining market share through increased adoption of our products, but also improved profitability throughout our business model," says Brett Gross, Xplore's ANZ director of sales.
The company says its revenue increased more than its operating expensive, allowing economies of scale and operating efficiencies, and is also looking at driving sustainable profitability through further efficiency strategies.
The company has also expanded its own Xplore product lines and markets, plus the 'global sales capabilities' through its Motion acquisition.
"Since the acquisition in April 2015, we have successfully increased the Motion Computing product margins to levels nearing Xplore’s traditional products. We are now focused on driving profitability across our business through a number of long-term business initiatives, including pricing discipline, lower sourcing and manufacturing costs, design efficiency and further operating cost leverage," Gross explains.
“We believe we will continue to see an increase in rugged tablets and handheld devices growing at a steady pace for the foreseeable future,” said David Krebs, VDC Research executive vice president in February.
Xplore distributes rugged tablets to global customers. Its Motion product line gives the company access to industries such as energy, utilities, military operations, manufacturing, government and a range of industries with hazardous work conditions.