XRS’ Profit Drops in Fiscal 1Q
XRS Corp. said its net income fell in its first fiscal quarter as sales decreased and some costs grew.
The telematics provider’s profit was $91,000 in the quarter ended Dec. 31 compared with $319,000 a year earlier. Revenue fell to $13.3 million from $14.2 million.
“The first quarter of fiscal 2014 was our fifth consecutive quarter of profitability, with mobile growth of 14%,” Jay Coughlan, chairman and CEO of XRS, said in a Feb. 6 statement. “We are committed to the ongoing success in transitioning to our no-upfront-hardware-cost XRS mobile solution.”
XRS said its mobile software revenue rose 14%, but total software revenue fell $900,000.
The drop in overall revenue was due to customers switching to the XRS mobile platform from its legacy hardware-based platform, the company said.
