Xplore Technologies Corp. (XPLR) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.54 million in the quarter, against a net profit of $0.10 million in the last year period.

Revenue during the quarter plunged 30.66 percent to $20.01 million from $28.85 million in the previous year period. Gross margin for the quarter expanded 7 basis points over the previous year period to 28.17 percent. Operating margin for the quarter stood at negative 2.22 percent as compared to a positive 1.40 percent for the previous year period.

Operating loss for the quarter was $0.44 million, compared with an operating income of $0.40 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $0.12 million compared with $1.22 million in the prior year period. At the same time, adjusted EBITDA margin contracted 365 basis points in the quarter to 0.58 percent from 4.23 percent in the last year period.

"Fiscal second quarter revenue increased 21% sequentially on rising shipments while operating costs declined significantly, placing Xplore firmly on track for profitability in the second half of this year," said Philip Sassower, chairman and chief executive officer. "We also secured multiple customer wins which will drive revenue in the second half. These include a record telecommunications order for rugged Android tablets that only partially shipped during the second quarter, a follow-on military order from existing inventory, a follow-on order with another telecommunications customer and our first sale in vehicle emissions testing, a large new addressable market for Xplore. Additionally, we signed purchase agreements with several new customers who will be submitting their first orders in the coming months."

The company has spent $0.94 million cash to meet investing activities during the first half as against cash inflow of $0.24 million in the last year period

Cash flow from financing activities was $9.29 million for the first six months as against cash outgo of $8.93 million in the last year period.

Cash and cash equivalents stood at $3.46 million as on Sep. 30, 2016, down 11.11 percent or $0.43 million from $3.89 million on Sep. 30, 2015.

Working capital remains almost stable

Working capital of Xplore Technologies Corp. remained almost stable for the quarter at $15.14 million, when compared with the previous year period. Current ratio was at 1.68 as on Sep. 30, 2016, up from 1.68 on Sep. 30, 2015.

Days sales outstanding went up to 75 days for the quarter compared with 58 days for the same period last year.

Days inventory outstanding has decreased to 61 days for the quarter compared with 67 days for the previous year period.