Xplore Reports Q1'08 Results



    TSX-XPL

    AUSTIN, TX, Aug. 9 /CNW/ - Xplore Technologies Corp. (TSX: XPL) ("Xplore"
or the "Company"), a leading rugged mobile computer provider, reported today
revenue of $7,722,000 for the three months ended June 30, 2007. The revenue
for the first quarter ended June 30, 2006 was $9,179,000. The revenue decrease
was primarily due to a reduction in the number of larger unit orders in the
three months ended June 30, 2007 as compared to the three months ended June
30, 2006. In the three months ended June 30, 2006, there were two orders with
sales values exceeding $700,000, one in Canada and one in France as compared
to only one order of similar value from Australia for the three months ended
June 30, 2007.
    Gross profit for the three months ended June 30, 2007 was $2,305,000 or
approximately 30% of revenue as compared to $2,508,000 or approximately 27% of
revenue for the three months ended June 30, 2006. The improvement in the gross
profit percentage for the three months ended June 30, 2007 was attributable to
cost reduction initiatives principally related to component pricing and
freight.
    Total operating expenses for the three months ended June 30, 2007 were
$3,407,000 as compared to $2,974,000 for the three months ended June 30, 2006.
The increase was principally due to the non-recurring costs associated with
our corporate migration to the United States of $345,000 and an increase in
engineering development costs of $198,000 related to the development of future
products, including a rugged notebook.
    For the three months ended June 30, 2007 and 2006, the net loss was
$1,107,000 ($0.02 cents per share) and $2,641,000 ($0.04 cents per share),
respectively.
    The financial data is presented in accordance with U.S. GAAP. The
historical financial statements attached to this press release have been
restated.

    About Xplore Technologies(R)

    Xplore Technologies Corp, founded in 1996, is a leader in the rugged PC
industry. Xplore, whose common shares are listed for trading on the Toronto
Stock Exchange under the symbol TSX: XPL, has offices in Austin Texas and
Helsinki Finland. Its rugged iX104(TM) family of hardware solutions
incorporate award winning technology, and are designed based on years of
customer design input. Xplore's diverse customer base comes from the public
safety, retail and wholesale warehousing, utility, military, field service and
transportation industries. Xplore hardware solutions are available from Xplore
or one of its authorized channel partners, for more information, visit
www.xploretech.com.

    The Toronto Stock Exchange has neither approved nor disapproved the
    information contained herein.

    Xplore Technologies is a registered trademark of Xplore Technologies
    Corporation of America. iX104, iX104R, iX104T, Renegade, All Terrain,
    iX104C(2) are trademarks of Xplore Technologies Corporation of America.
    All other tradenames, marked or not, are the sole property of their
    respective owners.

    -------------------------------------------------------------------------
    This news release contains forward-looking statements that involve risks
    and uncertainties, which may cause actual results to differ materially
    from the statements made. When used in this document, the words "may",
    "would", "could", "will", "intend", "plan", "anticipate", "believe",
    "estimate", "expect" and similar expressions are intended to identify
    forward-looking statements. Such statements reflect Xplore's current
    views with respect to future events and are subject to such risks and
    uncertainties. Many factors could cause actual results to differ
    materially from the statements made including those factors detailed from
    time to time in filings made by Xplore with securities regulatory
    authorities. Should one or more of these risks or uncertainties
    materialize, or should assumptions underlying the forward looking
    statements prove incorrect, actual results may vary materially from those
    described herein as intended, planned, anticipated or expected. Xplore
    does not intend and does not assume any obligation to update these
    forward-looking statements.
    -------------------------------------------------------------------------


    
    XPLORE TECHNOLOGIES CORP.
    Consolidated Balance Sheets
    (in thousands of dollars)
    -------------------------------------------------------------------------

                                                     June 30,       March 31,
                                                -------------- --------------
                                                       2007           2007
                                                -------------- --------------
                        ASSETS                     (Unaudited)      (Audited)
                        ------
    CURRENT ASSETS:
      Cash and cash equivalents                     $   2,486      $   1,711
      Accounts receivable                               3,820          4,408
      Inventory                                         4,529          3,639
      Prepaid expenses and other current assets           500            771
                                                -------------- --------------
                                                       11,335         10,529
    Fixed assets, net                                     530            585
                                                -------------- --------------
                                                    $  11,865      $  11,114
                                                -------------- --------------
                                                -------------- --------------

           LIABILITIES AND SHAREHOLDERS' EQUITY
           ------------------------------------

    CURRENT LIABILITIES:
      Accounts payable and accrued liabilities      $   6,962      $   5,319
      Bank indebtedness                                     -              -
                                                -------------- --------------
    Total current liabilities                           6,962          5,319
    Debenture                                             250            250
                                                -------------- --------------
                                                        7,212          5,569
                                                -------------- --------------
    Commitments and contingencies

    SHAREHOLDERS' EQUITY:
      Series A Preferred Stock, par value
       $0.001 per share; authorized 64,000;
       shares issued 63,473                                63             63
      Series B Preferred Stock, par value
       $0.001 per share; authorized 10,000;
       shares issued 9,989                                 10             10
      Common Stock, par value $0.001 per share;
       authorized 300,000; shares issued 64,905
       and 64,099, respectively                            65             64
      Additional paid-in capital                       99,012         98,469
      Accumulated other comprehensive loss             (1,119)        (1,104)
      Accumulated deficit                             (93,378)       (91,957)
                                                -------------- --------------
                                                        4,653          5,545
                                                -------------- --------------
                                                    $  11,865      $  11,114
                                                -------------- --------------
                                                -------------- --------------



    XPLORE TECHNOLOGIES CORP.
    Consolidated Statements of Loss - Unaudited
    (in thousands of dollars, except loss per common share)
    -------------------------------------------------------------------------

                                                      Three Months Ended
                                                -----------------------------
                                                June 30, 2007  June 30, 2006
                                                -------------- --------------
                                                                 (Restated)

    REVENUE                                         $   7,722      $   9,179
    COST OF REVENUE                                     5,417          6,671
                                                -------------- --------------
    GROSS PROFIT                                        2,305          2,508
                                                -------------- --------------

    EXPENSES:
    Sales, marketing and support                        1,229          1,574
    Product research, development and engineering         798            600
    General administration                              1,380            800
                                                -------------- --------------
                                                        3,407          2,974
                                                -------------- --------------
    LOSS FROM OPERATIONS                               (1,102)          (466)
                                                -------------- --------------

    OTHER INCOME (EXPENSE)
    Interest expense                                      (15)        (1,341)
    Loss on extinguishment of debt                          -           (832)
    Other                                                  10             (2)
                                                -------------- --------------
                                                           (5)        (2,175)
                                                -------------- --------------
    NET LOSS                                        $  (1,107)     $  (2,641)

    Deemed dividends related to beneficial
     conversion feature of convertible
     Preferred Shares                                       -           (501)
    Dividends attributable to Preferred Shares           (314)           (80)
                                                -------------- --------------
    Net loss attributable to common shareholders       (1,421)        (3,222)
                                                -------------- --------------
                                                -------------- --------------
    LOSS PER SHARE                                      (0.02)         (0.04)
    Deemed dividends related to beneficial
     conversion feature of convertible
     Preferred Shares                                       -          (0.01)
    Dividends attributable to Preferred Shares              -              -
                                                -------------- --------------
    Loss per share attributable to common
     shareholders                                   $   (0.02)     $   (0.05)
                                                -------------- --------------
                                                -------------- --------------

    Weighted average number of common shares
     outstanding                                       64,219         57,855
                                                -------------- --------------
                                                -------------- --------------



    XPLORE TECHNOLOGIES CORP.
    Consolidated Statements of Cash Flows - Unaudited
    (in thousands of dollars)
    -------------------------------------------------------------------------

                                                 Three Months Ended June 30,
                                                -----------------------------
                                                     2007           2006
                                                -------------- --------------
                                                                 (Restated)
    CASH FLOWS FROM OPERATING ACTIVITES:
    Cash provided by (used in) operations:
      Net loss                                       $ (1,107)     $  (2,641)
      Items not affecting cash:
        Depreciation and amortization                     149            113
        Amortization of deferred financing costs            -            979
        Loss on extinguishment of debt                      -            832
        Stock-based compensation expense                  228             60
        Equity instruments issued in exchange
         for services                                      32             17
      Changes in operating assets and liabilities:
        Accounts receivable                               588         (1,089)
        Inventory                                        (890)          (137)
        Prepaid expenses and other current assets         271            426
        Accounts payable and accrued liabilities        1,598            367
                                                -------------- --------------
          Net cash provided by (used in)
           operating activities                           869         (1,073)
                                                -------------- --------------

    CASH FLOWS FROM INVESTING ACTIVITIES:
      Additions to fixed assets                           (94)           (97)
                                                -------------- --------------
          Net cash used in investing activities           (94)           (97)
                                                -------------- --------------

    CASH FLOWS FROM FINANCING ACTIVITIES:
      Proceeds from bank borrowings                         -          8,925
      Repayment of bank indebtedness                        -         (8,686)
      Proceeds from issuance of debentures                  -          1,000
      Net proceeds from issuance of Series A
       Preferred Shares                                     -            436
      Proceeds from exercise of warrants                    -            130
                                                -------------- --------------
          Net cash provided by financing
           activities                                       -          1,805
                                                -------------- --------------

    CHANGE IN CASH AND CASH EQUIVALENTS                   775            635
    CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR        1,711             56
                                                -------------- --------------
    CASH AND CASH EQUIVALENTS, END OF YEAR          $   2,486      $     691
                                                -------------- --------------
                                                -------------- --------------

    SUPPLEMENTAL DISCLOSURE OF CASH FLOWS:
      Payments for interest                         $      15      $     217
                                                -------------- --------------
                                                -------------- --------------
      Payments for income taxes                     $       -      $       -
                                                -------------- --------------
                                                -------------- --------------
    

    %SEDAR: 00004707E




For further information:

For further information: Xplore Contact Information: Xplore: For Media
or U.S. Investor Information Contact: Martin Janis & Company, Inc., Beverly
Jedynak, Tel: (312) 943-1100, Email: b.jedynak-janispr@worldnet.att.net

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XPLORE TECHNOLOGIES CORP.

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