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7/9/2012 10:30:00 AM Write a Letter to the Editor Write a letter to the Editor

Xata Cuts Jobs, Focuses on Mobile Platform

Transportation software provider Xata Corp recently cut 29 jobs in a step to “better align” its workforce with its mobile-based strategy, the company said in a U.S. Securities and Exchange Commission filing.

The eliminated positions were in areas focused on the company’s older technology platforms such as MobileMax, said Mike Weber, Xata’s vice president of finance.

Eden Prairie, Minn.-based Xata will continue to support those “legacy” platforms and their customers as it increasingly emphasizes its Xata Turnpike mobility product, Weber told Transport Topics.

“We’re aligning with where the growth is and where we see the customers’ needs,” he said.

In the July 3 filing, Xata said it expected $800,000 in restructuring costs in its third quarter ended June 30 due to the realignment. Xata said it expects annual savings of $2.8 million from the job cuts, which occurred June 27.

The company also said it will recognize a non-cash charge of $3.4 million after lowering its assessment of the future value of its MobileMax customer contracts.

Xata said it anticipates recording additional charges estimated at between $1.3 million and $1.6 million from writing off “obsolete inventory” and purchase commitments related to its legacy platforms.

By Seth Clevenger
Staff Reporter

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