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February 6, 2014 9:30 AM, EST
XRS’ Profit Drops in Fiscal 1Q
XRS Corp.

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.