Texada, a major provider of equipment rental and mobile asset management software, generated total revenues of CND $1.1 million (about U.S. $1.12 million). The revenue total is about an 8.5-percent decrease from the first quarter of 2010, which totaled $1.2 million. Adjusted EBITDA for the quarter was $0.06 million.
Texada attributed the decline to a drop in license revenue in 2011 from software version upgrades of $0.19 million, partially offset by an increase in new license revenue of $0.08 million compared to fiscal 2010. The reduction in license revenue resulted in a $0.10 million decline in gross profit in the quarter. Operating expenses increased by $0.18 million in the quarter with $0.11 million of the increase related to strategic initiative expenses beginning in the fourth quarter of 2010.
“Our first-quarter operating results were negatively affected by a decline in license revenue,” said Texada president Brian Spilak. “The shortfall in profitable software upgrade revenue was offset to some extent by revenue from new licenses but on a combined basis had a $0.10 million effect on our adjusted EBITDA and net earnings performance in the quarter. We see new opportunities in the market for the balance of 2011 and with our strong foundation of industry-leading technology, personnel and customers, we look forward to improving our operating results in future quarters.”
CEO William Swisher added that the company is exploring “new opportunities to profitably expand Texada’s business. We look forward to continuing with this important initiative in the second quarter and the balance of Texada’s fiscal 2011.”
Texada is based in Guelph, Ontario, Canada.