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XATA Amends Third Quarter Results.

XATA Corporation today reported a revision relating to the accounting treatment of its Series B Preferred Stock dividends in its previously announced financial results for the third fiscal quarter ended June 30, 2004.

XATA's Series B Preferred Stock pays an annual cumulative dividend of 4% of the original issue price, payable semi-annually. The dividend is payable in additional shares of Preferred Stock, rather than cash, at the option of the holders. In addition, each share of the Preferred Stock is convertible into one share of XATA's Common Stock.

In the fiscal third quarter, at the election of the holders of the Preferred Stock, XATA issued 30,401 shares of Preferred Stock for payment of accrued dividends. Based on the increased market value of its Common Stock on the date of the dividend payment, the payment of the dividend in additional shares of Preferred Stock resulted in a non-cash deemed dividend of $101,000. This amount does not affect the Net Loss previously reported. However, in conformance with Generally Accepted Accounting Principles (GAAP), this deemed dividend increases the Net Loss to Common Shareholders to $270,000, or $0.04 per share, from the previously reported $169,000, or $0.02 per share, for the fiscal quarter ended June 30, 2004.

About XATA

A pioneer in onboard fleet management solutions since 1985, XATA revolutionized the trucking industry by being the first to introduce paperless driver logs, exception-based reporting and dynamically updated fleet standards. Today, XATA continues to lead the industry by seamlessly combining global positioning, wireless communication and fleet management software to help companies optimize the efficiency of their fleets. The Company's proven solutions enable its customers to reduce fuel costs, increase productivity, improve safety and enhance customer service. Today, XATA systems increase the productivity of more than 30,000 trucks at over 1,000 distribution centers across North America. For more information, visit http://www.xata.com/ or call 1-800-745-9282.

This announcement includes forward-looking statements based on current expectations. Actual results may differ materially. These forward-looking statements involve a number of risks and uncertainties including, but not limited to, the possibility of continuing operating losses, the ability to adapt to rapid technological change, dependence on positioning systems and communication networks owned and controlled by others, the receipt and fulfillment of new orders for current products, the timely introduction and market acceptance of new products, the ability to fund future research and development activities, and the ability to establish and maintain strategic partner relationships.
 XATA CORPORATION
 CONDENSED STATEMENTS OF OPERATIONS - REVISED
 (Amounts in thousands, except per share amounts)


 Three Month Period Ended Nine Month Period Ended
 June 30, June 30, June 30, June 30,
 2004 2003 2004 2003
 (unaudited) (unaudited) (unaudited)(unaudited)

 Net sales $5,106 $3,062 $13,079 $7,778

 Cost of sales 3,421 2,278 8,667 5,909
 Selling, general and
 administrative 1,188 1,333 3,540 3,629
 Research and development 620 469 1,588 1,445
 Total costs and expenses 5,229 4,080 13,795 10,983

 Loss from operations (123) (1,018) (716) (3,205)
 Interest and other
 expense, net (5) (11) (36) (31)

 Loss before income taxes (128) (1,029) (752) (3,236)
 Income tax expense - - - -
 Net loss (128) (1,029) (752) (3,236)

 Preferred stock dividends
 and deemed dividends (142) - (823) -
 Net loss to common
 shareholders $(270) $(1,029) $(1,575) $(3,236)

 Net loss per common share
 - basic and diluted
 Net loss $(0.02) $(0.15) $(0.12) $(0.47)
 Loss to common
 shareholders $(0.04) $(0.15) $(0.22) $(0.47)

 Weighted average common and
 common share equivalents
 Basic & Diluted 7,051 6,934 7,001 6,934


 XATA CORPORATION
 CONDENSED BALANCE SHEETS - REVISED
 (Amounts in thousands)

 June 30, September 30,
 2004 2003
 (unaudited) (audited)
 Current assets
 Cash and cash equivalents $5,427 $608
 Accounts receivable, net 3,408 3,759
 Inventories 849 943
 Deferred product costs 591 305
 Prepaid expenses 195 124
 Total current assets 10,470 5,739

 Equipment and leasehold
 improvements, net 382 419
 Capitalized software development
 costs, net 411 1,319

 Total assets $11,263 $7,477

 Current liabilities
 Bank line of credit $386 $792
 Current maturities of long-term debt 228 176
 Accounts payable 586 1,462
 Accrued liabilities 1,349 1,016
 Deferred revenue 2,514 1,525
 Total current liabilities 5,063 4,971

 Long-term debt 79 251
 Deferred revenue, non-current 742 221
 Total liabilities 5,884 5,443

 Shareholders' equity
 Common stock 18,834 17,837
 Preferred stock 3,923 -
 Accumulated deficit (17,378) (15,803)
 Total shareholders' equity 5,379 2,034

 Total liabilities and
 shareholders' equity $11,263 $7,477



CONTACT: John G. Lewis, CFO of XATA Corporation, +1-952-707-5600, john.lewis@xata.com

Web site: http://www.xata.com/
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Publication:PR Newswire
Geographic Code:1USA
Date:Aug 4, 2004
Words:790
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