Xata reported revenue of $18.1 million for the quarter from $16.9 million for the same period of fiscal 2009. The company said revenue growth was driven by a 35 percent rise in total software revenue, which accounted for 63 percent of total revenue compared to 50 percent for the same period of fiscal 2009.
"The second quarter represented a very strong software quarter for us," said Jay Coughlan, chairman and president of Xata. "Our ability to continue to renew existing customers and our ability to acquire new customers through our Xatanet and new Turnpike platforms drove our software growth."
The company said it incurred additional costs associated with Turnpike Global Technologies, which it acquired in late 2009.
"The performance of our existing software business and the addition of Turnpike's software stream drove a 2 percentage point increase in our software margins and allowed us to improve operating income performance," said Mark Ties, chief financial officer of Xata.