XATA Corp. reported net sales of $4.5 million in its first quarter of fiscal 2005, which ended Dec. 31, 2004, compared to $3.3 million in the first quarter of fiscal 2004.

Deferred revenue increased to $6.4 million in the first quarter of fiscal 2005 compared to $4.2 million in the fourth quarter of fiscal 2004.
The company reported a net loss of $994,000, or $0.15 per share on a basic and diluted basis, for its first fiscal quarter, versus a net loss of $455,000, or $0.07 per share on a basic and diluted basis, for the first fiscal quarter of 2004.
First quarter revenue was derived from OpCenter related system sales totaling $3.2 million, OpCenter services totaling $928,000 and $445,000 of recognized revenue from sales of XATANET. Both OpCenter and XATANET are fleet management systems for private fleets, including both hardware, software and communications services. OpCenter resides on a fleet’s own computer system. XATANET is a hosted product that runs on XATA’ server and is accessed by customers on the Internet.
The higher deferred revenue at the end of the first quarter is a result of increasing XATANET sales. Because XATANET is a subscriber-based product, revenue associated with it is recognized over the initial term of each subscription rather than fully at the time of delivery. Accordingly, The company expects revenue from this product to increase as the subscriber base grows.
Research and development expense associated with the development of new products totaled $996,000 in the first quarter. In addition, the company invested $113,000 in the first quarter on the enhancement of released products.
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