XETA Technologies, Inc. reported net income of $633,000, or $0.06 per diluted share, in the first fiscal quarter of 2010, which ended January 31, 2010. In the same quarter last year, the company earned $2,000, or $0.00 per diluted share.
XETA Technologies, Inc. saw a 24% jump in revenue on a year over year basis, from $18.6 million in the first fiscal quarter of 2009, to $23.0 million in this year’s first fiscal quarter.
“We announced long-term service contracts with over $7 million in annual revenue last year, and our first quarter’s results are indicative of the ramp in these contracts. Services revenue increased by 21 percent to $12.1 million, which is the highest quarterly level in the Company’s history,” said Greg Forrest, the CEO of XETA Technologies, Inc.
The 24% gain in revenue was driven by gains in all of its lines of business. Total Services revenue was up 21%, from $9.9 million to $12.1 million, while Total Systems revenue was up 27%, from $8.5 million to $10.9 million.
The only sub segment showing a decline in revenues on a year over year basis was the Hospitality sub segment, where revenue fell dramatically from $2.3 million to $828,000. The company blamed the timing of orders from that industry vertical due to the recession.