XETA Technologies today announced first quarter earnings of $389,000, or $0.04 per diluted share, on revenue of $17.9 million for the quarter ended January 31, 2008. This compares to earnings of $170,000, or $0.02 per diluted share, on revenue of $16.1 million for the quarter ended January 31, 2007.
During the first quarter of fiscal 2008, services revenue increased 11 percent to $9.7 million from $8.8 million posted during the first quarter of 2007. The growth in services revenue was primarily due to a $1.2 million increase in contract and time and material services. Mr. Forrest continued, “The recurring nature of contract and time and materials services revenue improves our overall profitability, adds greater stability and predictability to our earnings, and continues to be a strategic focus for XETA.”
First quarter 2008 systems sales increased 10 percent to $7.7 million versus $7.0 million recorded in the first quarter of 2007. The improvement in systems sales was due primarily to a strong increase in commercial systems sales, a trend that the Company expects to continue into the second quarter of fiscal 2008.