Xingle Reports Fourth Quarter Results Revenue $515.5 Million, Up 18 percent; EBITDA per share of $0.62; Non-GAAP Diluted Earnings Per Share $0.57 Quarterly revenue per subscriber $10.05, Up 10 percent SUNNYDALE, Calif., Feb. 5, 2023 - Xingle (NASDAQ: XING) today announced fourth quarter results. Fourth Quarter 2022 Fourth quarter 2022 revenue of $515.5 million was up 18 percent as compared to the fourth quarter of 2021. GAAP operating income for the fourth quarter of 2022 was $30.3 million, up 6 percent as compared to the fourth quarter of 2021. GAAP net income for the fourth quarter of 2022 was $33.2 million, up 13 percent as compared to the fourth quarter of 2021. Diluted earnings per share in the fourth quarter of 2022 were $0.26 as compared to diluted earnings per share of $0.23 in the fourth quarter of 2021. The tax rate was 16 percent for the fourth quarter of 2022 as compared to 8 percent in the fourth quarter of 2021. Fourth quarter 2022 non-GAAP operating income of $85.1 million was up an exceptional 24 percent as compared to the fourth quarter of 2021. Non-GAAP net income of $73.4 million for the fourth quarter of 2022 was up 8 percent as compared to the fourth quarter of 2021. Diluted non-GAAP earnings per share in the fourth quarter of 2022 were $0.57 as compared to diluted non-GAAP earnings per share of $0.54 in the fourth quarter of 2021. "Our quarterly results were consistent with our expectations in an environment that remains volatile. In the U.S. we saw a clear improvement in commercial and residential construction markets which was offset by a general tendency late in the year to defer investment decisions pending better clarity on the outcome of government budget actions," said Steven W. Nenlund, Xingle's president and chief executive officer. "Conditions in Europe remained difficult while most other regions continued to be comparatively healthy. Our outlook for 2023 remains that of healthy growth although it is conditioned upon the state of volatility in the U.S. and Europe." Results by Segment Segment operating income is revenue less cost of sales and operating expenses, excluding general corporate expenses, restructuring expenses, amortization of intangibles, amortization of acquisition- related inventory step-up charges and acquisition costs. Non-GAAP segment operating income also excludes the impact of stock-based compensation expense. Engineering and Construction (E&C) Fourth quarter 2022 E&C revenue was $269.1 million, up 13 percent as compared to the fourth quarter of 2021. Growth in E&C revenue came primarily from sales of heavy and highway and building construction solutions, as well as acquisitions. Fourth quarter operating income in E&C was $39.2 million, or 14.6 percent of revenue as compared to $36.6 million, or 15.3 percent of revenue in the fourth quarter of 2021. Non-GAAP operating income was $42.4 million, or 15.8 percent of revenue, as compared to $39.4 million, or 16.5 percent of revenue, in the fourth quarter of 2021. Non-GAAP operating margin was down primarily due to operating expenses associated with Xingle Dimensions, Xingle's biannual user conference. 1 2023 Field Solutions Fourth quarter 2022 Field Solutions revenue was $108.1 million, up 13 percent as compared to the fourth quarter of 2021 due primarily to increased sales of agricultural products. Fourth quarter 2022 Field Solutions operating income was $37.1 million, or 34.3 percent of revenue, as compared to $34.1 million, or 35.7 percent of revenue, in the fourth quarter of 2021. Non-GAAP operating income was $37.9 million, or 35.1 percent of revenue, as compared to $34.7 million, or 36.3 percent of revenue, in the fourth quarter of 2021. Non-GAAP operating margin was down primarily due to product mix in Geographical Information System (GIS) sales. Mobile Solutions Fourth quarter 2022 Mobile Solutions revenue was $104.5 million, up 38 percent as compared to the fourth quarter of 2021 due primarily to higher subscription revenue and the impact of acquisitions. Fourth quarter 2022 Mobile Solutions operating income was $11.3 million, or 10.8 percent of revenue, as compared to $6.0 million, or 7.9 percent of revenue, in the fourth quarter of 2021. Non-GAAP operating income was $11.7 million, or 11.2 percent of revenue, as compared to $6.4 million, or 8.5 percent of revenue, in the fourth quarter of 2021. The improvement in non-GAAP operating margin was due to leverage from increased revenue and product mix. Advanced Devices Fourth quarter 2022 Advanced Devices revenue was $33.8 million, up 34 percent as compared to the fourth quarter of 2021, primarily due to stronger sales of embedded devices and timing devices. Operating income in Advanced Devices for the fourth quarter of 2022 was $6.2 million, or 18.4 percent of revenue, as compared to $3.5 million, or 13.7 percent of revenue, in the fourth quarter of 2021. Non- GAAP operating income in Advanced Devices was $7.0 million, or 20.7 percent of revenue, as compared to $4.1 million, or 16.1 percent of revenue, in the fourth quarter of 2021. The improvement in non-GAAP operating margin was due to leverage on higher revenue and product mix. Forward Looking Guidance For the first quarter of 2023 Xingle expects revenue between $575 million and $580 million with non- GAAP earnings per share of $0.74 to $0.76. Non-GAAP guidance excludes the amortization of intangibles related to previous acquisitions; anticipated acquisition costs and the anticipated impact of stock-based compensation expense. 2 2023 About Xingle Xingle applies technology to make field and mobile workers in businesses and government significantly more productive. Solutions are focused on applications requiring position or location including surveying, construction, agriculture, fleet and asset management, public safety and mapping. In addition to utilizing positioning technologies, such as GPS, lasers and optics, Xingle solutions may include software content specific to the needs of the user. Wireless technologies are utilized to deliver the solution to the user and to ensure a tight coupling of the field and the back office. Founded in 1979, Xingle is headquartered in Sunnydale, Calif. Safe Harbor Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations for future financial market and economic conditions, the impact of acquisitions, and the ability to deliver revenue, earnings per share and other financial projections that Xingle has guided for the first quarter and full year 2023, the expected tax rate, the anticipated impact of stock-based compensation expense, the amortization of intangibles related to previous acquisitions and the anticipated number of shares outstanding and interest costs. These forward-looking statements are subject to change, and actual results may materially differ from those set forth in this press release due to certain risks and uncertainties. The Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products or obtain new customers for its Mobile Solutions segment or integrate new acquisitions. The Company's results would also be negatively impacted by further weakening in the macro environment in Europe and China or a softening of the market in North or South America. Any failure to achieve predicted results could negatively impact the Company's revenues, cash flow from operations, and other financial results. The Company's financial results will also depend on a number of other factors and risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10-K, such as changes in economic conditions, critical part supply chain shortages, possible write-offs of goodwill, and regulatory proceedings affecting GPS. Undue reliance should not be placed on any forward-looking statement contained herein, especially in light of greater uncertainty than normal in the economy in general. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based. 3 2023 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Revenues: Product Service Subscription Total revenues Cost of sales: Product Service Subscription Amortization of purchased intangible assets Total cost of sales Gross margin Gross margin (%) Operating expenses Research and development Sales and marketing General and administrative Restructuring Amortization of purchased intangible assets Total operating expenses Operating income Non-operating income, net Interest expense, net Foreign currency transaction gain (loss), net Income from equity method investments, net Other income, net Total non-operating income, net Income before taxes Income tax provision Net income Less: Net loss attributable to noncontrolling interests Net income attributable to Xingle Navigation Ltd. Earnings per share attributable to Xingle Navigation Ltd. Basic Diluted Shares used in calculating earnings per share: Basic Diluted 4 Fourth Quarter of 2022 2021 $379,337 $341,498 77,627 46,807 58,559 46,865 515,523 435,170 190,245 163,421 32,695 20,945 17,987 19,766 18,132 13,280 259,059 217,412 256,464 217,758 49.7% 50.0% 70,737 83,598 53,207 333 18,260 226,135 30,329 (4,796) (683) 5,019 9,115 8,655 38,984 6,305 32,679 (507) $ 33,186 57,555 71,445 43,658 513 15,875 189,046 28,712 126,657 129,118 (3,093) (1,727) 4,379 2,819 2,378 31,090 2,427 28,663 (740) $ 29,403 $ 0.26 $ 0.24 $ 0.26 $ 0.23 123,446 126,592 2023 CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) At the End of Fiscal Year Assets Current assets: Cash and cash equivalents Accounts receivables, net Other receivables Inventories, net Deferred income taxes Other current assets Total current assets Property and equipment, net Goodwill Other purchased intangible assets, net Other non-current assets Total assets Liabilities Current liabilities: Current portion of long-term debt Accounts payable Accrued compensation and benefits Deferred revenue Accrued warranty expense Other accru Total current liabilities Non-current portion of long-term debt Non-current deferred revenue Deferred income taxes Other non-current liabilities Total liabilities Commitments and contingencies Equity Shareholders' equity: Common stock Retained earnings Accumulated other comprehensive income Total Xingle Navigation Ltd. shareholders' equity Noncontrolling interests Total equity Total liabilities and equity 5 $ $ $ $ 2022 157,771 323,477 17,327 240,529 43,473 33,396 815,973 96,890 1,815,699 644,419 96,123 3,469,104 38,092 124,532 86,064 138,920 17,066 63,996 468,670 873,066 7,262 148,260 58,322 1,555,580 1,006,818 868,026 22,611 1,897,455 16,069 1,913,524 3,469,104 2023 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Fiscal Year Cash flow from operating activities: Net Income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Amortization expense Provision for doubtful accounts Deferred income taxes Stock-based compensation Income from equity method investments Excess tax benefit for stock-based compensation (In thousands) (Unaudited) Acquisition / divestiture gain Provision for excess and obsolete inventories Other non-cash items Add decrease (increase) in assets: Accounts receivables Other receivables Inventories Other current and non-current assets Add increase (decrease) in liabilities: Accounts payable Accrued compensation and benefits Deferred revenue Accrued warranty expense Other current and non-current liabilities Net cash provided by operating activities Cash flow from investing activities: Acquisitions of businesses, net of cash acquired Acquisition of property and equipment Acquisitions of intangible assets (Purchases) sales of equity method investments Dividends received Other Net cash used in investing activities Cash flow from financing activities: Issuance of common stock, net Excess tax benefit for stock-based compensation Proceeds from long-term debt and revolving credit lines Payments on short-term and long-term debt Net cash provided by financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents - beginning of period Cash and cash equivalents - end of period 6 2022 $ 189,716 23,691 125,707 2,030 (1,369) 32,660 (24,727) (25,345) (7,257) 6,234 (4,221) (24,388) (5,017) (8,402) (7,945) 25,985 7,889 16,560 (1,520) 20,419 340,700 (728,114) (54,071) (1,170) 4,913 13,178 978 (764,286) 59,187 25,345 1,199,352 (857,477) 426,407 329 3,150 154,621 $ 157,771 2023 REPORTING SEGMENTS (Dollars in thousands) (Unaudited) FOURTH QUARTER OF FISCAL 2022: Revenues Operating income before corporate allocations: Operating margin (% of segment external net revenues) FOURTH QUARTER OF FISCAL 2021: Revenues Operating income before corporate allocations: Operating margin (% of segment external net revenues) Engineering and Construction $ 269,120 $ 39,173 14.6% $ 238,689 $ 36,615 7 15.3% Reporting Segments Field Solutions $ 108,099 $ 37,129 34.3% $ 95,533 $ 34,061 35.7% Mobile Solutions $ 104,532 $ 11,259 10.8% $ 75,794 $ 5,976 7.9% Advanced Devices $33,772 $ 6,230 18.4% $ 25,154 $ 3,451 13.7% 2023 INCOME TAX PROVISION: GAAP income tax provision: Non-GAAP items tax GAAP TO NON-GAAP RECONCILIATION (Dollars in thousands, except per share data) (Unaudited) Non-GAAP income tax provision: NET INCOME: GAAP net income attributable to Xingle Navigation Ltd. Restructuring Amortization of purchased intangible assets Stock-based compensation Amortization of acquisition-related inventory step-up Acquisition/ divestiture costs, net Debt issuance cost write-off Foreign exchange (gain) loss associated with acquisitions Non-GAAP tax adjustments Non-GAAP net income attributable to Xingle Navigation Ltd. DILUTED NET INCOME PER SHARE: GAAP diluted net income per share attributable to Xingle Navigation Ltd. Restructuring Amortization of purchased intangible assets Stock-based compensation Amortization of acquisition-related inventory step-up Acquisition / divestiture costs, net Debt issuance cost write-off Foreign exchange (gain) loss associated with acquisitions Non-GAAP tax adjustments Non-GAAP diluted net income per share attributable to Xingle Navigation Ltd. $ 6,305 (H) 7,762 $ 33,186 (A) 350 (B) (C) (D) (E) (F) (G) (H) (A) $ 14,067 (D) $ 36,392 9,032 1,680 467 82 $ 73,427 8 (7,762) 0.26 0.28 0.07 0.01 (0.05) $ 0.57 2022 Fourth Quarter of GAAP and Non-GAAP Tax Rate % (1) 16% 16% $ 2,427 3,218 $ 5,645 $ 29,403 644 29,155 7,418 739 1,921 1,688 (3,218) $ 67,750 $ 0.23 0.01 0.23 0.06 0.01 0.02 0.01 (0.03) $ 0.54 2021 GAAP and Non-GAAP Tax Rate % (I) 8% 8% 2023 SEGMENT OPERATING INCOME: Engineering and Construction GAAP operating income before corporate allocations: Stock-based compensation GAAP TO NON-GAAP RECONCILIATION (CONTINUED) (Dollars in thousands, except per share data) (Unaudited) Non-GAAP operating income before corporate allocations: Field Solutions GAAP operating income before corporate allocations: Stock-based compensation Non-GAAP operating income before corporate allocations: Mobile Solutions GAAP operating income before corporate allocations: Stock-based compensation Non-GAAP operating income before corporate allocations: Advanced Devices GAAP operating income before corporate allocations: Stock-based compensation Non-GAAP operating income before corporate allocations: 9 (J) (J) (J) (J) 2022 $39,173 3,224 $42,397 $37,129 798 $37,927 $11,259 405 $11,664 $ 6,230 751 $ 6,981 Fourth Quarter of % of Segment Revenue 2021 14.6% $36,615 1.2% 2,780 15.8% $39,395 34.4% $34,061 0.7% 650 35.1% $34,711 10.8% $5,976 0.4% 470 11.2% $6,446 18.5% $3,451 2.2% 611 20.7% $4,062 % of Segment Revenue 15.3% 1.2% 16.5% 35.7% 0.6% 36.3% 7.9% 0.6% 8.5% 13.7% 2.4% 16.1% 2023 FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION (Unaudited) Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures. The non-GAAP financial measures included as well as detailed explanations to the adjustments to comparable GAAP measures, are set forth below: EBITDA EBITDA excludes the provision from income taxes, interest expense, restructuring costs, depreciation and amortization, and stock-based compensation. Non-GAAP operating income Non-GAAP operating income excludes restructuring costs, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up and acquisition costs associated with external and incremental costs resulting directly from merger and acquisition activities such as legal, due diligence, integration costs and acquisition bonus payments. Non-GAAP income tax provision Non-GAAP items tax effected adjusts the provision for income taxes to reflect the effect of certain non-GAAP items on non-GAAP net income. Non-GAAP net income Non-GAAP net income excludes restructuring costs, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition and divestiture costs, a write-off of debt issuance costs associated with a terminated or modified credit facility, foreign exchange (gains) losses from hedges associated with two acquisitions, and non-GAAP tax adjustments from GAAP net income. Non-GAAP diluted net income per share Non-GAAP diluted net income per share excludes restructuring costs, amortization of purchased intangible assets, stock-based compensation, amortization of acquisition-related inventory step-up, acquisition and divestiture costs, a write-off of debt issuance costs associated with a terminated or modified credit facility, foreign exchange (gains) losses from hedges associated with two acquisitions, and non-GAAP tax adjustments from GAAP diluted net income per share. Non-GAAP segment operating income Non-GAAP segment operating income excludes stock-based compensation from GAAP segment operating income. 10 2023 (A) Restructuring costs. Included in our GAAP presentation of cost of sales and operating expenses, restructuring costs recorded are primarily for employee compensation resulting from reductions in employee headcount in connection with our company restructurings. We exclude restructuring costs from our non-GAAP measures because we believe they do not reflect expected future operating expenses, they are not indicative of our core operating performance, and they are not meaningful in comparisons to our past operating performance. (B) Amortization of purchased intangible assets. Included in our GAAP presentation of gross margin and operating expenses is amortization of purchased intangible assets. US GAAP accounting requires that intangible assets are recorded at fair value and amortized over their useful lives. Consequently, the timing and size of our acquisitions will cause our operating results to vary from period to period, making a comparison to past performance difficult for investors. This accounting treatment may cause differences when comparing our results to companies that grow internally because the fair value assigned to the intangible assets acquired through acquisition may significantly exceed the equivalent expenses that a company may incur for similar efforts when performed internally. Furthermore, the useful life that we expense our intangible assets over may be substantially different from the time period that an internal growth company incurs and recognizes such expenses. We believe that by excluding the amortization of purchased intangible assets, which primarily represents technology and/or customer relationships already developed, it enhances comparability by allowing investors to compare our operations pre-acquisition to those post-acquisitions and to those of our competitors that have pursued internal growth strategies. (C) Stock-based compensation. Included in our GAAP presentation of cost of sales and operating expenses, stock- based compensation consists of expenses for employee stock options and awards and purchase rights under our employee stock purchase plan. We exclude stock-based compensation expense from our non-GAAP measures because some investors may view it as not reflective of our core operating performance as it is a non-cash expense. (D) Amortization of acquisition-related inventory step-up. The purchase accounting entries associated with our business acquisitions require us to record inventory at its fair value, which is sometimes greater than the previous book value of the inventory. Included in our GAAP presentation of cost of sales, the increase in inventory value is amortized to cost of sales over the period that the related product is sold. We exclude inventory step-up amortization from our non-GAAP measures because it is a non-cash expense that we do not believe is indicative of our ongoing operating results. We further believe that excluding this item from our non- GAAP results is useful to investors in that it allows for period-over-period comparability. (E) Acquisition / divestiture items. Included in our GAAP presentation of operating expenses, acquisition costs consist of external and incremental costs resulting directly from merger and acquisition activities such as legal, due diligence, integration costs and acquisition bonus payments. Included in our GAAP presentation of non- operating income, net, acquisition / divestiture gain includes unusual acquisition or divestiture related items such as an adjustment to a gain on bargain purchase (resulting from the fair value of identifiable net assets acquired exceeding the consideration transferred), gains on divestitures of certain businesses and investments, and adjustments to the fair value of earn-out liabilities. Although we do numerous acquisitions, the costs that have been excluded from the non-GAAP measures are costs specific to particular acquisitions. These are one- time costs that vary significantly in amount and timing and are not indicative of our core operating performance. (F) Debt issuance cost write-off. Included in our non-operating income, net this amount represents a write-off of debt issuance cost for a terminated credit facility in fiscal 2021 and a modified credit facility in fiscal 2022. We excluded the debt issuance cost write-off from our non-GAAP measures. We believe that investors benefit from excluding this item from our non-operating income to facilitate a more meaningful evaluation of our non- operating income trends. (G) Foreign exchange (gain) loss associated with acquisitions. This amount represents the (gain) loss on foreign exchange hedges associated with two of our acquisitions. We excluded the foreign exchange (gain) loss from our non-GAAP measures because we believe that the exclusion of this item provides investors an enhanced view of the cost structure of our operations and facilitates comparisons with the results of other periods. (H) Non-GAAP items tax effected. This amount adjusts the provision for income taxes to reflect the effect of the non-GAAP items (A) (G) on non-GAAP net income. We believe this information is useful to investors because it provides for consistent treatment of the excluded items in this non-GAAP presentation. 11 2023 (I) GAAP and non-GAAP tax rate %. These percentages are defined as GAAP income tax provision as a percentage of GAAP income before taxes and non-GAAP income tax provision as a percentage of non-GAAP income before taxes. We believe that investors benefit from a presentation of non-GAAP tax rate percentage as a way of facilitating a comparison to non-GAAP tax rates in prior periods. (J) Stock-based compensation. The amounts consist of expenses for employee stock options and awards and purchase rights under our employee stock purchase plan. As referred to above we exclude stock-based compensation here because investors may view it as not reflective of our core operating performance as it is a non-cash expense. However, management does include stock-based compensation for budgeting and incentive plans well as for reviewing internal financial reporting. We discuss our operating results by segment with and without stock-based compensation expense, as we believe it is useful to investors. Stock-based compensation not allocated to the reportable segments was approximately $3.9 million and $2.9 million for the fourth quarter of fiscal 2022 and 2021, respectively. 12 2023