XATA Corp., a supplier of onboard technology for transportation companies, reported net sales of just over $3.6 million for its third quarter of 2001, an increase from $3.2 million during the same period last year. However, the company saw its losses increase for the quarter, climbing to over $1.3 million, including a $400,000 charge for the write-off of the company’s Desktop Dispatch Pro (DDPro) product.

XATA said it wrote off DDPro because it is no longer offering the product to customers and management has determined that the DDPro product line has limited value to any potential acquirer. Net earnings for the third quarter of fiscal 2000 were $302,056, which included a $220,000 reinstatement of a portion of a deferred tax asset previously written off.

For the nine months ended June 30, 2001, net sales were $10.2 million compared to $9.3 million for the same period last year. Net losses for the first nine months of fiscal 2001 reached over $1.5 million compared to net earnings of $830,927 for the first nine months of fiscal 2000. Net earnings for the nine months ended June 30, 2000 included a $380,000 reinstatement of a portion of a deferred tax asset previously written off.

Research and development expenses in the three- and nine-month periods ended June 30, 2001, totaled $759,725 and $1.26 million respectively, vs. $46,705 and $138,198 in the same periods last year. XATA said it will continue to invest heavily in the development of its new XataNet software and Onvoy hardware products with the proceeds from two recent equity investments by John Deere Special Technologies Group, Inc., a subsidiary of Deere & Company.