XATA Corp reported a net loss of $855,000 on net sales of $3.3 million for its fiscal 2002 second quarter ended March 31, 2002, compared with net earnings of $162,000 on net sales of $4.2 million in the second quarter of fiscal 2001. Non-cash depreciation and amortization expenses increased to $528,000 in the second quarter and $1.1 million in the first six months of fiscal 2002, versus $310,000 and $558,000 in comparable fiscal 2001 periods.

Due to research and development expenses planned for fiscal 2002, anticipated non-cash amortization and depreciation expenses, and expenses associated with introducing the XATANET product line, the company expects to report a net loss for fiscal 2002.