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m'X I TELEMATICS MOBILE INFORMATION EXCHANGE MiX Telematics Reports Second Quarter Fiscal 2022 U.S. GAAP Financial Results Second Quarter Highlights : ● Total revenues of $ 36.1 million Subscription revenues of $ 30.9 million Net subscriber additions of 16,700 , bringing the total base to over 770,000 subscribers Net income of $ 1.3 million Adjusted EBITDA of $ 7.9 million , at a 21.9 % margin Cash and cash equivalents of $ 39.8 million at quarter end Midrand , South Africa and Boca Raton , October 28 , 2021 - MiX Telematics Limited ( “ MiX Telematics " ) ( NYSE : MIXT , JSE : MIX ) , a leading global Software - as - a - Service ( " SaaS " ) provider of connected fleet management solutions , today announced financial results , in accordance with accounting principles generally accepted in the United States ( “ GAAP ” ) , for the second quarter of fiscal 2022 , which ended September 30 , 2021 . " MiX is back on a growth trajectory , highlighted by our second consecutive quarter of year - over - year revenue expansion . In Q2 , we almost doubled the number of net subscriber adds compared to the first quarter , contributing to Annualized Recurring Revenue growth of 5 % since the beginning of the year . We are seeing positive trends in both our light- and premium- fleet portfolios , and the business environment in many of our key end markets has strengthened , " said Stefan Joselowitz , Chief Executive Officer of MiX Telematics . Joselowitz continued , " We are committed to investing in our growth initiatives while continuing to deliver high levels of profitability . Our performance in the first half of the year positions the company well to achieve our financial and operational objectives for fiscal 2022. " Financial Results for the Three Months Ended September 30 , 2021 Subscription Revenues : Subscription revenues were $ 30.9 million , an increase of 11.8 % compared to $ 27.6 million for the second quarter of fiscal 2021. Subscription revenues represented 85.6 % of total revenues during the second quarter of fiscal 2022. Subscription revenues increased by 2.9 % on a constant currency basis , year over year . During the second quarter of fiscal 2022 , the Company's subscriber base grew by a net 16,700 subscribers . The majority of our revenues and subscription revenues are derived from currencies other than the U.S. Dollar . Accordingly , the weakening of the U.S. Dollar against these currencies ( in particular against the South African Rand ) following recent currency volatility , has positively impacted our revenue and subscription revenues reported in U.S. Dollars . Compared to the second quarter of fiscal year 2021 , the South African Rand strengthened by 14 % against the U.S. Dollar . The Rand / U.S . Dollar exchange rate averaged R14.62 in the second quarter of fiscal year 2022 compared to an average of R16.91 during the second quarter of fiscal year 2021. The impact of translating foreign currencies to U.S. Dollars at the average exchange rates during the second quarter of fiscal 2022 led to a 8.9 % increase in reported U.S. Dollar subscription revenues . Total Revenues : Total revenues were $ 36.1 million , an increase of 16.6 % compared to $ 30.9 million for the second quarter of fiscal 2021. Total revenues increased by 7.6 % on a constant currency basis , year over year . Hardware and other revenues were $ 5.2 million , an increase of 56.1 % , compared to $ 3.3 million for the second quarter of fiscal 2021 . The impact of translating foreign currencies to U.S. Dollars at the average exchange rates during the second quarter of fiscal 2022 led to a 9.0 % increase in reported U.S. Dollar revenues . Gross Margin : Gross profit was $ 23.0 million , compared to $ 20.7 million for the second quarter of fiscal 2021. Gross profit margin was 63.7 % , compared to 66.7 % for the second quarter of fiscal 2021. The decline in the gross profit margin was due to the increase in hardware and other revenues which carry lower margins than subscription revenue . The subscription revenue margin during the second quarter of fiscal 2022 was 70.2 % . 1