TEL AVIV, Israel, May 15, 2014 (GLOBE NEWSWIRE) -- RiT Technologies (Nasdaq:RITT), today announced its unaudited financial results for the first quarter ended March 31, 2014.
Financial Results for Q1 2014
- Revenues for the first quarter of 2014 increased by 13.84% to $2.0 million, compared to $1.8 million for the first quarter of 2013.
- Gross margin for the period improved 400 basis points to 40%, compared to 36% in the first quarter of 2013.
- Net loss for the first quarter of 2014 (including $222,000 in stock-based compensation expenses) was $1.9 million, or $0.15 per (basic and diluted) share, compared with a net loss of $2.9 million, or $0.37 per (basic and diluted) share in the first quarter of 2013 (including $545,000 in stock-based compensation expenses).
- Cash and cash equivalents were $3.1 million as of March 31, 2014, compared to $5.2 million as of December 31, 2013. Shareholders' equity decreased to $5.8 million as of March 31, 2014, compared to $7.4 million as of December 31, 2013.
Recent Operational Highlights
- Completed first commercial installation of Beamcaster™ wireless network in China for Soarsky Telecommunication Co., a leading software and IT company in Shenzhen, China;
- Israel's Weizmann Institute of Science deployed RiT's Intelligent Infrastructure Management solution, PatchView+;
- Cost reduction initiative announced in January 2014 contributed to a reduction of $800,000 in operating expenses from $3.5 million in the fourth quarter 2013 to $2.7 million in the first quarter of 2014;
- Appointed Motti Hania as President and Chief Executive Officer in January 2014.
Comments of Management
"We continue to execute on our long-term strategy to improve operational efficiency while increasing global sales and advancing our new Beamcaster™ and PatchView+ product lines. During the first quarter, we began to realize the benefit of the cost reduction initiatives that we began to implement in 2014," commented Motti Hania, RiT's President and CEO.
"We introduced Beamcaster™, our new innovative indoor optical wireless networking technology into the Chinese market and completed our first commercial installation in the region. Beamcaster™ continues to attract interest by early adopters as a cost effective ultra-high bandwidth networking alternative to structured cabling. We will look to leverage such interest in the U.S. and China to further drive the sales of our innovative technology."
"In addition, PatchView+, our new IIM software solution that enables data centers and enterprise networks to automatically manage network infrastructure components continues to gain traction. We are encouraged by the initial success of PatchView+ and believe it is a valuable tool to reduce maintenance costs and optimize the physical infrastructure for enterprise organizations of all sizes."
About RiT Technologies
RiT Technologies (RITT) is a leading provider of cabling, DCIM and IIM solutions and a developer of an innovative indoor optical wireless technology solution. Our DCIM and IIM products provide network utilization for data centers, communication rooms and work space environments. They help companies plan and provision, monitor and troubleshoot their communications networks, maximizing utilization, reliability and physical security of the network while minimizing unplanned downtime. Our solutions are deployed around the world, in a broad range of organizations, including data centers in the private sector, government agencies, financial institutions, airport authorities, healthcare and education institutions. Our Beamcaster™ product is the first of our indoor optical wireless networking technology solutions. It is designed to help customers streamline deployment, reduce infrastructure design, installation and maintenance complexity and enhance security in a cost effective way.
Safe Harbor Statement
In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate", "forecast", "target", "could" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For example, when we discuss the planned sales growth and the success of our Beamcaster™ and PatchView+ products, we are using a forward-looking statement. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described under the heading "Risk Factors" in our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 20-F, which may be revised or supplemented in subsequent reports filed with the SEC. These factors include, but are not limited to, the following: our ability to raise additional financing, if required; the continued development of market trends in directions that benefit our sales; our ability to maintain and grow our revenues; our dependence upon independent distributors, representatives and strategic partners; our ability to develop new products and enhance our existing products; the availability of third-party components used in our products; the economic condition of our customers; the impact of government regulation; and the economic and political situation in Israel. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
|RIT TECHNOLOGIES LTD.|
|STATEMENTS OF OPERATIONS (US GAAP)|
|(U.S. dollars in thousands, except per share data)|
|Three Months Ended March 31,|
|Cost of sales||1,204||1,137|
|Research and development, net||687||1,548|
|Sales and marketing, net||1,156||1,218|
|General and administrative||835||712|
|Total operating expenses||2,678||3,478|
|Financing loss, net||(26)||(37)|
|Loss before income tax expense||(1,892)||(2,881)|
|Taxes on income|
|Net Loss Per Share - Basic and Diluted||(0.15)||(0.37)|
|Weighted Average Number of Ordinary Shares Outstanding - Basic and Diluted||12,763,218||7,727,831|
|RIT TECHNOLOGIES LTD.|
|CONSOLIDATED BALANCE SHEETS (US GAAP)|
|(U.S. dollars in thousands)|
|March 31,||December 31,|
| US$ |
| US$ |
|Cash and cash equivalents||3,097||5,194|
|Trade receivables, net||3,229||3,839|
|Other current assets||567||237|
|Total Current Assets||10,848||12,917|
|Assets held for severance benefits||1,207||1,161|
|Property and equipment, net||471||500|
|Liabilities and Shareholders' Equity|
|Short term loan||--||--|
|Other payables and accrued liabilities||1,945||1,933|
|Total Current Liabilities||3,342||3,811|
|Principal shareholder convertible loan||2,000||2,000|
|Liability in respect of employees' severance benefits||1,425||1,338|
|Commitments and Contingencies|
|Additional paid-in capital||67,164||66,942|
|Total Shareholders' Equity||5,759||7,429|
|Total Liabilities and Shareholders' Equity||12,526||14,578|
CONTACT: COMPANY CONTACT: Elan Yaish, CFO +972-77-270-7210 firstname.lastname@example.org KCSA Strategic Communication Jeffrey Goldberger/Rob Fink 212-896-1249/212-896-1206 email@example.com / firstname.lastname@example.orgSource:RiT Technologies Ltd.