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RiT Technologies Reports Financial Results for the First Quarter of 2015

TEL AVIV, Israel, June 30, 2015 (GLOBE NEWSWIRE) -- RiT Technologies Ltd. (Nasdaq:RITT), a leading provider of IIM and structured cabling solutions and a developer of an innovative indoor optical wireless technology solution (Beamcaster), today announced its unaudited financial results for the first quarter ended March 31, 2015.

Financial Results for the First Quarter 2015

  • Revenues increased to $3.39 million, up 68.0% compared to $2.02 million for the first quarter of 2014; and up 267.0% compared to $0.92 million for the fourth quarter of 2014.
  • Total operating expenses decreased to $1.47 million, down 45.0% compared to $2.68 million for the first quarter of 2014; and down 38.2% compared with $2.38 million for the fourth quarter of 2014.
  • Net income was $18,000, or $0.0012 per basic and diluted share, compared with a net loss of $1.89 million, or ($0.15) per basic and diluted share in the first quarter of 2014; and compared with a net loss of $3.17 million, or ($0.20) per basic and diluted share in the fourth quarter of 2014.
  • Cash and cash equivalents were $2.49 million as of March 31, 2015, compared with $1.6 million as of December 31, 2014.

"During the first quarter of 2015, RiT benefited from the efficiency program we launched in 2014, which enabled us to significantly reduce our operational costs," noted Motti Hania, President & CEO. "Moreover, based on the recent signing of a number of important agreements, we are starting to gain strong traction with our sales efforts, which in turn could lead to an improved sales trajectory."

"In addition, our enhanced Indoor Wireless Optical Network (IWON) technology represents a new opportunity for RiT to offer unique solutions for industrial applications and for open space environments with our Beamcaster 2.0. We recently announced our next generation network solution that combines wireless and wire network with high bandwidth (1G, 10G), high security, and ease of installation," concluded Mr. Hania.

About RiT Technologies

RiT Technologies (Nasdaq:RITT), is a leading provider of IIM and structured cabling solutions and a developer of an innovative indoor optical wireless technology solution. The RiT 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. The RiT solutions are deployed around the world, in a broad range of organizations, including data centers in corporate organizations, government agencies, financial institutions, airport authorities, healthcare and education institutions and more. Our BeamCaster™ product is an innovative indoor optical wireless networking technology solution, designed to help customers streamline deployment, reduce infrastructure design, installation and maintenance complexity and enhance security in a cost effective way. RiT's shares are traded on the NASDAQ Capital Market under the symbol RITT. For more information, please visit: www.rittech.com.

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. 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. Except as otherwise required by applicable law, we 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.

Three Months Ended March 31,
2015 2014
Sales 3,387 2,016
Cost of sales 1,879 1,204
Gross profit 1,508 812
Operating expenses
Research and development, net 375 687
Sales and marketing, net 743 1,156
General and administrative 356 835
Total operating expenses 1,474 2,678
Operating margin 34 (1,866)
Financing loss, net (16) (26)
Margin before income tax expense 18 (1,892)
Taxes on income
Net Margin 18 (1,892)
Net Loss Per Share - Basic and Diluted 0.00 (0.15)
Weighted Average Number of Ordinary Shares Outstanding - Basic and Diluted 15,541,306 12,763,218
RIT TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS (US GAAP)
(U.S. dollars in thousands)
March 31,
2015
December 31,
2014
US$ thousands US$ thousands
Assets
Current Assets:
Cash and cash equivalents 2,486 1,604
Trade receivables, net 3,147 1,680
Other current assets 551 335
Inventories 3,428 3,617
Total Current Assets 9,612 7,236
Assets held for severance benefits 942 967
Intangible assets 122 --
Property and equipment, net 443 471
Total Non-Current Assets 1,507 1,438
Total Assets 11,119 8,674
Liabilities and Shareholders' Equity
Current Liabilities:
Trade payables 1,156 967
Other payables and accrued liabilities 1,712 1,554
Total Current Liabilities 2,868 2,521
Principal shareholder convertible loan 3,000 1,000
Liability in respect of employees' severance benefits 1,193 1,224
Total Non-Current Liabilities 4,193 2,224
Total Liabilities 7,061 4,745
Commitments and Contingencies
Shareholders' Equity:
Share capital 3,384 3,384
Treasury stock (27) (27)
Additional paid-in capital 72,350 72,239
Accumulated deficit (71,649) (71,667)
Total Shareholders' Equity 4,058 3,929
Total Liabilities and Shareholders' Equity 11,119 8,674

CONTACT: Company Contact: Eran Erov, VP Finance +972-77-270-7203 eran.erov@rittech.com Investor Relations Contacts: KCSA Strategic Communications Jeffrey Goldberger 212-896-1249 ritt@kcsa.comSource:RiT Technologies