DENVER, Nov. 14, 2012 (GLOBE NEWSWIRE) -- Roomlinx, Inc. (OTCBB:RMLX), the innovative developer of media networks and interactive TV applications for hotels, today announced financial results for the three months and nine months ended September 30, 2012.
Total revenue in the third quarter of 2012 increased 102% to $2.4 million, up from $1.2 million in the third quarter of 2011. Hospitality revenue was the primary driver of this growth and increased 129% in third quarter of 2012 to $2.2 million, up from $950,000 in the prior year's third quarter. Residential revenue was down slightly to $221,000 in the third quarter of 2012 compared to $238,000 in the same period last year.
For the first nine months of 2012, total revenue increased 153% to $6.1 million from $4.0 million in the first nine months of 2011. Hospitality revenue for the first nine months of 2012 increased 164% to $5.4 million compared to $3.3 million for the first nine months of 2011. Residential revenue was down slightly to $691,000 for the first nine months of 2012 compared to $698,000 in the same period last year.
"Our strong third quarter and nine month revenue growth reflect the continuing progress of our Hyatt Hotel installations," said Mike Wasik, Roomlinx's CEO. "At the end of the third quarter, we were providing service in more than 8,300 Hyatt rooms, an increase of approximately 50% since the end of the prior quarter. This on-going increase provides us with an expanding base of monthly recurring hospitality revenue as we build out service in up to 60,000 Hyatt rooms over the next 24 months. We expect to see continued revenue growth as these installations continue"
Net loss in the 2012 third quarter was $2.5 million, up from a net loss of $517,000 in last year's third quarter. For the first nine months of 2012, net loss was $5.4 million compared to a net loss of $1.8 million in the nine months ended September 30, 2011. Net loss for both the third quarter of 2012 and the first nine months of 2012 includes a non-cash charge of $1.1 million reflecting a loss on asset impairment related to Roomlinx's wholly owned subsidiary, Cardinal Hospitality, Ltd.
Wasik continued, "Excluding a one-time non-cash charge for impairment of assets, we reduced our net loss for the quarter to approximately $1.4 million, down from approximately $1.8 million in our prior quarter, even as we made significant on-going investments in our support staff and installation teams to deliver increasing installations in the remainder of 2012 and 2013 under our agreement with Hyatt."
Basic and diluted weighted average shares outstanding for the 2012 third quarter and first nine months were 6,404,631 and 5,805,772, respectively, compared with 5,115,203 and 5,056,412 in the year-earlier periods. The year-over-year increase in shares principally reflects the issuance of shares to certain private investors under a Securities Purchase Agreement in May 2012.
Headquartered in Broomfield, Colorado, Roomlinx, Inc. develops interactive TV applications for the hospitality industry, serving hoteliers in the United States, Canada and selected global markets. The company delivers world-class in-room entertainment technology, allowing hotel guests to enjoy the best of HD TV, the Internet, PC functionality and Video on Demand. For more information, visit www.roomlinx.com.
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Safe Harbor Cautionary Statement
This news release may contain forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. These statements include statements regarding the Hyatt hotels roll out (including the timing thereof), Roomlinx's growth as a result of the master service agreement with an affiliate of Hyatt Hotels Corporation, and the revenue potential arising therefrom. These forward-looking statements are subject to a number of risks and uncertainties, some of which are outlined below. As a result, actual results may vary materially from those anticipated by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the Company's successful implementation of new products and services (either generally or with specific key customers), the Company's ability to satisfy the contractual terms of key customer contracts, demand for the new products and services, the Company's ability to successfully compete against competitors offering similar products and services, general economic and business conditions; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies research and development activities; changes in, or failure to comply with, governmental regulations; the ability to obtain adequate financing in the future; the Company's ability to establish and maintain strategic relationships, including the risk that key customer contracts may be terminated before their full term; the possibility of product-related liabilities; the Company's ability to attract and retain qualified personnel; the Company's ability to maintain its intellectual property rights and litigation involving intellectual property rights; risks related to third-party suppliers; the Company's ability to obtain, use or successfully integrate third-party licensed technology; breach of the Company's security by third parties; and the risk factors detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including our 2011 Annual Report on Form 10-K available through the web site maintained by the Securities and Exchange Commission at www.sec.gov. The Company undertakes no obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
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