Roomlinx Reports 2012 Year End Results
Roomlinx Reports 2012 Year End Results
2012 Revenue Up 119% Year-Over-Year
DENVER, CO -- (Marketwired) -- 04/16/13 -- Roomlinx, Inc. (OTCBB: RMLX), the innovative developer of media networks and interactive TV (iTV) applications for the hospitality industry, today announced financial results for the year ended December 31, 2012.
In 2012, total revenue increased 119% to $13.6 million from $6.2 million. Hospitality revenue in 2012 increased 140% to $12.8 million compared to $5.3 million in 2011. Residential revenue was down slightly to $915,000 in 2012 compared to $942,000 in 2011.
Total revenue in the fourth quarter of 2012 increased 230% to $7.6 million, up from $2.3 million in the fourth quarter of 2011. Hospitality revenue was the primary driver of this growth and increased 265% in the fourth quarter of 2012 to $7.3 million, up from $2.0 million in the prior year's fourth quarter. Residential revenue was down slightly to $224,000 in the fourth quarter of 2012 compared to $244,000 in the same period last year.
The Company measures its performance based on incremental recurring revenue generated by the number of revenue generating units ("RGUs") in service. Recurring revenue is our monthly invoicing of RGUs which we define as the continued delivery of our products and service. Regarding the hospitality sector, a hotel room may have one or more RGUs, including interactive television, video on demand, free to guest programming, and high speed internet access. Residential properties may also have more than one RGU, which includes telephone, internet and television.
As of December 31, 2012, the Company was servicing approximately 75,000 RGUs within the hospitality sector, a 72% increase over 2011. Roomlinx also supports 16 residential communities and small businesses, representing an additional 3,600 RGUs.
The net loss in the 2012 fourth quarter of $2.0 million exceeded the net loss of $840,000â€‹ in the fourth quarter of 2011. In 2012, our net loss was $7.4 million compared to a net loss of $2.7 million in 2011. Net loss for the year ended December 31, 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.
Basic and diluted weighted average shares outstanding for the year ended December 31, 2012 was 5,809,406 compared with 5,072,157 for the year ended December 31, 2011. 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.
About Roomlinx 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.
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 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 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; the risk factors detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including our 2012 Annual Report on Form 10-K available through the web site maintained by the Securities and Exchange Commission at www.sec.gov; and the suspension of certain obligations of Hyatt Corp and the Company under the Master Service Agreement between the parties and the effect of certain amendments to such Master Service Agreement requested by Hyatt to the extent such amendments are agreed to by the Company and other matters relating to the Master Service Agreement, all as further described in our 2012 Annual Report on Form 10-K filed with the Securities and Exchange Commission. The Company undertakes no obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
Contact: Christina Wasik Roomlinx, Inc. 303.544.1111 x114 firstname.lastname@example.org