RiT Technologies Reports Financial Results For The First Quarter Of 2013
TEL AVIV, Israel, May 17, 2013
TEL AVIV, Israel, May 17, 2013 /PRNewswire/ --RiT Technologies (NASDAQ CM:
RITT), today announced its unaudited financial results for the first quarter
ended March 31, 2013.
Financial Results for Q1 2013
oRevenues for the first quarter of 2013 increased by 30% to $1.8 million,
compared to $1.4 million for the first quarter of 2012.
oGross margin for the period improved to 36%, compared with 16% in the
first quarter of 2012.
oNet loss for the first quarter of 2013 (including $545,000 in stock-based
compensation expenses) was $2.9 million, or $0.37 per (basic and diluted)
share, compared with a net loss of $2.8 million, or $0.54 per (basic and
diluted) share in the first quarter of 2012 (including $64,000 in
stock-based compensation expenses).
oCash and cash equivalents were $1.5 million as of March 31, 2013, compared
to $2.2 million asof December 31, 2012. Shareholders' equity increased to
$4.5 million as of March 31, 2013, compared to $2.3 million as of December
Recent Operational Highlights
oDuring the first quarter of 2013, the Company invested $1.6 million in the
continued development of its Beamcaster™ and PatchView+™ product lines as
compared to $0.7 million in the first quarter of 2012.
oDuring the first quarter of 2013, approximately $4.5 million of the
Company's convertible loan outstanding (principal plus interest) from
Stins Coman was converted into 1,021,166 of the Company's ordinary shares
at an average price of $4.44 per share.
oIn April 2013, the Company announced the formation of its wireless
division to market and sell its Beamcaster products.
Comments of Management
"During the first quarter of 2013, we began to see the initial results of the
operational strategy that we implemented during 2012, as demonstrated by the
growth in our revenues and the improvement in our gross margin," commented Dr.
Vadim Leiderman, RiT's President and CEO. "We plan to continue making
significant investments in R&D as well as in marketing of our products in line
with our long-term plan and expect to see first sales of our new Beamcaster
and PatchView+ product lines during the third quarter of 2013."
About RiT Technologies
RiT is a leading provider of IIM solutions and a developer of an innovative
indoor optical wireless technology solution. Our IIM products provide and
enhance security and 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. RiT's IIM 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, which we plan to launch
during the third quarter of 2013, is the first of our indoor optical wireless
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. RiT's shares are traded on the
NASDAQ Capital Market under the symbol RITT.
For more information, please visit our website: www.rittech.com , the content
of which is not part of this press release.
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 say we expect to see first sales of our new Beamcaster™
product line during the third quarter of 2013, 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. 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.
Elan Yaish, CFO
RIT TECHNOLOGIES LTD.
STATEMENTS OF OPERATIONS (US GAAP)
(U.S. dollars in thousands, except per share data)
Sales 1,771 1,362
Cost of sales 1,137 1,145
Gross profit 634 217
Research and development, net 1,548 695
Sales and marketing, net 1,218 1,519
General and administrative 712 772
Total operating expenses 3,478 2,986
Operating loss (2,844) (2,769)
Financing loss, net (37) (52)
Loss before income tax expense (2,881) (2,821)
Taxes on income
Net Loss (2,881) (2,821)
Net Loss Per Share - Basic and Diluted (0.37) (0.54)
Weighted Average Number of Ordinary
Shares Outstanding - Basic and Diluted 7,727,831 5,209,122
RIT TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS (US GAAP)
(U.S. dollars in thousands)
March 31, December 31,
Assets (Unaudited) (Audited)
Cash and cash equivalents 1,503 2,183
Trade receivables, net 1,659 1,998
Other current assets 588 461
Inventories 3,290 3,359
Total Current Assets 7,040 8,001
Assets held for severance benefits 1,132 1,126
Property and equipment, net 533 545
Total Assets 8,705 9,672
Liabilities and Shareholders' Equity
Short term loan 22 174
Trade payables 1,004 1,234
Other payables and accrued liabilities 1,834 1,628
Total Current Liabilities 2,860 3,036
Principal shareholder convertible loan - 3,000
Liability in respect of employees' severance 1,359 1,346
Total Liabilities 4,219 7,382
Commitments and Contingencies
Share capital 1,867 1,644
Treasury stock (27) (27)
Additional paid-in capital 58,267 53,413
Accumulated deficit (55,621) (52,740)
Total Shareholders' Equity 4,486 2,290
Total Liabilities and Shareholders' Equity 8,705 9,672
SOURCE RiT Technologies
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