RiT Technologies Reports Financial Results For The Second Quarter And First Half Of 2013

 RiT Technologies Reports Financial Results For The Second Quarter And First
                                 Half Of 2013

PR Newswire

TEL AVIV, Israel, Aug. 13, 2013

TEL AVIV, Israel, Aug. 13, 2013 /PRNewswire/ --RiT Technologies Ltd. (NASDAQ:
RITT) today announced its unaudited financial results for the second quarter
and first six months ended June 30, 2013.

Financial Results for the Second Quarter 2013

  oRevenues for the second quarter of 2013 increased by 10.4% to $3.1
    million, compared with $2.8 million for the second quarter of 2012 and
    76.9% compared with $1.8 million for the first quarter of 2013.
  oGross margin for the second quarter of 2013 improved to 36%, compared with
    35% for the second quarter of 2012.
  oNet loss for the second quarter of 2013 (including approximately $141,000
    in stock-based compensation expenses) decreased to $1.6 million, or $0.18
    per (basic and diluted) share, a 36.3% improvement compared with a net
    loss of $2.5 million, or $0.48 per (basic and diluted) share in the second
    quarter of 2012 (including approximately $28,000 in stock-based
    compensation expenses) and a 44.6% improvement compared with a net loss of
    $2.9 million, or $0.37 per (basic and diluted) share for the first quarter
    of 2013 (including approximately $545,000 in stock-based compensation
    expenses).

Financial Results for the First Half 2013

  oRevenues for the first half of 2013 increased by 16.7% to $4.9 million,
    from $4.2 million for the first half of 2012.
  oGross margin for the first half of 2013 improved to 36%, from 28.5% in the
    first half of 2012.
  oNet loss for the first half of 2013 (including approximately $686,000 in
    stock-based compensation expenses) decreased to $4.5 million, or $0.54 per
    (basic and diluted) share, a 15.9% improvement compared with the net loss
    of $5.3 million, or $1.02 per (basic and diluted) share recorded in the
    first half of 2012 (including approximately $92,000 in stock-based
    compensation expenses).

Cash and cash equivalents totaled $1.3 million as of June 30, 2013.
Shareholders' equity increased to $5.0 million as of June 30, 2013, from $2.3
million on December 31, 2012.

Recent Developments

  oDuring the first half of 2013, the Company invested $2.4 million (net of
    government grants) in product development activities including the
    continued development of its Beamcaster™ and PatchView+ product lines.
  oDuring the first half of 2013, approximately $6.5 million of outstanding
    convertible loan (principal plus interest) from Stins Coman was converted
    into a total of 1,470,904 of the Company's ordinary shares at an average
    price of approximately $4.45 per share.

Comments of Management

Commenting on the results, Dr. Vadim Leiderman, RiT's President and CEO, said,
"We are pleased to report revenue growth, an improved gross margin and a
decrease in operating expenses for the first half of 2013, a clear
demonstration that the strategy we began implementing in 2012 is beginning to
achieve its intended results. We intend to continue investing in our marketing
and sales efforts as well as our R&D in order to realize the full potential of
our new Beamcaster™ and PatchView+ product lines."

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. Our 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 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.
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.

COMPANY CONTACT:
Elan Yaish, CFO
+972-77-270-7210
elan.yaish@rittech.com



RiT TECHNOLOGIES LTD.
STATEMENTS OF OPERATIONS (US GAAP)
(U.S. dollars in thousands, except per share data)
(Unaudited)
                           Three Months Ended June  Six Months Ended June 30,
                           30,
                           2013          2012        2013           2012
Sales                      3,133         2,839       4,904          4,201
Cost of sales              2,007         1,857       3,144          3,002
Gross profit               1,126         982         1,760          1,199
Operating expenses
Research and               841           1,060       2,389          1,755
development, net
Sales and marketing,       994           1,589       2,212          3,108
net
General and                866           819         1,578          1,591
administrative
Total operating            2,701         3,468       6,179          6,454
expenses
Operating loss             (1,575)       (2,486)     (4,419)        (5,255)
Financing loss, net        (20)          (18)        (57)           (70)
Loss before income tax     (1,595)       (2,504)     (4,476)        (5,325)
expense
Taxes on income            -             -           -              -
Net Loss                   (1,595)       (2,504)     (4,476)        (5,325)
Net Loss Per Share - Basic (0.18)        (0.48)      (0.54)         (1.02)
and Diluted
Weighted Average Number of Ordinary
 Shares Outstanding -    8,733,387     5,209,122   8,233,649      5,209,122
Basic and Diluted



RiT TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS (US GAAP)
(U.S. dollars in thousands)
                                                     June 30,     December 31,
                                                     2013         2012
Assets                                               (Unaudited)  (Audited)
Current Assets:
Cash and cash equivalents                            1,314        2,183
Trade receivables, net                               2,810        1,998
Other current assets                                 492          461
Inventories                                          4,395        3,359
Total Current Assets                                 9,011        8,001
Assets held for severance benefits                   1,206        1,126
Property and equipment, net                          528          545
Total Assets                                         10,745       9,672
Liabilities and Shareholders' Equity
Current Liabilities:
Short term loan                                      -            174
Trade payables                                       2,618        1,234
Other payables and accrued liabilities               1,689        1,628
Total Current Liabilities                            4,307        3,036
Principal shareholder convertible loan               -            3,000
Liability in respect of employees' severance         1,396        1,346
benefits
Total Liabilities                                    5,703        7,382
Commitments and Contingencies
Shareholders' Equity:
Share capital                                        1,969        1,644
Treasury stock                                       (27)         (27)
Additional paid-in capital                           60,316       53,413
Accumulated deficit                                  (57,216)     (52,740)
Total Shareholders' Equity                           5,042        2,290
Total Liabilities and Shareholders' Equity           10,745       9,672

SOURCE RiT Technologies

Website: http://www.rittech.com
 
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