RiT Technologies Reports Financial Results For The Second Quarter And First
Half Of 2013
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
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
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.
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.
Elan Yaish, CFO
RiT TECHNOLOGIES LTD.
STATEMENTS OF OPERATIONS (US GAAP)
(U.S. dollars in thousands, except per share data)
Three Months Ended June Six Months Ended June 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
Research and 841 1,060 2,389 1,755
Sales and marketing, 994 1,589 2,212 3,108
General and 866 819 1,578 1,591
Total operating 2,701 3,468 6,179 6,454
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)
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)
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,
Assets (Unaudited) (Audited)
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
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
Total Liabilities 5,703 7,382
Commitments and Contingencies
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
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