RiT Technologies Reports Financial Results For The Third Quarter And First Nine Months Of 2013 PR Newswire TEL AVIV, Israel, Nov. 14, 2013 TEL AVIV, Israel, Nov.14, 2013 /PRNewswire/ --RiT Technologies Ltd. (NASDAQ CM: RITT), today announced its unaudited financial results for the third quarter and first nine months ended September 30, 2013. Financial Results for the Third Quarter 2013 oRevenues for the third quarter of 2013 increased by 54.1% to $3.3 million, compared with $2.1 million for the third quarter of 2012 and 5.1% compared with $3.1 million for the second quarter of 2013. oGross margin for the third quarter of 2013 increased to 39.4%, compared with 13.9% for the third quarter of 2012. oNet loss for the third quarter of 2013 (including approximately $246,000 in stock-based compensation expenses) decreased to $1.8 million, or $0.20 per (basic and diluted) share, a 36.8% improvement compared with a net loss of $2.8 million, or $0.46 per (basic and diluted) share in the third quarter of 2012 (including approximately $164,000 in stock-based compensation expenses). Financial Results for the First Nine Months of 2013 oRevenues for the first nine months of 2013 increased by 29.3% to $8.2 million, from $6.3 million for the first nine months of 2012. oGross margin for the first nine months of 2013 increased to 37.3%, from 23.6% in the first nine months of 2012. oNet loss for the first nine months of 2013 (including approximately $932,000 in stock-based compensation expenses) decreased to $6.3 million, or $0.73 per (basic and diluted) share, a 23.2% improvement compared with the net loss of $8.1 million, or $1.48 per (basic and diluted) share recorded in the first nine months of 2012 (including approximately $256,000 in stock-based compensation expenses). Cash and cash equivalents totaled $1 million as of September 30, 2013. Shareholders' equity increased to $5.5 million as of September 30, 2013, from $2.3 million on December 31, 2012. Recent Developments oDuring the first nine months of 2013, the Company invested $3.1 million (net of government grants) in its product development activities including the continued development of its Beamcaster™ and PatchView+ product lines. oDuring the first nine months of 2013, approximately $8.5 million of outstanding convertible loan (principal plus interest) from Stins Coman was converted into a total of 2,053,398 of the Company's ordinary shares at an average price of approximately $4.14 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 gross margin percentage and a decrease in operating expenses for the third quarter as well as the first nine months of 2013, demonstrating that the strategy we began implementing in 2012 is continuing 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 firstname.lastname@example.org RIT TECHNOLOGIES LTD. STATEMENTS OF OPERATIONS (US GAAP) (U.S. dollars in thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2013 2012 2013 2012 Sales 3,294 2,137 8,198 6,338 Cost of sales 1,996 1,840 5,140 4,842 Gross profit 1,298 297 3,058 1,496 Operating expenses Research and development, net 742 1,110 3,131 2,865 Sales and marketing, net 1,225 1,297 3,437 4,405 General and administrative 1,090 789 2,668 2,380 Total operating expenses 3,057 3,196 9,236 9,650 Operating loss (1,759) (2,899) (6,178) (8,154) Financing loss, net (37) 55 (94) (15) Loss before income tax expense (1,796) (2,844) (6,272) (8,169) Taxes on income Net Loss (1,796) (2,844) (6,272) (8,169) Net Loss Per Share - Basic and (0.20) (0.46) (0.73) (1.48) Diluted Weighted Average Number of Ordinary Shares Outstanding - Basic and 9,187,055 6,146,042 8,554,944 5,521,429 Diluted RIT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEETS (US GAAP) (U.S. dollars in thousands) September 30, December 31, 2013 2012 US$ thousands US$ thousands Assets (Unaudited) (Audited) Current Assets: Cash and cash equivalents 1,010 2,183 Trade receivables, net 3,755 1,998 Other current assets 438 461 Inventories 4,710 3,359 Total Current Assets 9,913 8,001 Assets held for severance benefits 1,264 1,126 Property and equipment, net 499 545 Total Assets 11,676 9,672 Liabilities and Shareholders' Equity Current Liabilities: Short term loan - 174 Trade payables 2,628 1,234 Other payables and accrued liabilities 1,598 1,628 Total Current Liabilities 4,226 3,036 Principal shareholder convertible loan 500 3,000 Liability in respect of employees' severance 1,451 1,346 benefits Total Liabilities 6,177 7,382 Commitments and Contingencies Shareholders' Equity: Share capital 2,101 1,644 Treasury stock (27) (27) Additional paid-in capital 62,437 53,413 Accumulated deficit (59,012) (52,740) Total Shareholders' Equity 5,499 2,290 Total Liabilities and Shareholders' Equity 11,676 9,672 SOURCE RiT Technologies Ltd. Website: http://www.rittech.com
RiT Technologies Reports Financial Results For The Third Quarter And First Nine Months Of 2013
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