RiT Technologies Reports Financial Results For The Third Quarter And First
Nine Months Of 2013
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
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.
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.
Elan Yaish, CFO
RIT TECHNOLOGIES LTD.
STATEMENTS OF OPERATIONS (US GAAP)
(U.S. dollars in thousands, except per share data)
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
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)
Weighted Average Number of Ordinary
Shares Outstanding - Basic and 9,187,055 6,146,042 8,554,944 5,521,429
RIT TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS (US GAAP)
(U.S. dollars in thousands)
September 30, December 31,
US$ thousands US$ thousands
Assets (Unaudited) (Audited)
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
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
Total Liabilities 6,177 7,382
Commitments and Contingencies
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.
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