Breaking News

U.S. May Home Prices Rise 0.4% From Previous Month: FHFA

RiT Technologies Reports Financial Results for the Fourth Quarter and Full Year Ended 2013

RiT Technologies Reports Financial Results for the Fourth Quarter and Full Year Ended 2013   Fourth Quarter 2013 Revenues Increased 42.1% to $3.0 Million; Full-Year 2013                   Revenues Increased 32.5% to $11.2 Million          Cost Reduction Initiative in Place to Reduce Expenses in 2014  TEL AVIV, Israel, Feb. 27, 2014 (GLOBE NEWSWIRE) -- RiT Technologies Ltd. (Nasdaq:RITT), the leader in intelligent infrastructure management and the developer of an innovative indoor optical wireless technology solution, announced today its unaudited financial results for the fourth quarter and full year ended December 31, 2013.  Highlights for the Fourth Quarter 2013    *Revenues for the fourth quarter of 2013 increased by 42.1% to $3.0     million, compared with $2.1 million for the fourth quarter of 2012        *Gross margin for the fourth quarter of 2013 improved to 8.6% (including     inventory write-offs of $0.6 million), compared to -6.0% for the fourth     quarter of 2012 (including inventory write-offs of $0.8 million)        *Net loss for the fourth quarter of 2013 (including approximately $240,000     in stock-based compensation expenses) was $3.3 million, or $0.30 per     (basic and diluted) share, compared with a net loss of $2.9 million, or     $0.44 per (basic and diluted) share in the fourth quarter of 2012     (including approximately $46,000 in stock-based compensation expenses)  Highlights for the Full Year 2013    *Revenues for the full year 2013 increased by 32.5% to $11.2 million, from     $8.4 million for full year 2012        *Gross margin for full year 2013 improved to 30% (including inventory     write-offs of $0.6 million), from 16% in 2012(including inventory     write-offs of $0.8 million)        *Net loss for the full year 2013 (including approximately $1.2 million in     stock-based compensation expenses) improved to $9.5 million, or $1.04 per     (basic and diluted) share compared with a net loss of $11.1 million, or     $1.91 per (basic and diluted) share in 2012 (including approximately     $301,000 in stock-based compensation expenses)        *Cash and cash equivalents totaled $5.2 million as of December 31, 2013.     Shareholders' equity increased to $7.4 million as of December 31, 2013,     from $2.3 million on December 31, 2012  Recent Developments    *Promoted Motti Hania to President and CEO in January 2014   *Raised $6 million in a public offering to increase global sales and     marketing efforts for IIM and Beamcaster solutions   *Appointed industry veterans as new country managers in China and South     Africa   *Secured several large-scale deals in Latin America with OEM partner,     Furukawa Industrial, S.A. (FISA) totaling more than $1.8 million   *Increased industry presence through leading, global information technology     conferences, featuring the PatchView+™ IIM, and advanced cabling products  Management Commentary  "We achieved a number of important operational and financial milestones in 2013 which helped advance our growth initiatives," said Mr. Motti Hania, RiT's President and CEO."Over the past year we expanded our distribution network, and introduced Beamcaster™, our new disruptive optical wireless networking technology.We grew revenues, improved gross margins, reduced our losses and raised capital strengthening our financial position.  "In 2014 we will focus on advancing our new Beamcaster™ and PatchView+ product lines and growing sales while implementing cost efficiencies to reduce expenses and improve margins.The initial market indications for Beamcaster have been encouraging and we remain confident that a significant long-term growth opportunity exists, on a global scale," Mr. Hania concluded.  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.  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, weexpressly disclaim any obligation to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.  RIT TECHNOLOGIES LTD. STATEMENTS OF OPERATIONS (US GAAP) (U.S. dollars in thousands, except per share data)                                                                                                 ThreeMonths Ended December Twelve Months Ended                                31,                         December 31,                               2013           2012         2013      2012                                                                   Sales                          2,981          2,098        11,179    8,436                                                                   Cost of sales                  2,724          2,223        7,864     7,065                                                                   Gross profit                   257            (125)       3,315     1,371                                                                   Operating expenses                                                                                                                   Research and development, net  994            1,057        4,125     3,922 Sales and marketing, net       1,349          1,060        4,786     5,465 General and administrative     1,135          663          3,803     3,043 Total operating expenses       3,478          2,780        12,714    12,430                                                                   Operating loss                 (3,221)       (2,905)     (9,399)  (11,059)                                                                   Financing loss, net            (35)          (33)        (129)    (48)                                                                                                                                     Loss before income tax expense (3,256)       (2,938)     (9,528)  (11,107) Taxes on income                                                                                                                      Net Loss                       (3,256)       (2,938)     (9,528)  (11,107)                                                                   Net Loss Per Share - Basic and (0.30)        (0.44)      (1.04)   (1.91) Diluted                                                                   Weighted Average Number of Ordinary Shares Outstanding -  10,871,914     6,610,562    9,138,947 5,802,803 Basic and Diluted   RIT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEETS (US GAAP) (U.S. dollars in thousands)                                                                                                                   December 31,  December 31,                                                   2013          2012                                                   US$ thousands US$ thousands Assets                                                           Current Assets:                                                  Cash and cash equivalents                          5,194        2,183 Trade receivables, net                            3,839        1,998 Other current assets                               237          461 Inventories                                        3,647        3,359 Total Current Assets                               12,917       8,001                                                                 Assets held for severance benefits                 1,161        1,126 Property and equipment, net                        500          545                                                                 Total Assets                                       14,578       9,672                                                                 Liabilities and Shareholders' Equity                             Current Liabilities:                                             Short term loan                                    --          174 Trade payables                                     1,878        1,234 Other payables and accrued liabilities             1,933        1,628 Total Current Liabilities                          3,811        3,036                                                                 Principal shareholder convertible loan             2,000        3,000 Liability in respect of employees' severance       1,338        1,346 benefits Total Liabilities                                  7,149        7,382                                                                 Commitments and Contingencies                                                                                                    Shareholders' Equity:                                            Share capital                                      2,782        1,644 Treasury stock                                     (27)         (27) Additional paid-in capital                         66,942       53,413 Accumulated deficit                                (62,268)     (52,740) Total Shareholders' Equity                         7,429        2,290                                                                 Total Liabilities and Shareholders' Equity         14,578       9,672  CONTACT: COMPANY CONTACT:          Elan Yaish, CFO          +972-77-270-7210                   or                   KCSA Strategic Communication          Jeffrey Goldberger/Rob Fink          212-896-1249/212-896-1206 /