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
         elan.yaish@rittech.com
        
         or
        
         KCSA Strategic Communication
         Jeffrey Goldberger/Rob Fink
         212-896-1249/212-896-1206
         jgoldberger@kcsa.com / rfink@kcsa.com
 
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