RiT Technologies Reports Continued Revenue Growth and Reduced Net Loss for Q1 2011
Revenues Up 25% YOY, Net Loss Down 3%; STINS COMAN Extends Convertible Loan by Additional 12 Months
TEL AVIV, Israel, May 12, 2011 /PRNewswire-FirstCall/ -- RiT Technologies (NASDAQ: RITT), today announced its financial results for the first quarter ended March 31, 2011.
Revenues for the first quarter of 2011 were $3.2 million, up 25% compared with $2.6 million for the first quarter of 2010 and 12% compared with $2.8 for the fourth quarter of 2010. Net loss for the quarter was $966K ($0.24 per share on a basic and diluted basis), a decrease of 3% compared with $995K ($0.38 per share on a basic and diluted basis), for the first quarter of 2010, and 12% compared with $1.1 million ($0.28 per share on a basic and diluted basis), for the fourth quarter of 2010.
Comments of Management
Commenting on the results, Mr. Eran Ayzik, RiT's President and CEO, said, "The first quarter was a good beginning to what we believe will be a year of continued growth and progress for RiT. The quarter's revenue increase reflects the growing success of an expanded sales and marketing team in recovering markets. With the goal of returning to profitability as soon as possible, we continue to focus on close management of all our expenses, balancing strategic investment in sales, marketing and product development with reduced expenses in other categories."
Mr. Ayzik continued, "Our plan for 2011 includes the continued ramp of our sales activities in target markets, the expansion of our channel network and the roll-out of an exciting new product line, together with continued investment in all of our technologies. We are excited about the new 'look and feel' of our marketing materials, which reflect the energy and motivation of a company on the move. As always, we are grateful for the support of our controlling shareholder, whose full backing has given us the flexibility to pursue our strategic vision."
Mr. Ayzik concluded, "Taken as a whole, with growing markets, a talented sales staff, a growing product portfolio and confident support from our controlling shareholder, we feel well positioned as we enter 2011."
Extension of Convertible Loan
As announced on April 18, 2011, Stins Coman Inc., RiT's controlling shareholder, has extended the term of its $10 million convertible loan agreement by an additional 12 months until June 11, 2012. During this period, RiT may draw on any additional portion of the loan according to the terms of the original agreement signed in June 2009. According to the original loan agreement, Stins Coman has provided RiT with a credit line of up to $10 million, with the outstanding principal accruing at an annual interest rate of 2.47%. As of May 12 2011, RiT has drawn approximately $6.5 million of the loan.
About RiT Technologies
RiT is a leading provider of intelligent solutions for infrastructure management, asset management, environment and security, and network utilization. RiT Enterprise solutions address datacenters, communication rooms and workspace environments, ensuring maximum utilization, reliability, decreased downtime, physical security, automated deployment, asset tracking, and troubleshooting. RiT Carrier solutions provide carriers with the full array of network mapping, testing and bandwidth qualification capabilities needed for access network installation and service provisioning. RiT's field-tested solutions are delivering value in thousands of installations for top-tier enterprises and operators throughout the world.
For more information, please visit our website: http://www.rittech.com
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. For example, when we discuss a field trial which could lead to a multi-million dollar Carrier deal, we are using a forward looking statement. 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. We are under no obligation, and 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.
RiT Technologies Ltd.
STATEMENTS OF OPERATIONS (U.S GAAP)
(U.S dollars in thousands, except per share data)
For the three
months ended
March 31,
(Unaudited)
2011 2010
U.S. $ U.S. $
Sales 3,195 2,562
Cost of sales 1,799 1,362
Gross profit 1,396 1,200
Operating costs and expenses:
Research and development, net 421 557
Sales and marketing 1,417 1,117
General and administrative 532 505
Total operating expenses 2,370 2,179
Operating Loss (974) (979)
Financial income (loss), net 8 (16)
Net Income (Loss) (966) (995)
Basic and Diluted net
Loss per ordinary share (0.24) (0.38)
Weighted average number of ordinary shares,
used to compute basic and diluted net loss
per ordinary share
3,978,370 2,604,428
RiT TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS (U.S GAAP)
(U.S dollars in thousands)
March 31, 2011 December 31,2010
(Unaudited) (Unaudited)
Assets
Current Assets
Cash and cash equivalents 971 1,391
Trade receivables, net 3,777 3,000
Other current assets 500 259
Inventories 3,194 3,310
Total Current Assets 8,442 7,960
Long term Assets
Assets held for severance benefits 844 1,204
844 1,204
Property and Equipment
Cost 3,342 3,298
Less - accumulated depreciation 3,072 3,038
270 260
Total Assets 9,556 9,424
Liabilities and Shareholders' Equity
Current Liabilities
Trade payables 2,467 2,391
Other payables and accrued expenses 1,254 1,206
Total Current Liabilities 3,721 3,597
Other Liabilities
Convertible Loan from
principal shareholder 1,606 1,519
Liability in respect of employees'
severance benefits 956 1,377
2,562 2,896
Total Liabilities 6,283 6,493
Shareholders' Equity
Share capital 1,219 892
Treasury stock (27) (27)
Additional paid-in capital 40,823 39,842
Accumulated deficit (38,742) (37,776)
Total Shareholders' Equity 3,273 2,931
Total Liabilities and Shareholders'
Equity 9,556 9,424
Company Contact:
Moti Antebi
CFO
+972-3-766-4249
[email protected]
SOURCE RiT Technologies Ltd
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article