RiT Technologies Reports Financial Results for Q3 2012
TEL AVIV, Israel, February 28, 2013 /PRNewswire/ --
RiT Technologies (NASDAQ: RITT) today announced its financial results for the third quarter and nine months ended September 30, 2012.
Revenues for the third quarter of 2012 totaled $2.1 million, down 25% compared with $2.8 million in the second quarter of 2012 and 42% compared year-over-year with $3.7 million in the third quarter of 2011.
Investment in the development of new products totaled $1.1 million in the third quarter and $2.9 million in the first nine months of 2012.
Net loss for the quarter was $2.8 million, or $0.46 per share. This compared with a net loss of $2.5 million, or $0.48 per share, in the second quarter of 2012 and $0.9 million, or $0.19 per share in the third quarter of 2011.
For the nine-month period, revenues totaled $6.3 million compared with $10.4 million in the first nine months of 2011. Net loss for the period totaled $8.5 million, or $1.54 per share, compared with $2.6 million, or $0.60 per share, for the parallel period of 2011.
Comments of Management
Commenting on the results, Dr. Vadim Leiderman, RiT's President and CEO, said, "During the third quarter, we continued to move forward according to a plan focused on the accelerated development of our new IWON and IIM product lines, each of which brings a new approach to solving the unmet needs of fast-growth markets. We plan to continue with this high level of investment throughout 2013, while also taking considerable measures reorganizing our sales organization."
About RiT Technologies
RiT is a leading provider of intelligent infrastructure management (IIM) solutions and a developer of a new revolutionary 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 while minimizing unplanned downtime. RiT's IIM solutions are deployed around the world, in a broad range of organizations, including: data centers, enterprises, corporations, government agencies, financial institutions, airport authorities, healthcare institutions, and education institutions. RiT's indoor optical wireless technology solution will help our clients 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 exchange under the symbol RITT.
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 the planned high level investment and considerable cost reduction measures throughout 2013 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 For the nine months ended months ended September 30, September 30, (Unaudited) (Unaudited) 2012 2011 2012 2011 Sales 2,137 3,697 6,338 10,357 Cost of sales 1,840 1,987 4,842 5,684 Gross profit 297 1,710 1,496 4,673 Operating costs and expenses: Research and development, net 1,110 486 2,865 1,363 Sales and marketing 1,297 1,386 4,405 4,233 General and administrative 789 625 2,380 1,587 Total operating expenses 3,196 2,497 9,650 7,183 Operating Loss (2,899) (787) (8,154) (2,510) Financial income (loss), net 55 (67) (15) (63) Net Income (Loss) (2,844) (854) (8,169) (2,573) Basic and Diluted net Loss per ordinary share (0.46) (0.19) (1.48) (0.60) Weighted average number of ordinary shares, used to compute basic and diluted net loss per ordinary share 6,146,042 4,572,248 5,521,429 4,308,740
RiT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEETS (U.S GAAP) (U.S dollars in thousands) September 30, 2012 December 31, 2011 (Unaudited) (Audited) Assets Current Assets Cash and cash equivalents 1,001 884 Trade receivables, net 2,674 3,921 Other current assets 372 567 Inventories 4,428 3,779 Total Current Assets 8,475 9,151 Long term Assets Assets held for severance benefits 1,300 1,111 Property and Equipment Cost 3,673 3,350 Less - accumulated depreciation 3,252 3,111 421 239 Total Assets 10,196 10,501 Liabilities and Shareholders' Equity Current Liabilities Short-term Loan 245 162 Trade payables 1,510 2,470 Other payables and accrued expenses 1,290 1,144 Total Current Liabilities 3,045 3,776 Other Liabilities Convertible Loan from principal shareholder 4,300 400 Liability in respect of employees' severance benefits 1,530 1,290 5,830 1,690 Total Liabilities 8,875 5,466 Shareholders' Equity Share capital 1,422 1,126 Treasury stock (27) (27) Additional paid-in capital 49,728 45,569 Accumulated deficit (49,802) (41,633) Total Shareholders' Equity 1,321 5,035 Total Liabilities and Shareholders' Equity 10,196 10,501
Elan Yaish, CFO
SOURCE RiT Technologies Ltd