RiT Technologies Reports Financial Results For The Second Quarter And First Half Of 2013

TEL AVIV, Israel, Aug. 13, 2013 /PRNewswire/ -- RiT Technologies Ltd. (NASDAQ: RITT) today announced its unaudited financial results for the second quarter and first six months ended June 30, 2013. 

Financial Results for the Second Quarter 2013

  • Revenues for the second quarter of 2013 increased by 10.4% to $3.1 million, compared with $2.8 million for the second quarter of 2012 and 76.9% compared with $1.8 million for the first quarter of 2013.
  • Gross margin for the second quarter of 2013 improved to 36%, compared with 35% for the second quarter of 2012.
  • Net loss for the second quarter of 2013 (including approximately $141,000 in stock-based compensation expenses) decreased to $1.6 million, or $0.18 per (basic and diluted) share, a 36.3% improvement compared with a net loss of $2.5 million, or $0.48 per (basic and diluted) share in the second quarter of 2012 (including approximately $28,000 in stock-based compensation expenses) and a 44.6% improvement compared with a net loss of $2.9 million, or $0.37 per (basic and diluted) share for the first quarter of 2013 (including approximately $545,000 in stock-based compensation expenses).

Financial Results for the First Half 2013

  • Revenues for the first half of 2013 increased by 16.7% to $4.9 million, from $4.2 million for the first half of 2012.
  • Gross margin for the first half of 2013 improved to 36%, from 28.5% in the first half of 2012.
  • Net loss for the first half of 2013 (including approximately $686,000 in stock-based compensation expenses) decreased to $4.5 million, or $0.54 per (basic and diluted) share, a 15.9% improvement compared with the net loss of $5.3 million, or $1.02 per (basic and diluted) share recorded in the first half of 2012 (including approximately $92,000 in stock-based compensation expenses).

Cash and cash equivalents totaled $1.3 million as of June 30, 2013. Shareholders' equity increased to $5.0 million as of June 30, 2013, from $2.3 million on December 31, 2012.

Recent Developments

  • During the first half of 2013, the Company invested $2.4 million (net of government grants) in product development activities including the continued development of its Beamcaster™ and PatchView+ product lines.
  • During the first half of 2013, approximately $6.5 million of outstanding convertible loan (principal plus interest) from Stins Coman was converted into a total of 1,470,904 of the Company's ordinary shares at an average price of approximately $4.45 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 a decrease in operating expenses for the first half of 2013, a clear demonstration that the strategy we began implementing in 2012 is beginning 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.

COMPANY CONTACT:
Elan Yaish, CFO
+972-77-270-7210
elan.yaish@rittech.com

 


RiT TECHNOLOGIES LTD.

STATEMENTS OF OPERATIONS (US GAAP)

(U.S. dollars in thousands, except per share data)

(Unaudited)












Three  Months Ended June 30,


Six Months Ended June 30,



2013


2012


2013


2012










Sales


3,133


2,839


4,904


4,201










Cost of sales


2,007


1,857


3,144


3,002










Gross profit


1,126


982


1,760


1,199










Operating expenses


















Research and development, net


841


1,060


2,389


1,755

Sales and marketing, net


994


1,589


2,212


3,108

General and administrative


866


819


1,578


1,591

Total operating expenses


2,701


3,468


6,179


6,454










Operating loss


(1,575)


(2,486)


(4,419)


(5,255)










Financing loss, net


(20)


(18)


(57)


(70)



















Loss before income tax expense


(1,595)


(2,504)


(4,476)


(5,325)

Taxes on income


-


-


-


-










Net Loss


(1,595)


(2,504)


(4,476)


(5,325)










Net Loss Per Share - Basic and Diluted

(0.18)


(0.48)


(0.54)


(1.02)










Weighted Average Number of Ordinary







   Shares Outstanding - Basic and Diluted

8,733,387


5,209,122


8,233,649


5,209,122

 

RiT TECHNOLOGIES LTD.

CONSOLIDATED BALANCE SHEETS (US GAAP)

(U.S. dollars in thousands)








June 30,


December 31,



2013


2012

Assets


(Unaudited)


(Audited)

Current Assets:





Cash and cash equivalents


1,314


2,183

Trade receivables, net


2,810


1,998

Other current assets


492


461

Inventories


4,395


3,359

Total Current Assets


9,011


8,001






Assets held for severance benefits


1,206


1,126

Property and equipment, net


528


545






Total Assets


10,745


9,672






Liabilities and Shareholders' Equity





Current Liabilities:





Short term loan


-


174

Trade payables


2,618


1,234

Other payables and accrued liabilities


1,689


1,628

Total Current Liabilities


4,307


3,036






Principal shareholder convertible loan


-


3,000

Liability in respect of employees' severance benefits


1,396


1,346

Total Liabilities


5,703


7,382






Commitments and Contingencies










Shareholders' Equity:





Share capital


1,969


1,644

Treasury stock


(27)


(27)

Additional paid-in capital


60,316


53,413

Accumulated deficit


(57,216)


(52,740)

Total Shareholders' Equity


5,042


2,290






Total Liabilities and Shareholders' Equity


10,745


9,672

SOURCE RiT Technologies



RELATED LINKS
http://www.rittech.com

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