RiT Technologies Reports First Quarter 2004 Results
Highest Revenues in 7 Quarters
TEL AVIV, Israel, May 5 /PRNewswire-FirstCall/ -- RiT Technologies (Nasdaq: RITT), the pioneer and world-leading provider of intelligent physical layer solutions, today announced financial results for the first quarter ended March 31, 2004. Revenues for the first quarter of 2004 were $4,384,000, an increase of 26% compared to $3,485,000 for the first quarter of 2003, and 5% compared to $4,186,000 for the fourth quarter of 2003. Net loss for the quarter declined to ($885,000), or ($0.10) per share, compared to ($1,061,000), or ($0.12) per share for the first quarter of 2003, and ($1,347,000), or ($0.15) per share for the fourth quarter of 2003. Commenting on the results, Liam Galin, President and CEO, said, "We are proud to report our highest revenues in seven quarters, together with strengthening gross margins and a continued reduction in net loss. For the first time in six years, and in sharp contrast to our normal seasonal pattern, our revenues were higher in the first quarter than they were in the fourth, reflecting the receipt of several repeat Carrier solution orders. In parallel, the cost-cutting put in place over the past two years continues to contribute to the bottom line. "On the Enterprise side, we are making progress towards closing important new PatchView(TM) IPLMS (Intelligent Physical Layer Management Solution) sales. In addition, we have recently launched joint sales activities with NORDX/CDT, our new strategic partner. Although we cannot predict the exact timing of specific orders, we are on track in our plans to rebuild the business and to achieve growth in 2004. We are also encouraged by reawakened interest in our Carrier solutions, as demonstrated by late-stage negotiations in process with five new PairView(TM)/ PairQ(TM) customers." The Company will host a conference call to discuss these results on Wednesday, May 5th, at 10:00 A.M. Eastern Time/ 17:00 Israel time. To participate, please call 1-800-322-0079 from the US (toll free), or +1-973-935-2407 International, and the ID code: 4722413. A replay of the call will be available beginning at 12 noon ET on the day of the call for 14 days by calling 1-877-519-4471 from the US (toll free), or +1-973-341-3080 from the rest of the world. ID code: 4722413. About RiT Technologies RiT Technologies pioneered the development of intelligent physical layer solutions, designed to provide superior control, utilization and maintenance of networks. RiT's innovative solutions help customers capitalize on network investments and reduce cost of ownership. RiT's Enterprise Solutions include PatchView(TM) for full web-based management, planning and troubleshooting of network physical layer connectivity, and SMART Cabling(TM) System components for single-source, end-to-end structured cabling solutions. PairView(TM) and PairQ(TM) Carrier Solutions help telcos capitalize on outside plant investments by giving them reliable, mass-verified and qualified infrastructure and connectivity databases. With a global sales network spanning 60 countries, RiT's key customers include major financial institutions, corporations and global telecommunications companies such as: Deutsche Telekom, Alcatel, TELMEX, TELENOR, The New York Mercantile Exchange (NYMEX), ING Barings, INVESCO, DIAGEO, Daewoo, and Reuters. RiT is a member of the RAD group, a world leader in communications solutions. For more information, please visit our website: www.rittech.com Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities Exchange Commission. This press release is available at http://www.rittech.com/ and http://www.portfoliopr.com/ 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) 2004 2003 Sales 4,384 3,485 Cost of sales 2,504 2,059 Gross profit 1,880 1,426 Operating cost and expenses: Research and development, gross 905 892 Less royalty-bearing participation 56 85 Research and development, net 849 807 Sales and marketing 1,584 1,382 General and administrative 337 323 Total operating expenses 2,770 2,512 Operating loss (890) (1,086) Financial income, net 5 25 Loss for the period (885) (1,061) Basic and diluted loss per share (0.10) (0.12) Basic and diluted weighted average number of shares 8,910,352 8,910,352 RiT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEET (U.S GAAP) (U.S dollars in thousands) March 31, December 31, 2004 2003 (Unaudited) (Audited) Assets Current Assets Cash and cash equivalents 1,941 2,714 Marketable securities 559 560 Trade, net 3,484 3,369 Other 831 767 Inventories 4,634 4,760 Total Current Assets 11,449 12,170 Property and Equipment Cost 3,243 3,209 Less accumulated depreciation 2,917 2,858 326 351 Assets held for severance benefits 1,392 1,435 Total Assets 13,167 13,956 Liabilities and Shareholders' Equity Current Liabilities Trade payables 3,152 3,225 Other payables and accrued expenses 2,406 2,153 Total Current Liabilities 5,558 5,378 Long-term Liabilities Liability for employees severance benefits 1,887 1,970 Total Long-term Liabilities 1,887 1,970 Total Liabilities 7,445 7,348 Shareholders' Equity Share capital 260 260 Additional paid-in capital 23,928 23,928 Accumulated other comprehensive income 14 15 Notes receivable from employees (27) (27) Accumulated deficit (18,453) (17,568) Total Shareholders' Equity 5,722 6,608 Total Liabilities and Shareholders' Equity 13,167 13,956 RiT TECHNOLOGIES: Simona Green Financial Director +972-3-766-4249 firstname.lastname@example.org PORTFOLIO PR: Paul Holm / Jerry Cahn 212-736-9224 email@example.com / firstname.lastname@example.org
SOURCE RiT Technologies
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