RiT Technologies Reports First Quarter 2004 Results

Highest Revenues in 7 Quarters

May 05, 2004, 01:00 ET from RiT Technologies

    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
     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
                             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,
                                                               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.
                           (U.S dollars in thousands)
                                                      March 31,    December 31,
                                                         2004          2003
                                                     (Unaudited)    (Audited)
     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
      PORTFOLIO PR:      Paul Holm / Jerry Cahn
                         pholm@portfoliopr.com / jcahn@portfoliopr.com

SOURCE RiT Technologies