RiT Technologies Reports Fourth Quarter & Full Year 2003 Results
* Strongest Quarter of the Year
* Sequential Revenue Increase and Substantial Bottom Line Improvement
* Growing Interest and Momentum in Both Enterprise and Carrier Sides of
TEL AVIV, Israel, Feb. 3 /PRNewswire-FirstCall/ -- RiT Technologies (Nasdaq: RITT), the pioneer of intelligent physical layer network management, today reported financial results for the fourth quarter and full year ended December 31, 2003. Revenues for the fourth quarter of 2003 were $4,186,000, an increase of 18% compared to $3,547,000 for the third quarter of 2003. Revenues for the fourth quarter of 2002 were $4,377,000. Net loss for the period was ($1,347,000), or ($0.15) per share, compared to ($3,707,000), or ($0.42) per share for the third quarter of 2003, and ($1,828,000), or ($0.21) per share, for the fourth quarter of 2002. Revenues for the year ended December 31, 2003 were $15,189,000, compared to $18,424,000 for 2002. Net loss for the period, including a $1.9 million inventory write-off taken in the third quarter, was ($6,817,000), or ($0.77) per share. Net loss for 2002, which included a $1.5 million inventory write- off, was ($6,910,000), or ($0.78) per share. Commenting on the results, Liam Galin, President and CEO, said, "The fourth quarter of 2003, the strongest of the year, showed sequential revenue increase and substantial bottom line improvement. Sales of our leading Enterprise solutions continue to account for the lion's share of our revenues, including the steady contribution of OEM sales. The return to our normal seasonal pattern of stronger fourth quarter revenues is an encouraging indicator. At the same time, we are seeing growing interest and momentum in both the Enterprise and Carrier sides of our business. "We are proud to have recently formed a strategic alliance with NORDX/CDT, one of the world's leading developers of structured cabling solutions. NORDX has become a strong proponent of the IPLMS (Intelligent Physical Layer Management System) concept, and recognizes our PatchView(TM) as the best solution available. We are planning joint sales and marketing activities with the goal of selling our IPLMS systems to clients on four continents, an initiative with the potential to significantly increase our Enterprise sales." Mr. Galin continued, "The fourth quarter has been an active period in terms of new product releases. At the BICSI Winter Conference, one of the cabling industry's major trade shows, we launched PVMax(TM), a powerful new PatchView(TM) platform, together with a new version of PatchView for the Enterprise(TM) (PV4E) software. The combined offering provides improved ease of use, implementation and maintenance benefits, together with a dramatically improved ROI that enhances its value proposition for our customers. "Overall, we feel that we are well positioned as we move into 2004, and are making every effort to translate the growing interest in both our product lines into increased revenues and an improved bottom line." The Company will host a conference call to discuss the results on Tuesday, February 3rd, at 10:00 A.M. Eastern Time/ 17:00 Israel time. To participate, please call 1-800-322-0079 (toll-free) from the US, or +1-973-935-2407 from international locations. The ID Code of the call is RIT. For those unable to participate, the teleconference will be available for replay for 14 days by calling 1-877-519-4471 (U.S.) / 1-973-341-3080 (International), beginning 12 o'clock noon (EST) the day of the call. About RiT Technologies RiT Technologies pioneered the development of intelligent physical layer management 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/ COMPANY Simona Green CONTACT: Financial Director +972-3-766-4249 email@example.com PORTFOLIO PR Paul Holm/Jerry Cahn CONTACTS: 212-736-9224 firstname.lastname@example.org/ email@example.com RiT TECHNOLOGIES LTD. STATEMENTS OF OPERATIONS (U.S GAAP) (U.S dollars in thousands, except per share data) For the three months For the twelve months ended Dec. 31, ended Dec. 31, 2003 2002 2003 2002 (Unaudited) (Audited) Sales 4,186 4,377 15,189 18,424 Cost of sales 2,627 2,566 10,782 11,080 Gross profit 1,559 1,811 4,407 7,344 Operating cost and expenses: Research and development: Research and development, gross 1,060 1,101 3,978 4,177 Less - royalty-bearing participation -- 44 116 264 Research and development, net 1,060 1,057 3,862 3,913 Sales and marketing 1,452 1,948 5,857 7,846 General and administrative 430 628 1,587 2,591 Total operating expenses 2,942 3,633 11,306 14,350 Operating loss (1,383) (1,822) (6,899) (7,006) Financial income (expenses), net 36 (6) 82 96 Loss for the period (1,347) (1,828) (6,817) (6,910) Basic and diluted loss per share (0.15) (0.21) (0.77) (0.78) Basic and diluted weighted average number of shares 8,910,352 8,910,352 8,910,352 8,910,352 RiT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEET (U.S GAAP) (U.S dollars in thousands) Dec. 31, 2003 Dec. 31, 2002 (Audited) (Audited) Assets Current Assets Cash and cash equivalents 2,714 6,163 Marketable securities 560 570 Trade receivables, net 3,369 3,632 Other current assets 767 684 Inventories 4,760 6,920 Total Current Assets 12,170 17,969 Property and Equipment Cost 3,209 3,181 Less - accumulated depreciation 2,858 2,610 351 571 Assets held for severance benefits 1,435 1,182 Total Assets 13,956 19,722 Liabilities and Shareholders' Equity Current Liabilities Trade payables 3,225 2,143 Other payables and accrued expenses 2,153 2,445 Total Current Liabilities 5,378 4,588 Long-term Liabilities Liability for employees severance benefits 1,970 1,700 Total Liabilities 7,348 6,288 Shareholders' Equity Share capital 260 260 Additional paid-in capital 23,928 23,928 Accumulated other comprehensive income 15 24 Notes receivable from employees (27) (27) Accumulated deficit (17,568) (10,751) Total Shareholders' Equity 6,608 13,434 Total Liabilities and Shareholders' Equity 13,956 19,722
SOURCE RiT Technologies
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