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

Business



    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
                    simonag@rit.co.il
 
      PORTFOLIO PR  Paul Holm/Jerry Cahn
      CONTACTS:     212-736-9224
                    pholm@portfoliopr.com/ jcahn@portfoliopr.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

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.