RiT Technologies Reports Fourth Quarter and Year End 2004 Results
Best Quarterly Results in 3 Years Revenues Up 35% vs. Last Year and 31% vs.
Prior Quarter; Quarterly Loss Year-over-Year Slashed by 86%
TEL AVIV, Israel, Feb. 1 /PRNewswire-FirstCall/ -- RiT Technologies (Nasdaq: RITT), the pioneer and world-leading provider of intelligent physical layer solutions, today announced financial results for the fourth quarter and fiscal year ended December 31, 2004. (Logo: http://www.newscom.com/cgi-bin/prnh/20040727/LNTU008LOGO-a ) Revenues for the fourth quarter of 2004 were $5,651,000, an increase of 35% compared with $4,186,000 for the fourth quarter of 2003 and 31% compared with $4,331,000 for the third quarter of 2004. Net loss for the quarter declined by 86% to ($193,000), or ($0.01) per share, compared with ($1,347,000), or ($0.15) per share, for the fourth quarter of 2003, and a decline of 76% compared to ($801,000), or ($0.06) per share, for the third quarter of 2004. Revenues for fiscal 2004 rose 21% to $18,427,000 compared with $15,189,000 for 2003. Net loss for the year declined by 56% to ($2,975,000), or ($0.27) per share, compared with ($6,817,000), or ($0.77) per share for fiscal 2003. "2004 has been a turnaround year for RIT, and the fourth quarter provides a solid platform for growth next year," commented Liam Galin, President and CEO, said, "The fourth quarter and year was marked by rising Carrier and Enterprise sales, above-50% gross margins and our lowest net loss in three years. With a backlog of deals giving us visibility into 2005, a promising sales pipeline and rising OEM momentum, we forecast further growth ahead with the goal of returning to profitability during the first half of the year. "Our quarterly sales and gross margins are at their highest level since 2001, reflecting the first revenues recognized under the framework of the large Carrier orders placed during the fourth quarter. On the Enterprise side, we continue to see growing demand for our Intelligent Physical Layer Management Solutions (IPLMS), with an encouraging ramp-up of sales in the US. To address significant opportunities in the Far East, we have initiated aggressive sales efforts, some in cooperation with our strategic alliance partners. Overall, we are optimistic regarding our future prospects and feel well-positioned for 2005." The Company will host a conference call to discuss these results on Wednesday, February 2nd, 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 use the ID code: 5646683. 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, and using the ID code: 5646683. 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: http://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 risk 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: VP Finance +972-3-766-4249 firstname.lastname@example.org PORTFOLIO PR Jerry Cahn / Paul Holm CONTACT: 212-736-9224 email@example.com / firstname.lastname@example.org RiT TECHNOLOGIES LTD. STATEMENTS OF OPERATIONS (U.S GAAP) (U.S dollars in thousands, except per share data) For the three For the twelve months ended months ended December 31, December 31, 2004 2003 2004 2003 U.S. $ U.S. $ U.S. $ U.S. $ (unaudited) (unaudited) (unaudited) (audited) Sales 5,651 4,186 18,427 15,189 Cost of sales 2,677 2,627 10,066 10,782 Gross profit 2,974 1,559 8,361 4,407 Operating expenses: Research and development: Research and development, gross 1,012 1,060 3,767 3,978 Less -- royalty-bearing participation - - 286 116 Research and development, net 1,012 1,060 3,481 3,862 Sales and marketing 1,623 1,452 6,165 5,857 General and administrative 551 430 1,719 1,587 Total operating expenses 3,186 2,942 11,365 11,306 Operating loss (212) (1,383) (3,004) (6,899) Financial income, net 19 36 29 82 Loss for the period (193) (1,347) (2,975) (6,817) Basic and diluted loss per share (0.01) (0.15) (0.27) (0.77) Basic and diluted weighted average number of shares 13,980,484 8,910,352 11,174,865 8,910,352 RiT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEET (U.S GAAP) (U.S dollars in thousands) December 31, December 31, 2004 2003 (unaudited) (audited) Assets Current Assets Cash and cash equivalents 7,773 *3,560 Marketable securities 531 560 Trade, net 4,376 3,369 Other 1,016 767 Inventories 6,548 4,760 Total Current Assets 20,244 13,016 Property and Equipment Cost 3,458 3,209 Less -- accumulated depreciation 3,048 2,858 410 351 Assets held for severance benefits 1,578 1,435 Total Assets 22,232 14,802 Liabilities and Shareholders' Equity Current Liabilities Short-term bank credits 2,467 *846 Trade payables 4,871 3,225 Other payables and accrued expenses 2,425 2,153 Total Current Liabilities 9,763 6,224 Long-term Liabilities Liability for employees' severance benefits 2,069 1,970 Total Long-term Liabilities 2,069 1,970 Total Liabilities 11,832 8,194 Shareholders' Equity Share capital 374 260 Additional paid-in capital 30,610 23,928 Treasury stocks (27) (27) Accumulated other comprehensive income (14) 15 Accumulated deficit (20,543) (17,568) Total Shareholders' Equity 10,400 6,608 Total Liabilities and Shareholders' Equity 22,232 14,802 * Reclassified
SOURCE RiT Technologies
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