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:
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
COMPANY Simona Green
CONTACT: VP Finance
PORTFOLIO PR Jerry Cahn / Paul Holm
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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
development, gross 1,012 1,060 3,767 3,978
Less -- royalty-bearing
participation - - 286 116
development, net 1,012 1,060 3,481 3,862
Sales and marketing 1,623 1,452 6,165 5,857
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,
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
Assets held for severance benefits 1,578 1,435
Total Assets 22,232 14,802
Liabilities and Shareholders'
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
Liability for employees' severance
benefits 2,069 1,970
Total Long-term Liabilities 2,069 1,970
Total Liabilities 11,832 8,194
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
SOURCE RiT Technologies