RiT Technologies Reports Second Quarter and First Half 2004 Results
- $7.1M PIPE Transaction Being Completed -
TEL AVIV, Israel, Aug. 4 /PRNewswire-FirstCall/ -- RiT Technologies (Nasdaq: RITT), the pioneer and world-leading provider of intelligent physical layer solutions, today announced financial results for the second quarter and first six months ended June 30, 2004. Revenues for the second quarter of 2004 were $4,061,000, compared to $3,971,000 for the second quarter of 2003 and $4,384,000 for the first quarter of 2004. Net loss for the quarter was ($1,100,000), or ($0.12) per share, compared to ($702,000), or ($0.08) per share, for the second quarter of 2003, and ($883,000), or ($0.10) per share, for the first quarter of 2004. Revenues for the first six months of 2004 were $8,445,000, a 13% increase compared to $7,456,000 for the first half of 2003. Net loss for the period was ($1,983,000), or ($0.22) per share, compared to ($1,763,000), or ($0.20) per share for the first half of 2002. Commenting on the results, Liam Galin, President and CEO, said, "Sales for the second quarter were somewhat lower than we expected, due partially to the timing of several deals. However, we are encouraged by the growth of our revenues on a six-month basis, as well as the promising pipeline of potential sales for both the Carrier and Enterprise sides of our business. We are delighted to be in the process of closing a $7.1 million private placement of ordinary shares (PIPE investment), a milestone transaction which increases the Company's stability and flexibility. "In general, we are moving towards larger average deals, a phenomenon which is essential for our development, but which also makes it harder to predict sales for any single quarter. During the quarter and immediately after, we recorded several initial PairView(TM) Pro orders from new customers, all of which will be delivered by the end of 2004. These sales, together with a number of high-quality deals now in the negotiating stage, point to the reawakening of Carrier demand. On the Enterprise side, we continue to see growing demand and an increased level of partner activities." Mr. Galin concluded, "Overall, with a stronger financial base, a more active Carrier market and mainstream acceptance of our Enterprise solutions, we feel encouraged about the future." The Company will host a conference call to discuss these results on Wednesday, August 4th, 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: 5005115. 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: 5005115. 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 email@example.com PORTFOLIO PR Paul Holm / Jerry Cahn CONTACT: 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 For the six months ended months ended June 30, June 30, (Unaudited) (Unaudited) 2004 2003 2004 2003 U.S. $ U.S. $ U.S. $ U.S. $ Sales 4,061 3,971 8,445 7,456 Cost of sales 2,485 1,953 4,988 4,012 Gross profit 1,576 2,018 3,457 3,444 Operating expenses: Research and development: Research and development, gross 899 975 1,803 1,867 Less - royalty-bearing participation 122 31 177 116 Research and development, net 777 944 1,626 1,751 Sales and marketing 1,506 1,453 3,090 2,835 General and administrative 398 335 735 658 Total operating expenses 2,681 2,732 5,451 5,244 Operating loss (1,105) (714) (1,994) (1,800) Financial income, net 5 12 11 37 Loss for the period (1,100) (702) (1,983) (1,763) Basic and diluted loss per share (0.12) (0.08) (0.22) (0.20) Basic and diluted weighted average number of shares 8,912,352 8,910,352 8,912,000 8,910,352 RiT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEET (U.S GAAP) (U.S dollars in thousands) June 30, December 31, 2004 2003 (Unaudited) (Audited) Assets Current Assets Cash and cash equivalents 524 2,714 Marketable securities 543 560 Trade, net 3,527 3,369 Other 773 767 Inventories 4,679 4,760 Total Current Assets 10,046 12,170 Property and Equipment Cost 3,292 3,209 Less - accumulated depreciation 2,968 2,858 324 351 Assets held for severance benefits 1,467 1,435 Total Assets 11,837 13,956 Liabilities and Shareholders' Equity Current Liabilities Trade payables 3,006 3,225 Other payables and accrued expenses 2,279 2,153 Total Current Liabilities 5,285 5,378 Long-term Liabilities Liability for employees severance benefits 1,942 1,970 Total Long-term Liabilities 1,942 1,970 Total Liabilities 7,227 7,348 Shareholders' Equity Share capital 260 260 Additional paid-in capital 23,930 23,928 Accumulated other comprehensive income (2) 15 Notes receivable from employees (27) (27) Accumulated deficit (19,551) (17,568) Total Shareholders' Equity 4,610 6,608 Total Liabilities and Shareholders' Equity 11,837 13,956
SOURCE RiT Technologies
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