TEL AVIV, Israel, November 4 /PRNewswire-FirstCall/ -- RiT Technologies
(NASDAQ: RITT), the pioneer and world-leading provider of intelligent
physical layer solutions, today announced financial results for the third
quarter and nine months ended September 30, 2004.
Revenues for the third quarter of 2004 continued to increase: up 22% to
$4,331,000, from $3,547,000 in the third quarter of 2003, and up 7% from
$4,061,000 in the second quarter of 2004. Net loss for the quarter dropped to
($801,000), or ($0.06) per share, from ($3,707,000), or ($0.42) per share, in
the third quarter of 2003, and ($1,100,000), or ($0.12) per share, for the
second quarter of 2004. For comparison purposes, please note: the Company's
weighted average number of ordinary shares increased to 12,875,583 in the
third quarter of 2004 compared with 8,910,352 in the third quarter of 2003
and 8,912,352 in the second quarter of 2004.
Revenues for the first nine months of 2004 increased 16% to $12,776,000,
from $11,003,000 for the first three quarters of 2003. Net loss for the
period dropped to ($2,784,000), or ($0.27) per share, compared with
($5,470,000), or ($0.61) per share for the first nine months of 2003. For
comparison purposes, please note: the Company's weighted average number of
ordinary shares increased to 10,247,946 in the first nine months of 2004
compared with 8,910,352 in the first three quarters of 2003.
Commenting on the results, Liam Galin, President and CEO, said, "We are
pleased to report our third quarter of year-over-year revenue growth, our
highest gross margins in five quarters, and a significantly reduced net loss,
all despite the normal third quarter seasonality which affected our European
sales. These encouraging results reflect growth in Enterprise sales via our
direct channels and OEM partners together with the reawakening of our Carrier
business, developments that have also expanded our pipeline of PairView(TM)
and PatchView(TM) opportunities.
"We continue to enjoy increasing awareness of the benefits of Intelligent
Physical Layer Management (IPLMS) and Outside Plant Qualification systems.
With more and larger-scale IPLMS tenders coming to market throughout North
America and Europe, our OEM and Strategic Alliance (OSA) partners have
stepped up their activities and begun delivering impressive wins. The
momentum of our Carrier business has also increased, with two new
PairView(TM) deals delivered during the quarter and several large final-stage
deals, some that we expect to begin shipping before the end of the year."
Mr. Galin concluded, "As a result of these positives -- a fertile sales
environment, increasing partner activities, and a growing backlog of large
Carrier and Enterprise deals -- we feel that we are well-positioned. We
therefore expect a stronger fourth quarter characterized by continued
year-over-year revenue growth."
The Company will host a conference call to discuss these results on
Thursday, November 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 use the ID code: RIT Q3. 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: 5304198.
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
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 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
RiT Technologies PORTFOLIO PR
Simona Green Paul Holm / Jerry Cahn
VP Finance +1-212-736-9224
RiT TECHNOLOGIES LTD.
STATEMENTS OF OPERATIONS (U.S GAAP)
(U.S dollars in thousands, except per share data)
For the three For the nine
months ended months ended
September 30, September 30,
2004 2003 2004 2003
U.S. $ U.S. $ U.S. $ U.S. $
Sales 4,331 3,547 12,776 11,003
Cost of sales 2,401 4,143 7,389 8,155
Gross profit 1,930 (596) 5,387 2,848
Research and 952 1,051 2,755 2,918
Less - 109 - 286 116
Research and 843 1,051 2,469 2,802
Sales and 1,452 1,570 4,542 4,405
General and 433 499 1,168 1,157
Total operating 2,728 3,120 8,179 8,364
Operating loss (798) (3,716) (2,792) (5,516)
Financial (3) 9 8 46
Loss for the (801) (3,707) (2,784) (5,470)
per share (0.06) (0.42) (0.27) (0.61)
of shares 12,875,583 8,910,352 10,247,946 8,910,352
RiT TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEET (U.S GAAP)
(U.S dollars in thousands)
September 30, December 31,
Cash and cash equivalents 6,147 2,714
Marketable securities 540 560
Trade, net 3,602 3,369
Other 914 767
Inventories 4,713 4,760
Total Current Assets 15,916 12,170
Property and Equipment
Cost 3,391 3,209
Less - accumulated depreciation 3,015 2,858
Assets held for severance benefits 1,456 1,435
Total Assets 17,748 13,956
Liabilities and Shareholders'
Trade payables 2,879 3,225
Other payables and accrued expenses 2,406 2,153
Total Current Liabilities 5,285 5,378
Liability for employees severance 1,926 1,970
Total Long-term Liabilities 1,926 1,970
Total Liabilities 7,211 7,348
Share capital 373 260
Additional paid-in capital 30,320 23,699
Capital reserves 229 229
Accumulated other comprehensive (6) 15
Notes receivable from employees (27) (27)
Accumulated deficit (20,352) (17,568)
Total Shareholders' Equity 10,537 6,608
Total Liabilities and Shareholders' 17,748 13,956
SOURCE RiT Technologies