RiT Technologies Reports Third Quarter 2004 Results
Revenue Growth & Increasing Gross Margins Substantially Reduce Net Loss;
OEM Success and Large Carrier Deals Contribute to Larger Sales Pipeline
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 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 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/ CONTACTS: RiT Technologies PORTFOLIO PR Simona Green Paul Holm / Jerry Cahn VP Finance +1-212-736-9224 +972-3-766-4249 email@example.com 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 nine months ended months ended September 30, September 30, (Unaudited) (Unaudited) 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 Operating expenses: Research and development: Research and 952 1,051 2,755 2,918 development, gross Less - 109 - 286 116 royalty-bearing participation Research and 843 1,051 2,469 2,802 development, net Sales and 1,452 1,570 4,542 4,405 marketing General and 433 499 1,168 1,157 administrative Total operating 2,728 3,120 8,179 8,364 expenses Operating loss (798) (3,716) (2,792) (5,516) Financial (3) 9 8 46 income, net Loss for the (801) (3,707) (2,784) (5,470) period Basic and diluted loss per share (0.06) (0.42) (0.27) (0.61) Basic and diluted weighted average number 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, 2004 2003 (Unaudited) (Audited) Assets Current Assets 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 2,858 376 351 Assets held for severance benefits 1,456 1,435 Total Assets 17,748 13,956 Liabilities and Shareholders' Equity Current Liabilities Trade payables 2,879 3,225 Other payables and accrued expenses 2,406 2,153 Total Current Liabilities 5,285 5,378 Long-term Liabilities Liability for employees severance 1,926 1,970 benefits Total Long-term Liabilities 1,926 1,970 Total Liabilities 7,211 7,348 Shareholders' Equity Share capital 373 260 Additional paid-in capital 30,320 23,699 Capital reserves 229 229 Accumulated other comprehensive (6) 15 income 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 Equity
SOURCE RiT Technologies
More by this Source
The Weizmann Institute of Science Deploys RiT Technologies PatchView+™ IIM System
Feb 25, 2014, 16:05 ET
RiT Technologies Promotes Motti Hania to President and Chief Executive Officer
Jan 21, 2014, 07:00 ET
RiT Technologies Institutes Expense Reduction Initiative to Improve its Operating Results
Jan 06, 2014, 09:09 ET
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.