RiT Technologies Reports Third Quarter and Nine Month 2003 Results
TEL AVIV, Israel, Oct. 21 /PRNewswire-FirstCall/ -- RiT Technologies (Nasdaq: RITT), the pioneer of intelligent physical layer network management, today announced financial results for the third quarter and nine months ended September 30, 2003. Revenues for the third quarter of 2003 increased by 3% to $3,547,000 compared to $3,456,000 in the third quarter of 2002. The results for the quarter include a write-off of $1.9 million for slow moving inventory reflected in Cost of Sales. Including this write-off, net loss for the quarter was ($3,707,000), or ($0.42) per share, compared to ($3,776,000), or ($0.42) per share in the third quarter of 2002. Revenues for the nine months ended September 30, 2003 were $11,003,000 compared to $14,047,000 for the first nine months of 2002. Net loss for the period, including the above-mentioned inventory write-off, was ($5,470,000), or ($0.61) per share, compared to ($5,082,000), or ($0.57) per share for the first nine months of 2002, which included a $1.5 million inventory write-off. Commenting on the results, Liam Galin, President and CEO, said, "We are encouraged by developments in the Enterprise side of the business, especially by growing interest and sales of our PatchView(TM) Physical Layer Management solution. During the quarter, both our OEM partners began reporting strategic sales with new customers, while other distributors reported increased Enterprise demand. Although sales cycles remain long in both our markets, our pipeline of potential Enterprise sales includes encouraging opportunities. These long sales cycles -- especially on the Carrier side -- mean that existing inventories of certain products will become outdated before they are sold. As such, we have written down the value of these inventories, recording a one-time charge of $1.9 million. "In parallel we continue with accelerated R&D efforts to enhance both Enterprise and Carrier product lines with the aim of improving their price performance and answering changing market needs. We believe the steps we have taken will enhance our leadership position in our markets." The Company will host a conference call to discuss these results on Tuesday, October 21st, at 11:00 A.M. Eastern Time/ 17:00 Israel time. To participate, please call 1-800-867-2186 from the US (toll free), or +1-785-832-1523 from the rest of the world, and mention the code RiT. A replay of the call will be available for 14 days beginning at 12 noon Eastern Time on the day of the call. To access the replay, please call 1-800-839-3612 from the US (toll free), or +1-402-220-2972 from the rest of the world. About RiT Technologies RiT Technologies pioneered the development of intelligent physical layer management 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 risks 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/. 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) 2003 2002 2003 2002 U.S. $ U.S. $ U.S. $ U.S. $ Sales 3,547 3,456 11,003 14,047 Cost of sales 4,143 3,478 8,155 8,514 Gross profit (loss) (596) (22) 2,848 5,533 Operating expenses: Research and development: Research and development, gross 1,051 1,079 2,918 3,076 Less - royalty-bearing participation -- 97 116 220 Research and development, net 1,051 982 2,802 2,856 Sales and marketing 1,570 2,037 4,405 5,898 General and administrative 499 750 1,157 1,963 Total operating expenses 3,120 3,769 8,364 10,717 Operating loss (3,716) (3,791) (5,516) (5,184) Financial income, net 9 15 46 102 Loss for the period (3,707) (3,776) (5,470) (5,082) Fully diluted loss per share (0.42) (0.42) (0.61) (0.57) Weighted Average Number of Shares -- Diluted 8,910,352 8,910,352 8,910,352 8,910,352 RiT TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEET (U.S GAAP) (U.S dollars in thousands) September 30, 2003 December 31, 2002 (Unaudited) (Audited) Assets Current Assets Cash and cash equivalents 4,140 6,163 Marketable securities 570 570 Accounts receivable: Trade, net 2,446 3,632 Other 897 684 Inventories 4,989 6,920 Total current assets 13,042 17,969 Property and Equipment Cost 3,222 3,181 Less - accumulated depreciation 2,817 2,610 405 571 Long-term Investment 1,389 1,182 Total assets 14,836 19,722 Liabilities and Shareholders' Equity Current Liabilities Accounts payable and accruals: Trade 2,593 2,143 Other 2,346 2,445 Total current liabilities 4,939 4,588 Long-term Liabilities Liability for severance pay 1,933 1,700 Total long-term liabilities 1,933 1,700 Total liabilities 6,872 6,288 Shareholders' Equity Share capital 260 260 Additional paid-in capital 23,698 23,698 Capital reserves 230 230 Accumulated other comprehensive income 24 24 Notes receivable from employees (27) (27) Accumulated deficit (16,221) (10,751) Total shareholders' equity 9,902 13,434 Total liabilities and shareholders' equity 14,836 19,722 COMPANY Simona Green CONTACT: Financial Director +972-3-766-4249 firstname.lastname@example.org PORTFOLIO PR Paul Holm/Matthew Karsh CONTACT: 212-736-9224 email@example.com / firstname.lastname@example.org
SOURCE RiT Technologies
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