RiT Technologies Announces First Quarter 2001 Results

- 57% Increase in Revenues Yields 80% Rise in Gross Profits -



- Major Datacom Partnership to Extend RiT's Leadership of

Emerging Physical Layer Management Industry -



Apr 30, 2001, 01:00 ET from RiT Technologies

    TEL AVIV, Israel, April 30 /PRNewswire/ -- RiT Technologies (Nasdaq:   RITT)
 today announced financial results for the first quarter ended March 31, 2001.
     Revenues for the first three months of 2001 increased by 57% to
 $11,104,000 compared to $7,068,000 for the same period in 2000.  Gross margins
 for the quarter were 52.5%, compared to 45.7% for the first quarter of 2000.
 Operating income for the first quarter was $633,000, compared to an operating
 loss of ($48,000) for the first quarter of 2000.  Net income for the quarter
 was $705,000, or $0.07 per share fully diluted, compared to $13,000, or
 $0.00 per share fully diluted, for the corresponding period in 2000.
     Commenting on the quarter, Liam Galin, President and CEO, said, "The first
 quarter was a promising beginning to the year 2001.  Revenues for the quarter
 showed substantial year-over-year growth compared to the corresponding
 quarter, and, in line with our expected seasonal pattern, were only slightly
 lower than those of the fourth quarter of 2000.  Strong sales in both datacom
 and telecom sectors enabled us to exceed our target revenues and profits, and
 a solid backlog gives us visibility for the next quarter.
     "We expect sales of PatchView, our advanced physical layer network
 management solution, to accelerate towards the end of 2001 and into 2002.  It
 took several years for the market to understand the significant cost savings
 and performance benefits that PatchView creates through real-time network
 visibility and remote network management.  As demand emerged and sales
 momentum grew, other industry leaders took notice.  Recently, a large
 competitor introduced its own PatchView-like offering.  We welcome this
 development, which validates the physical layer management concept, and
 promises to create much broader overall market demand.  As the leading player
 in this complex industry, with years of experience and more than
 2,000,000 managed ports installed, we believe that RiT will benefit from the
 increased demand.
     "To enable us to take full advantage of the growing opportunity, we have
 signed a memorandum of understanding for a strategic partnership with Panduit,
 one of the industry's leading vendors of structured cabling solutions.
 Through the partnership, we will extend our marketing reach to new customers
 and industries.  At the same time, in expectation of increased PatchView
 demand, we are stepping up support of our global distributor network.  We
 believe the PatchView momentum is only beginning."
     Mr. Galin continued, "Our telecom sector also delivered a strong first
 quarter.  We continued shipping and installing PairView equipment under the
 framework agreement with a major US ILEC.  We were pleased to record a
 significant order from Deutsche Telecom, and follow-on orders from Telmex and
 Czech Telecom, two of our first PairView users, who continue to enjoy the
 benefits of their Outside Plant Management programs.
     "In a down market, our products, which help our customers cut costs and
 optimize operations, become even more attractive.  We continue to build our
 worldwide sales and marketing efforts, and to develop our product pipeline, to
 take advantage of market opportunities."
     RiT Technologies will be hosting a conference call to discuss financial
 results Tuesday, May 1, 2001 at 10:00 am Eastern.  The call will be available
 via the Internet at http://www.rittech.com.  Replays of the call will be
 available until May 10, 2001.  Replays may be accessed via the Internet at
 http://www.rittech.com.
 
     About RiT Technologies
     RiT leverages its unique technology for integrated network management
 solutions to improve network performance and maximize the return of telecom
 and datacom physical layer network investments.  RiT's PairView(TM) targets
 the telecommunication outside plant network management market, estimated at a
 potential of $1-2 B, and improves telco's ability to provision high bandwidth
 services (xDSL).  RiT's PatchView for the Enterprise(TM) advanced solution
 targets the enterprise management market, estimated at $7.5 B/yr.  RiT's
 PatchView(TM) and SMART Cabling(TM) systems target the enterprise LAN wiring
 market, estimated as $5-6 B/yr.
     RiT's sales network spans 50 countries.  Key customers include major
 global telecommunications companies and enterprises, like Deutsche Telekom,
 Alcatel, TELMEX, TELENOR, American Express, The New York Mercantile Exchange
 (NYMEX), and ING Barings.  RiT is a member of the RAD group, a world leader in
 communications solutions.  For more information, please visit RiT's 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 risks detailed from time to time in the Company's filings with the
 Securities and Exchange Commission.
 
                               RIT TECHNOLOGIES LTD.
                        STATEMENTS OF OPERATIONS (U.S. GAAP)
                       (In thousands, except per share data)
 
                                                        For the three months
                                                          ended March 31,
                                                           (Unaudited)
                                                        2001            2000
                                                       U.S. $         U.S. $
     Sales                                             11,104          7,068
     Cost of sales                                      5,279          3,839
     Gross profit                                       5,825          3,229
     Operating expenses:
     Research and development:
     Research and development, gross                    1,159          1,011
     Less - royalty-bearing participation, net          (387)             75
     Research and development, net                      1,546            936
 
     Sales and marketing:
     Sales and marketing, gross                         2,810          1,903
     Add - participation of Fund for
      Encouragement of marketing Activities, net            0             23
     Sales and marketing, net                           2,810          1,926
     General and administrative                           836            415
     Total operating expenses                           5,192          3,277
     Operating income (loss)                              633           (48)
     Financial income, net                                 71             58
     Capital gain (loss)                                    1              3
     Income (loss) for the period                         705             13
 
     Fully diluted earnings per share                    0.07           0.00
 
     Weighted Average Number of Shares              9,466,265      9,600,841
 
                               RIT TECHNOLOGIES LTD.
                       CONSOLIDATED BALANCE SHEET (U.S. GAAP)
                             (U.S dollars in thousand)
 
                                                      March 31,     Dec. 31,
                                                         2001        2000
                                                    (Unaudited)    (Audited)
     Assets
     Current Assets
     Cash and cash equivalents                         15,588         13,142
     Accounts receivable:
      Trade, net                                        6,278          5,309
      Other                                             1,100          1,109
      Inventories                                      12,542         13,169
     Total Current Assets                              35,508         32,729
 
     Property and Equipment
     Cost                                               2,676          2,569
     Less - accumulated depreciation                    1,729          1,600
                                                          947            969
     Long term Investment                                 677            710
     Total Assets                                      37,132         34,408
 
     Liabilities and Shareholders' Equity
     Current Liabilities
     Accounts payable and accruals:
     Trade                                              3,990          4,749
     Deferred Revenue                                   8,728          6.110
     Other                                              4,068          3,896
     Total Current Liabilities                         16,786         14,755
 
     Long-term Liabilities
     Liability for severance pay                        1,289          1,388
     Total Long-term Liabilities                        1,289          1,388
     Total Liabilities                                 18,075         16,143
 
     Shareholders' Equity
     Share capital                                        259            258
     Additional paid-in capital                        23,637         23,551
     Capital reserves                                     157            157
     Notes receivable from employees                     (72)           (72)
     Accumulated deficit                              (4,924)        (5,629)
     Total Shareholders' Equity                        19,057         18,265
     Total Liabilities and Shareholders' Equity        37,132         34,408
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X91681765
 
 

SOURCE RiT Technologies
    TEL AVIV, Israel, April 30 /PRNewswire/ -- RiT Technologies (Nasdaq:   RITT)
 today announced financial results for the first quarter ended March 31, 2001.
     Revenues for the first three months of 2001 increased by 57% to
 $11,104,000 compared to $7,068,000 for the same period in 2000.  Gross margins
 for the quarter were 52.5%, compared to 45.7% for the first quarter of 2000.
 Operating income for the first quarter was $633,000, compared to an operating
 loss of ($48,000) for the first quarter of 2000.  Net income for the quarter
 was $705,000, or $0.07 per share fully diluted, compared to $13,000, or
 $0.00 per share fully diluted, for the corresponding period in 2000.
     Commenting on the quarter, Liam Galin, President and CEO, said, "The first
 quarter was a promising beginning to the year 2001.  Revenues for the quarter
 showed substantial year-over-year growth compared to the corresponding
 quarter, and, in line with our expected seasonal pattern, were only slightly
 lower than those of the fourth quarter of 2000.  Strong sales in both datacom
 and telecom sectors enabled us to exceed our target revenues and profits, and
 a solid backlog gives us visibility for the next quarter.
     "We expect sales of PatchView, our advanced physical layer network
 management solution, to accelerate towards the end of 2001 and into 2002.  It
 took several years for the market to understand the significant cost savings
 and performance benefits that PatchView creates through real-time network
 visibility and remote network management.  As demand emerged and sales
 momentum grew, other industry leaders took notice.  Recently, a large
 competitor introduced its own PatchView-like offering.  We welcome this
 development, which validates the physical layer management concept, and
 promises to create much broader overall market demand.  As the leading player
 in this complex industry, with years of experience and more than
 2,000,000 managed ports installed, we believe that RiT will benefit from the
 increased demand.
     "To enable us to take full advantage of the growing opportunity, we have
 signed a memorandum of understanding for a strategic partnership with Panduit,
 one of the industry's leading vendors of structured cabling solutions.
 Through the partnership, we will extend our marketing reach to new customers
 and industries.  At the same time, in expectation of increased PatchView
 demand, we are stepping up support of our global distributor network.  We
 believe the PatchView momentum is only beginning."
     Mr. Galin continued, "Our telecom sector also delivered a strong first
 quarter.  We continued shipping and installing PairView equipment under the
 framework agreement with a major US ILEC.  We were pleased to record a
 significant order from Deutsche Telecom, and follow-on orders from Telmex and
 Czech Telecom, two of our first PairView users, who continue to enjoy the
 benefits of their Outside Plant Management programs.
     "In a down market, our products, which help our customers cut costs and
 optimize operations, become even more attractive.  We continue to build our
 worldwide sales and marketing efforts, and to develop our product pipeline, to
 take advantage of market opportunities."
     RiT Technologies will be hosting a conference call to discuss financial
 results Tuesday, May 1, 2001 at 10:00 am Eastern.  The call will be available
 via the Internet at http://www.rittech.com.  Replays of the call will be
 available until May 10, 2001.  Replays may be accessed via the Internet at
 http://www.rittech.com.
 
     About RiT Technologies
     RiT leverages its unique technology for integrated network management
 solutions to improve network performance and maximize the return of telecom
 and datacom physical layer network investments.  RiT's PairView(TM) targets
 the telecommunication outside plant network management market, estimated at a
 potential of $1-2 B, and improves telco's ability to provision high bandwidth
 services (xDSL).  RiT's PatchView for the Enterprise(TM) advanced solution
 targets the enterprise management market, estimated at $7.5 B/yr.  RiT's
 PatchView(TM) and SMART Cabling(TM) systems target the enterprise LAN wiring
 market, estimated as $5-6 B/yr.
     RiT's sales network spans 50 countries.  Key customers include major
 global telecommunications companies and enterprises, like Deutsche Telekom,
 Alcatel, TELMEX, TELENOR, American Express, The New York Mercantile Exchange
 (NYMEX), and ING Barings.  RiT is a member of the RAD group, a world leader in
 communications solutions.  For more information, please visit RiT's 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 risks detailed from time to time in the Company's filings with the
 Securities and Exchange Commission.
 
                               RIT TECHNOLOGIES LTD.
                        STATEMENTS OF OPERATIONS (U.S. GAAP)
                       (In thousands, except per share data)
 
                                                        For the three months
                                                          ended March 31,
                                                           (Unaudited)
                                                        2001            2000
                                                       U.S. $         U.S. $
     Sales                                             11,104          7,068
     Cost of sales                                      5,279          3,839
     Gross profit                                       5,825          3,229
     Operating expenses:
     Research and development:
     Research and development, gross                    1,159          1,011
     Less - royalty-bearing participation, net          (387)             75
     Research and development, net                      1,546            936
 
     Sales and marketing:
     Sales and marketing, gross                         2,810          1,903
     Add - participation of Fund for
      Encouragement of marketing Activities, net            0             23
     Sales and marketing, net                           2,810          1,926
     General and administrative                           836            415
     Total operating expenses                           5,192          3,277
     Operating income (loss)                              633           (48)
     Financial income, net                                 71             58
     Capital gain (loss)                                    1              3
     Income (loss) for the period                         705             13
 
     Fully diluted earnings per share                    0.07           0.00
 
     Weighted Average Number of Shares              9,466,265      9,600,841
 
                               RIT TECHNOLOGIES LTD.
                       CONSOLIDATED BALANCE SHEET (U.S. GAAP)
                             (U.S dollars in thousand)
 
                                                      March 31,     Dec. 31,
                                                         2001        2000
                                                    (Unaudited)    (Audited)
     Assets
     Current Assets
     Cash and cash equivalents                         15,588         13,142
     Accounts receivable:
      Trade, net                                        6,278          5,309
      Other                                             1,100          1,109
      Inventories                                      12,542         13,169
     Total Current Assets                              35,508         32,729
 
     Property and Equipment
     Cost                                               2,676          2,569
     Less - accumulated depreciation                    1,729          1,600
                                                          947            969
     Long term Investment                                 677            710
     Total Assets                                      37,132         34,408
 
     Liabilities and Shareholders' Equity
     Current Liabilities
     Accounts payable and accruals:
     Trade                                              3,990          4,749
     Deferred Revenue                                   8,728          6.110
     Other                                              4,068          3,896
     Total Current Liabilities                         16,786         14,755
 
     Long-term Liabilities
     Liability for severance pay                        1,289          1,388
     Total Long-term Liabilities                        1,289          1,388
     Total Liabilities                                 18,075         16,143
 
     Shareholders' Equity
     Share capital                                        259            258
     Additional paid-in capital                        23,637         23,551
     Capital reserves                                     157            157
     Notes receivable from employees                     (72)           (72)
     Accumulated deficit                              (4,924)        (5,629)
     Total Shareholders' Equity                        19,057         18,265
     Total Liabilities and Shareholders' Equity        37,132         34,408
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X91681765
 
 SOURCE  RiT Technologies