RiT Technologies Delivers Continued Sales Growth in Q3 2011

Oct 26, 2011, 08:00 ET from RiT Technologies Ltd

TEL AVIV, Israel, October 26, 2011 /PRNewswire/ --


- Q3 Revenues Up 38% Compared YOY with Q3 2010 -

- 9-Month Revenues Up 21% Compared with 2010 -


RiT Technologies (NASDAQ: RITT) today announced its financial results for the third quarter and nine months ended September 30, 2011.  

Revenues for the third quarter of 2011 were $3.7 million, up 38% compared year-over-year with $2.7 million recorded in the third quarter of 2010, and up 7% compared sequentially with $3.5 million recorded in the second quarter of 2011. Net loss for the quarter was $854 thousand ($0.19 per share on a basic and diluted basis), up 1% compared with $843 thousand ($0.26 per share on a basic and diluted basis) for the third quarter of 2010, and up 13% compared with $754 thousand ($0.17 per share on a basic and diluted basis) for the second quarter of 2011.

For the nine-month period, revenues were $10.4 million, up 21% compared with $8.6 million in the nine-months of 2010. Net loss for the nine-months totaled $2.6 million ($0.6 per share on a basic and diluted basis) compared with $2.4 million ($0.82 per share on a basic and diluted basis) for the nine-months of 2010.

Comments of Management

Commenting on the results, Mr. Eran Ayzik, RiT's President and CEO, said, "Our third quarter results reflect continued strong momentum in the areas of product development, partnership building and marketing & sales, all of which are creating a solid platform for future growth. Our efforts to broaden our sales and marketing activities are raising RiT's exposure in emerging markets and enabling us to better serve our customers. This was highlighted during the quarter by our opening of a second sales office in China. And we intend to duplicate this effort in other high growth, emerging regions.

"Parallel to our marketing activities, we continue to develop our product portfolio, improve our supply chain and deepen our strategic partnerships in order to well-position the Company for further growth."

About RiT Technologies

RiT is a leading provider of intelligent solutions for infrastructure management, asset management, environment and security, and network utilization. RiT Enterprise solutions address datacenters, communication rooms and workspace environments, ensuring maximum utilization, reliability, decreased downtime, physical security, automated deployment, asset tracking, and troubleshooting. RiT Carrier solutions provide carriers with the full array of network mapping, testing and bandwidth qualification capabilities needed for access network installation and service provisioning. RiT's field-tested solutions are delivering value in thousands of installations for top-tier enterprises and operators throughout the world.

For more information, please visit our website: http://www.rittech.com

Safe Harbor Statement

In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate", "forecast", "target", "could" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  For example, when we discuss a field trial which could lead to a multi-million dollar Carrier deal, we are using a forward looking statement. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described under the heading "Risk Factors" in our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 20-F, which may be revised or supplemented in subsequent reports filed with the SEC.  These factors include, but are not limited to, the following: our ability to raise additional financing, if required; the continued development of market trends in directions that benefit our sales; our ability to maintain and grow our revenues; our dependence upon independent distributors, representatives and strategic partners; our ability to develop new products and enhance our existing products; the availability of third-party components used in our products; the economic condition of our customers; the impact of government regulation; and the economic and political situation in Israel.  We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.

                              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)
                                       2011     2010       2011       2010
    Sales                            3,697     2,686     10,357      8,551
    Cost of sales                    1,987     1,519      5,684      4,693
    Gross profit                     1,710     1,167      4,673      3,858
    Operating costs and expenses:
    Research and development, net      486       454      1,363      1,453
    Sales and marketing              1,386     1,047      4,233      3,287
    General and administrative         625       504      1,587      1,446
    Total operating expenses         2,497     2,005      7,183      6,186
    Operating Loss                    (787)     (838)    (2,510)    (2,328)
    Financial income (loss), net       (67)       (5)       (63)       (61)
    Net Income (Loss)                 (854)     (843)    (2,573)    (2,389)
    Basic and Diluted net Loss 
    per ordinary share               (0.19)    (0.26)     (0.60)     (0.82)
    Weighted average number of 
    ordinary shares, used to compute 
    basic and diluted net loss
    per ordinary share           4,572,248 3,219,913  4,308,740  2,912,171
                                         RiT TECHNOLOGIES LTD.
                                CONSOLIDATED BALANCE SHEETS (U.S GAAP)
                                       (U.S dollars in thousands)
                               September 30, 2011          December 31, 2010
                                   (Unaudited)                  (Audited)
    Current Assets
    Cash and cash equivalents              905                       1,391
    Trade receivables, net               3,732                       3,000
    Other current assets                   627                         259
    Inventories                          3,552                       3,310
    Total Current Assets                 8,816                       7,960
    Long term Assets
    Assets held for severance benefits     844                       1,204
                                           844                       1,204
    Property and Equipment
    Cost                                 3,395                       3,298
    Less - accumulated depreciation      3,140                       3,038
                                           255                         260
    Total Assets                         9,915                       9,424
    Liabilities and Shareholders' Equity
    Current Liabilities
    Trade payables                       2,298                       2,391
    Other payables and accrued expenses  1,310                       1,206
    Total Current Liabilities            3,608                       3,597
    Other Liabilities
    Convertible Loan from principal 
    shareholder                          2,523                       1,519
    Liability in respect of employees' 
    severance benefits                     947                       1,377
                                         3,470                       2,896
    Total Liabilities                    7,078                       6,493
    Shareholders' Equity
    Share capital                        1,364                         892
    Treasury stock                         (27)                        (27)
    Additional paid-in capital          41,850                      39,842
    Accumulated deficit                (40,350)                    (37,776)
    Total Shareholders' Equity           2,837                       2,931
    Total Liabilities and 
    Shareholders' Equity                 9,915                       9,424

COMPANY CONTACT:     Moti Antebi CFO +972-77-270-7210 motia@rit.co.il

SOURCE RiT Technologies Ltd