RiT Technologies Reports Financial Results for Q2 2012

TEL AVIV, Israel, August 6, 2012 /PRNewswire/ --

RiT Technologies (NASDAQ: RITT) today announced its financial results for the second quarter and six months ended June 30, 2012.

Revenues for the second quarter of 2012 totaled $2.8 million, up 100% compared with $1.4 million in the first quarter of 2012 but down 18% compared year-over-year with $3.5 million in the second quarter of 2011.

Investment in the development of new products totaled $1.1M in the second quarter and $1.8M in the first half of 2012.

Net loss for the quarter was $2.5 million, or $0.48 per share. This compared with a net loss of $2.8 million, or $0.54 per share, in the first quarter of 2012 and $0.8 million, or $0.17 per share in the second quarter of 2011.

For the six-month period, revenues totaled $4.2 million compared with $6.7 million in the first half of 2011. Net loss for the first half totaled $5.3 million, or $1.02 per share, compared with $1.7 million, or $0.41 per share, for the first six months of 2011.

Comments of Management

Commenting on the results, Dr. Vadim Leiderman, RiT's President and CEO, said, "During the second quarter, our Board of Directors approved our multi-year strategic plan, which calls for significant investment in the development of new products throughout 2012 and 2013. The Company current strategy, together with our new product lines, will enable us to ramp up our sales capabilities.  As such, we have now moved our development efforts into high gear with the goal of completing our new product lines for the rapidly growing DCIM (Data Center Infrastructure Management) and IIM (Intelligent Infrastructure Management) markets in the near future. In parallel, we are upgrading our sales and support capabilities in strategic markets, focusing on the establishment of partnerships with leading players, and taking considerable cost reduction measures to improve operational efficiency. We are confident that the significant fruits of our labor will become apparent in our future financial results."

About RiT Technologies

RiT is a leading provider of comprehensive management solutions for today's mission-critical data centers and communication rooms. Through the deployment of RiT's integrated DCIM (data center infrastructure management), IIM (intelligent infrastructure management), SMART Cabling™ and EPV™ real-time infrastructure management solutions, companies enhance both CAPEX and OPEX, increase their efficiency and improve their automated processes. RiT's field-tested solutions are delivering value in thousands of installations for top-tier enterprises and operators throughout the world. RiT's shares are traded on the Nasdaq exchange under the symbol RITT.

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 six
                                              months ended          months ended
                                                June 30,              June 30,
                                              (Unaudited)           (Unaudited)

                                            2012       2011       2012       2011
 
    Sales                                  2,839      3,464      4,201      6,659
    Cost of sales                          1,857      1,898      3,002      3,697
    Gross profit                             982      1,566      1,199      2,962
 
    Operating costs and expenses:
    Research and development, net          1,060        456      1,755        877
    Sales and marketing                    1,589      1,429      3,108      2,846
    General and administrative               819        430      1,591        962
    Total operating expenses               3,468      2,315      6,454      4,685
    Operating Loss                        (2,486)      (749)    (5,255)    (1,723)
 
    Financial income (loss), net             (18)        (5)       (70)         3
    Net Income (Loss)                     (2,504)      (754)    (5,325)    (1,720)
 
    Basic and Diluted net Loss 
    per ordinary share                     (0.48)     (0.17)     (1.02)     (0.41)
 
    Weighted average number of 
    ordinary shares, used to compute 
    basic and diluted net loss
    per ordinary share                 5,209,122  4,386,723  5,209,122  4,180,240
 

                                             RiT TECHNOLOGIES LTD.
                                    CONSOLIDATED BALANCE SHEETS (U.S GAAP)
                                          (U.S dollars in thousands)
 
                                                     June 30, 2012      December 31, 2011
                                                        (Unaudited)              (Audited)
    Assets
    Current Assets
    Cash and cash equivalents                                1,508                    884
    Trade receivables, net                                   3,386                  3,921
    Other current assets                                       384                    567
    Inventories                                              4,796                  3,779
    Total Current Assets                                    10,074                  9,151
 
    Long term Assets
    Assets held for severance benefits                       1,106                  1,111
 
    Property and Equipment
    Cost                                                     3,580                  3,350
    Less - accumulated depreciation                          3,230                  3,111
                                                               350                    239
 
    Total Assets                                            11,530                 10,501
 
    Liabilities and Shareholders' Equity
    Current Liabilities
    Short-term Loan                                            245                    162
    Trade payables                                           2,918                  2,470
    Other payables and accrued expenses                      1,524                  1,144
    Total Current Liabilities                                4,687                  3,776
 
    Other Liabilities
    Convertible Loan from principal shareholder              5,799                    400
    Liability in respect of employees' severance benefits    1,306                  1,290
                                                             7,105                  1,690
    Total Liabilities                                       11,792                  5,466
 
    Shareholders' Equity
    Share capital                                            1,126                  1,126
    Treasury stock                                             (27)                   (27)
    Additional paid-in capital                              45,597                 45,569
    Accumulated deficit                                    (46,958)               (41,633)
    Total Shareholders' Equity                                (262)                 5,035
    Total Liabilities and Shareholders' Equity              11,530                 10,501

COMPANY CONTACT:  

Eli Gendler, CFO
+972-77-270-7210
[email protected]

SOURCE RiT Technologies Ltd