RiT Technologies Reports Financial Results for Q3 2012

Feb 28, 2013, 16:40 ET from RiT Technologies Ltd

TEL AVIV, Israel, February 28, 2013 /PRNewswire/ --

RiT Technologies (NASDAQ: RITT) today announced its financial results for the third quarter and nine months ended September 30, 2012.  

Revenues for the third quarter of 2012 totaled $2.1 million, down 25% compared with $2.8 million in the second quarter of 2012 and 42% compared year-over-year with $3.7 million in the third quarter of 2011.

Investment in the development of new products totaled $1.1 million in the third quarter and $2.9 million in the first nine months of 2012.

Net loss for the quarter was $2.8 million, or $0.46 per share. This compared with a net loss of $2.5 million, or $0.48 per share, in the second quarter of 2012 and $0.9 million, or $0.19 per share in the third quarter of 2011.

For the nine-month period, revenues totaled $6.3 million compared with $10.4 million in the first nine months of 2011. Net loss for the period totaled $8.5 million, or $1.54 per share, compared with $2.6 million, or $0.60 per share, for the parallel period of 2011.

Comments of Management

Commenting on the results, Dr. Vadim Leiderman, RiT's President and CEO, said, "During the third quarter, we continued to move forward according to a plan focused on the accelerated development of our new IWON and  IIM product lines, each of which brings a new approach to solving the unmet needs of fast-growth markets. We plan to continue with this high level of investment throughout 2013, while also taking considerable measures reorganizing our sales organization."

About RiT Technologies

RiT is a leading provider of intelligent infrastructure management (IIM) solutions and a developer of a new revolutionary indoor optical wireless technology solution. Our IIM products provide and enhance security and network utilization for data centers, communication rooms and work space environments. They help companies plan and provision, monitor and troubleshoot their communications networks, maximizing utilization, reliability and physical security while minimizing unplanned downtime. RiT's IIM solutions are deployed around the world, in a broad range of organizations, including: data centers, enterprises, corporations, government agencies, financial institutions, airport authorities, healthcare institutions, and education institutions. RiT's indoor optical wireless technology solution will help our clients streamline deployment, reduce infrastructure design, installation and maintenance complexity and enhance security in a cost effective way. 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 the planned high level investment and considerable cost reduction measures throughout 2013 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)

                                   2012              2011              2012           2011

    Sales                         2,137             3,697             6,338         10,357
    Cost of sales                 1,840             1,987             4,842          5,684
    Gross profit                    297             1,710             1,496          4,673

    Operating costs and expenses:
    Research and development, net 1,110               486             2,865          1,363
    Sales and marketing           1,297             1,386             4,405          4,233
    General and administrative      789               625             2,380          1,587
    Total operating expenses      3,196             2,497             9,650          7,183
    Operating Loss               (2,899)             (787)           (8,154)        (2,510)

    Financial income (loss), net     55               (67)              (15)           (63)
    Net Income (Loss)            (2,844)             (854)           (8,169)        (2,573)

    Basic and Diluted net Loss
    per ordinary share            (0.46)            (0.19)            (1.48)         (0.60)

    Weighted average number of ordinary shares,
    used to compute basic and diluted net loss
    per ordinary share
                              6,146,042         4,572,248         5,521,429      4,308,740
                                               RiT TECHNOLOGIES LTD.
                                       CONSOLIDATED BALANCE SHEETS (U.S GAAP)
                                             (U.S dollars in thousands)

                                              September 30, 2012          December 31, 2011
                                               (Unaudited)                  (Audited)
    Current Assets
    Cash and cash equivalents                     1,001                         884
    Trade receivables, net                        2,674                       3,921
    Other current assets                            372                         567
    Inventories                                   4,428                       3,779
    Total Current Assets                          8,475                       9,151

    Long term Assets
    Assets held for severance benefits            1,300                       1,111

    Property and Equipment
    Cost                                          3,673                       3,350
    Less - accumulated depreciation               3,252                       3,111
                                                    421                         239
    Total Assets                                 10,196                      10,501

    Liabilities and Shareholders' Equity
    Current Liabilities
    Short-term Loan                                 245                         162
    Trade payables                                1,510                       2,470
    Other payables and accrued expenses           1,290                       1,144
    Total Current Liabilities                     3,045                       3,776

    Other Liabilities
    Convertible Loan from principal shareholder   4,300                         400
    Liability in respect of employees'
    severance benefits                            1,530                       1,290
                                                  5,830                       1,690
    Total Liabilities                             8,875                       5,466

    Shareholders' Equity
    Share capital                                 1,422                       1,126
    Treasury stock                                  (27)                        (27)
    Additional paid-in capital                   49,728                      45,569
    Accumulated deficit                         (49,802)                    (41,633)
    Total Shareholders' Equity                    1,321                       5,035
    Total Liabilities and Shareholders' Equity   10,196                      10,501


COMPANY CONTACT:   Elan Yaish, CFO +972-77-270-7210 


SOURCE RiT Technologies Ltd