RiT Technologies Reports Financial Results for the Fourth Quarter & Full Year 2010

TEL AVIV, Israel, February 1, 2011 /PRNewswire-FirstCall/ -- RiT Technologies (NASDAQ: RITT) today announced its financial results for the fourth quarter and full year ended December 31, 2010.

Revenues for the fourth quarter of 2010 were $2.8 million, up 29% compared with $2.2 million for the fourth quarter of 2009. Net loss for the quarter was $1.1 million ($0.28 per share on a basic and diluted basis) compared with $1.6 million ($0.61 per share on a basic and diluted basis) in the fourth quarter of 2009.

For the twelve month period, revenues increased by 32% to $11.4 million from $8.7 million in 2009. Net loss for the year decreased by 46% to $3.5 million ($1.10 per share on a basic and diluted basis) compared with $6.5 million ($2.48 per share on a basic and diluted basis) for 2009.

Comments of Management

Commenting on the results, Mr. Eran Ayzik, RiT's President and CEO, said, "2010 was a transitional period during which we reorganized and stabilized the Company and began executing a strategy aimed at renewed growth and profitability. We are pleased to have been able to achieve a 46% reduction in our net loss for the year together with a 32% increase in our sales.

"However, our revenues are still below their true potential. In 2011 we will continue executing our strategy, including the expansion of our sales and marketing efforts and the development of an exciting new cabling product line. With the intention of doubling our sales force, we have recently added several sales people and will soon be adding more. In parallel, we continue to make progress in building out our channels for targeted emerging markets, as demonstrated by the agreements announced during the quarter and the additional partnerships that are currently in discussion."

Mr. Ayzik concluded, "Taken as a whole, we are progressing according to plan. With recovering markets, superb products and a strengthened sales and marketing team, we are poised for growth in 2011 and for the long term."

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: 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 Year
                               months ended               ended
                               December 31,               December 31,
                               (Unaudited)                (Unaudited)

                               2010      2009         2010         2009
                               U.S. $    U.S. $       U.S. $       U.S. $

    Sales                      2,849      2,214         11,400       8,655
    Cost of sales              1,632      1,307          6,325       4,710
    Gross profit               1,217        907          5,075       3,945

    Operating costs and
    expenses:
    Research and development:
    Research and development,
    gross                        448        760          1,976       3,158
    Less - royalty-bearing
    participation                  0        206             73         206
    Research and
    development, net             448        554          1,903       2,952

    Sales and marketing        1,294      1,417          4,581       5,268
    General and administrative   567        521          2,012       2,065
    Total operating expenses   2,309      2,492          8,496      10,285
    Operating Loss            (1,092)    (1,585)        (3,421)     (6,340)
    Financial income (loss),
    net                          (10)        (7)           (71)       (110)
    Net Income (Loss)         (1,102)    (1,592)        (3,492)     (6,450)

    Basic and Diluted net
    Loss per
    ordinary share             (0.28)     (0.61)         (1.10)      (2.48)

    Weighted average number
    of ordinary
    shares, used to
    compute basic and
    diluted net loss
    per ordinary share     3,929,207  2,604,428      3,171,124   2,604,428

                                              RiT TECHNOLOGIES LTD.
                                     CONSOLIDATED BALANCE SHEETS (U.S GAAP)
                                           (U.S dollars in thousands)
                                      December 31,2010    December 31,2009
                                       (Unaudited)           (Unaudited)
    Assets
    Current Assets
    Cash and cash equivalents              1,391                1,610
    Trade receivables, net                 3,000                2,044
    Other current assets                     259                  462
    Assets held for severance benefits         0                  112
    Inventories                            3,310                3,355
    Total Current Assets                   7,960                7,583

    Long term Assets
    Trade receivables, net                     0                  181
    Assets held for severance benefits     1,204                1,409
                                           1,204                1,590
    Property and Equipment
    Cost                                   3,298                3,252
    Less - accumulated depreciation        3,038                2,870
                                             260                  382

    Total Assets                           9,424                9,555
    Liabilities and Shareholders' Equity
    Current Liabilities
    Short-term Loan                            0                  250
    Trade payables                         2,391                1,322
    Other payables and accrued expenses    1,206                1,340
    Liability in respect of employees'
    severance benefits                         0                  143
    Total Current Liabilities              3,597                3,055
    Other Liabilities
    Convertible Loan from principal
    shareholder                            1,519                1,805
    Liability in respect of employees'
    severance benefits                     1,377                1,633
                                           2,896                3,438
    Total Liabilities                      6,493                6,493
    Shareholders' Equity
    Share capital                          3,555                  559
    Treasury stock                           (27)                 (27)
    Additional paid-in capital            37,179               36,820
    Accumulated deficit                  (37,776)             (34,290)
    Total Shareholders' Equity             2,931                3,062
    Total Liabilities and Shareholders'
    Equity                                 9,424                9,555


    COMPANY CONTACT:

    Moti Antebi
    CFO
    +972-3-766-4249
    [email protected]

SOURCE RiT Technologies Ltd