RiT Technologies Reports Q4 and 2011 Fiscal Year Results

Apr 30, 2012, 15:08 ET from RiT Technologies Ltd

TEL AVIV, Israel, April 30, 2012 /PRNewswire/ --

RiT Technologies (NASDAQ: RITT) today announced its financial results for the fourth quarter and twelve months ended December 31, 2011.  

Revenues for the fourth quarter of 2011 were $3.4 million, up 18% compared year-over-year with $2.8 million recorded in the fourth quarter of 2010, and down 9% compared sequentially with $3.7 million recorded in the third quarter of 2011.

Net loss for the quarter was $1.3 million ($0.28 per share on a basic and diluted basis) compared with $1.1 million ($0.28 per share on a basic and diluted basis) for the fourth quarter of 2010 and $854 thousand ($0.19 per share on a basic and diluted basis) for the third quarter of 2011.

For the twelve-month period, revenues increased by 20% to $13.7 million from $11.4 million in 2010. Net loss for the year was $3.9 million ($0.88 per share on a basic and diluted basis) compared with $3.5 million ($1.10 per share on a basic and diluted basis) for 2010. The results for the twelve-month period included a non-cash share-based compensation expense of $502 thousand, while the results of 2010 included a non-cash share-based compensation expense of $12 thousand.

Comments of Management

Commenting on the results, Dr. Vadim Leiderman, RiT's President and CEO, said, "The fourth quarter was a period of increasing sales on a year-over-year basis together with the recruitment of qualified new sales personnel in our key territories. After the quarter, we launched our unique new CenterMind™ Data Center Infrastructure Management (DCIM) solution, a product that we believe will position us to succeed in the fast-growing data center market. Our Board of Directors has recently strengthened the Company's management team and given it the task of forming a new strategy for building the business to a whole new level in the years ahead. We are currently finalizing the new strategy and expect to begin its execution in the near term."

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. 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.
                                 CONSOLIDATED BALANCE SHEETS (U.S GAAP)
                                       (U.S dollars in thousands)
                                                 December 31, 2011     December 31, 2010
                                                       (Unaudited)             (Audited)

    Current Assets
    Cash and cash equivalents                                  884                 1,391
    Trade receivables, net                                   3,921                 3,259
    Other current assets                                       567                   259
    Assets held for severance benefits                           0                     7
    Inventories                                              3,779                 3,310
    Total Current Assets                                     9,151                 8,226
    Long term Assets
    Assets held for severance benefits                       1,179                 1,197
                                                             1,179                 1,197
    Property and Equipment
    Cost                                                     3,406                 3,298
    Less - accumulated depreciation                          3,167                 3,038
                                                               239                   260
    Total Assets                                            10,569                 9,683
    Liabilities and Shareholders' Equity
    Current Liabilities
    Short-term Loan                                            162                   259
    Trade payables                                           2,470                 2,391
    Other payables and accrued liabilities                   1,211                 1,206
    Liability in respect of employees'
    severance benefits                                           0                     9
    Total Current Liabilities                                3,843                 3,865
    Other Liabilities
    Principle shareholder convertible loan                     400                 1,519
    Liability in respect of employees'
    severance benefits                                       1,291                 1,368
                                                             1,691                 2,887
    Total Liabilities                                        5,534                 6,752
    Shareholders' Equity
    Share capital                                            1,126                   854
    Treasury stock                                             (27)                  (27)
    Additional paid-in capital                              45,569                39,880
    Accumulated deficit                                    (41,633)              (37,776)
    Total Shareholders' Equity                               5,035                 2,931
    Total Liabilities and Shareholders'
    Equity                                                  10,569                 9,683
                                       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)    (Audited)
                                            2011         2010       2011            2010
                                          U.S. $       U.S. $     U.S. $          U.S. $
    Sales                                  3,363        2,849     13,720          11,400
    Cost of sales                          1,805        1,632      7,489           6,319
    Gross profit                           1,558        1,217      6,231           5,081
    Operating costs and expenses:
    Research and development:
    Research and development, gross          508          448      1,871           1,976
    Less - royalty-bearing participation       0            0          0              73
    Research and development, net            508          448      1,871           1,903
    Sales and marketing                    1,451        1,294      5,684           4,581
    General and administrative               876          567      2,463           2,012
    Total operating expenses               2,835        2,309     10,018           8,496
    Operating Loss                        (1,277)      (1,092)    (3,787)         (3,415)
    Financial Income (Loss), net             (39)         (10)      (102)            (71)
    Other Income / (Loss)                     32            0         32               0
    Net Income (Loss)                     (1,284)      (1,102)    (3,857)         (3,486)
    Basic and Diluted net Loss per
    ordinary share                         (0.28)       (0.28)     (0.88)          (1.10)
    Weighted average number of ordinary
    shares, used to compute basic and
    diluted net loss per ordinary share 4,579,170    3,929,207  4,378,942       3,171,124

COMPANY CONTACT:     Moti Antebi, CFO +972-77-270-7210 moti.antebi@rittech.com

SOURCE RiT Technologies Ltd