RiT Technologies Reports Q4 and Full Year 2009 Results
TEL AVIV, Israel, February 4 /PRNewswire-FirstCall/ --
- After Challenging 2009, Company has Accelerated Sales Efforts & Concluded Reorganization and Cost-Cutting Plan
RiT Technologies (NASDAQ: RITT), today announced its financial results for the fourth quarter and full year ended December 31, 2009.
Revenues for the fourth quarter of 2009 were $2.2 million compared with $4.5 million for the fourth quarter of 2008. Net loss for the quarter was $(1.6) million, or $(0.61) per share (basic and diluted), compared with $(0.7) million, or $(0.28) per share (basic and diluted) in the fourth quarter of 2008.
For the twelve month period, revenues were $8.7 million compared with $22.6 million for 2008. Net loss for 2009 was $(6.5) million, or $(2.48) per share (basic and diluted), compared with $(1.2) million, or $(0.59) per share (basic and diluted) for 2008.
Reorganization and Cost-Cutting Plan
Since the end of the third quarter of 2009, RiT has implemented a company-wide reorganization and cost-cutting plan that will reduce the Company's 2010 operating expenses by approximately $1.7 million compared with their level in 2009.
Comments of Management
"Our 2009 results reflect the recession that has dominated our target construction and financial verticals since late 2008, especially in the territories that are traditionally our strongest, such as Russia, the U.K. and North America," commented Mr. Avi Kovarsky, RiT's President & CEO. "In response to the reduced sales, we have accelerated our sales efforts and completed a comprehensive cost-cutting and reorganization program that will reduce our operating expenses by $1.7 million in 2010 as compared with 2009. At this expense level, and with the continued strong financing support of our controlling shareholder Stins Coman, we believe that we have the flexibility we need to pursue growth in step with the recovery of our markets."
Mr. Kovarsky continued, "At the same time, two positive factors give us room for optimism as we look forward into 2010 and beyond. First, we continue to have a rich sales pipeline, which includes significant late-stage Carrier deals and high-potential Enterprise deals delayed from 2009. Second, we see significant potential in our new SiteWiz and EPV solutions, which expand our reach into the resilient small-to-medium-sized Enterprise segment. We are encouraged by the market reaction to these products and are very near to closing a significant SiteWiz deal. "
Mr. Kovarsky concluded, "We are encouraged by the combination of these positive factors. With a lean expense structure, a rich sales pipeline, the right products and strong backing, we feel well positioned to achieve a turnaround and to deliver improved results in the year ahead."
Conference Call Details
The Company will host a conference call to discuss these results today,
Thursday, February 4th, at:
10:00 a.m. Eastern Time
9:00 a.m. Central Time
8:00 a.m. Mountain Time
7:00 a.m. Pacific Time
17:00 Israel Time
To participate, please call one of the following teleconferencing numbers approximately 5-10 minutes prior to the scheduled start of the call:
1-888-407-2553 Toll free for US
+972-3-9180609 - International
To participate in the webcast of the call, please log-in about 5-10 minutes prior to the start of the call as follows: http://www.videonewswire.com/event.asp?id=65771.
For those unable to participate, the teleconference will be archived for replay for 14 days at the same url address, beginning 12 o'clock noon (EST) the day of the call. Note: Participants in the webcast may submit questions to be addressed in the conference call in advance by email to: [email protected], by phone: +972-3-766-4249 or fax: +972-3-647-4115.
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 Environment and Security solutions enable companies to effectively control their datacenters, communications rooms and remote physical sites and facilities in real-time, comprehensively and accurately. 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.
CONSOLIDATED BALANCE SHEETS (U.S GAAP)
(U.S dollars in thousands)
December 31, 2009 December 31, 2008
Assets (Unaudited) (Audited)
Current Assets
Cash and cash equivalents 1,610 6,111
Trade receivables, net 2,044 3,737
Other current assets 462 536
Assets held for severance benefits 112 -
Inventories 3,355 3,978
7,583 14,362
Long Term Assets
Trade receivables, net 181 351
Assets held for severance benefits 1,409 1,579
1,590 1,930
Property and Equipment
Cost 3,252 3,502
Less - accumulated depreciation 2,870 2,958
382 544
Total Assets 9,555 16,836
Liabilities and Shareholders' Equity
Current Liabilities
Short-term loan 250 -
Trade payables 1,322 3,101
Other payables and accrued expenses 1,340 2,286
Liability in respect of employees'
severance benefits 143 -
3,055 5,387
Other Liabilities
Convertible loan from principal
shareholder 1,805 -
Liability in respect of employees'
severance benefits 1,633 2,076
3,438 2,076
Total Liabilities 6,493 7,463
Shareholders' Equity
Share capital 559 559
Treasury stock (27) (27)
Additional paid-in capital 36,820 36,681
Accumulated deficit (34,290) (27,840)
3,062 9,373
Total Liabilities and
Shareholders' Equity 9,555 16,836
RiT TECHNOLOGIES LTD.
STATEMENTS OF OPERATIONS (U.S GAAP)
(U.S dollars in thousands, except per share data)
For the three For the twelve
months ended months ended
December 31, December 31,
(Unaudited) (Unaudited)
2009 2008 2009 2008
U.S. $ U.S. $ U.S. $ U.S. $
Sales 2,214 4,538 8,655 22,556
Cost of sales 1,307 2,344 4,710 11,080
Gross profit 907 2,194 3,945 11,476
Operating costs and expenses:
Research and development:
Research and development, gross 760 925 3,158 3,781
Less - royalty-bearing
participation 206 - 206 104
Research and development, net 554 925 2,952 3,677
Sales and marketing 1,417 1,400 5,268 6,351
General and administrative 521 556 2,065 2,718
Total operating expenses 2,492 2,881 10,285 12,746
Operating loss (1,585) (687) (6,340) (1,270)
Financial income (loss), net (7) (39) (110) 52
Net Loss (1,592) (726) (6,450) (1,218)
Net loss per ordinary share
(basic and diluted) (0.61) (0.28) (2.48) (0.59)
Weighted average number of
ordinary shares, used to
compute net Loss per ordinary
share (basic and diluted) 2,604,428 2,604,428 2,604,428 2,060,697
COMPANY CONTACT:
Simona Green
VP Finance
+972-3-766-4249
[email protected]
SOURCE RiT Technologies Ltd
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