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RiT Technologies Reports Financial Results for the Fourth Quarter and Full Year ended December 31, 2014

Tel Aviv, Israel – March 31, 2015 – RiT Technologies Ltd. (NASDAQ CM: RITT), a leading provider of Intelligent Network & Infrastructure Management solutions and Structured Cabling Solutions for enterprises, and the developer of an innovative indoor optical wireless solution (BeamCaster), today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2014.  

 

Financial Results for the Fourth Quarter and Full Year 2014 

 

Q4 2014

 

  • Revenues for the fourth quarter of 2014 were $0.92 million, compared with $2.98 million for the fourth quarter of 2013.

  • Net loss for the fourth quarter of 2014 (including approximately $137,000 in stock-based compensation expenses) was $3.2 million, or $0.20 per (basic and diluted) share, compared with a net loss of $3.3 million, or $0.30 per (basic and diluted) share in the fourth quarter of 2013 (including approximately $240,000 in stock-based compensation expenses).

Full Year 2014

  • Revenues for the full year 2014 were $6.6 million, compared with $11.2 million for full year 2013.

  • Net loss for the full year 2014 (including approximately $841,000 in stock-based compensation expenses) was $9.4 million, or $0.7 per (basic and diluted) compared with a net loss of $9.5 million, or $1.04 per (basic and diluted) shares in 2013 (including approximately $1.2 million in stock-based compensation expenses).

  • Cash and cash equivalents were $1.6 million as of December 31, 2014.

 

Recent Developments 

 

  • In December 2014, the Company promoted its Controller, Eran Erov, to VP Finance, replacing its CFO, who had resigned to pursue other opportunities.

  • In November 2014, RiT Technologies signed a significant OEM agreement with Belden, a global leader in signal transmission solutions for mission-critical applications, to utilize RiT’s IIM solution to enhance its network infrastructure management product portfolio in the Asia Pacific.

  • In November 2014, RiT signed a Memorandum of Understanding (MOU) with Wipro Ltd, an international information technology, consulting and outsourcing company to cooperate in identifying relevant projects in India and customizing their integrated solutions for projects, to maximize their business in India.

 

“The recently signed agreements with Belden and Wipro Ltd have the potential to increase our sales volume in 2015 and revenue in the high-growth Asia-Pacific markets,” noted Motti Hania, President and Chief Executive Officer of RiT Technologies.

 

Mr. Hania continued, “The past year has been a very challenging period for RiT Technologies but we enter in 2015 with renewed confidence. In addition to working diligently to reduce our operating expenses, we are concentrating our external activities on those areas of the business which offer the Company and its shareholders the greatest opportunity for success.”  

 

About RiT Technologies

RiT is a leading provider of IIM solutions and a developer of an innovative 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 of the network while minimizing unplanned downtime. Our IIM solutions are deployed around the world, in a broad range of organizations, including data centers in the private sector, government agencies, financial institutions, airport authorities, healthcare and education institutions. Our Beamcaster(TM) product is the first of our indoor optical wireless technology solutions. It is designed to help customers 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 Capital Market under the symbol RITT.

 

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 expansion of our sales and marketing efforts and the development of exciting new product lines in 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.

 

Company Contact:

Eran Erov, VP finance 

+972-77-270-7203 

eran.erov@rittech.com

 

Investor Relations Contacts:

KCSA Strategic Communications

Jeffrey Goldberger / Christopher Harrison

212-896-1249 / 212-896-1267

ritt@kcsa.com 

 

 

 

RiT TECHNOLOGIES LTD.
STATEMENTS OF OPERATIONS (U.S GAAP)
(U.S dollars in thousands, except per share data)

 

Three Months Ended
December 31
(unaudited)

Twelve Months Ended
December 31
(unaudited
)

 

2014

2013

2014

2013

Sales

923

2,981

6,619

11,179

Cost of sales

1,672

2,724

5,196

7,864

Gross profit

(749)

257

1,423

3,315


Operating expenses:
Research and development, net

625

994

2,769

4,125

Sales and marketing net.

941

1,349

3,948

4,786

General and administrative

818

1,135

4,021

3,803

Total operating expenses

2,384

3,478

10,738

12,714

Operating Loss

(3,133)

(3,221)

(9,315)

(9,399)

Financing loss, net

Other expenses

(26)

(6)

(35)

 (77)

(7)

(29)

Loss before income tax expense

Taxes on income

 

(3,165)

 

(3,256)

 

(9,399)

 

(9,528)

Net Loss

(3,165)

(3,256)

(9,399)

(9,528)

Net Loss per Share - Basic and Diluted

(0.20)

(0.30)

(0.70)

(1.04)

Weighted average number of ordinary shares outstanding - basic and diluted

15,541,306

10,871,914

13,471,060

9,138,947

 


 

RiT TECHNOLOGIES LTD.
CONSOLIDATED BALANCE SHEETS (U.S GAAP)
(U.S dollars in thousand)

 

December
31,2014

US$ thousands

December
31,2013
US$ thousands
 

Assets
Current Assets
Cash and cash equivalents

1,604

5,194

Trade receivables, net

1,680

3,839

Other current assets

335

237

Inventories

3,617

3,647

Total Current Assets

7,236

12,917

Assets held for severance benefits

967

1,161

Property and equipment, net

471

500

 

Total Assets

 

8,674

 

14,578


Liabilities and Shareholders' Equity


Curren Liabilities

Short-term loan

--

--

Trade Payables

967

1,878

Other payables and accrued liabilities

1,554

1,933

Total Current Liabilities

2,521

3,811

 

Principal shareholder convertible loan

 

1,000

 

2,000

Liability in respect of employees' severance benefits

1,224

1,338

Total Liabilities

4,745

7,149


Commitment and Contingencies

 

Shareholders' Equity

Share capital

3,384

2,782

Treasury stocks

(27)

(27)

Additional paid-in capital

72,239

66,942

Accumulated deficit

(71,667)

(62,268)

Total Shareholders' Equity

3,929

7,429

 

Total Liabilities and Shareholders' Equity

 

8,674

 

14,578

 

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