TEL AVIV, Israel, January 29 /PRNewswire-FirstCall/ -- RiT Technologies (NASDAQ:RITT) today announced financial results for the fourth quarter and full-year period ended December 31, 2007.
Revenues for the fourth quarter of 2007 were $8.8 million, an 80% increase compared to $4.9 million for the third quarter of 2007, and a 24% increase compared to $7.1 million for the fourth quarter of 2006. Net income for the quarter was $92,000, or $0.01 per basic and diluted share. This compares with a net loss of $2.8 million, or $0.19 per basic and diluted share, for the third quarter of 2007, and net income of $101,000, or $0.01 per basic and diluted share, for the fourth quarter of 2006.
For the twelve month period, revenues were $23.4 million compared with $25.1 million for 2006. Net loss for the period was $5.3 million, or $0.36 per share (basic and diluted) compared with $1.7 million, or $0.12 per share (basic and diluted) for 2006. The results for the twelve-month period included a write-off of $1.8 million for slow-moving inventory reflected in Cost of Sales, and non-cash share-based compensation expense of $408,000. The results of 2006 included non-cash share-based compensation expense of $500,000.
Commenting on the results, Doron Zinger, President and CEO, said, "As expected, we have reported a strong top-line for the fourth quarter, due primarily to our recognition of a multi-million dollar Carrier deal booked earlier in the year. These stronger revenues have returned us to breakeven despite the fact that our Enterprise sales this quarter were unusually weighted toward lower-margin equipment, a fact which increased the strategic importance of the cost-cutting measures we implemented last quarter." Mr. Zinger continued, "We believe the strategies that we are following will enable us to achieve better results in 2008. To increase our sales, we continue to build our channels and to expand our reach into target regions. OEM sales of our Enterprise solutions continue to rise, demonstrating a clear ramp-up of the efforts of our existing partners and the addition of new partners for emerging regions. In parallel, we expect to record the full effect of our cost cuts beginning in the first quarter, a development which will further stabilize our business and improve our results. Taken as a whole, we believe we have put a sound plan into motion and look forward to reporting progress in the future." Conference Call Details The Company will host a conference call to discuss these results today, Tuesday, January 29th, at: 10:00 a.m. Eastern Standard Time 9:00 a.m. Central Standard Time 8:00 a.m. Mountain Standard Time 7:00 a.m. Pacific Standard 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: U.S. (toll free) - 1-888-668-9141
International - +972-3-918-0609
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=45436 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: , by phone: +972-3-766-4249 or fax: +972-3-647-4115.
About RiT Technologies RiT is a leading provider of physical network infrastructure control and management solutions. Deployed in the networks of many of the world's largest carriers and enterprises, its pioneering, fast-ROI products have proven their ability to simplify service deployment and provisioning, enhance troubleshooting accuracy, reduce infrastructure maintenance costs, enhance physical layer security and enable cost-effective service qualification and verification.
RiT is a member of the RAD group, a world leader in communications solutions. For more information, please visit our website: http://www.rittech.com/ 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" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 thousand) December 31,2007 December 31,2006
(Unaudited) (Audited) Assets
Current Assets
Cash and cash equivalents 3,850 6,515
Trade receivables, net 4,536 4,485
Other current assets 370 474
Inventories 3,684 7,567
Total Current Assets 12,440 19,041 Assets held for severance benefits 1,713 1,919 Property and Equipment
Cost 3,376 2,942
Less - accumulated depreciation 2,734 2,141
642 801
Total Assets 14,795 21,761 Liabilities and Shareholders' Equity
Current Liabilities
Trade payables 3,838 6,107
Other payables and accrued liabilities 2,459 2,088
Total Current Liabilities 6,297 8,195 Long-term Liability Liability in respect of employees'
severance benefits 2,178 2,398 Total Liabilities 8,475 10,593 Shareholders' Equity
Share capital 389 388
Treasury stock (27) (27)
Additional paid-in capital 32,580 32,127
Accumulated deficit (26,622) (21,320)
Total Shareholders' Equity 6,320 11,168 Total Liabilities and Shareholders'
Equity 14,795 21,761
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,
2007 2006 2007 2006
(Unaudited)(Unaudited) (Unaudited) (Audited) Sales 8,830 7,111 23,369 25,092
Cost of sales 4,823 3,279 14,156 12,942
Gross profit 4,007 3,832 9,213 12,150 Operating expenses: Research and development,
gross 1,101 1,195 4,722 4,325 Less - royalty-bearing
participation 0 55 110 128 Research and development, net 1,101 1,140 4,612 4,197
Sales and marketing 2,175 2,052 7,633 7,735
General and administrative 650 573 2,334 2,177
Total operating expenses 3,926 3,765 14,579 14,109 Operating income (loss) 81 67 (5,366) (1,959)
Financial income, net 11 34 64 237
Net income (loss) 92 101 (5,302) (1,722) Basic net income (loss) per
ordinary share 0.01 0.01 (0.36) (0.12) Diluted net income (loss) per
ordinary share 0.01 0.01 (0.36) (0.12) Weighted average number of
ordinary shares, used to
compute basic net income
(loss) per ordinary share 14,681,574 14,641,573 14,670,175 14,628,856 Weighted average number of
ordinary shares, used to
compute diluted income
(loss) per ordinary share 14,681,665 14,653,218 14,670,175 14,628,856 COMPANY CONTACT:
Simona Green
VP Finance
+972-3-766-4249
DATASOURCE: RiT Technologies Ltd CONTACT: COMPANY CONTACT: Simona Green, VP Finance, +972-3-766-4249,
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