TEL AVIV, Israel, April 29 /PRNewswire-FirstCall/ -- RiT Technologies (NASDAQ:RITT), the world-leading provider of intelligent infrastructure solutions, today announced financial results for the three months period ended March 31, 2008.
Revenues for the first quarter of 2008 were $4.8 million compared with $5.5 million for the first quarter of 2007. Net loss for the quarter was $1.1 million, or $0.08 per basic and diluted share, compared with a net loss of $0.8 million, or $0.05 per basic and diluted share, for the first quarter of 2007.
Commenting on the results, Doron Zinger, President and CEO, said, "Our revenues for the quarter were weak, reflecting a sales mix dominated by lower margin Enterprise sales. In parallel, despite the fact that we are now benefiting from last year's cost cuts, our results are being impacted by the period's sharp decline in the dollar-shekel exchange rate, which is increasing all of our shekel-based expenses - both our cost of goods sold and operating expenses - as expressed in dollar terms. This reduced our gross profit and bottom line results. Moving forward, our focus is to continue executing a strategy aimed at closing the Enterprise and Carrier opportunities in our sales pipeline while continuing to develop our OEM channels." Mr. Zinger continued, "Our biggest news, as we recently reported, is that our principal shareholders have entered into an agreement to sell their entire shareholdings to STINS COMAN Inc., our Russian distributor and a valued business partner for the past 14 years. We look forward to benefiting from their extensive industry expertise and support, both of which we believe will enable us to strengthen our leadership position and capture the market's significant growth opportunities." Conference Call Details The Company will host a conference call to discuss these results today, Tuesday, April 29th, at: 10:00 a.m. Eastern Daylight Time
9:00 a.m. Central Daylight Time
8:00 a.m. Mountain Daylight Time
7:00 a.m. Pacific Daylight 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 +972-3-918-0620
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=48196 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 thousands)
March 31, 2008 December 31,2007
(Unaudited) (Audited) Assets
Current Assets
Cash and cash equivalents 2,686 3,850
Trade receivables, net 3,480 4,536
Other current assets 328 370
Inventories 3,886 3,684
Total Current Assets 10,380 12,440 Long-term Investment 1,718 1,713 Property and Equipment
Cost 3,431 3,376
Less - accumulated depreciation 2,805 2,734
626 642
Total Assets 12,724 14,795 Liabilities and Shareholders' Equity
Current Liabilities
Trade payables 3,352 3,838
Other payables and accrued expenses 1,944 2,459
Total Current Liabilities 5,296 6,297 Long-term Liability
Liability in respect of
employees' severance benefits 2,141 2,178
Total Liabilities 7,437 8,475 Shareholders' Equity
Share capital 389 389
Treasury stock (27) (27)
Additional paid-in capital 32,650 32,580
Accumulated other comprehensive loss 0 0
Accumulated deficit (27,725) (26,622)
Total Shareholders' Equity 5,287 6,320
Total Liabilities and
Shareholders' Equity 12,724 14,795
RiT TECHNOLOGIES LTD. STATEMENTS OF OPERATIONS (U.S. GAAP)
(U.S dollars in thousands, except per share data)
For the three
months ended
March 31, 2008 2007
(Unaudited) (Unaudited) Sales 4,792 5,500
Cost of sales 2,736 3,030
Gross profit 2,056 2,470 Operating expenses:
Research and development, gross 1,002 1,073
Less - royalty-bearing participation 0 61
Research and development, net 1,002 1,012 Sales and marketing 1,638 1,785
General and administrative 569 504
Total operating expenses 3,209 3,301 Operating loss (1,153) (831)
Financial income, net 50 43
Net loss (1,103) (788) Basic net loss per ordinary share (0.08) (0.05)
Diluted net loss per ordinary share (0.08) (0.05) Weighted average number of ordinary
shares, used to compute basic net
income (loss) per ordinary
share 14,681,574 14,647,277 Weighted average number of ordinary
shares, used to compute diluted
income (loss) per ordinary
share 14,681,574 14,647,277 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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