RiT Technologies Reports Third Quarter and Nine Months 2015 Results
25 November 2015 - 1:00AM
-Q3 2015 Revenue Increased 115% Year-Over-Year to
$4.3 Million
-Q3 2015 Gross Margin Increased to 46% Compared
to 42% in Q3 2014
RiT Technologies (NASDAQ:RITT), a leading provider
of Converged Infrastructure Management Solutions that enable
companies to maximize utilization and security of their network
infrastructure announced today its results for the third quarter
and nine months ended September 30, 2015.
Financial Highlights for the Third Quarter
and Nine Months Ended September 30, 2015
- Revenue for Q3 2015 increased 115% to $4.3 million, compared to
$2.0 million in Q3 2014
- Revenue for the first nine months of 2015 increased 115% to
$12.3 million, compared to $5.7 million in the same period of
2014
- Gross margin for Q3 2015 improved to 46%, compared to 42% in Q3
2014
- Gross margin for the first nine months of 2015 improved to 46%,
compared to 38% in the same period of 2014
- Net Profit for Q3 2015 was $0.04 million, or $0.00 per (basic
and diluted) share, compared to a net loss of $(1.8) million or
$(0.14) per (basic and diluted) share in Q3 2014
- The Net Profit for the third quarter, $0.04 million, was
comprised of:
- Net Profit of $0.42 million for RiT (not including RiT
Wireless)
- RiT Technologies share in its subsidiary RiT Wireless's net
loss $(0.37) million.
- Net profit for the first nine months of 2015 was $0.2 million,
or $0.01 per (basic and diluted) share, compared to a net loss of
$(6.2) million, or $(0.49) loss per (basic and diluted) share
recorded in the first nine months of 2014
- Cash and cash equivalents as of September 30, 2015 was $1.8
million
- Shareholders' equity as of September 30, 2015, increased to
$6.5 million, compared to $3.9 million on December 31, 2014
"We are pleased to report that our strong third quarter results
are the product of continued growth in revenues and net profit as
compared to the same period last year. During the third quarter, we
established our subsidiary, RiT Wireless, for which we raised $5
million specifically to support its growth objectives," commented
Yossi Ben Harosh, President and CEO of RiT Technologies Ltd.
Mr. Ben Harosh continued, "We are breaking out our net profit
for RiT at 10% on a stand alone basis, and continue to invest in
RiT Wireless's disruptive technology as we aim to accelerate the
launch of Beamcaster 2.0. We continue to experience strong momentum
in the CIS segment of our business, and we anticipate an increase
in sales in India and China, thanks in large part to the recent
signing of a strategic alliance with Yoga Automation in India."
"We also see increasing backlog of Connectivity and Software
solutions that will enable us to achieve our Q4 targets and
provides us with a good foundation for fiscal 2016. We are
investing further in the development of our Converged
Infrastructure Management System (CM 3.0) as RiT's market-leading
SW solution and services offering for the IT Infrastructure
management segment of our business. The CM 3.0 Software offering
will enable us to provide a horizontal solution for IT network
management, in turn providing a higher level of functionality,
integration and efficiency for our customers," Mr. Ben Harosh
concluded.
About RiT Technologies
RiT Technologies (NASDAQ:RITT) is a leading provider of
converged IT infrastructure management and connectivity solutions.
RiT offers a platform that provides a unified way to manage
converged systems and services to improve network utilization,
streamline infrastructure operations, reduce network operation
cost, optimize future investments and enhance data security.
RiT's connectivity solutions includes IIM - Intelligent
Infrastructure Management, high performance end-to-end structured
cabling solutions.
RiT Technologies' subsidiary RiT Wireless Ltd. produces a range
of optical wireless solutions under the Beamcaster brand, which
provide high speed, highly secure data communications across indoor
open spaces.
Deployed around the world in data centers, large corporations,
government agencies, financial institutions, telecommunications,
airport authorities, healthcare organizations and educational
facilities. 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. 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. Except as otherwise
required by applicable law, we 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. |
STATEMENTS OF
CONSOLIDATED OPERATIONS (U.S GAAP) |
(U.S dollars in
thousands, except per share data) |
(Unaudited) |
|
Three |
Nine |
|
Months
Ended |
Months
Ended |
|
September
30 |
September
30 |
|
2015 |
2014 |
2015 |
2014 |
Sales |
4,322 |
2,006 |
12,258 |
5,696 |
Cost of sales |
2,314 |
1,169 |
6,621 |
3,524 |
Gross profit |
2,008 |
837 |
5,637 |
2,172 |
Operating
expenses |
Research and development, net |
458 |
671 |
1,283 |
2,144 |
Sales and marketing, net |
751 |
844 |
2,234 |
3,007 |
General and administrative |
916 |
1,070 |
2,061 |
3,203 |
Total operating expenses |
2,125 |
2,585 |
5,578 |
8,354 |
Operating margin /
(loss) |
(117) |
(1,748) |
59 |
(6,182) |
Financing expenses, net |
(24) |
(2) |
(68) |
(51) |
Other income (expenses), net |
|
|
|
|
Loss before income tax
expense |
(141) |
(1,751) |
(9) |
(6,234) |
Taxes on income |
-- |
-- |
-- |
-- |
Net Profit /
(Loss) |
(141) |
(1,751) |
(9) |
(6,234) |
Net profit / (loss) attributable to
non-controlling interest |
(185) |
|
(185) |
|
Net Profit / (Loss)
attributable to RiT Technologies |
44 |
(1,751) |
176 |
(6,234) |
Net Profit (Loss) Per Share
-Basic and diluted |
0.003 |
(0.14) |
0.01 |
(0.49) |
Weighted average number of
ordinary shares Outstanding- basic and diluted |
15,541,306 |
12,793,415 |
15,541,306 |
12,773,394 |
|
|
|
|
|
|
RiT TECHNOLOGIES
LTD. |
STATEMENTS OF
OPERATIONS (NON-GAAP) |
(U.S dollars in
thousands, except per share data) |
(Unaudited) |
Three Months
Ended September 30, 2015 |
|
RiT Technologies
Solo* |
RiT Wireless
Solo |
Adjustments |
Consolidated |
Sales |
4,517 |
50 |
(245) |
4,322 |
Cost of sales |
2,288 |
26 |
|
2,314 |
Gross profit |
2,229 |
24 |
|
2,008 |
Operating
expenses |
Research and development, net |
327 |
146 |
(15) |
458 |
Sales and marketing, net |
643 |
127 |
(19) |
751 |
General and administrative |
817 |
310 |
(211) |
916 |
Total operating expenses |
1,787 |
583 |
|
2,125 |
Operating margin /
(loss) |
442 |
(559) |
|
(117) |
Financing expenses, net |
24 |
-- |
|
24 |
Other income (expenses), net |
-- |
-- |
|
-- |
Profit before income tax
expense |
418 |
(559) |
|
(141) |
Taxes on income |
-- |
-- |
-- |
-- |
Net Profit /
(loss) |
418 |
(559) |
|
(141) |
Equity loss |
374 |
|
(559) |
(185) |
Net profit / (loss)
attributable to RiT Technologies |
44 |
(559) |
|
44 |
|
|
|
|
|
*This is RiT Technologies
consolidated with RiT Inc. excluding RiT Wireless |
|
|
|
|
|
|
RiT TECHNOLOGIES
LTD. |
CONSOLIDATED
BALANCE SHEETS (U.S GAAP) |
(U.S dollars in
thousands, except per share data) |
(Unaudited) |
|
September 30, 2015 US$
thousands |
December 31, 2014 US$
thousands |
Assets |
Current Assets: |
|
|
Cash and cash equivalents |
1,769 |
1,604 |
Trade receivables, net |
7,118 |
1,680 |
Other current assets |
394 |
335 |
Inventories |
3,194 |
3,617 |
Total Current Assets |
12,475 |
7,236 |
|
|
|
Assets held for severance benefits |
706 |
967 |
In Process R&D (IPR&D) |
237 |
-- |
Property and equipment, net |
494 |
471 |
Total non-Current Assets |
1,437 |
1,438 |
|
|
|
Total Assets |
13,912 |
8,674 |
|
|
|
Liabilities and
Shareholders' Equity |
Current
Liabilities: |
|
|
Trade payables |
1,504 |
967 |
Other payables and accrued
liabilities |
2,127 |
1,554 |
Total Current Liabilities |
3,631 |
2,521 |
|
|
|
Principal shareholder convertible
loan |
3,000 |
1,000 |
Liability in respect of employees'
severance benefits |
830 |
1,224 |
Total of non-Current
Liabilities |
3,830 |
2,224 |
Total Liabilities |
7,461 |
4,745 |
|
|
|
Shareholders'
Equity: |
Share capital |
3,384 |
3,384 |
Treasury stock |
(27) |
(27) |
Additional paid-in capital |
73,471 |
72,239 |
Non-controlling interest |
1,115 |
-- |
Accumulated deficit |
(71,492) |
(71,667) |
Total Shareholders'
Equity |
6,451 |
3,929 |
|
|
|
Total Liabilities and
Shareholders' Equity |
13,912 |
8,674 |
CONTACT: INVESTOR CONTACTS:
Amit Mantsur
CFO
M: +972. 55.882.3734
amitm@rittech.com
www.rittech.com
Jeffrey Goldberger
KCSA Strategic Communications
O: 212.896.1249
jgoldberger@kcsa.com
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