RiT Technologies Reports Second Quarter and Six Month 2015 Results
-Q2 2015 Revenue Increased 172% Year-Over-Year to $4.5 Million
-Q2 2015 Gross Margin Increased to 47% Compared to 31% in Q2 2014
TEL AVIV, Israel, Sept. 29, 2015 (GLOBE NEWSWIRE) -- 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 second quarter and six months ended June 30, 2015.
Financial Highlights for the Second Quarter Ended June 30, 2015
- Revenue for Q2 2015 increased 172% to $4.5 million, compared to $1.7 million in Q2 2014
- Gross margin for Q2 2015 improved to 47%, compared to 31% in Q2 2014
- Net Income for Q2 2015 was $0.1 million, or $0.01 per (basic and diluted) share, compared to a net loss of $(2.6) million or $(0.20) per (basic and diluted) share in Q2 2014
- Cash and cash equivalents as of June 30, 2015 was $1.2 million
- Shareholders' equity as of June 30, 2015, increased to $5.2 million, compared to $3.9 million on December 31, 2014
Financial Highlight for the Six Month Period Ended June 30, 2015
- Revenue for the first six months of 2015 increased 115% to $7.9 million, compared to $3.7 million in the same period of 2014
- Gross margin for the first six months of 2015 improved to 46%, compared to 36% in the same period of 2014
- Net profit for the first six months of 2015 was $0.1 million, or $0.01 per (basic and diluted) share, compared to a net loss of $(4.5) million, or $(0.35) loss per (basic and diluted) share recorded in the first six months of 2014
"Throughout the first half of 2015, RiT continued to capitalize on the combined strength of our improved operational platform and product/service offering, which resulted in favorable revenue growth and increased profitability," noted Yossi Ben-Harosh President and Chief Executive Officer of RiT Technologies. "With a robust and growing pipeline of opportunities, supported by a focused business strategy and commitment to superior execution, I am confident RiT is positioned to deliver increasingly strong results during the second half of 2015 and beyond."
"In addition to my joining in July, RiT has added proven, seasoned professionals to the sales and senior management teams to further strengthen the Company's position in the market. I am encouraged by what I've seen to date and look forward to the increasing contribution of these key individuals," concluded Mr. Ben-Harosh.
To more effectively define its service offering, RiT launched a new subsidiary RiT Wireless - focusing on global market penetration of RiT's advanced Indoor Wireless Optical Networks technology, Beamcaster 2.0.
And in addition two distinct lines of business as part of its strategy to focus on new opportunities with specific technologies and deployment models that address unique challenges and application needs:
- RiT Connectivity – a line of business that includes RiT's flagship products of SCS (smart cabling systems) and IIM (intelligent infrastructure management); with a commitment to maintaining its market leadership as the premium IIM solution in the market.
- RiT Software – a line of business promoting RiT's growth engine software product Converged Infrastructure Management System, CM 3.0, a platform that provides a unified way to manage converged systems and services to improve network utilization, streamline infrastructure operations, reduce costs and enhance data security.
About RiT Technologies
RiT Technologies (NASDAQ:RITT) is a leading provider of converged IT infrastructure management and connectivity solutions that improve network utilization, streamline infrastructure operations and enhance data security reduce network operation cost and optimize future investments.
RiT offers a platform that provides a unified way to manage converged systems and services to improve network utilization, streamline infrastructure operations, reduce cost and enhance data security. RiT's platform includes connectivity solutions such as IIM, (Intelligent Infrastructure Management), converged infrastructure management software, and indoor optical wireless technology.
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 OPERATIONS (U.S GAAP) | ||||
| (U.S dollars in thousands, except per share data) | ||||
| (Unaudited) | ||||
| Three | Six | |||
| Months Ended | Months Ended | |||
| June 30 | June 30 | |||
| 2015 | 2014 | 2015 | 2014 | |
| Sales | 4,549 | 1,674 | 7,936 | 3,690 |
| Cost of sales | 2,428 | 1,151 | 4,307 | 2,355 |
| Gross profit | 2,121 | 523 | 3,629 | 1,335 |
| Operating expenses | ||||
| Research and development, net | 450 | 786 | 825 | 1,473 |
| Sales and marketing, net | 740 | 1,007 | 1,483 | 2,163 |
| General and administrative | 789 | 1,298 | 1,145 | 2,133 |
| Total operating expenses | 1,979 | 3,091 | 3,453 | 5,769 |
| Operating margin / (loss) | 142 | (2,568) | 176 | (4,434) |
| Financing loss, net | (28) | (23) | (44) | (49) |
| Other income (expenses), net | ||||
| Loss before income tax expense | 114 | (2,591) | 132 | (4,483) |
| Taxes on income | ||||
| Net Profit / (Loss) | 114 | (2,591) | 132 | (4,483) |
| Net Profit (Loss) Per Share -Basic and diluted | 0.01 | (0.20) | 0.01 | (0.35) |
| Weighted average number of ordinary shares Outstanding- basic and diluted | 15,541,306 | 12,763,218 | 15,541,306 | 12,763,218 |
| RiT TECHNOLOGIES LTD. | ||
| CONSOLIDATED BALANCE SHEETS (U.S GAAP) | ||
| (U.S dollars in thousands, except per share data) | ||
| (Unaudited) | ||
| June 30, 2015 US$ thousands | December 31, 2014 US$ thousands | |
| Assets | ||
| Current Assets: | ||
| Cash and cash equivalents | 1,232 | 1,604 |
| Trade receivables, net | 5,951 | 1,680 |
| Other current assets | 431 | 335 |
| Inventories | 3,495 | 3,617 |
| Total Current Assets | 11,109 | 7,236 |
| Assets held for severance benefits | 893 | 967 |
| Capitalized software development costs, net | 193 | 0 |
| Property and equipment, net | 445 | 471 |
| Total non-Current Assets | 1,531 | 1,438 |
| Total Assets | 12,640 | 8,674 |
| Liabilities and Shareholders' Equity | ||
| Current Liabilities: | ||
| Trade payables | 1,755 | 967 |
| Other payables and accrued liabilities | 1,515 | 1,554 |
| Total Current Liabilities | 3,270 | 2,521 |
| Principal shareholder convertible loan | 3,000 | 1,000 |
| Liability in respect of employees' severance benefits | 1,168 | 1,224 |
| Total of non-Current Liabilities | 4,168 | 2,224 |
| Total Liabilities | 7,438 | 4,745 |
| Shareholders' Equity: | ||
| Share capital | 3,384 | 3,384 |
| Treasury stock | (27) | (27) |
| Additional paid-in capital | 73,380 | 72,239 |
| Accumulated deficit | (71,535) | (71,667) |
| Total Shareholders' Equity | 5,202 | 3,929 |
| Total Liabilities and Shareholders' Equity | 12,640 | 8,674 |
CONTACT: Amit Mantsur CFO M: +972. 55.882.3734 amitm@rittech.com www.rittech.com
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