RiT Technologies Initiates Cost-Cutting Steps to Accelerate Return to Profitability
November 12 2009 - 8:00AM
PR Newswire (US)
TEL AVIV, Israel, November 12 /PRNewswire-FirstCall/ -- RiT
Technologies (NASDAQ:RITT), today announced that it has recently
laid off approximately 15% of the Company's employees as part of
the cost-cutting steps, aimed at accelerating its return to
profitability. The layoffs were dictated by the Company's revenues
of the past three quarters, which were significantly lower than
expected due both to delays in the timing of substantial orders and
the ongoing slowdown of its target markets. With the goal of
preserving cash and ensuring operating flexibility, the Company's
Board and Management decided that it was necessary to align
expenses with current business levels, and therefore initiated the
cost-cutting steps. Avi Kovarsky, RiT's President and CEO,
commented, "While we believe strongly in our ability to close the
significant deals we have in our sales pipeline and our strategies
for achieving immediate and long-term goals, we see clearly the
need to reduce our cost structure. The layoff of approximately 15%
of our manpower has been a very painful but necessary step that
will make a positive impact on our results beginning in the first
quarter of 2010. Our work plan for the quarters ahead includes the
continuation of the focus on our sales channels, including
intensified sales activities focused on high-potential markets. We
believe the success of these efforts, combined with the right
products and a streamlined cost structure, will enable us to report
improved results in the future." About RiT Technologies RiT is a
leading provider of intelligent solutions for infrastructure
management, asset management, environment and security, and network
utilization. RiT Enterprise solutions address datacenters,
communication rooms and workspace environments, ensuring maximum
utilization, reliability, decreased downtime, physical security,
automated deployment, asset tracking, and troubleshooting. RiT
Environment and Security solutions enable companies to effectively
control their datacenters, communications rooms and remote physical
sites and facilities in real-time, comprehensively and accurately.
RiT Carrier solutions provide carriers with the full array of
network mapping, testing and bandwidth qualification capabilities
needed for access network installation and service provisioning.
RiT's field-tested solutions are delivering value in thousands of
installations for top-tier enterprises and operators throughout the
world. For more information, please visit our website:
http://www.rittech.com/ 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 a field trial which could lead to a multi-million dollar
Carrier deal, 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: Simona Green VP Finance +972-3-766-4249 DATASOURCE: RiT
Technologies Ltd CONTACT: COMPANY CONTACT: Simona Green, VP
Finance, +972-3-766-4249,
Copyright