TEL AVIV, Israel, February 4 /PRNewswire-FirstCall/ -- - After
Challenging 2009, Company has Accelerated Sales Efforts &
Concluded Reorganization and Cost-Cutting Plan RiT Technologies
(NASDAQ:RITT), today announced its financial results for the fourth
quarter and full year ended December 31, 2009. Revenues for the
fourth quarter of 2009 were $2.2 million compared with $4.5 million
for the fourth quarter of 2008. Net loss for the quarter was $(1.6)
million, or $(0.61) per share (basic and diluted), compared with
$(0.7) million, or $(0.28) per share (basic and diluted) in the
fourth quarter of 2008. For the twelve month period, revenues were
$8.7 million compared with $22.6 million for 2008. Net loss for
2009 was $(6.5) million, or $(2.48) per share (basic and diluted),
compared with $(1.2) million, or $(0.59) per share (basic and
diluted) for 2008. Reorganization and Cost-Cutting Plan Since the
end of the third quarter of 2009, RiT has implemented a
company-wide reorganization and cost-cutting plan that will reduce
the Company's 2010 operating expenses by approximately $1.7 million
compared with their level in 2009. Comments of Management "Our 2009
results reflect the recession that has dominated our target
construction and financial verticals since late 2008, especially in
the territories that are traditionally our strongest, such as
Russia, the U.K. and North America," commented Mr. Avi Kovarsky,
RiT's President & CEO. "In response to the reduced sales, we
have accelerated our sales efforts and completed a comprehensive
cost-cutting and reorganization program that will reduce our
operating expenses by $1.7 million in 2010 as compared with 2009.
At this expense level, and with the continued strong financing
support of our controlling shareholder Stins Coman, we believe that
we have the flexibility we need to pursue growth in step with the
recovery of our markets." Mr. Kovarsky continued, "At the same
time, two positive factors give us room for optimism as we look
forward into 2010 and beyond. First, we continue to have a rich
sales pipeline, which includes significant late-stage Carrier deals
and high-potential Enterprise deals delayed from 2009. Second, we
see significant potential in our new SiteWiz and EPV solutions,
which expand our reach into the resilient small-to-medium-sized
Enterprise segment. We are encouraged by the market reaction to
these products and are very near to closing a significant SiteWiz
deal. " Mr. Kovarsky concluded, "We are encouraged by the
combination of these positive factors. With a lean expense
structure, a rich sales pipeline, the right products and strong
backing, we feel well positioned to achieve a turnaround and to
deliver improved results in the year ahead." Conference Call
Details The Company will host a conference call to discuss these
results today, Thursday, February 4th, at: 10:00 a.m. Eastern Time
9:00 a.m. Central Time 8:00 a.m. Mountain Time 7:00 a.m. Pacific
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: 1-888-407-2553 Toll free for US
+972-3-9180609 - International 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=65771.
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 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. RiT
TECHNOLOGIES LTD. CONSOLIDATED BALANCE SHEETS (U.S GAAP) (U.S
dollars in thousands) December 31, 2009 December 31, 2008 Assets
(Unaudited) (Audited) Current Assets Cash and cash equivalents
1,610 6,111 Trade receivables, net 2,044 3,737 Other current assets
462 536 Assets held for severance benefits 112 - Inventories 3,355
3,978 7,583 14,362 Long Term Assets Trade receivables, net 181 351
Assets held for severance benefits 1,409 1,579 1,590 1,930 Property
and Equipment Cost 3,252 3,502 Less - accumulated depreciation
2,870 2,958 382 544 Total Assets 9,555 16,836 Liabilities and
Shareholders' Equity Current Liabilities Short-term loan 250 -
Trade payables 1,322 3,101 Other payables and accrued expenses
1,340 2,286 Liability in respect of employees' severance benefits
143 - 3,055 5,387 Other Liabilities Convertible loan from principal
shareholder 1,805 - Liability in respect of employees' severance
benefits 1,633 2,076 3,438 2,076 Total Liabilities 6,493 7,463
Shareholders' Equity Share capital 559 559 Treasury stock (27) (27)
Additional paid-in capital 36,820 36,681 Accumulated deficit
(34,290) (27,840) 3,062 9,373 Total Liabilities and Shareholders'
Equity 9,555 16,836 RiT TECHNOLOGIES LTD. STATEMENTS OF OPERATIONS
(U.S GAAP) (U.S dollars in thousands, except per share data) For
the three For the twelve months ended months ended December 31,
December 31, (Unaudited) (Unaudited) 2009 2008 2009 2008 U.S. $
U.S. $ U.S. $ U.S. $ Sales 2,214 4,538 8,655 22,556 Cost of sales
1,307 2,344 4,710 11,080 Gross profit 907 2,194 3,945 11,476
Operating costs and expenses: Research and development: Research
and development, gross 760 925 3,158 3,781 Less - royalty-bearing
participation 206 - 206 104 Research and development, net 554 925
2,952 3,677 Sales and marketing 1,417 1,400 5,268 6,351 General and
administrative 521 556 2,065 2,718 Total operating expenses 2,492
2,881 10,285 12,746 Operating loss (1,585) (687) (6,340) (1,270)
Financial income (loss), net (7) (39) (110) 52 Net Loss (1,592)
(726) (6,450) (1,218) Net loss per ordinary share (basic and
diluted) (0.61) (0.28) (2.48) (0.59) Weighted average number of
ordinary shares, used to compute net Loss per ordinary share (basic
and diluted) 2,604,428 2,604,428 2,604,428 2,060,697 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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