RiT Technologies Reports Q3 2009 Results

TEL AVIV, Israel, October 29 /PRNewswire-FirstCall/ -- RiT Technologies
(NASDAQ: RITT), today announced its financial results for the third quarter
and nine month period ended September 30, 2009.
Revenues for the third quarter of 2009 were $2.5 million, up 4% compared
sequentially to $2.4 million in the second quarter of 2009 and 56% compared
with the first quarter of 2009. Revenues for the third quarter of 2008 were
$7.3 million. Net loss for the quarter was $(1.5) million, or $(0.59) per
share (basic and diluted), compared with $(1.4) million for the second
quarter of 2009 and $(2.0) million for the first quarter of 2009. Net income
for the third quarter of 2008 was $1.1 million.
Revenues for the nine month period ended September 30, 2009 were $6.4
million compared with $18.0 million for the first nine months of 2008. Net
loss for the period was $(4.9) million or $(1.87) per share (basic and
diluted) compared with $(0.5) million or $(0.26) per share (basic and
diluted) for the first nine months of 2008.
Comments of Management
"We have reported a 4% increase in revenues compared to the second
quarter, giving us top line growth of 56% compared to the first quarter of
this year," commented Mr. Avi Kovarsky, RiT's President & CEO. "However, this
was well below our expectations, reflecting delays that we experienced in the
closing of several sizeable Enterprise and Carrier orders. We are fully
focused on closing these orders by the end of the year, and continue to work
aggressively to close all of the deals in our sales pipeline. In parallel, we
continue to pursue efficiency throughout the organization with the goal of
preserving our cash."
Mr. Kovarsky continued, "From a products perspective, during the third
quarter we rolled out two products: PatchView Version 6, whose features offer
enhanced support for the datacenter environment; and the EPV, a standalone
infrastructure management solution. To round out our positioning, we also
continued to build out our local representation in key growth markets, as
demonstrated by the strategic representative agreement that we signed during
the quarter with a company based in Singapore.
"We believe the combination of sales activities focused on high-potential
markets and the right products will enable us to report improved results in
the future."
Conference Call Details
The Company will host a conference call to discuss these results today,
Thursday, October 29th, at:
10:15 a.m. Eastern Daylight Time
9:15 a.m. Central Daylight Time
8:15 a.m. Mountain Daylight Time
7:15 a.m. Pacific Daylight Time
16:15 Israel Time

To participate, please call one of the following teleconferencing numbers
approximately 5-10 minutes prior to the scheduled start of the call:
+1-800-994-4498 (U.S.)
+972-3-918-0664 (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=63347
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 (EDT)
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:
simonag@rit.co.il, 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)

September 30,2009 December 31,2008
(Unaudited) (Audited)
Assets
Current Assets
Cash and cash equivalents 1,776 6,111
Trade receivables, net 2,099 3,737
Other current assets 320 536
Inventories 3,585 3,978
Total Current Assets 7,780 14,362

Long term Assets
Trade receivables, net 184 351
Long term Investment 1,916 1,579
2,100 1,930

Property and Equipment
Cost 3,570 3,502
Less - accumulated depreciation 3,151 2,958
419 544
Total Assets 10,299 16,836

Liabilities and Shareholders'
Equity
Current Liabilities
Trade payables 1,704 3,101
Other payables and accrued
expenses 1,712 2,286
Total Current Liabilities 3,416 5,387

Long-term Liability
Liability in respect of
employees' severance benefits 2,248 2,076
Total Liabilities 5,664 7,463

Shareholders' Equity
Share capital 559 559
Treasury stock (27) (27)
Additional paid-in capital 36,801 36,681
Accumulated deficit (32,698) (27,840)
Total Shareholders' Equity 4,635 9,373
Total Liabilities and
Shareholders' Equity 10,299 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 nine
months ended months ended
September 30, September 30,
(Unaudited) (Unaudited)

2009 2008 2009 2008
U.S. $ U.S. $ U.S. $ U.S. $

Sales 2,490 7,283 6,441 18,018
Cost of sales 1,444 2,794 3,403 8,736
Gross profit 1,046 4,489 3,038 9,282

Operating costs and expenses:
Research and development:
Research and development, gross 851 918 2,398 2,856
Less - royalty-bearing
participation - - - 104
Research and development, net 851 918 2,398 2,752

Sales and marketing 1,186 1,776 3,851 4,951
General and administrative 565 706 1,544 2,162
Total operating expenses 2,602 3,400 7,793 9,865
Operating income (loss) (1,556) 1,089 (4,755) (583)
Financial income (loss), net 12 11 (103) 91
Net Income (Loss) (1,544) 1,100 (4,858) (492)

Basic net Income (Loss)
per ordinary share (0.59) 0.56 (1.87) (0.26)
Diluted net Income (Loss)
per ordinary share (0.59) 0.56 (1.87) (0.26)

Weighted average number of
ordinary shares,
used to compute Basic net
Income (Loss) per
ordinary share 2,604,428 1,960,615 2,604,428 1,877,932
Weighted average number of
ordinary shares,
used to compute Diluted net
Income (Loss)
per ordinary share 2,604,428 1,961,231 2,604,428 1,877,932

COMPANY CONTACT:
Simona Green
VP Finance
+972-3-766-4249
simonag@rit.co.il

SOURCE RiT Technologies Ltd

COMPANY CONTACT: Simona Green, VP Finance, +972-3-766-4249, simonag@rit.co.il