Wireless Ronin Technologies' CEO Discusses Q4 2011 Results - Conference Call Transcript
Total revenue generated at 2011 from Chrysler and Fiat dealerships was up 28% to $5.1 million from 2010. Revenue in 2011 was also driven by orders from ARAMARK, which were up 48% to $1.7 million from 2010. We continue to expand the number of grow-work installations with several new colleges and universities. Upon the completion, the installation for orders received through December 31, 2011, the total number of ARAMARK locations being managed through our network increased more than 175% to approximately 250 sites compared to 90 sites at the end of 2010.
Recurring revenue for 2011 increased 23% to a record $1.6 million or 17% of total revenue as compared to $1.3 million or 15% of total revenue in 2010. At the end of the fourth quarter we had a total of $1.3 million of purchase orders for which revenue will be recognized in future quarters. Gross margin of 2011 was 44% as compared to 47% in the prior year. The decrease was primarily due to hardware and software sales mix. We believe our gross margin percentage will increase as our recurring revenue continues to grow.
Our 2011 net loss totaled $6.7 million or $0.34 per basic and diluted share, an improvement from a net loss $7.9 million or $0.44 per basic and diluted share in 2010. During 2011 net loss included $740,000 of non-cash stock compensation expense compared to $868,000 in 2010.
For 2011 non-GAAP, operating loss totaled $5.5 million or $0.28 per basic and diluted share, an improvement from a loss of $6.3 million or $0.35 per basic and diluted share in 2010. It is also important to note fiscal 2011 marked our lowest level of cash burn in the Company's history since our IPO in 2006.
Now, turning to the balance sheet; our networking capital position was $5 million at the end of the fourth quarter compared to $3.3 million in the prior quarter. The increase was due to the $3.3 million financing we closed on December 12, 2011. This completes my financial summary.
For a more detailed and complete analysis of our financial results, I would like to direct everyone to our Form 10-K, which we expect to file on March 31, 2012 and will be available at www.sec.gov as well as our website and I'm also happy to answer any questions you have during the Q&A session of today's presentation.
Now, for an overview of our operational activity and developments, I'd like to turn the call back over to Scott. Scott?
Thank you for the financial overview, Darin. 2011 was a transformative year for Wireless Ronin. From an operation perspective we achieved year-over-year revenue growth. Launched a new strategic plan with our marketing technologies portfolio products, enhanced our executive team and board of directors, developed strategic industry relationships and further penetrated our key verticals.
In 2011 we transitioned from a digital signage company to a marketing technologies company by taking a comprehensive approach, bringing together digital signage, interact kiosks, mobile, social media and web to provide our clients with solutions that drive customer experience while delivering the business intelligence and data analytics required to measure success.
These measurements drive affective business decisions that impact both top line results and bottom line margins. Our focus is to maximize the profitability of in-person interactions and to extend the customers' relationship with our clients in order to increase the number and profitability of these interactions. We received strong validation for our approach in 2011 giving us confidence that the strategic direction we have taken will differentiate Wireless Ronin and align our solutions with our clients' marketing technology needs. With this new strategic direction is beginning to generate success.
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