TEL AVIV, Israel, February 28, 2013 /PRNewswire/ --
RiT Technologies (NASDAQ: RITT), today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2012.
Revenues for the fourth quarter of 2012 were $2.0 million, down 40% compared with $3.4 million for the fourth quarter of 2011. Net loss for the quarter was $2.9 million ( $0.44 per share on a basic and diluted basis) compared with $1.3 million ( $0.29 per share on a basic and diluted basis) in the fourth quarter of 2011.
For the twelve-month period, revenues decreased by 39% to $8.4 million from $13.7 million in 2011. Net loss for the year was $11.1 million ( $1.91 per share on a basic and diluted basis) compared with $3.9 million ( $0.88 per share on a basic and diluted basis) for 2011.For the fourth quarter of 2012 GAAP gross margin was -6.0%, down from 46% in the fourth quarter of 2011 due to a $0.7 million inventory write-off in Cost of Goods Sold and lower sales volumes. Non-GAAP gross margin was 27% compared to 46% in the fourth quarter of 2011. For the twelve month period, GAAP gross margin was 16%, down from 45% in 2011 due to a $0.7 million inventory write-off in Cost of Goods Sold and lower sales volumes. Non-GAAP gross margin was 25% compared to 45% in 2011. Investment in the development of new products totaled $3.9 million for the twelve-month period, reflecting the Company's on-track development of its PatchView+ and IWON product lines. In 2011, the Company invested $1.9 million in new product development. Following a thorough evaluation of the Company's legacy product portfolio, RiT's Board of Directors decided to discontinue RiT's Carrier product family, and to focus fully on the accelerated development of its IIM (Intelligent Infrastructure Management) product family and its breakthrough new IWON High-Speed Indoor Wireless Optical Network offerings. During the fourth quarter of 2012, the Company recorded an inventory write-off of approximately $0.7 million. Comments of Management