Wireless Ronin Technologies, Inc. (
Q4 2010 Earnings Conference Call
March 2, 2011, 4:30 pm ET
Erin Haugerud – Manager, Communications and IR
Scott Koller – President and CEO
Darin McAreavey – SVP and CFO
Terri Sayler – SVP, Sales and Marketing
Ryan Wright – Northland Capital
Dick Ryan – Dougherty
Rick D'Auteuil – Columbia Management
Thomas Pierce – Feltl
Jack Fred – Discovery Investments
Paul Adolf – Analyst
Previous Statements by RNIN
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» Wireless Ronin Technologies Inc. Q4 2009 Earnings Call Transcript
Good day, ladies and gentlemen. And welcome to the Wireless Ronin Technologies Fourth Quarter and Full Year 2010 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session, and instructions will be given at that time. (Operator Instructions)
As a reminder, today’s call is being recorded. At this time, I would now like to turn the conference over to your host, Erin Haugerud, Manager of Communications and Investor Relations. You may begin.
Thank you. And welcome everyone to our 2010 fourth quarter and full year conference call. With me today are Scott Koller, President and Chief Executive Officer; Darin McAreavey, Senior Vice President and Chief Financial Officer; and Terri Sayler, Senior Vice President of Sales and Marketing. After Scott’s opening remarks, Darin’s financial review and Terri’s sales update, we will open up the call to your questions.
Today’s call will be an interactive webcast that will feature presentation slides of fourth quarter and full year 2010 results. To access the webcast, please visit the Investors section of the corporate website at
Please note that the information presented and discussed today includes forward-looking statements, which are made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Our actual results in future periods may differ materially and you should not attribute undue certainty to our forward-looking statements. Risks and uncertainties that could cause our actual results to differ from those expressed or implied by forward-looking statements include those set forth in the risk factors section of the annual report on Form 10-K we filed on March 26, 2010.
In addition, our comments may contain certain non-GAAP financial measures, including non-GAAP operating loss per share. For additional information, including a reconciliation from GAAP results to non-GAAP measures, how the non-GAAP measures provide useful information and why we use non-GAAP measures, please see the reconciliation section of our press release, which appears on our website at www.wirelessronin.com.
Now, I’d like to turn the call over to Scott.
Thanks, Erin, and good afternoon, everyone, and thank you for joining us on today’s call. I would like to start by mentioning the previously announced leadership transition that took place January 1st of this year.
First and foremost, let me say that it’s my pleasure to speak to all of you today in my new role as President and Chief Executive Officer of Wireless Ronin. I look forward to apply my strength with Wireless Ronin and the digital signage straight to my new role.
On behalf of the employees and the entire management team, I would like to thank Jim Granger, our former CEO for all of his hard work and dedication to Wireless Ronin, through his leadership Jim positioned WRT for success, we wish him nothing but the best as he transitions from the corporate world to his must deserve retirement.
Secondly, we’d like to congratulate Steve Birke on his new role as Chairman of the Board. Steve replaces Greg Barnum and will actively work with the executive management team to provide strategic direction and guidance to ensure the future success of our company. Greg will continue as a Director of the company, as Chairman of the Art Committee and as the Member of the Executive Committee, we thank Greg for his service as Chairman of the Board since September 2008.
Now, moving to the fourth quarter and full year 2010 results, the past year brought several significant accomplishments. First, we reached the highest level of revenue in the company’s history $8.6 million, representing an increase of 71% over the previous year.
Second, our gross margin continued to expand during 2010, averaging 47%, which represents a 19 percentage point improvement from 2009. Thirdly, our non-GAAP EBIDTA loss for 2010 of $6.3 million was an improvement of $2 million from the previous year demonstrating our continued efforts to achieve profitability.
And lastly, with the recent capital raise, we ended the year with over $7 million of cash. Our cash position coupled with the access to a $2.5 million credit line from Silicon Valley Bank and zero debt provides a very strong balance sheet and available capital entering 2011.
I will now turn the call over to Darin for more in-depth review of our financials for the fourth quarter and full year of 2010, followed by Terri Sayler’s update on sales and marketing. Afterwards, I’ll add some additional thoughts prior to opening up the call for Q&A.
Thank you, Scott, and good afternoon, everyone. We reported revenue of $2.9 million for the fourth quarter of fiscal 2010, an 89% increase from $1.5 million then last year’s fourth quarter. As of December 31, 2010, we received purchase orders totaling approximately $1.1 million that have not recognized this revenue. The increase in our year-over-year revenue continued to be generated primarily from the success of Chrysler’s iShowroom Branded Tower initiative.
In November 2010, we received an order for approximately $1 million from Chrysler to outfit an additional 100 dealers with Chrysler’s retail Branded Tower program featuring the iShowroom application. This brings the total number of orders we have received from Chrysler to-date to $2.2 million for 200 dealers displaying 800 branded towers.