Wireless Ronin Technologies Inc. (RNIN)
Q1 2011 Earnings Call
May 12, 2011 4:30 PM ET
Erin Haugerud – Manager, Communications and Investor Relations
Scott Koller – President and CEO
Darin McAreavey – Senior Vice President and CFO
Ryan Wright – Northland Capital
Marco Rodriquez – Stonegate Securities
Ty Lilja – Feltl & Co.
Oz Tangun – Patara Capital
Don McKiernan – Landolt Securities
Previous Statements by RNIN
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Good day, ladies and gentlemen. And welcome to Wireless Ronin Technologies’ First Quarter 2011 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions)
As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Erin Haugerud. Please go ahead.
Thank you. And welcome everyone to our 2011 first quarter conference call. With me today are Scott Koller, President and Chief Executive Officer; and Darin McAreavey, Senior Vice President and Chief Financial Officer. After Scott’s opening remarks, Darin will provide a financial review and turn the call back over to Scott for a sales update and closing remarks. We will end the call by answering your questions.
Today’s call will be an interactive webcast that will feature presentation slides of the first quarter 2011 results. To access the webcast, please visit the Investors section of our corporate website at www.wirelessronin.com.
Please note that the information presented and discussed today includes forward-looking statements 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 22, 2011.
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 back over to Scott.
Thanks, Erin. Good afternoon, everyone and thank you for joining us on today’s call. Let’s get started with some highlights of our activities over the last three months. In Q1, we had sales of $2.4 million, a 123% increase in year-over-year performance and the largest first quarter in the company’s history. This growth was driven by a 264% year-over-year increase in sales of our RoninCast software.
We also announced Sprint 4G teaming and co-marketing agreement, a relationship we believe significantly expands our sales presence and reach. We saw further expansion of the Chrysler iShowroom initiative with the addition of the FIAT product line, further evidence of Chrysler’s confidence in our ability to execute our technology and our people.
And we continued to grow our presence in the food service industry with the RoninCast (inaudible) for the Johnny Rockets digital signage program, adding another key relationship in our growing list of clients in this very important vertical.
In addition, the company has completed four months of strategic planning and internal assessment with Howe Associates. This initiative has resulted in an emerging strategic plan designed to increase customer value and accelerate our ability to grow Wireless Ronin
Our technology roadmap that can differentiate and provide a competitive advantage and support our new strategic initiatives and an optimized organization with improved processes that has greatly enhanced our ability to scale as required to meet customer expectations.
I will be back to provide a sales update and closing remarks after Darin reviews the financials. Darin?
Thanks, Scott and good afternoon, everyone. As Scott stated, we reported revenue of $2.4 million for the first quarter of 2011, a 123% increase from $1.1 million in the first quarter of 2010. As of March 31, 2011, we had received purchase orders totaling approximately $600,000 that had not been recognized as revenue.
The year-over-year increase in revenue was attributable to the sales of Chrysler and its network of dealerships promoting all of its automobile brands with the iShowroom interactive application, most recently featuring the new FIAT 500.
We also received orders for further enhancements to the iShowroom application and additional requests for content updates and new learning programs as part of Chrysler’s new 2011 lineup introduction. The remaining increase in sales, when comparing the first three months of 2011 to 2010, was due to an approximate 600% increase in orders of ARAMARK.
Our recurring hosting and support revenue for the first three months of 2011 totaled approximately $400,000. On a GAAP basis, our first quarter of 2011 net loss totaled $2.3 million or $0.12 per basic and diluted share, representing an improvement from our net loss of $2.8 million or $0.16 per basic and diluted share a year ago.
Our net loss during the first quarter over -- improvement over the same period in the prior year as the result of an increase in gross margin dollars of approximately $700,000, partially offset by an increase in operating expenses.
Excluding one-time expenses and non-cash charges, the first quarter of 2011 non-GAAP operating loss totaled $1.8 million or $0.09 per basic and diluted share versus a non-GAAP operating loss of $2.4 million or $0.14 per basic and diluted share in the first quarter of 2010. Sequentially, our non-GAAP operating loss increased by approximately $600,000.