"Our sales pipeline across our three key verticals continues to expand, as we leverage our strong first-mover advantage in this young and growing market. In particular, we are seeing increased activity with automotive and retail applications. QSR industry opportunities also continue to develop, driven by menu board optimization and regulatory compliance initiatives. Altogether, we expect increasing sales momentum as we complete the second half of the year."

Conference Call

The company will hold a conference call today (Thursday, August 9, 2012) to discuss these financial results. The company's president and CEO, Scott Koller and SVP and CFO, Darin McAreavey, will host the call starting at 4:30 p.m. Eastern time (3:30 p.m. Central time). A question and answer session will follow management's presentation.

To participate in the call, dial the appropriate number 5-10 minutes prior to the start time, ask for the Wireless Ronin conference call and provide the conference ID:

Dial-In number: 1-877-941-1427 International: 1-480-629-9664 Conference ID#: 4531923

The presentation will be webcast live and available for replay via the Investors section of the company's website at www.wirelessronin.com . Please go to the website at least 15 minutes early to register, download, and install any necessary audio software. If you have any difficulty connecting with the conference call or webcast, please contact Liolios Group at 949-574-3860.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day and until September 9, 2012.

Toll-free replay number: 1-877-870-5176 International replay number: 1-858-384-5517 Replay PIN#: 4531923

About Wireless Ronin Technologies, Inc.

Wireless Ronin Technologies, Inc. (WRT) ( www.wirelessronin.com ), is a marketing technologies company with leading expertise in current and emerging digital media solutions, including signage, interactive kiosks, mobile, social media and web, that enable clients to transform how they engage with their customers. WRT provides marketing technology solutions and services to clients, helping increase revenue and improve operating efficiencies to execute marketing initiatives. Since launching RoninCast ® digital signage software in 2003, WRT has led the digital signage industry by bringing leading edge technology, services and support to its clients. WRT offers an array of services to support its clients' marketing technology needs including consulting, creative development, project management, installation, training, and support and hosting. The company's common stock trades on the NASDAQ Capital Market under the symbol "RNIN". Follow us on http://twitter.com/#!/wirelessronin . Like us on Facebook under Wireless Ronin Technologies, Inc.

The Wireless Ronin Technologies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3208

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP operating loss and non-GAAP operating loss per common share. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

Non-GAAP operating loss and non-GAAP operating loss per share. We define non-GAAP operating loss as the GAAP operating loss less stock-based compensation expense, depreciation and amortization, severance expense and other one-time charges. We define non-GAAP operating loss per share as non-GAAP operating loss divided by the weighted average basic and diluted shares outstanding. Our management utilizes a number of different financial measures, both GAAP and non-GAAP, in making operating decisions, in forecasting and planning, and in analyzing and assessing our company's overall performance. Our annual financial plan is prepared and reviewed both on a GAAP and non-GAAP basis. We budget and forecast for revenue and expenses on GAAP and non-GAAP bases, and assess actual results on GAAP and non-GAAP bases against our annual financial plan. Our board of directors and management utilize these financial measures (both GAAP and non-GAAP) to determine our allocation of resources. In addition, and as a consequence of the importance of these non-GAAP financial measures in managing our business, we use non-GAAP financial measures in the evaluation process to establish management compensation. For example, our senior management's bonus program is partially based upon the achievement of non-GAAP operating income (loss). Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding the items mentioned above. We consider the use of non-GAAP operating loss per share helpful in assessing the ongoing performance of the continuing operations of our business, as it excludes recurring non-cash items and non-recurring one-time charges. Our rationale for the items we omit from our non-GAAP measures is as follows:

Stock-based compensation. We exclude non-cash stock-based compensation expense because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC 718-10. Stock-based compensation expense is a recurring expense for our company and is expected to be in the future as we have a history of granting stock options and other equity instruments as a means of incentivizing and rewarding our employees.

Depreciation and amortization expense. Depreciation and amortization are non-cash charges that are impacted by our accounting methods and book value of assets. By excluding these non-cash charges, our management, together with our investors, are provided with supplemental metrics to evaluate cash earnings, distinguishing the impact of our performance on earnings from the impact of our performance on cash. Management believes that the review of these supplemental metrics in conjunction with other GAAP metrics, such as capital expenditures, is useful for management and investors in understanding our business. Depreciation is a recurring expense for our company and is expected to continue to be in the future as we continue to make further investments in our infrastructure through the acquisition of property, plant and equipment. Due to the exclusion of these non-cash items, investors should not use this metric as a measure of evaluating our liquidity. Instead, to evaluate our liquidity, investors should refer to the Consolidated Statements of Cash Flow and the Liquidity and Capital Resources section contained within Management's Discussion and Analysis in our most recently filed periodic reports.

Severance and other one-time charges. We exclude severance and other one-time charges that are the result of other, unplanned events as one means of measuring operating performance. Included in these expenses are items such as severance costs associated with the termination of employees as part of an unplanned restructuring, a non-acquisition-related restructuring and other charges. Because these events are unplanned and arise outside the ordinary course of continuing operations, by providing this information, we believe our management and our investors may more fully understand the financial results of what we consider to be organic continuing operations.

There are a number of limitations related to the use of non-GAAP operating loss and non-GAAP operating loss per share versus operating income and loss per share calculated in accordance with GAAP. First, these non-GAAP financial measures exclude stock-based compensation and depreciation expenses that are recurring. Both stock-based expenses and depreciation have been, and will continue to be for the foreseeable future, a significant recurring expense with an impact upon our company notwithstanding the lack of immediate impact upon cash. Second, stock-based awards are an important part of our employees' compensation and impact their performance. Third, there is no assurance we will avoid further personnel changes and, therefore, may recognize additional severance and other one-time charges associated with a future restructuring. Fourth, there is no assurance the components of the costs that we exclude in our calculation of non-GAAP operating loss do not differ from the components that our peer companies exclude when they report their results of operations. Our management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures and evaluating these non-GAAP financial measures together with their most directly comparable financial measures calculated in accordance with GAAP. The accompanying tables have more details on these non-GAAP financial measures, including reconciliations between these financial measures and their most directly comparable GAAP equivalents.
(In thousands, except percentages and per share amounts)
Supplementary Data                  
    2011 2012
Statement of Operations   Q1 Q2 Q3 Q4 TOTAL Q1 Q2 TOTAL
Sales    $ 2,397  $ 3,054  $ 2,301  $ 1,522  $ 9,274  $ 1,773  $ 1,557  $ 3,330
Cost of sales - exclusive of depreciation and amortization   1,304  1,662  1,166  1,076  5,208 824 612 1,436
Operating expenses   3,350  2,824  2,509  2,095  10,778 2,773 2,151 4,924
Interest expense   11  7  6  6  30 5 1 6
Other income, net   (2)  (1)  --   (1)  (4) (1) 0 (1)
Net loss    $(2,266)  $(1,438)  $(1,380)  $(1,654)  $(6,738)  $(1,828)  $(1,207)  $(3,035)
Share based payment expense   353  180  173  55  761 394 132 526
(included in operating expenses & interest expense)                  
Weighted average shares    19,275  19,393  19,495  20,250  19,602  23,017  23,128  23,087
Reconciliation Between GAAP and Non-GAAP Operating Loss                
GAAP operating loss    $(2,257)  $(1,432)  $(1,374)  $(1,649)  $(6,712)  $(1,828)  $(1,206)  $(3,034)
Depreciation and amortization    144  122  111  90  467  80  75  155
Stock-based compensation expense    345  178  169  48  740  161  132  293
Severance    --   --   --   --   --   137  --   137
Total operating expense adjustment    489  300  280  138  1,207  378  207  585
Non-GAAP operating loss    $(1,768)  $(1,132)  $(1,094)  $(1,511)  $(5,505)  $(1,450)  $ (999)  $(2,449)
Non-GAAP operating loss per common share    $ (0.09)  $ (0.06)  $ (0.06)  $ (0.07)  $ (0.28)  $ (0.06)  $ (0.04)  $ (0.11)

Forward-Looking Statements

This release contains certain forward-looking statements of expected future developments, as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect management's expectations regarding continued operating improvement and other matters and are based on currently available data; however, actual results are subject to future risks and uncertainties, which could materially affect actual performance. Risks and uncertainties that could affect such performance include, but are not limited to, the following: estimates of future expenses, revenue and profitability; the pace at which the company completes installations and recognizes revenue; trends affecting financial condition and results of operations; ability to convert proposals into customer orders; the ability of customers to pay for products and services; the revenue recognition impact of changing customer requirements; customer cancellations; the availability and terms of additional capital; ability to develop new products; dependence on key suppliers, manufacturers and strategic partners; industry trends and the competitive environment; and the impact of losing one or more senior executives or failing to attract additional key personnel. These and other risk factors are discussed in detail in the risk factors section of the company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 21, 2012.
(In thousands, except share information)
  June 30, December 31,
  2012 2011
Cash and cash equivalents  $ 3,047  $ 5,478
Accounts receivable, net of allowance of $49 and $50  970  1,347
Inventories  122  170
Prepaid expenses and other current assets  245  193
Total current assets  4,384  7,188
Property and equipment, net  506  651
Restricted cash  50  50
Other assets  20  40
TOTAL ASSETS  $ 4,960  $ 7,929
Current maturities of capital lease obligations  $ --   $ 41
Accounts payable  557  870
Deferred revenue  585  687
Accrued liabilities  584  569
Total current liabilities  1,726  2,167
Capital stock, $0.01 par value, 66,667 shares authorized    
Preferred stock, 16,667  shares authorized, no shares issued and outstanding as of June 30, 2012 and December 31, 2011  --   -- 
Common stock, 50,000 shares authorized; 23,184 and 22,969 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively  232  230
Additional paid-in capital  95,552  95,047
Accumulated deficit  (92,051)  (89,016)
Accumulated other comprehensive loss  (499)  (499)
Total shareholders' equity  3,234  5,762
(In thousands, except per share amounts)
   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
  2012 2011 2012 2011
   (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Hardware  $ 296  $ 1,492  $ 634  $ 2,545
Software  80  623  182  878
Services and other  1,181  939  2,514  2,028
Total sales  1,557  3,054  3,330  5,451
Cost of sales        
Hardware  179  1,060  368  1,789
Software  13  66  44  95
Services and other  420  536  1,024  1,082
Total cost of sales (exclusive of depreciation and amortization shown separately below)  612  1,662  1,436  2,966
Gross profit  945  1,392  1,894  2,485
Operating expenses:        
Sales and marketing expenses  400  514  858  1,277
Research and development expenses  396  620  955  1,193
General and administrative expenses  1,280  1,568  2,956  3,438
Depreciation and amortization expense  75  122  155  266
Total operating expenses  2,151  2,824  4,924  6,174
Operating loss  (1,206)  (1,432)  (3,030)  (3,689)
Other income (expenses):        
Interest expense  (1)  (7)  (6)  (18)
Interest income  --   1  1  3
Total other income  (1)  (6)  (5)  (15)
Net loss  $ (1,207)  $ (1,438)  $ (3,035)  $ (3,704)
Basic and diluted loss per common share  $ (0.05)  $ (0.07)  $ (0.13)  $ (0.19)
Basic and diluted weighted average shares outstanding  23,128  19,393  23,087  19,335
CONTACT: Company Contact:         Darin P. McAreavey         Senior Vice President and Chief Financial Officer         dmcareavey@wirelessronin.com         952-564-3525                  Investor Relations Contact:         Scott Liolios or Matt Glover         Liolios Group, Inc.         info@liolios.com         949-574-3860

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