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Net loss was $182,000, or $0.01 per share, compared with a net loss of $426,000, or $0.03 per share in 3Q05
November 13, 2006
TEL AVIV -- RiT Technologies (NASDAQ: RITT - News), the pioneer and world-leading provider of intelligent physical layer solutions, today announced financial results for the third quarter and nine months ended September 30, 2006.
Financial Results
Revenues for the third quarter of 2006 were $6,062,000 compared with $6,652,000 in the second quarter of 2006 and $7,158,000 in the third quarter of 2005. This is the Company's second straight quarter with Enterprise revenues above $6 million, a result of the growing worldwide demand for the Company's Intelligent Physical Layer Management Solutions (IPLMS).
Net loss for the third quarter of 2006 was $182,000, or $0.01 per share (basic and diluted), an improvement of 71% compared with a net loss of $622,000, or $0.04 per share (basic and diluted) recorded in the second quarter of 2006. Net income for the third quarter of 2005 was $426,000, or $0.03 per basic and diluted share.
Revenues for the first nine months of 2006 were $17,981,000 compared with $20,781,000 for the parallel period of 2005. Net loss for the first nine months of 2006 was $1,654,000, or $0.11 per share (basic and diluted) compared with net income of $1,178,000, or $0.08 per share (basic and diluted), for the first nine months of 2005.
Comments of Management
Commenting on the results, Mr. Doron Zinger, RiT's President and CEO, said, "As expected, our third quarter revenues are down compared to the second quarter, reflecting slow Carrier sales. Nonetheless, the quarter was our second in a row with Enterprise sales above $6 million, a significant increase compared to their average level in 2005 and the highest they have been for the past five years. This reflects the success of our sales and marketing efforts together with significant growth in the sales of our OEM partners. As such, our Enterprise business has achieved a healthy new level, and now represents a strong platform for the long term.
"We are pleased to have been able to achieve higher average gross margin for our Enterprise sales this quarter, which, together with the decrease in our operational expenses, enabled us to achieve a material improvement in the bottom line compared to the second quarter.
"In parallel, we are progressing towards closure of a number of Carrier deals that we expect to materialize during the next few quarters."
RiT Technologies Ltd. (Nasdaq: RITT)
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