New Products & Partnerships Position Company to Weather Challenging Economic Climate

TEL AVIV, Israel, February 4 /PRNewswire-FirstCall/ -- RiT Technologies (NASDAQ: RITT), today announced its financial results for the fourth quarter and full year ended December 31, 2008.

Revenues for the fourth quarter of 2008 were $4.5 million compared with $8.8 million for the fourth quarter of 2007. Net loss for the quarter was $(0.7) million, or $(0.03) per share (basic and diluted), compared to net income of $92,000, or $0.01 per share (basic and diluted) in the fourth quarter of 2007.

For the twelve month period, revenues were $22.6 million compared with $23.4 million for 2007. Net loss for the period was $(1.2) million, or $(0.07) per share (basic and diluted), compared with $(5.3) million, or $(0.36) per share (basic and diluted) for 2007. Net loss for the twelve-month period included a write-off of $0.2 million for slow-moving inventory (reflected in Cost of Sales), and non-cash share-based compensation expense of $271,000, while net loss for 2007 included a write-off of $1.8 million for slow-moving inventory, and non-cash share-based compensation expense of $408,000. Excluding these write-offs, non-GAAP net loss for 2008 was $(0.8) million, or $(0.04) per share (basic and diluted), and non-GAAP net loss for 2007 was $(3.1) million, or $(0.21) per share (basic and diluted).

Comments of Management

'We are disappointed with our fourth quarter results which were significantly below our expectations, reflecting projects delays that are expected to materialize during the first half of 2009,' commented Mr. Avi Kovarsky, RiT's President & CEO. 'At the same time, we are pleased to report that our current pipeline includes sizeable deals for both Carrier and Enterprise customers, and that, to our knowledge, none of the opportunities in our sales pipeline has been cancelled - for example, our strategic field trial with a Russian service provider, which we believe could lead to a multi-million dollar project, was delayed but continues to offer us exciting potential. However we, like so much of the IT industry, are clearly being affected by the global economic slowdown, which has significantly reduced available credit and lengthened the sales cycle.

'Nonetheless, the need to do more with less has made it critical for organizations to begin automating their IT processes, a trend that is giving rise to new interest in our solutions. We are excited by the industry reception elicited by our two newest products, SiteWiz and RiT Paladin, each of which expands our addressable markets significantly. In parallel, we are establishing new partnerships in India and Singapore - regions that have been less affected by the economic situation - to continue to expand our capabilities in these high-potential markets.'

Mr. Kovarsky concluded, 'At the current time, the market remains too uncertain for projections, and we foresee the possibility of continuing weakness, at least for the first quarter. Nonetheless, we feel well positioned to weather the storm. With exciting new products, we are reaching out to more prospects than ever, and continue investigating new directions for leveraging our experience and technology.