Strong Sequential Progress Despite Difficult Macro Markets: 49% Increase in Revenues & 31% Decrease in Net Loss Compared With Q1 2009; Stins Coman Extends $10M Credit Line via Convertible Loan

TEL AVIV, Israel, July 29 /PRNewswire-FirstCall/ -- RiT Technologies (NASDAQ: RITT), today announced its financial results for the second quarter and first six months ended June 30, 2009.

Revenues for the second quarter of 2009 were $2.4 million, a 49% increase compared sequentially to $1.6 million recorded in the first quarter of 2009. Revenues for the second quarter of 2008 were $5.9 million. Net loss for the quarter was $(1.4) million, or $(0.07) per share (basic and diluted), a 31% reduction compared sequentially with $(2.0) million, or $(0.09) per share (basic and diluted) for the first quarter of 2009. Net loss for the second quarter of 2008 was $(0.5) million, or $(0.03) per share (basic and diluted).

Revenues for the first six months of 2009 were $4.0 million compared with $10.7 million for the first half of 2008, and net loss for the period was $(3.3) million or $(0.16) per share (basic and diluted) compared with $(1.6) million or $(0.11) per share (basic and diluted) for the first half of 2008.

Convertible Loan

On June 19, the Company announced that it had entered into a convertible loan agreement with Stins Coman Inc., RiT's largest shareholder. According to the loan agreement, Stins Coman agreed to provide the Company with an unsecured credit line of up to $10 million under favorable terms, beginning with October 1, 2009. The closing of the transaction is subject to the approval of the Company's shareholders.

Commenting on the investment, Mr. Sergey Anisimov, Chairman of RiT and President of Stins Coman, said, 'We are extending this significant credit line as a concrete demonstration of our belief in RiT's potential and its ability to deliver strong growth over the long term.'

Comments of Management

'The second quarter was a period of improved sales execution despite the continued uncertainty of our target markets, enabling us to achieve a significant sequential increase in revenues and a decrease in our net loss compared to the first quarter of 2009,' commented Mr. Avi Kovarsky, RiT's President & CEO. 'We have been experiencing increased demand from mission-critical Enterprises such as airports and government agencies, for whom our solutions offer a clear, rapid and compelling ROI.

'During the quarter, we increased our sales activities in Asia, establishing a new representative presence in Singapore to supplement our offices in India and China. As a result, we have begun working on sizeable projects in the region, including airports and governmental housing projects. In parallel, we are pleased that our sales in the US have been trending upward, and that our revenues from professional services, a strategic focus area, are rising.'

Mr. Kovarsky continued, 'Looking forward, we continue to project a much stronger second half of the year, based on a sales pipeline that includes significant opportunities in advanced stages on both the Enterprise and Carrier sides of the business.