Key 2009 first quarter highlights include: * Reduces quarterly cash burn to $2.4 million in first quarter of 2009 compared to $3.9 million and $4.4 million in fourth and third quarter of 2008, respectively. * Completes 35 KFC installs located in Las Vegas bringing the total install count to 124. * Improves gross profit margin to 19 percent in first quarter of 2009 from 12 percent in fourth quarter of 2008. * Reduces Non-GAAP operating loss by $0.5 million from the previous quarter. * Darin McAreavey, technology industry veteran, joins company as Chief Financial Officer
MINNEAPOLIS, May 7, 2009 (GLOBE NEWSWIRE) -- Wireless Ronin Technologies Inc. (Nasdaq:RNIN), a leader in digital signage solutions, today announced its financial results for the first quarter of 2009.
First Quarter Results
The Company reported revenue of $1.4 million for the first quarter of 2009, a 26 percent decrease from $1.9 million in the first quarter of 2008. The Company also reported a first quarter 2009 net loss of $2.9 million compared to a net loss of $4.2 million in the year-ago quarterly period, or a basic and diluted loss per share of $0.20 and $0.29, respectively. The year-over-year improvement in the net loss for the 2009 first quarter resulted primarily from the reductions in workforce taken in both the third and fourth quarter of 2008. First quarter 2009 results also included costs of approximately $187,000, or $0.01 per basic and diluted share, of non-cash stock compensation expense related to FAS123R compared to approximately $395,000, or $0.03 per basic and diluted share, in 2008.
Non-GAAP operating loss was $2.3 million or $0.16 per basic and diluted share in the first quarter of 2009 compared to a Non-GAAP operating loss of $3.7 million or $0.25 per basic and diluted share in the first quarter of 2008. Non-GAAP operating loss is defined as the GAAP operating loss with the add-back of certain items. These items include a severance charge totaling $237,000 or $0.02 per basic and diluted share for the first quarter of 2009 compared to $120,000 or $0.01 per basic and diluted share recorded in the first quarter of 2008. The reconciliation to the GAAP operating loss on a quarterly and full year basis is contained in a table following the financial statements accompanying this release.
For the first quarter of 2009, gross margin averaged 19 percent, compared to a gross margin of 21 percent in the first quarter of 2008. The gross margins in both periods continue to be negatively impacted by a net loss from the Company's Network Operations Center, or NOC and other one-time charges. Excluding these adjustments, the Company's Non-GAAP gross margin would have been 27 percent for the first quarter of 2009 and 24 percent for the first quarter of 2008.
Cash and marketable securities, including restricted cash at March 31, 2009 totaled approximately $11.7 million compared to $14.0 million at the end of 2008. The decline in cash and marketable securities reflects the funding of the company's operations during the first quarter of 2009. "The Company's first quarter operating results for 2009 when compared to the fourth quarter 2008 reflects the continued focus management has on its operating expenses in an effort to preserve cash while operating in what is proving to be a very challenging business environment. As a management team, we are very committed to making this a high priority throughout 2009 as we are constantly looking at ways to better align our expenses with our current and forecasted revenues," said Darin McAreavey, Wireless Ronin Technologies' vice president and chief financial officer.
James C. (Jim) Granger, president and chief executive officer of Wireless Ronin Technologies said, "Because of the economic conditions, the first quarter of 2009 has proven to be difficult for many businesses and Wireless Ronin was no exception. Despite these difficulties we continue to make progress on creating a long term cost structure that can lead to increased value. We feel a key to creating this cost structure is a more complete integration of our Canadian and US operations under a simplified and streamlined model. Individual customers have their own unique set of mission critical needs and business drivers and our organizational structure now supports these different needs with a lower cost model. We believe the changes we have made will uniquely position us in the industry to take advantage of the spending that will occur. I continue to be optimistic that we are making the right moves now to position the Company for long term success."
A conference call to review first quarter and full year results is scheduled for today at 3:30 p.m. (CT). A live webcast of Wireless Ronin's earnings conference call can be accessed on the Investor section of its corporate web site at www.wirelessronin.com. Alternatively, a live broadcast of the call may be heard by dialing (888) 633-9563 inside the United States or Canada, or by calling (706) 679-6372 from international locations. An operator will direct you to the Wireless Ronin conference call. A webcast replay of the call will be archived on Wireless Ronin's corporate web site. An archive of the call is also accessible via telephone by dialing (800) 642-1687 domestically and (706) 645-9291 internationally with pass code 95018679. The conference call archive will be available through June 7, 2009.
About Wireless Ronin Technologies
Wireless Ronin Technologies (www.wirelessronin.com) is the developer of RoninCast(r), a complete software solution designed to address the evolving digital signage marketplace. Wireless Ronin provides clients with a complete, turnkey digital signage system which allows the ability to manage a digital signage network from one central location. The RoninCast(r) digital signage software suite allows for customized distribution with network management, playlist creation and scheduling, and database integration. Wireless Ronin offers an array of services to support RoninCast(r) software including consulting, creative development, project management, installation, and training. The Company's common stock trades on the NASDAQ Global Market under the symbol "RNIN."
The Wireless Ronin Technologies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3208
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 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 company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, on March 13, 2009.
WIRELESS RONIN TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share information)
March 31, Dec. 31,
2009 2008
(unaudited) (audited)
--------- ---------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 8,334 $ 5,294
Marketable securities -- available-for-sale 2,901 8,301
Accounts receivable, net of allowance of
$76 and $92 1,513 1,823
Income tax receivable 12 12
Inventories 341 462
Prepaid expenses and other current assets 147 265
--------- ---------
Total current assets 13,248 16,157
Property and equipment, net 1,723 1,918
Restricted cash 450 450
Other assets 33 35
--------- ---------
TOTAL ASSETS $ 15,454 $ 18,560
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of capital
lease obligations $ 52 $ 71
Accounts payable 833 1,068
Deferred revenue 170 181
Accrued liabilities 992 1,067
--------- ---------
TOTAL LIABILITIES 2,047 2,387
--------- ---------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Capital stock, $0.01 par value, 66,667 shares
authorized
Preferred stock, 16,667 shares authorized,
no shares issued and outstanding -- --
Common stock, 50,000 shares authorized;
14,850 shares issued and outstanding at
March 31, 2009 and December 31, 2008,
respectively 148 148
Additional paid-in capital 80,837 80,650
Accumulated deficit (67,115) (64,212)
Accumulated other comprehensive loss (463) (413)
--------- ---------
Total shareholders' equity 13,407 16,173
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 15,454 $ 18,560
========= =========
WIRELESS RONIN TECHNOLOGIES, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts, unaudited)
Three Months Ended
March 31,
---------------------
2009 2008
--------- ---------
Sales
Hardware $ 503 $ 763
Software 166 98
Services and other 764 1,072
--------- ---------
Total sales 1,433 1,933
Cost of sales
Hardware 451 635
Software -- --
Services and other 709 899
--------- ---------
Total cost of sales (exclusive of
depreciation and amortization shown
separately below) 1,160 1,534
--------- ---------
Gross profit 273 399
Operating expenses:
Sales and marketing expenses 831 1,220
Research and development expenses 391 454
General and administrative expenses 1,795 2,936
Depreciation and amortization expense 199 251
--------- ---------
Total operating expenses 3,216 4,861
--------- ---------
Operating loss (2,943) (4,462)
Other income (expenses):
Interest expense (3) (7)
Interest income 43 272
--------- ---------
Total other income 40 265
--------- ---------
Net loss $ (2,903) $ (4,197)
========= =========
Basic and diluted loss per common share $ (0.20) $ (0.29)
========= =========
Basic and diluted weighted average
shares outstanding 14,850 14,544
========= =========
WIRELESS RONIN TECHNOLOGIES, INC.
2009 SUPPLEMENTARY QUARTERLY FINANCIAL DATA
(In thousands, except percentages and per share amounts)
(Unaudited)
Supplementary Data
2008
-----------------------------------------
Q1 Q2 Q3 Q4
Statement of Operations
Sales $ 1,934 $ 1,596 $ 1,950 $ 1,902
Cost of sales 1,535 1,534 1,847 1,673
Operating expenses 4,861 5,180 4,854 7,210
Interest expense 7 7 5 4
Other income, net (272) (165) (122) (84)
-------- -------- -------- --------
Net loss $ (4,197) $ (4,960) $ (4,634) $ (6,901)
======== ======== ======== ========
Stock compensation
expense 395 306 201 411
(included in operating
expenses)
Weighted average shares 14,544 14,578 14,764 14,768
2008 2009
-------- --------
TOTAL Q1
Statement of Operations
Sales $ 7,382 $ 1,433
Cost of sales 6,589 1,160
Operating expenses 22,105 3,216
Interest expense 23 3
Other income, net (643) (43)
-------- --------
Net loss $(20,692) $ (2,903)
======== ========
Stock compensation expense 1,313 187
(included in operating expenses)
Weighted average shares 14,664 14,850
Reconciliation Between GAAP and Non-GAAP Operating Loss
2008
-----------------------------------------
Q1 Q2 Q3 Q4
GAAP operating loss $ (4,462) $ (5,118) $ (4,751) $ (6,981)
Adjustments:
Depreciation and
amortization 251 337 296 342
Old building remaining
lease obligation
write-off -- -- -- 56
Termination
partnership
agreement -- -- -- 50
Stock-based
compensation
expense 395 306 201 411
Impairment of network
equipment held
for sale -- -- -- 1,766
Impairment of
intangible assets -- -- -- 1,265
Severance 120 353 286 274
-------- -------- -------- --------
Total operating expense
adjustment 766 996 783 4,164
-------- -------- -------- --------
Non-GAAP operating loss $ (3,696) $ (4,122) $ (3,968) $ (2,817)
======== ======== ======== ========
Non-GAAP operating loss
per common share $ (0.25) $ (0.28) $ (0.27) $ (0.19)
2008 2009
-------- --------
TOTAL Q1
GAAP operating loss $(21,312) $ (2,943)
Adjustments:
Depreciation and amortization 1,226 199
Old building remaining lease obligation
write-off 56 --
Termination partnership agreement 50 --
Stock-based compensation expense 1,313 187
Impairment of network equipment
held for sale 1,766 --
Impairment of intangible assets 1,265 --
Severance 1,033 237
-------- --------
Total operating expense adjustment 6,709 623
-------- --------
Non-GAAP operating loss $(14,603) $ (2,320)
======== ========
Non-GAAP operating loss per common share $ (1.00) $ (0.16)
Reconciliation Between GAAP and Non-GAAP Gross Profit Margin
2008
-----------------------------------------
Q1 Q2 Q3 Q4
GAAP sales $ 1,934 $ 1,596 $ 1,950 $ 1,902
Deferred customer
revenue -- 80 -- --
Network operations
center (96) (39) (99) (100)
-------- -------- -------- --------
Non-GAAP sales 1,838 1,637 1,851 1,802
GAAP cost of sales 1,535 1,534 1,847 1,673
Deferred customer
costs 48 51 -- --
Inventory adjustment -- -- -- (65)
Network operations
center (191) (281) (318) (257)
-------- -------- -------- --------
Non-GAAP cost
of sales 1,392 1,304 1,529 1,351
Non-GAAP gross profit $ 446 $ 333 $ 322 $ 451
======== ======== ======== ========
GAAP gross
profit margin 20.6% 3.9% 5.3% 12.0%
Non-GAAP gross
profit margin 24.3% 20.3% 17.4% 25.0%
2008 2009
-------- --------
TOTAL Q1
GAAP sales $ 7,382 $ 1,433
Deferred customer revenue 80 --
Network operations center (334) (71)
-------- --------
Non-GAAP sales 7,128 1,362
GAAP cost of sales 6,589 1,160
Deferred customer costs 99 --
Inventory adjustment (65) --
Network operations center (1,047) (169)
-------- --------
Non-GAAP cost of sales 5,576 991
Non-GAAP gross profit $ 1,552 $ 371
======== ========
GAAP gross profit margin 10.7% 19.1%
Non-GAAP gross profit margin 21.8% 27.2%