Key highlights include:
- Record revenue of $8.6 million in fiscal year 2010 represents a 71 percent increase year-over-year
- Fourth quarter 2010 revenue increased to $2.9 million, an 89 percent increase from the prior year
- Recurring hosting and support revenue increased 142 percent for fiscal 2010 year-over-year
- Sales from RoninCast® software licenses increased 96 percent for fiscal 2010 year-over-year
- Gross margin dollars increased 180 percent for fiscal 2010 year-over-year
- Fourth quarter 2010 lowest quarterly cash burn of $1.1 million since initial public offering in November 2006
MINNEAPOLIS – March 2, 2011 – Wireless Ronin Technologies, Inc. (NASDAQ: RNIN), a leader in digital signage solutions, today announced its financial results for the fourth quarter and full year of 2010.
Fourth Quarter Results
Wireless Ronin reported revenue of $2.9 million for the fourth quarter of fiscal 2010, an 89 percent increase from $1.5 million in the fourth quarter of fiscal 2009. As of December 31, 2010, the Company had received purchase orders totaling approximately $1.1 million for which it had not recognized revenue. The increase in revenue for the fourth quarter of 2010 over the prior year resulted primarily from orders received from Chrysler for its Branded Tower program for 200 of its dealers.
The Company reported a fourth quarter net loss of $1.7 million, or $0.09 per basic and diluted share, compared to a net loss of $2.2 million, or $0.13 per basic and diluted share, one year ago. The improvement in the year-over-year net loss resulted from significant gross margin dollar improvement. Fourth quarter 2010 results also included costs of approximately $0.4 million, or $0.02 per basic and diluted share, of non-cash stock compensation expense compared to approximately $0.2 million, or $0.01 per basic and diluted share, in the fourth quarter of 2009.
Non-GAAP operating loss for the fourth quarter 2010 totaled $1.1 million, or $0.06 per basic and diluted share, compared to a non-GAAP operating loss of $1.7 million, or $0.10 per basic and diluted share, in the fourth quarter of 2009. Non-GAAP operating loss is defined as the GAAP operating loss with the add-back of certain items. Reconciliation to the GAAP operating loss on a quarterly basis is contained in a table following the audited financial information accompanying this release.
For the fourth quarter of 2010, gross margin averaged 46 percent, compared to a gross margin of 37 percent in the fourth quarter of fiscal 2009 and down from 50 percent from the third quarter of fiscal 2010. The sequential decline was due primarily to additional costs incurred to fulfill the 200 dealer deployment of the Chrysler Branded Towers in those dealerships and related volume pricing. The Company continues to believe its gross margin will improve as its recurring hosting and support revenue base grows.
Cash and marketable securities, including restricted cash at December 31, 2010, totaled approximately $7.1 million. The increase in cash and marketable securities from the prior quarter-end reflected the continued funding of the Company’s losses during the fourth quarter of fiscal 2010, offset by the proceeds from our registered direct stock offering. Darin McAreavey, Wireless Ronin’s Senior Vice President and Chief Financial Officer, said, “Our cash burn for the fourth quarter of 2010 of $1.1 million was the Company’s lowest quarterly cash burn since going public and down sequentially from $1.5 million during the third quarter of 2010. Our near term objective continues to be delivering a non-GAAP EBITDA break-even quarter. We believe that our November 2010 capital raise and continued access to our $2.5 million line-of-credit with Silicon Valley Bank provide us adequate working capital to fund our operations through 2011.”
Full Year Results
The Company achieved the following milestones in 2010:
- Record revenue for fiscal 2010 of $8.6 million, an increase of 71 percent from the previous year
- Record gross margin on a percentage basis, an improvement from 28 percent for fiscal 2009 to 47 percent for fiscal 2010
- Record recurring and hosting revenue of $1.3 million, up 142 percent in fiscal 2010 from the previous year
- Reduced quarterly cash burn from $1.8 million in the fourth quarter of 2009 to $1.1 million in the fourth quarter 2010, the lowest level since initial public offering
“2010 was a year of significant accomplishments,” said Scott W. Koller, Wireless Ronin’s President and Chief Executive Officer. “Over the past year we have successfully demonstrated a business model capable of driving substantial revenue and margin growth. As we move into 2011, we are extremely well positioned to capitalize on these efforts as our customers, such as Chrysler, continue to roll out our technology on a larger scale. We believe the continued decline in hardware costs provides a more rapid ROI for our customers and will accelerate deployments in the future.”
Revenue for the full year 2010 totaled $8.6 million compared to $5.0 million for 2009. The 71 percent increase in the Company’s revenue was due primarily to Chrysler, whose sales were up 457 percent from the previous year. The Company’s net loss in 2010 totaled $7.9 million, or $0.44 per basic and diluted share, compared to $10.2 million, or $0.67 per basic and diluted share, in the prior year. The improvement in the Company’s net loss from 2009 to 2010 was primarily the result of a 180 percent increase in gross margin dollars.
Non-GAAP operating loss for 2010 totaled $6.3 million, or $0.35 cents per basic and diluted share, versus a non-GAAP operating loss of $8.3 million, or $0.54 per basic and diluted share, for the prior year.
A conference call to review fourth quarter and full year 2010 results and to provide an update regarding customers within the Company’s key vertical markets is scheduled for March 2, 2011, 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 website at www.wirelessronin.com. Alternatively, a live broadcast of the call may be heard by dialing (877) 368-6111 inside the United States or Canada, or by calling (631) 291-4139 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 website. An archive of the call is also accessible via telephone approximately two hours following the end of the live call by dialing (800) 642-1687 domestically and (706) 645-9291 internationally with conference ID 41020102.
About Wireless Ronin Technologies, Inc.
Wireless Ronin Technologies (www.wirelessronin.com) has developed RoninCast® software as a complete solution designed to address the evolving digital signage marketplace. RoninCast® software enables clients to manage digital signage networks from a central location and provides turnkey digital signage solutions. The RoninCast® software suite facilitates customized distribution with network management, playlist creation and scheduling, and database integration. Wireless Ronin offers an array of services to support RoninCast® software including consulting, creative development, project management, installation, training, and support and hosting through our network operations center (NOC). The company's common stock trades on the NASDAQ Capital Market under the symbol "RNIN".
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 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 26, 2010.
VIEW WIRELESS RONIN Q4 AND FULL YEAR 2010 FINANCIAL STATEMENTS
Investor Contact:
Darin P. McAreavey
Senior Vice President and Chief Financial Officer
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Erin Haugerud
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