W) Fast and losse on RITT
Rated a WATCH
Dev/mfr/sell premise wiring products
18-May-00 15:00 -- 16:00 ET
RIT Technologies (RITT) 9 1/2 +1/4: CE Unterberg Towbin reiterates STRONG BUY rating and price target of $19; says company is executing as planned, and the recent market downturn creates excellent buying opportunity.
EPS -.14 to -.10 to -.10 to .00 to .03 Jun00 dailystocks
Rev 4.7 to 6.3 to 7.4 to 7.1 to 8.5M
Chart: weak 10/50.200 stack. Collapse in April maybe due to weak Mar00 report
RiT Technologies Ltd. is a leading provider of integrated network management solutions for the communications market. RiT's extended line of integrated management solutions address the needs and demands of the rapidly evolving and changing markets in both telecommunications (telecom) and data communications (datacom). In the telecom field, RiT's solutions address the needs of the telephone companies (telcos) to increase customer satisfaction, increase revenues and decrease costs in order to compete with other access providers. RiT is engaged in the development, manufacture and sale of telco outside plant management and qualification systems that enables the telcos to capitalize on their copper infrastructure, their most valuable weapon in their competition with other access providers. In the datacom field, RiT's solutions address the needs of the vast and complex networks of enterprises by adding a new dimension to conventional network management: physical layer management capability.
52-Week Low on 21-Oct-1999 $2.50
Recent Price $13.50
52-Week High on 15-Mar-2000 $20.125
Daily Volume (3-month avg) 61.3K
Daily Volume (10-day avg) 43.0K
Market Capitalization $129.6M
Shares Outstanding 9.60M
Float 5.20M
Price/Book (mrq*) 8.35
Price/Earnings N/A
Price/Sales (ttm) 4.10
Debt/Equity (mrq*) 0
Total Cash (mrq) $5.30M
Short Interest As of 8-Aug-2000
Shares Short 9,000
Percent of Float 0.2%
TEL AVIV, Jul 19, 2000 /PRNewswire via COMTEX/ -- RiT TECHNOLOGIES LTD. RITT today announced financial results for the second quarter ended June 30, 2000.
Revenues for the three months ended June 30, 2000 increased by 79% to $8,466,000 compared to $4,718,000 for the same period in 1999. Gross profit increased by 181% to $4,630,000 from $1,646,000 for the same quarter of 1999, resulting in gross margins of 55%. Net profit for the quarter was $263,000, or $0.03 per share fully diluted, compared to a net loss of ($1,248,000), or ($0.14) per share fully diluted, for the corresponding period in 1999.
Revenues for the six months ended June 30, 2000 were $15,534,000, representing an increase of 69% as compared to $9,215,000 for the same period of 1999. Net profit for the period was $276,000, or $0.03 per share fully diluted, compared to a net loss of ($3,179,000), or ($0.37) per share fully diluted for the first six months of 1999.
Commenting on the quarter, Liam Galin, President and CEO, said, "During the second quarter, strongest ever sales of our telecom products resulted in significantly increased revenues and a new level of gross margins, leading to improved profitability, including positive operating income.
"In April, we signed a major framework agreement with one of the largest telecommunications companies in the US for the sale of PairView Outside Plant Network Management systems. We received the first order for PairView equipment from one of the ILEC's regions in May, and have since received a number of orders worth a total of more than $7.0 million. During the quarter, we made important progress in building a US-based organization to support the installation of these systems, and to market PairView aggressively to other North American telcos. We expect to continue receiving orders under this framework agreement at least throughout the remainder of the year.
"Also during the second quarter, we received a major follow-up order worth over $3 million for PairView systems from TELMEX, Mexico's national telecommunications carrier. TELMEX ordered initial PairView systems during the fourth quarter of 1999, and is now ramping up its deployment in various regions of the country. Having made initial sales to important companies such as TELENOR, Deutsche Telekom and Alcatel, and with ongoing discussions and field trials with many telcos, we feel well positioned for accelerated PairView sales in the future."
Mr. Galin continued, "In May, we received our largest datacom order yet -- a $2 million repeat order from a major US investment bank for PatchView Physical Layer Connectivity Management systems. PatchView will bring visibility and control to the complex physical networks of the bank's large London and Frankfurt offices, and will automate their network troubleshooting, maintenance and documentation procedures.
Mr. Galin concluded, "Overall, we are very pleased with our second quarter results, and optimistic about the future. The orders we have received this quarter have given us unprecedented visibility, with a backlog of millions of dollars. We are intensifying our marketing efforts in order to leverage our success in all our markets."
Summary
Telco have been weak. Don't like the marc00 results. Need to wait two quarters to see if a blip.
Jack |
