Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On November 4, 2009, we publicly announced results of operations for the third quarter of 2009. For further information, please refer to the press release attached hereto as Exhibit 99.1, which is incorporated by reference herein.
ITEM 8.01 OTHER EVENTS.
On November 4, 2009, we publicly announced results of operations for the third quarter of 2009.
The Company reported revenue of $1.1 million for the third quarter of 2009, a 45 percent decrease from $2.0 million in the third quarter of 2008. As of September 30, 2009, the Company has received purchase orders totaling approximately $0.8 million for which
it has not recognized revenue. The Company also reported a third quarter net loss of $2.5 million, or $0.17 per basic and diluted share, compared to a net loss of $4.6 million, or $0.31 per basic and diluted share, in the year-ago period. The Company attributes the decline in revenue for the third quarter of 2009 compared to the same period in the prior year to general economic conditions and customers' lack of capital for substantial digital signage deployments. The year-over-year
improvement in net loss for the third quarter of 2009 primarily resulted from reductions in workforce taken during the third and fourth quarters of 2008 and other cost cutting measures primarily taken during the first half of 2009. Third quarter 2009 results also included costs of approximately $152,000, or $0.01 per basic and diluted share, of non-cash stock compensation expense related to FAS123R compared to approximately $201,000, or $0.01 per basic and diluted share, in the third quarter of 2008. Revenue
for the first nine months of 2009 totaled $3.5 million compared to $5.5 million in the same period a year ago. The Company’s net loss for the first nine months of 2009 totaled $8.0 million, or $0.54 per basic and diluted share, compared to $13.8 million, or $0.94 per basic and diluted share, in the prior year.
For the third quarter of 2009, gross margin averaged 34 percent, compared to a gross margin of five percent in the third quarter of 2008 and up from 23 percent from the second quarter of 2009. The sequential increase was primarily due to a more normalized margin on hardware sales in addition to an expanding base of recurring hosting and
software maintenance fees.
Cash and marketable securities, including restricted cash at September 30, 2009, totaled approximately $7.5 million compared to $9.8 million at June 30, 2009, $11.7 million at March 31, 2009, and $14.0 million at the end of 2008. The decline in cash and
marketable securities reflects the continued funding of the Company’s losses during the first nine months of 2009.
For further information, please refer to the financial statements attached hereto as Exhibit 99.2, which is incorporated by reference herein.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) See “Exhibit Index”.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
Date: November 4, 2009 |
Wireless Ronin Technologies, Inc.
By: /s/ Darin P. McAreavey
Darin P. McAreavey
Vice President and Chief Financial Officer |
EXHIBIT INDEX
Exhibit
Number Description
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99.1 |
Press release reporting results of operations for the third quarter of 2009, dated November 4, 2009. |
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99.2 |
Results of operations for the third quarter of 2009, dated November 4, 2009. |