WIRELESS RONIN TEC : 5/25/11 - Wireless Ronin Announces $1.8 Million Purchase Order for RoninCast® for Automotive

NEWS AND PRESS

Wireless Ronin Reports 2011 First Quarter Results

Key highlights include: 

• Sales of $2.4 million for the first quarter of 2011 represented a 123 percent increase year-over-year
• Sales from RoninCast® software licenses for the first quarter of 2011 increased 264 percent year-over-year
• Announcement of teaming and co-marketing agreement with Sprint 4G
• Expansion of sales to Chrysler and its dealer network
• Awarded digital menu board pilot with Johnny Rockets
• Renewal of $2.5 million line-of-credit with Silicon Valley Bank to March 2012

MINNEAPOLIS – May 12, 2011 – Wireless Ronin Technologies, Inc. (NASDAQ: RNIN), a leader in digital signage solutions, today announced its financial results for the first quarter of 2011.

First Quarter Results

Wireless Ronin reported revenue of $2.4 million for the first quarter of 2011, a 123 percent increase from $1.1 million in the first quarter of 2010. The year-over-year increase in revenue was primarily attributable to sales with Chrysler and its dealership network.  Additionally, the increase was due to an approximate 600 percent increase in orders from ARAMARK, which included its newest food concept, Grille Works.  Also, the Company’s recurring hosting and support revenue for the first three months of 2011 totaled $0.4 million.

Scott W. Koller, president and chief executive officer of Wireless Ronin Technologies, said, “We had several key wins during the first quarter that continue to position the Company for long-term success. Our newly formed relationship with Sprint provides a nationwide extension of our sales team to focus on retail digital signage solutions. In addition, winning the pilot with Johnny Rockets once again demonstrates our leadership in providing a digital menu board solution to the food service industry.”

The Company reported a first quarter net loss of $2.3 million, or $0.12 per basic and diluted share, compared to a net loss of $2.8 million, or $0.16 per basic and diluted share, in the year-ago period. The improvement in the year-over-year net loss was driven primarily by the increase in gross margin dollars, partially offset by a year-over-year increase in operating expenses. The first quarter 2011 and 2010 results also included costs of approximately $0.3 million, or $0.02 per basic and diluted share, of non-cash stock compensation expense for each period.

Non-GAAP operating loss totaled $1.8 million, or $0.09 per basic and diluted share, in the first quarter of 2011 compared to a non-GAAP operating loss of $2.4 million, or $0.14 per basic and diluted share, in the first quarter of 2010.  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 unaudited financial information accompanying this release.

For the first quarter of 2011, gross margin averaged 46 percent, compared to a gross margin of 39 percent in the first quarter of 2010. The year-over-year increase was due to a 264 percent increase in sales of RoninCast® software and a 35 percent increase in recurring hosting fees during the first three months of 2011 when compared to the same period in 2010. 

Cash and cash equivalents in combination with restricted cash at March 31, 2011, totaled approximately $5.6 million compared to $7.1 million at the end of 2010.  The decline in cash from the prior year-end reflected the continued funding of the Company’s losses during the first quarter 2011.  In January 2011, the Company renewed the $2.5 million line of credit with Silicon Valley Bank, extending the agreement to March 2012. 

A conference call to review first quarter results is scheduled for May 12, 2011, at 3:30 p.m. CT. A live interactive 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 62212643.

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 22, 2011. 

Wireless Ronin® and RoninCast® are registered trademarks of Wireless Ronin Technologies, Inc.