Wireless Ronin Technologies today reported financial results for the first quarter ended March 31, 2013. Revenue in the first quarter of 2013 was $1.4 million as compared to $1.8 million in the same year-ago quarter. The decrease was primarily due to reduced Chrysler development and content orders associated with iShowroom.
Recurring revenue in the first quarter of 2013 from the company’s hosting and support services was $495,000 or 35 percent of total revenue compared to $466,000 or 26 percent of total revenue in the same year-ago quarter. The increase was driven by a continued expansion of support services through the company’s network operations center.
Gross margin in the first quarter of 2013 was $746,000 or 53 percent of total revenue compared to $949,000 or 54 percent of total revenue in the same year-ago quarter. The one point decrease in gross margin percentage was primarily due to lower hardware margins in Q1 2013.
Net loss in the first quarter of 2013 totaled $1.4 million or $(0.27) per basic and diluted share, an improvement from a net loss of $1.8 million or $(0.40) per basic and diluted share in Q1 2012. The year-over-year improvement in net loss was primarily due to decreased operating expenses and effective cost management.
Non-GAAP operating loss in the first quarter of 2013 totaled $1.2 million or $(0.23) per basic and diluted share, an improvement from anon-GAAP operating loss of $1.4 million or $(0.31) per basic and diluted share in Q1 2012. The company defines non-GAAP operating loss as GAAP operating loss less stock-based compensation, depreciation and amortization and severance and other one-time charges (see further discussion of this non-GAAP term as well as a reconciliation to GAAP operating loss, below).
At March 31, 2013, cash and cash equivalents totaled $3.1 million, compared to $2.3 million at end of the prior quarter. The increase was due to the $1.4 million of net proceeds from the company’s registered direct offering completed in March 2013.
“During the first quarter, we focused on building recurring revenue and worked to enhance and broaden our digital marketing technology offerings,” said Scott Koller, president and CEO of Wireless Ronin. “Along those lines, we released our fourth generation of RoninCast software, designed to increase functionality and improve the customer experience while reducing installation and operation costs.
“RoninCast 4.0 software aligns perfectly with Samsung’s new open source digital signage platform, providing significant advantages for the end user, including lowering costs, simplifying installation, improving uptime, and ultimately improving the ROI for our customers. The combined offering dramatically simplifies deployment and ongoing management, breaking down barriers and opening the field to a much larger universe of potential users.
“Last month, we entered into an exclusive license and service agreement with Delphi Display Systems, a leading manufacturer of outdoor LCD-based display systems, to provide integrated technology solutions to the QSR market. Delphi will pay us a minimum of $2.0 million over five years, of which we received $750,000 in Q2 2013. Delphi will leverage its sales and marketing expertise to license our RoninCast software to its 30,000 customers in the QSR market, enabling us to focus our resources on our growing pipeline of opportunities in the automotive, retail and food service markets. We believe this arrangement will be truly transformative for WirelessRonin by extending the sales reach for RoninCast software, while potentially increasing our stream of recurring hosting and maintenance revenues. “Altogether, these developments have set the stage for a productive second quarter. We now provide industry-leading technology and have world class relationships to capitalize on our growing pipeline and the tremendous industry opportunities.”
Here’s the full release: http://www.wirelessronin.com/page/1/Q1-Earnings.jsp