Wireless Ronin Reports BAD Third Quarter 2012 Results

Wireless Ronin reported financial results for the third quarter ended September 30, 2012. Although third quarter 2012 revenue increased 14 percent sequentially to $1.8 million from $1.6 million in the prior quarter it actually was a decrease of 23 percent from $2.3 million in the same year-ago period. The sequential increase was primarily attributable to orders received from ARAMARK for deployments of Wireless Ronin’s products and services to several new colleges and universities. The year-over-year decrease was primarily due to lower orders received for the company’s marketing technology solutions in the food services and retail verticals.

Third quarter 2012 recurring revenue increased 14 percent to a record $538,000 or 30 percent of total revenue from $473,000 or 30 percent of total revenue in the previous quarter, and increased 37 percent from the same year-ago quarter.

Third quarter 2012 gross profit was $896,000 or 51 percent of total revenue, compared to $945,000 or 61 percent of total revenue in the previous quarter, and $1.1 million or 49 percent of total revenue in the year-ago quarter. The year-over-year improvement in the company’s gross margin percentage was due to a higher proportion of services revenue compared to higher hardware sales in the same year-ago period.

Third quarter 2012 net loss totaled $1.2 million or $(0.05) per basic and diluted share, unchanged from the previous quarter and an improvement from a net loss of $1.4 million or $(0.07) per basic and diluted share in the same year-ago quarter. Net loss for the third quarter of 2012 included $99,000 of non-cash stock compensation expense versus $117,000 in the previous quarter, and $169,000 in the year-ago quarter.