Wireless Ronin Reports 2009 Fourth Quarter And Full Year Results
Minneapolis-based Wireless Ronin Technologies reported revenue in 2009 of $5 million compared to $7.4 million for 2008, blaming the 32% decline due to certain customers choosing to directly source displays and media-players, as well as lower revenue generated from Chrysler and BBDO Detroit, at that time the advertising agency for Chrysler.
The decline was partially offset by a 24% increase in sales of the company’s RoninCast software. The company’s net loss in 2009 totaled $10.2 million compared to $20.7 million in the prior year. The improvement in the company’s net loss from 2008 to 2009 was primarily the result of the company’s cost saving initiatives, which started during the fourth quarter of 2008 and continued to be implemented through the first half of 2009.
James Granger, president and CEO, Wireless Ronin, says, “2009 was a year of significant challenge as most of our customers were dealing with very constrained capital budgets during the economic downturn. We knew we had to focus on operational execution to position ourselves for growth in 2010, so in 2009 we laid the groundwork by focusing on several aspects of the company.
“We significantly reduced our operating costs and quarterly cash burn and expanded our customer base. We also shifted our sales strategy to concentrate on selling higher margin offerings to improve our gross margin percentage and greatly increase our recurring revenue base, which grew fivefold from January to December of 2009. Lastly, we strengthened our balance sheet by successfully raising $6.9 million of cash in a registered direct stock offering and, in March, 2010, we secured the availability of a $2.5 million line-of-credit with Silicon Valley Bank, giving us $12.7 million of cash and zero debt at the end of 2009.”
Looking at the fourth quarter of 2009, Wireless Ronin reported revenue of $1.5 million for the fourth quarter of 2009, a 19% decrease from $1.9 million in the fourth quarter of 2008. As of Dec. 31, 2009, the company had received purchase orders totaling approximately $1.1 million for which it had not recognized revenue, including a $0.5 million order from Chrysler. The decline in revenue year-over-year was primarily the result of lower revenue generated from Chrysler and BBDO Detroit.
During the fourth quarter, the Company received and recognized revenue on a $0.4 million order from a major food service provider which included approximately $0.1 million of the RoninCast software. The Company received the $0.5 million order from Chrysler for additional product enhancements for the iShowroom web-based system – expected to be delivered over the first half of 2010.
RoninCast software sales were up 47% in the fourth quarter of 2009 from the same period a year ago. The Company also reported a fourth quarter net loss of $2.2 million compared to a net loss of $6.9 million in the year-ago period.
The year-over-year improvement in net loss for the fourth quarter of 2009 primarily resulted from reductions in the workforce taken in the fourth quarter of 2008 and other cost saving initiatives instituted during the first half of 2009.
The full report for Q4 and 2009 is available on Wireless Ronin’s website at www.wirelessronin.com.
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