$68.7 million later, "the business model works …"
August 13, 2010 by Dave Haynes
“Under the leadership of Scott Koller and Darin McAreavey, we have clearly demonstrated a capacity for delivering on key financial performance metrics over the past quarter,” said James C. (Jim) Granger, chief executive officer at Wireless Ronin. “We delivered double digit growth both sequentially and on an annual basis — the highest revenue levels since fourth quarter of 2008 and a more than fourfold improvement in gross margin dollars year-over-year at 48 percent — marking this as the eighth consecutive quarter of improvement and the highest percentage in Wireless Ronin’s history. Scott, Darin and the rest of the management team have been successfully executing against an ongoing cost optimization plan during the second and third quarters of 2010 to position the Company for a future non-GAAP EBITDA break-even quarter. Now with concurrent growth in both revenues and gross margins, we believe we have validated that the business model works.”
I got curious, and dug into SEC filings …
2004 – $3.3 million
2005 – $4.8 million
2006 – $14.8 million
2007 – $10.1 million
2008 – $20.7 million
2009 – $10.2 million
2010 (so far) – $4.8 million
Those are all net loss numbers available in SEC filings, and they add up to almost $69 million in net losses since 2004. I wonder if all the companies and individuals who have put money in RNIN since 2004 and watched it vaporize are as convinced the business model works.
Again, for the sake of hard-to-come-by jobs for the rank and file people working at Ronin, I hope they are turning things around. But as assertions go, the company CEO is, ummm, reaching.