Ronin Losses Continue, Working Capital Down to $3.6M
May 12, 2012 by Dave Haynes
The latest financials are out for publicly-traded Wireless Ronin Technologies, Inc. (RNIN), and the story looks much the same as it has since I started paying attention.
This quarter the net loss was $1.8 million, up from $1.7 million in the previous quarter. I stopped counting, but the last time I did, the accumulated deficit was $70 million, and that was a few quarters ago.
The company now has $3.6 million in working capital, having drawn down another $1.4 million this quarter. That would, at that rate, get them to late fall unless there is another raise, acquisition, or fortunes REALLY change.
Revenue in the first quarter of 2012 increased 16% sequentially to $1.8 million from the prior quarter and decreased 26% from the same year ago period. The year-over-year decrease resulted primarily from low orders of the iShowroom branded tower location received from individual Fiat dealerships partially offset by increased development from constant [ph] [00:01:51] orders in Chrysler.
We believe Chrysler will continue to rollout iShowroom branded tower applications with further dealership adoption. Additionally, Chrysler has required all Fiat dealerships to adopt the iShowroom interactive application which is being featured in the Fiat Style Center of the new Fiat Studio Facilities.
However, since we do not have a contract with Chrysler requiring it to source all the various components of these solutions through us, and iShowroom branded tower purchases still remain within the discretion of the individual dealerships, we cannot predict the forecast of timing or value of future iShowroom orders.
Today we have received purchase orders for 400 Chrysler and 200 Fiat dealerships. Chrysler continues to invest in new ways to expand the iShowroom interactive application. Most recently in Beijing, Wireless run into develop iShowroom Web 2.0 program which we delivered during the first quarter, the projects that we’ll discuss further in a few moments.
At the end of the first quarter, we have recognized the total of $1 million of purchase orders for which revenue will be recognized in future quarters. Recurring revenue in the first quarter of 2012 increased 10% from the previous quarter to a record $466,000 or 26% of revenue. Recurring revenue increased 18% in the same year ago period.
Gross profit increased to $949,000 or record 54% of total revenue compared to $446,000 or 29% of total revenue in the previous quarter and $1.1 million or 46% of total revenue in the same year ago period.
The sequential and year-over-year improvements in recurring revenue and gross margins on a percentage basis demonstrate our focus on increasing our higher margin software and hosting services. It also reflects our continuing shift from a digital signage company to a marketing technology company.
Net loss totaled $1.8 million or $0.08 per basic and diluted share incurred to a net loss of $1.7 million or $0.08 per basic and diluted share in the previous quarter and a net loss of $2.3 million or $0.12 per basic and diluted share in the same year ago period.
Our Q1 2012 net loss included $161,000 of non-cash stock compensation expense versus $48,000 in the previous quarter and $345,000 in Q1 of 2011. Our non-GAAP operating loss totaled $1.5 million or $0.06 per basic and diluted share compared to a loss of $1.5 million or $0.07 per basic and diluted share in the previous quarter.
This is an improvement from a non-GAAP operating loss of $1.8 million or $0.09 per basic and diluted share in the same year ago period. We continued to diligently manage our expenses focusing on achieving a breakeven non-GAAP quarter.
Now turning to balance sheet. Our net working capital position was $3.6 million at the end of the first quarter of 2012 compared to $5 million at the end of the prior quarter.
Moms and Dads with kids to feed and bills to pay, so I hope they can finally get into the black. But auto and QSR, which they want after early, are crowded, hyper-competitive target sectors now.
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