Wireless Ronin: Still Losing Money, Dealing To Keep Lights On
May 11, 2013 by Dave Haynes
The lights are still on at Wireless Ronin, but the Minneapolis-area software company is still a long way off from profitability and resorting now to taking cash from partners to fund the business, but in turn pretty much vacating what’s been a core vertical.
On the earnings call, the executive team said it has done a deal with Delphi Display Systems that gives the outdoor display manufacturer the exclusive license to market Ronin’s software to the QSR and gas pump topper markets. In turn, they got $750K last month and a commitment of another $2 million minimum in software licenses and services over the next five years.
The company is still running in the red, with a net loss in the first quarter of 2013 totaling $1.4 million or $(0.27) per basic and diluted share. That was better than a year earlier when the net loss was $1.8 million. The improvement was not due to more sales but cost controls.
President/CEO Scott Koller admitted the financials were not so hot:
We continue to work diligently on cost control and operating efficiencies, in fact these initiatives allow us to decrease our quarterly operating cash burn to less than $600,000 in the first quarter, down from $1.3 million in Q1 last year despite the lower year-over-year revenue.
And finally, I think it’s important to our investors to know that we are not satisfied with our Q1 financial performance. Today, with our current pipeline and backlog, coupled with our growing recurring revenue and optimized cost structure, we are confident that Q2 will more accurately reflect the progress we are making.