MINNEAPOLIS, MN -- (Marketwired) -- 07/30/13 --
Wireless Ronin Technologies, Inc.(OTCQB: RNIN), a leading digital marketing technologies solutions provider, reported financial results for the second quarter ended June 30, 2013.
Q2 2013 Financial Highlights vs. Same Year-Ago Quarter
•Achieved company's first positive non-GAAP operating income quarter (net loss down to record low $76,000) •Revenue up 69% to $2.6 million•Gross margin increased 860 basis point to a record 69% •Gross profit up 92% to record $1.8 million
Q2 2013 Operational Highlights
•Received $267,000 in purchase orders from Indian Motorcycle, a subsidiary of Polaris Industries, a $7.4 billionNYSE company, for 35 dealerships to launch interactive digital signage solutions. •Received a $452,000 purchase order from ARAMARK, the award-winning food service and facilities management provider, to install approximately 230 screens and associated hardware and software. •Partnered with Delphi Display Systems, a leading manufacturer of outdoor LCD-based display systems for digital signage, to provide integrated technology solutions to the QSR and "pump topper" gas station markets. Under an exclusive RoninCast® 4.0 licensing and services agreement, Wireless Ronin received an initial $750,000 of the $2.0 million minimum due from Delphi over the next five years. •Exclusive partner Delphi Display Systems was selected by MedMedia Healthcare Network to install Delphi's turnkey digital signage solution featuring RoninCast software at 50 locations in Southern California, with plans to scale to 500 over the next 12-18 months. •Won 2013 DSA Industry Excellence Award for Wireless Ronin's installation at Burgerville, a quick service restaurant chain with 39 locations in the Pacific Northwest. The award recognizes the best projects using digital signage, mobile, self-service and interactive kiosk technologies.
Q2 2013 Financial Results
Revenue in the second quarter of 2013 increased 69% to $2.6 million from $1.6 million in the same year-ago quarter. The increase was due to the $750,000 prepaid license received from Delphi as well as new orders from Polaris Industries' Indian Motorcycle subsidiary and ARAMARK.
Recurring revenue in the second quarter of 2013 from the company's hosting and support services increased to $489,000 (19% of total revenue) from $474,000 (30% of total revenue) in the same year-ago quarter. The increase in recurring revenue dollars resulted from the continued extension of support services to more nodes delivered by the company's network operations center.
Gross margin in the second quarter of 2013 was a record $1.8 million (69% of total revenue) compared to $945,000 (61% of total revenue) in the same year-ago quarter. The increase in gross margin was primarily due to the $750,000 software license sale to Delphi Display Systems in the quarter.