|By Marketwired .||
|August 14, 2013 06:55 PM EDT||
DENVER, CO--(Marketwired - August 14, 2013) - Roomlinx, Inc. (OTCQB: RMLX), the innovative developer of media networks and interactive TV (iTV) applications for the hospitality industry, today announced financial results for the three months ended June 30, 2013.
In the second quarter of 2013, total revenue increased 15% to $2.4 million compared to second quarter of 2012. Hospitality revenue in the second quarter of 2013 increased 16% to $2.2 million, compared to $1.9 million in same period in 2012. This increase is primarily related to the increase in the Company's monthly recurring revenue associated with its revenue generating units ("RGUs").
An RGU is defined as a product or service for which the Company invoices the hotel monthly, including interactive television, video on demand, free to guest programming, and high speed internet access. As of June 30, 2013, the Company was servicing approximately 82,000 RGUs within the hospitality sector, a 71% increase over the number of RGUs being serviced as of June 30, 2012.
Hospitality Revenue Generating Units (RGU) as of June 30, 2013:
Revenue Generating RGUs Approximate Monthly Units in Service Recurring Revenue --------------------------------------------------------------------------- Free-To-Guest 14,000 $140,000 High Speed Internet 36,000 $102,000 Video-On-Demand 20,000 $70,000 Interactive TV 12,000 $130,000 Total 82,000 $442,000
The company also realizes approximately $70,000 in monthly recurring revenue within its residential segment.
The hospitality segment consists of service revenue which is monthly recurring revenue attributable to RGUs and product, plus installation revenue which is one-time revenue. Hospitality service revenue increased to $1.3 million in the second quarter of 2013 compared to $0.7 million in the same period in 2012, a 79% increase, while hospitality product and installation revenue decreased $0.3 million to $0.9 million. Residential revenue was down to $218,000 in the second quarter of 2013 compared to $231,000 in the same period in 2012, a 6% decrease.
Basic and diluted weighted average shares outstanding for the three months ended June 30, 2013 were 6,405,413 compared to 5,893,814 in the year-earlier period.
For the three months ended June 30, 2013, Roomlinx reported a net loss of $719,090, compared to a net loss of $1,811,630 for the three months ended June 30, 2012, a reduction of net loss of $1,092,540. Net loss not inclusive of non-cash items was $411,090. The decrease in net loss is primarily attributable to the 79% increase in hospitality recurring revenues and the $557,152 reduction in operating expenses.
Recent key accomplishments at Roomlinx include:
1. Reduced net loss by over $1.0 million year over year and $0.7 million quarter over quarter.
2. Increased hospitality recurring revenue by 79%.
3. Second quarter 2013 RGUs in service increased 71% compared to the second quarter of 2012.
Roomlinx CEO, Michael Wasik, summed up the second quarter results by stating, "Focusing our efforts on increasing our recurring revenues and decreasing our operating costs has delivered positive results. Roomlinx remains focused on these initiatives in order to attain positive cash flow and position our company for long term success. We expect this favorable trend to continue."
Headquartered in Broomfield, Colorado, Roomlinx, Inc. develops interactive TV applications for the hospitality industry, serving hoteliers in the United States, Canada and selected global markets. The company delivers world-class in-room entertainment technology, allowing hotel guests to enjoy the best of HD TV, the Internet, PC functionality and Video on Demand. For more information, visit www.roomlinx.com.
Safe Harbor Cautionary Statement
This news release may contain forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties, some of which are outlined below. As a result, actual results may vary materially from those anticipated by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the Company's successful implementation of new products and services (either generally or with specific key customers), the Company's ability to satisfy the contractual terms of key customer contracts, demand for the new products and services, the Company's ability to successfully compete against competitors offering similar products and services, general economic and business conditions; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies research and development activities; changes in, or failure to comply with, governmental regulations; the ability to obtain adequate financing in the future; the Company's ability to establish and maintain strategic relationships, including the risk that key customer contracts may be terminated before their full term; the possibility of product-related liabilities; the Company's ability to attract and retain qualified personnel; the Company's ability to maintain its intellectual property rights and litigation involving intellectual property rights; risks related to third-party suppliers; the Company's ability to obtain, use or successfully integrate third-party licensed technology; breach of the Company's security by third parties; matters relating to the Company's Master Services Agreement with Hyatt; matters relating to the claims by Technology Integration Group; and the disclosure and risk factors detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2012 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 available through the web site maintained by the Securities and Exchange Commission at www.sec.gov. The Company undertakes no obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.