DENVER, March 26, 2010 (GLOBE NEWSWIRE) -- Roomlinx, Inc. (OTCBB:RMLX), the leading provider of Interactive TV (iTV) solutions for the hospitality industry, today announced improved year-over-year, fourth-quarter, and full-year 2009 financial performance, reflecting ongoing cost reductions, and operational improvements.
2009 Financial Highlights
- Revenue of $2.4 million – up 11 percent over 2008
- Gross profit of $876,716 – up 90 percent over 2008
- Operating expenses of $2 million – a 10 percent reduction from 2008
- Operating loss of $1.2 million – a 35 percent reduction from 2008
- Product development costs of $289,711 – a 50 percent reduction from 2008
"Our improved financial performance was a result of our ability to enter into longer term contracts with customers, generate recurring revenue from our iTV product, and reduce costs," said Mike Wasik, Roomlinx CEO. "We were recently awarded an increase to our line of credit from $5 million to $25 million, which will help us support larger deployments of our iTV platform. We have made steady progress toward our goal of achieving profitability, and expect to announce several new customers in the coming months."
Fourth Quarter and Full Year 2009 Operating Results:
Roomlinx' reported revenues for fourth quarter and full year ending December 31, 2009 were $778,201 and $2,440,857 respectively. This full year increase of 11% over 2008 numbers is due to sales and recurring revenue generated by their new media and entertainment products and services (Roomlinx Interactive TV) and is a strong validation of the shift in efforts toward maximizing revenues and profits resulting from this new product offering.
Roomlinx' gross profit for fourth quarter and full year ending December 31, 2009 was $361,238 and $876,716 respectively. This full year increase of 90% over 2008 numbers is primarily attributable to the higher gross profit margins of recurring revenue streams related to the Interactive TV product and an increase in gross profit margins on the sale of high speed internet equipment.
Roomlinx' operating losses for fourth quarter and full year ending December 31, 2009 decreased to $154,151 and $1,168,637 respectively. This full year decrease of 35% is primarily due to their cost reduction efforts along with a decrease in stock compensation, their increased sales and higher gross profit margins relating to their media and entertainment product and services.
Net loss for fourth quarter and full year ending December 31, 2009 was $171,675 and $2,816,801 respectively, compared to a net gain of $787,721 and net loss of $1,868,245 for the fourth quarter and full year ended December 31, 2008 respectively. The non-cash derivative expense of $1,409,356 and an increase in interest expense of $120,999, offset by their cost reduction efforts along with a decrease in stock compensation, their increased sales and higher gross profit margins relating to their media and entertainment product and services are primary factors in these results.
Net loss, excluding non-cash items, was $90,112 and $895,536 for fourth quarter and full year ended December 31, 2009 respectively, compared to a net loss of $242,778 and $1,088,264 for the fourth quarter and full year ended December 31, 2008 respectively. This full year increase of 18% over 2008 numbers was primarily due to their cost reduction efforts along with their increased sales and higher gross profit margins relating to their media and entertainment product and services.
About Roomlinx
Roomlinx is the hospitality in-room expert providing iTV for hotels, resorts, and other properties, utilizing premium content and applications demanded by today's traveler. Please contact sales@roomlinx.com for a demo, or visit us at www.roomlinx.com.
Safe Harbor Cautionary Statement: This press release includes forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, and also includes selected operating results presented without the context of accompanying financial results. These forward-looking statements include, among others, statements with respect to our objectives and strategies to achieve those objectives, as well as statements with respect to our beliefs, plans, expectations, anticipations, estimates or intentions. These forward-looking statements are based on our current expectations. We caution that all forward-looking information is inherently uncertain and actual results may differ materially from the assumptions, estimates or expectations reflected or contained in the forward-looking information, and that actual future performance will be affected by a number of factors, including economic conditions, technological change, regulatory change and competitive factors, many of which are beyond our control. Therefore, future events and results may vary significantly from what we currently foresee. We are under no obligation (and we expressly disclaim any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise.