DENVER, May 17, 2010 (GLOBE NEWSWIRE) -- Roomlinx, Inc. (OTCBB:RMLX), the hospitality in-room expert providing Interactive TV solutions, today announced results for the first quarter of 2010.
Roomlinx reported revenues for the three months ended March 31, 2010 of $393,215. This decrease of 42% compared to the first quarter 2009 is primarily due to decreased installations due to the company's focus on securing contracts with large hotel corporations. The RFP (Request for Proposal) and contract process for these groups takes longer than the typical contract process, and Roomlinx is currently in this process with three large hotel groups. This decrease in installations was offset slightly by an increase in recurring revenue generated by their Media and Entertainment product; these revenues have increased to $112,058 or 311% over the $20,196 from first quarter last year.
Roomlinx' gross profit for the three months ending March 31, 2010 was $155,564. This increase of 17% over the first quarter of 2009 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 access equipment.
Net loss for the three months ending March 31, 2010 was $376,236 compared to a net gain of $496,087 for the three months ended March 31, 2009. A non-cash derivative gain of $820,471 strongly impacted the 2009 results.
Net loss, excluding non-cash items, was $304,747 for the three months ended March 31, 2010, compared to a net loss of $238,077 for the three months ended March 31, 2009. These results are primarily due to the increase in operating expenses from 2009 to 2010 and the decrease in first quarter revenues.
Michael Wasik, CEO of Roomlinx, stated, "While I am not satisfied with our first quarter financial performance, I believe our strategic focus on establishing relationships with large hotel corporations is the key to future revenue and profit growth. Much of the first quarter was dedicated to our initiative to penetrate these large hotel brands. During the course of the quarter, we entered into three in-room entertainment/IPTV RFPs with three large hotel corporations. We have made significant progress with these efforts, and we anticipate the results of this progress will become more apparent as the year progresses."
Mr. Wasik continued, "Management is dedicated to executing on its business strategy to add incremental recurring revenue streams. Our Media and Entertainment division's recurring revenue streams increased over 300% this quarter compared to Q1 2009. We will continue to focus on this effort as it will become the base of our growth and future success. We have also established a relationship and made great progress with an online movie distribution company and one of the fastest growing performance marketing companies of 2009. The Interactive TV product we have developed is very innovative, and it is gaining traction. We will continue to establish a solid foundation of partners and customers. I look forward to updating you on our continued progress throughout the rest of 2010."
About Roomlinx, Inc.
Roomlinx, the hospitality in-room expert providing Internet-based interactive TV products for hotels, resorts, and other properties, utilizing premium content and applications demanded by today's traveler. www.roomlinx.com
Safe Harbor Cautionary Statement
Certain statements in this news release, including statements that we "believe," "expect," "intend," "plan" or words of similar import, are forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans, new products and services and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the following: the company's successful implementation of the new products and services, 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; and the ability to obtain adequate financing in the future. This information is qualified in its entirety by cautionary statements and risk factors disclosure contained in certain of the Company's Securities and Exchange Commission filings available at http://www.sec.gov, which you should carefully review. Roomlinx does not assume any obligation to update or revise any forward-looking statements, whether as the result of new developments or otherwise.