2012 Revenue Up 119% Year-over-Year
Denver, CO, April 16, 2013 – Roomlinx, Inc. (OTCBB: RMLX), the innovative developer of media networks and interactive TV (iTV) applications for the hospitality industry, today announced financial results for the year ended December 31, 2012.
In 2012, total revenue increased 119% to $13.6 million from $6.2 million. Hospitality revenue in 2012 increased 140% to $12.8 million compared to $5.3 million in 2011. Residential revenue was down slightly to $915,000 in 2012 compared to $942,000 in 2011.
Total revenue in the fourth quarter of 2012 increased 230% to $7.6 million, up from $2.3 million in the fourth quarter of 2011. Hospitality revenue was the primary driver of this growth and increased 265% in the fourth quarter of 2012 to $7.3 million, up from $2.0 million in the prior year’s fourth quarter. Residential revenue was down slightly to $224,000 in the fourth quarter of 2012 compared to $244,000 in the same period last year.
The Company measures its performance based on incremental recurring revenue generated by the number of revenue generating units (“RGUs”) in service. Recurring revenue is our monthly invoicing of RGUs which we define as the continued delivery of our products and service. Regarding the hospitality sector, a hotel room may have one or more RGUs, including interactive television, video on demand, free to guest programming, and high speed internet access. Residential properties may also have more than one RGU, which includes telephone, internet and television.
As of December 31, 2012, the Company was servicing approximately 75,000 RGUs within the hospitality sector, a 72% increase over 2011. Roomlinx also supports 16 residential communities and small businesses, representing an additional 3,600 RGUs.
The net loss in the 2012 fourth quarter of $2.0 million exceeded the net loss of $840,000 in the fourth quarter of 2011. In 2012, our net loss was $7.4 million compared to a net loss of $2.7 million in 2011. Net loss for the year ended December 31, 2012 includes a non-cash charge of $1.1 million reflecting a loss on asset impairment related to Roomlinx’s wholly owned subsidiary, Cardinal Hospitality, Ltd.
Basic and diluted weighted average shares outstanding for the year ended December 31, 2012 was 5,809,406 compared with 5,072,157 for the year ended December 31, 2011. The year-over-year increase in shares principally reflects the issuance of shares to certain private investors under a Securities Purchase Agreement in May 2012.