DENVER, CO, May 22, 2012 – Roomlinx, Inc. (OTC: RMLX.OB – News), the innovative developer of hotel interactive TV applications, today announced its financial performance for the three months ended March 31, 2012.
Operating Results for the Three Ended March 31, 2012:
Roomlinx’ revenues for the three months ended March 31, 2012 was $1,537,541 compared to $1,423,172 for the same period in 2011. This represents an 8% increase year over year. Direct costs for the three months ended March 31, 2012 were $1,220,378 compared to $963,383 for the same period in 2011, or a 27% increase. The percentage increase in direct costs outpaced revenues due to the timing of the Hyatt Master Services Agreement (“MSA”) which was signed later than anticipated on March 12, 2012 (see press release) while at the same time Roomlinx was hiring and training key personnel in anticipation of the MSA signing.
The net loss for the three months ended March 31, 2012 was $1,025,235 compared to a net loss of $537,367 for the same period in 2011. The increase in net loss reflects increased direct and indirect compensation expense for various levels of personnel across the company as Roomlinx ramped up for Hyatt. This payroll is a fixed cost that as a percentage of revenue will decline as the quantity of hotel installations increase per the Hyatt MSA.
“We will continue to remain focused on increasing revenues via the rollout of iTV and increasing recurring revenues for both Roomlinx and our partner properties by maximizing our unique iTV programs.” stated Mike Wasik CEO of Roomlinx. “We are determined to position Roomlinx as the industry leader and will continue to expand as needed to meet the immediate demands of Hyatt and the growing demand for iTV.”