Wireless Ronin Reports 2006 Fourth Quarter and Full Year Results

Minnetonka, Minnesota, UNITED STATES




 2006 Highlights Include:
 --  More than 340 percent increase in revenue from 2005
 --  Gross margin expansion to 51 percent
 --  Improved balance sheet and liquidity
 --  Growth in strategic reseller relationships

MINNEAPOLIS, Feb. 16, 2007 (PRIME NEWSWIRE) -- Wireless Ronin Technologies, Inc. (Nasdaq:RNIN) today announced its financial results for the 2006 fourth quarter and full year. The company reported revenue of $1.2 million for the fourth quarter of 2006, in comparison to $0.2 million during the fourth quarter of 2005, a net loss of $8.5 million compared to a net loss of $1.5 million last year, and a basic and diluted loss per share of $2.33 compared to $1.98 last year. The increase in net loss for the 2006 fourth quarter was primarily attributable to increased operating costs as well as higher interest expense. The greater amount of interest expense was due to higher debt levels, the early retirement of long- and short-term debt and the recording of additional beneficial conversion during the period. The majority of the interest expense was non-cash. The increase in basic and diluted loss per share was primarily due to the increase in interest expense and operating costs, reduced by the increase in shares outstanding. Fourth-quarter results also include costs of approximately $166,000 after-tax, or $0.05 per basic and diluted share, of non-cash stock option expense related to FAS123R. The company adopted FAS123R for reporting purposes in the first quarter of 2006.

Jeffrey Mack, Wireless Ronin Technologies, Inc. chairman, president and chief executive officer, said, "I am excited by our accomplishments in the fourth quarter and the progress we made toward our future profitability objectives. During the quarter and the year, we improved sales and gross margin levels, significantly added to our sales pipeline, invested in technology improvements and took steps to better position our company for the future. The closing of our initial public offering in November allowed us to reduce our debt and interest expense going forward, improve liquidity and create a solid platform for growth."

Full Year 2006 Results

For the 2006 full year, the company reported revenue of $3.1 million compared to $0.7 million in 2005, a net loss of $14.8 million compared to a net loss of $4.8 million last year, and a basic and diluted loss per share of $9.71 compared to $7.18 last year. The increase in net loss during 2006 is primarily attributable to increased operating expenses as well as higher interest expense. The greater amount of interest expense was due to higher debt levels, the early retirement of long- and short-term debt and the recording of additional beneficial conversion during the year. The increase in basic and diluted loss per share was due primarily to the increase in interest expense and operating costs and reduced by the increase in shares outstanding. The 2006 results also included costs of approximately $787,000 after-tax, or $0.52 per basic and diluted share, of non-cash stock option expense related to FAS123R. The company adopted FAS123R for reporting purposes in the first quarter of 2006.

Other Items

In 2006, gross margins averaged 50.9 percent, as compared to a gross margin loss of 32.3 percent in 2005. The change reflected increased sales activity, a decrease in costs associated with inventory reductions due to obsolescence and the recognition of certain license fees in 2006.

General and administrative expense during the 2006 fourth quarter was $1.1 million compared to $0.5 million during the same period last year, primarily reflecting higher staffing levels. Increased expenses also resulted from higher professional services fees and FAS123R-related expenses.

Cash and marketable securities at the end of 2006 was approximately $15.5 million compared to $0.1 million at the end of 2005, reflecting proceeds from the company's initial public offering. Due to the company's loss carryforward position, it does not currently pay income taxes.

The company has provided historical data for the statement of operations in an attachment called "2006 Supplementary Quarterly Financial Data." This schedule shows each of the four quarters of 2006 for the major income statement items for purposes of year-over-year comparisons going forward.

Full Year 2007 Guidance and Business Outlook

For 2007, Wireless Ronin Technologies anticipates revenue in the range of $15 million to $20 million.

"Last year was truly a transitional year for the company and we achieved several key milestones," concluded Mack. "We dramatically expanded sales and deepened our strategic relationships with our reseller partners and invested in product development. With the successful completion of our IPO during the fourth quarter, we streamlined our balance sheet to support our highly leverageable business model and achieve our financial goals. We enter 2007 excited at the opportunities that we see to grow market share and reach our targeted profitability objectives."

A conference call to review the fourth quarter and full-year results is scheduled for today at 9:00 a.m. (CST). A live Webcast of Wireless Ronin's earnings conference call can be accessed on the Investor section of its corporate Web site at www.wirelessronin.com. Alternatively, a live broadcast of the call may be heard by dialing (888) 633-9563 inside the United States or Canada, or by calling (706) 679-6372 from international locations. An operator will direct you to the Wireless Ronin conference call. A Webcast replay of the call will be archived on Wireless Ronin's corporate Web site. An archive of the call is also accessible via telephone by dialing (800) 642-1687 domestically and (706) 645-9291 internationally with pass code 8437091. The conference call archive will be available through March 2, 2007.

About Wireless Ronin Technologies, Inc.

Wireless Ronin Technologies (www.wirelessronin.com) is the developer of RoninCast, a complete software solution designed to address the evolving digital signage marketplace. RoninCast provides clients with the ability to manage a digital signage network from one central location. The software suite allows for customized distribution with network management, playlist creation and scheduling, and database integration. An array of services are offered by Wireless Ronin to support RoninCast including consulting, creative development, project management, installation, and training. The company's common stock is traded on the NASDAQ Capital Market under the symbol "RNIN".

The Wireless Ronin Technologies, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3208

This release contains certain forward-looking statements of expected future developments, as defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this release refer to our anticipated revenue, our expected profitability and other matters. These forward-looking statements reflect management's expectations and are based on currently available data; however, actual results are subject to future risks and uncertainties, which could materially affect actual performance. Risks and uncertainties that could affect such performance include, but are not limited to, the following: our estimates of future expenses, revenue and profitability; trends affecting our financial condition and results of operations; our ability to obtain customer orders; the availability and terms of additional capital; our ability to develop new products; our dependence on key suppliers, manufacturers and strategic partners; industry trends and the competitive environment; and the impact of losing one or more senior executives or failing to attract additional key personnel. These and other risk factors are discussed in detail in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission, on January 26, 2007.



                WIRELESS RONIN(R) TECHNOLOGIES, INC.
                            BALANCE SHEETS
                DECEMBER 31, 2006 and 2005 (UNAUDITED)

                                                2006           2005
                                            -----------    -----------
                        ASSETS
 CURRENT ASSETS
  Cash and cash equivalents                 $ 8,273,388    $   134,587
  Marketable securities - held to maturity    7,193,511              -
  Accounts receivable, net                    1,128,730        216,380
  Inventories                                   255,850        391,503
  Prepaid expenses and other current assets     148,024         25,717
                                            -----------    -----------
     Total current assets                    16,999,503        768,187
                                            -----------    -----------

 PROPERTY AND EQUIPMENT, net                    523,838        384,221
                                            -----------    -----------
 OTHER ASSETS
  Deposits                                       22,586         17,591
  Deferred financing costs, net                       -        143,172
                                            -----------    -----------
     Total other assets                          22,586        160,763
                                            -----------    -----------

 TOTAL ASSETS                               $17,545,927    $ 1,313,171
                                            ===========    ===========
                   LIABILITIES AND
           SHAREHOLDERS' EQUITY (DEFICIT)

 CURRENT LIABILITIES
  Bank lines of credit and notes payable            $ -    $   844,599
  Short-term notes payable
   - related parties                                  -         64,605
  Current maturities of long-term
   obligations                                  106,311      1,402,616
  Current maturities of long-term
   obligations
   - related parties                                  -      3,000,000
  Accounts payable                              948,808        306,528
  Deferred revenue                              202,871      1,087,426
  Accrued liabilities                           394,697        544,704
                                            -----------    -----------
     Total current liabilities                1,652,687      7,250,478
                                           

 LONG-TERM LIABILITIES
  Notes payable, less current maturities        155,456        970,861
  Notes payable - related parties,
   less current maturities                            -        697,300
                                            -----------    -----------
     Total long-term liabilities                155,456      1,668,161
                                            -----------    -----------

     Total liabilities                        1,808,143      8,918,639
                                            -----------    -----------
 COMMITMENTS AND CONTINGENCIES

 SHAREHOLDERS' EQUITY (DEFICIT)
  Capital stock, $0.01 par value,
   66,666,667 shares authorized
    Preferred stock, 16,666,667 shares
     authorized, no shares issued and
     outstanding at December 31,
     2006 and 2005                                    -              -
    Common stock, 50,000,000 shares
     authorized; 9,825,621, and 784,037
     shares issued and outstanding at
     December 31, 2006 and 2005,
     respectively                                98,256          7,840
  Additional paid-in capital                 49,056,509     11,032,668
  Accumulated deficit                       (33,433,713)   (18,645,976)
  Accumulated other comprehensive income         16,732              -
                                            -----------    -----------
     Total shareholders' equity (deficit)    15,737,784     (7,605,468)
                                            -----------    -----------
 TOTAL LIABILITIES AND
  SHAREHOLDERS' EQUITY (DEFICIT)            $17,545,927    $ 1,313,171
                                            ===========    ===========

                 WIRELESS RONIN(R) TECHNOLOGIES, INC.
   STATEMENT OF OPERATIONS - YEARS ENDED DECEMBER 31, 2006 and 2005
                             (UNAUDITED)

                         Year Ended               Fourth Quarter
                --------------------------   -------------------------
                    2006           2005          2006         2005
                ------------   -----------   -----------   -----------
 Sales
  Hardware      $  1,852,678   $   576,566   $   889,128   $   120,267
  Software         1,107,913        66,572       266,667        16,771
  Services and
   other             184,798        67,078        72,180        30,723
                ------------   -----------   -----------   -----------
    Total sales    3,145,389       710,216     1,227,975       167,761

 Cost of sales
  Hardware         1,429,585       517,503       723,816       147,887
  Software                 -             -             -          (825)
  Services and
   other              78,272        32,156        18,777         8,015
  Inventory lower
   of cost or
   market
   adjustment         37,410       390,247        37,410       390,247
                ------------   -----------   -----------   -----------
    Total cost
     of sales      1,545,267       939,906       780,003       545,324
                ------------   -----------   -----------   -----------

    Gross profit
     (loss)        1,600,122      (229,690)      447,972      (377,563)

 Operating expenses:
  Sales and
   marketing
   expenses        1,462,667     1,198,629       404,875       276,194
  Research and
   development
   expenses          875,821       881,515       251,936       203,262
  General and
   administrative
   expenses        3,579,968     1,690,601     1,097,185       482,131
                ------------   -----------   -----------   -----------
    Total
     operating
     expenses      5,918,456     3,770,745     1,753,996       961,587
                ------------   -----------   -----------   -----------

    Operating
     loss         (4,318,334)   (4,000,435)   (1,306,024)   (1,339,150)

 Other income
  (expenses):
   Interest
    expense      (10,124,216)     (804,665)   (7,174,595)     (130,558)
  Loss on debt
   modification     (367,153)            -             -             -
  Interest income     21,915         1,375        13,081            45
  Other                   51        13,800        (1,912)       (4,053)
                ------------   -----------   -----------   -----------
                 (10,469,403)     (789,490)   (7,163,426)     (134,566)
                ------------   -----------   -----------   -----------
    Net loss    $(14,787,737)  $(4,789,925)  $(8,469,452)  $(1,473,716)
                ============   ===========   ===========   ===========
 Basic and
  diluted loss
  per common
  share         $      (9.71)  $     (7.18)  $     (2.33)  $     (1.98)
                ============   ===========   ===========   ===========
 Weighted average
  basic and
  diluted shares
  outstanding      1,522,836       666,712     3,634,614       744,046
                ============   ===========   ===========   ===========


                 WIRELESS RONIN(R) TECHNOLOGIES, INC.
             2006 SUPPLEMENTARY QUARTERLY FINANCIAL DATA

 Income (Loss) Statement

          First       Second        Third       Fourth
         Quarter      Quarter      Quarter      Quarter       Total
       -----------  -----------  -----------  -----------  -----------
 Sales    $601,565     $332,661     $983,188   $1,227,975   $3,145,389

 Cost of
  sales    227,188      206,743      331,333      780,003    1,545,267

 Operating
 Ex-
 penses 1,656,819    1,294,466    1,213,172    1,753,999     5,918,456

 Interest
  ex-
  pense   651,038    1,063,312    1,235,271    7,174,595    10,124,216

 Loss on
  debt modi-
  fication      0            0      367,153            0       367,153

 Other       (837)      (6,209)      (3,750)     (11,170)      (21,966)

 Net
 Loss ($1,932,643) ($2,225,651) ($2,159,991) ($8,469,452) ($14,787,737)

 FASB
 123R  $  373,568   $  156,105   $   91,735   $  165,806   $   787,214
 (included in
  Operating
  Expenses)


        

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