DENVER, May 22, 2012 (GLOBE NEWSWIRE) -- Roomlinx, Inc. (OTCBB:RMLX), 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 Months Ended March 31, 2012:
Roomlinx's 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 Service 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."
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.
The Roomlinx, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12586
Safe Harbor Cautionary Statement:.
This news release may contain forward-looking statements within the meaning of the federal securities laws. Statements regarding future events, developments, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. These statements include statements regarding the Hyatt hotels roll out (including the timing thereof) and Roomlinx's growth as a result of the master service agreement with an affiliate of Hyatt Hotels Corporation. These forward-looking statements are subject to a number of risks and uncertainties, some of which are outlined below. As a result, actual results may vary materially from those anticipated by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the Company's successful implementation of new products and services (either generally or with specific key customers), the Company's ability to satisfy the contractual terms of key customer contracts, 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; the ability to obtain adequate financing in the future; the Company's ability to establish and maintain strategic relationships, including the risk that key customer contracts may be terminated before their full term; the possibility of product-related liabilities; the Company's ability to attract and retain qualified personnel; the Company's ability to maintain its intellectual property rights and litigation involving intellectual property rights; risks related to third-party suppliers; the Company's ability to obtain, use or successfully integrate third-party licensed technology; breach of the Company's security by third parties; and the risk factors detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including our 2011 Annual Report on Form 10-K available through the web site maintained by the Securities and Exchange Commission at www.sec.gov. The Company undertakes no obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.