Management Commentary
“In Q2, we achieved our first positive non-GAAP operating income quarter, driven by strong topline results and effective cost controls,” said Scott Koller, president and CEO of Wireless Ronin. “Sales to both new and existing customers like Indian Motorcycle and ARAMARK, as well as the license sale to Delphi helped us to realize record gross margin and gross profit. These wins demonstrate our successful transition from a hardware centric company to a marketing technology solutions company, which includes the adoption of higher margin software and services business model. New orders from long-term customers like ARAMARK highlight the ongoing opportunities we enjoy for upgrading and expanding upon these existing deployments.
Mr. Kollar Continues:
“Indian has begun to install our interactive digital marketing solution at 35 dealerships as well as in the lobby of its Wyoming, Minnesota manufacturing facility. We anticipate Polaris will further its expansion to additional Indian dealerships throughout the remainder of 2013. We believe our success and experience in the automotive industry will support our efforts to expand upon this initial entry into the power sports market. We’ve also begun to gain traction with our new marketing partner and licensee, Delphi Display Systems. They are currently installing digital signage solutions at 50 MedMedia Healthcare Network locations, with plans to install at 500 additional locations over the next 12 to 18 months.
“Among many alternatives, Delphi chose to partner with us because of the robust capabilities and well-architected HTML5-based platform of our RoninCast 4.0 software, as well as our shared vision for providing a true omnichannel, customer-engagement experience. The exclusive license we granted Delphi, which also provides for additional recurring service revenue, represents the fruition of a key aspect of our growth strategy that leverages our enterprise-software capabilities as a ‘force-multiplier’ in order to rapidly expand our market presence without additional capital expenditures.
“On July 29, 2013, we also implemented a restructuring plan designed to conserve our cash resources and to further align our ongoing expenses with our business by focusing sales efforts on high-potential customers and prospects, preserving the research and development staff required to maintain and enhance our RoninCast® software, and consolidated certain positions.
“We expect this restructuring to reduce annual operating costs by approximately $1.3 million, which we believe will provide us with additional runway to continue pursuing strategic and financial alternatives.
“Our expectations remain high as we build upon the momentum we’ve established and see a widening pipeline of growth opportunities, particularly within our existing customer and partner relationships. As global demand for new marketing technologies continues to build, we are well positioned with industry-leading solutions and a marquee customer base. We believe these key factors will help us expand our market share and further penetrate our target markets.”