The company reported revenue of $1.6 million for the second quarter of 2008, in comparison to $3.1 million in the second quarter of 2007, a net loss of $5.0 million compared to a net loss of $1.0 million last year, and a basic and diluted loss per share of $0.34 compared to a basic and diluted loss per share of $0.09 last year.
Wireless Ronin also reported a second quarter 2008 adjusted operating loss of $4.5 million, or $0.31 per basic and diluted share, compared to an adjusted operating loss of $1.0 million, or $0.10 per basic and diluted share in the second quarter of 2007.
For the second quarter of 2008, gross margins averaged 3.9 percent, as compared to a gross margin of 38.7 percent in the second quarter of 2007. The decline was primarily the result of investments in the company's Network Operations Center to support the projected demand to host digital signage applications in 2008. Net of these investments in the NOC, second quarter adjusted gross margin would have been 20.4 percent. A reconciliation of GAAP gross margin and adjusted gross margin is presented in an attached table.Second quarter 2008 operating expenses totaled $5.2 million, compared to $2.4 million in the prior year and $4.9 million in the prior quarter. Included in those totals was FAS 123R-related expense of $0.3 million, $0.1 million and $0.4 million, respectively.
While the company continues to underperform, investors don't seem to intent on punishing the management team, all of whom (with the exception of the CFO) are from pre-IPO times. As of this writing, RNIN's stock was at about $4.05, giving them a market capitalization of over $58 million. Considering their paltry revenue numbers and ridiculous expense ratios given the amount of business they're doing (and their reluctance to nix some bad debts and restate last year's earnings), this number seems about 400% too high to our untrained eyes. Of course, in the interest of full disclosure it's worth noting that WireSpring is a direct competitor to Wireless Ronin, so admittedly we have some interest in seeing them play on a corrected, level playing field.