PETACH TIKVA, Israel, Aug. 15, 2007 (PRIME NEWSWIRE) -- TTI Team Telecom International Ltd. (Nasdaq:TTIL), ('the Company'), a global supplier of Operations Support Systems (OSS) to communications service providers, today announced results for the second quarter and six months ended June 30, 2007.
Total revenues for the second quarter were $11.3 million, compared with $10.7 million in the first quarter of 2007, and $12.6 million for the second quarter of fiscal 2006. Total operating expenses were $6.3 million, compared to $5.7 million in the first quarter and $6.3 million in the second quarter of 2006.
Operating income for the quarter was $42,000 compared with an operating loss of $0.4 million in the first quarter and operating income of $0.2 million for the second quarter last year. Net income was $856,000, or $0.05 per basic and $0.04 per diluted share, compared to net loss of $42,000, or $0.00 per basic and diluted share for the first quarter of 2007 and net income of $166,000, or $0.01 per basic and diluted share in the second quarter of 2006.
Total Revenues for the six months ended June 30, 2007 were $22.0 million, compared to $25.0 million in the six months ended June 30, 2006. Total operating expenses for the period were $12.1 million, compared to $12.4 million in the first six months of 2006.
Operating loss for the period was $0.4 million compared with operating income of $0.9 million in the comparable period in 2006. Net income was $814,000, or $0.04 per basic and diluted share, compared to net income of $969,000, or $0.05 per basic and diluted share for the first six months of 2006.
As of June 30, 2007, the Company had approximately $30.2 million in cash and liquid investments.
After the end of the second quarter, the Company received payment of 1.7 million British Pounds from H3G U.K., as full settlement of a legal dispute relating to the termination of a contract accrued in the end of 2002. As is customary in such cases, the settlement was reached without admission of fault on either side.
Commenting on the results, Meir Lipshes, Chairman and CEO of TTI Telecom, stated, "We are pleased with our second quarter results, which reflect the continued resurgence of the Company. While we saw modest sequential revenue growth, our increased organizational efficiencies and leaner overall cost structure contributed to a substantial improvement in net income, both sequentially and compared to the second quarter of last year."
Lipshes added, "We are encouraged by the progress we have seen since bottoming in the fourth quarter of 2006, when we lost $3 million, and are working to continue building upon this growth as the year progresses. Looking ahead, we expect to see further benefit from the organizational changes made at the end of 2006 and believe that we can further leverage the improved infrastructure that exists at TTI. We are confident in our ability to expand our business as the markets we serve continue to recover."
Conference Call Information:
A conference call has been scheduled for 9:00am ET today, August 15, 2007, during which management will discuss the Company's performance for the quarter. The call can be accessed via live webcast through the Investor Relations portion of the TTI Telecom web site, www.tti-telecom.com and at www.kcsa.com. A telephone replay of the call will also be available starting two hours after the completion of the call until 11:59pm ET on August 22, 2007. To access the replay, please dial +1.877-519-4471 (International dialers can call +1.973-341-3080), participant code 9123600. The webcast of the conference call will be archived on the TTI Telecom and KCSA web sites for 90 days.
About TTI Telecom:
TTI Team Telecom International Ltd. ("TTI Telecom") is a leading provider of next generation Operations Support Systems (OSS) to communications service providers worldwide. The company's Netrac portfolio delivers an automated, proactive and customer-centric approach to service assurance and network management.
Anchored by market-leading service assurance solutions -- Fault Management (FaM) and Performance Management (PMM) -- that give customers an end-to-end view of their network, TTI Telecom's Netrac enables service providers to reduce operating costs, enhance profitability and launch new, revenue-generating services more rapidly. Netrac is compatible with multiple technologies and industry standards, and is uniquely positioned to bridge legacy, next-generation, convergent, and IMS Networks. TTI Telecom's customer base consists of tier-one and tier-two service providers globally, including large incumbents in the Americas, Europe and Asia-Pacific.
Forward looking statements in this release involve a number of risks and uncertainties including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed in the Company's SEC filings.
TTI TEAM TELECOM INTERNATIONAL LTD.
STATEMENTS OF INCOME
(in thousands of U.S. dollars)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2007 2006 2007 2006
---------------------- ----------------------
Unaudited Unaudited
--------- ---------
Revenues:
Product $ 6,570 $ 7,791 $ 12,351 $ 15,739
Services 4,705 4,760 9,631 9,307
---------- ---------- ---------- ----------
Total revenues 11,275 12,551 21,982 25,046
---------- ---------- ---------- ----------
Cost of revenues:
Product 2,918 3,394 5,925 7,142
Services 1,971 2,652 4,343 4,584
---------- ---------- ---------- ----------
Total cost of revenues 4,889 6,046 10,268 11,726
---------- ---------- ---------- ----------
Gross profit 6,386 6,505 11,714 13,320
---------- ---------- ---------- ----------
Operating expenses:
Research and
development 2,146 2,276 4,345 4,381
Sales and marketing 1,768 2,535 3,503 5,070
General and
administrative 2,430 1,492 4,241 2,948
---------- ---------- ---------- ----------
Total operating
expenses 6,344 6,303 12,089 12,399
---------- ---------- ---------- ----------
Operating income
(loss) 42 202 (375) 921
Financial income
(expenses), net 438 (35) 1,019 61
Other Income 33 -- 33 --
---------- ---------- ---------- ----------
Income before taxes
on income 513 167 677 982
Taxes on income (343) 1 (137) 13
---------- ---------- ---------- ----------
Net income $ 856 $ 166 $ 814 $ 969
========== ========== ========== ==========
Net income attributed
to preferred shares $ 133 $ 31 $ 126 $ 180
========== ========== ========== ==========
Net income available
to ordinary shares $ 723 $ 135 $ 688 $ 789
========== ========== ========== ==========
Net basic income per
share attributed to
Ordinary
shareholders:
Diluted $ 0.04 $ 0.01 $ 0.04 $ 0.05
========== ========== ========== ==========
Basic $ 0.05 $ 0.01 $ 0.04 $ 0.05
========== ========== ========== ==========
Weighted average
number of shares
used for computing
diluted net income
per share to ordinary
shareholders 16,158,882 16,460,074 16,102,663 15,515,822
========== ========== ========== ==========
Weighted average
number of shares
used for computing
basic net income per
share to ordinary
shareholders 16,000,431 15,128,385 16,000,431 14,640,846
========== ========== ========== ==========
TTI TEAM TELECOM INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEET
(in thousands of U.S dollars)
June 30, Dec. 31,
2007 2006
---------- ----------
Unaudited
---------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 27,877 $ 31,410
Short term deposits 2,215 984
Trade receivables 5,403 4,664
Unbilled receivables 1,833 2,834
Related parties 370 373
Other accounts receivable and prepaid expenses 2,411 2,265
---------- ----------
Total current assets 40,109 42,530
---------- ----------
LONG-TERM INVESTMENTS:
Long term deposits 97 97
Investment in affiliate 165 165
Severance pay fund 3,311 3,627
Long-term receivables 3,393 3,324
---------- ----------
Total long-term investments 6,966 7,213
---------- ----------
PROPERTY AND EQUIPMENT:
Cost 23,483 23,612
Less - accumulated depreciation 19,789 19,770
---------- ----------
Property and equipment, net 3,694 3,842
---------- ----------
Total Assets $ 50,769 $ 53,585
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 2,037 $ 2,508
Related parties 800 40
Deferred revenues 5,104 8,333
Other accounts payable and accrued expenses 6,670 7,187
---------- ----------
Total current liabilities 14,611 18,068
---------- ----------
ACCRUED SEVERANCE PAY 4,826 5,022
---------- ----------
SHAREHOLDERS' EQUITY:
Share capital: 2,594 2,594
Additional paid-in capital 74,982 74,919
Accumulated deficit (46,244) (47,018)
---------- ----------
Total shareholders' equity 31,332 30,495
---------- ----------
Total liabilities and shareholders' equity $ 50,769 $ 53,585
========== ==========
TTI TELECOM INTERNATIONAL LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
(in thousands of U.S. dollars)
Six months ended
June 30,
2007 2006
-------- --------
Unaudited
---------
Cash flows from operating activities:
Net income $ 814 $ 969
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation and amortization 977 1,135
Gain from sale of property and equipment (226) (42)
Realized gain on available-for-sale
marketable securities -- 182
Accrued interest on short-term bank
deposits (31) (7)
Severance pay, net 120 196
Increase in trade receivables (739) (612)
Decrease (increase) in unbilled receivables 1,001 (1,347)
Decrease (increase) in long term trade and
unbilled receivables (69) 831
Increase in other accounts receivable and
prepaid expenses (146) (68)
Increase (decrease) in trade payables (471) 562
Increase in related parties 763 1,026
Increase in deferred revenues (3,229) (3,219)
Decrease in other accounts payable and
accrued expenses (557) (293)
Stock based compensation 63 250
Amortization of premium and accretion of
accrued interest on available for sale
marketable securities -- 731
-------- --------
Net cash provided by (used in) operating
activities (1,730) 294
Cash flows from investing activities:
Investment in short-term and long-term
bank deposits (2,000) (188)
Proceeds from short-term and long-term
bank deposits 800 1,041
Investment in available-for-sale
marketable securities -- (5,808)
Proceeds from sale and redemption of
available-for-sale marketable securities 0 11,384
Proceeds from sale of property and equipment 272 64
Purchase of property and equipment (875) (980)
-------- --------
Net cash provided by (used in) investing
activities (1,803) 5,513
Cash flows from financing activities:
Proceeds from exercise of warrants -- 1,022
-------- --------
Net cash provided by financing activities -- 1,022
-------- --------
Increase (decrease) in cash and cash
equivalents (3,533) 6,829
Cash and cash equivalents at the beginning
of the period 31,410 18,034
-------- --------
Cash and cash equivalents at the end of
the period $ 27,877 $ 24,863
-------- --------