-- Revenues were $4.1 million, compared with $4.6 million in the second
quarter of 2008.
-- Operating income was $692 thousand, or 17 % of revenue, excluding
amortization of intangible assets of $87 thousand and equity-based
compensation expense of $36 thousand.
-- GAAP operating income was $569 thousand, or 14 % of revenue.
-- GAAP net income was $19.2 million or $1.02 per share, including a one
time financial income from a cash settlement in the amount of $18.5
million.
-- Cash flow from operating activities was $1.6 million.
-- Backlog as of September 30, 2009 includes $4.2 million that is
expected to be billed by year-end.
-- Cash position increased to $31.5 million as of September 30, 2009,
after a $241 thousand expenditure for the buyback of 238 thousand Company
shares in the third quarter.
New Win & Follow-on Order
In the third quarter MIND secured a new customer, a new operator in Africa,
expected to launch a WiMAX network based on network equipment supplied by a
major Chinese vendor. MIND will supply a complete billing and customer care
solution, fully integrated with the vendor's WiMAX network elements, within
the next six months.
The follow-on order is with an existing Sentori/Mind Software Inc.
customer, which chose MIND to implement the MINDBill end-to-end Convergent
billing solution. MIND's multi year agreement is with a leading Caribbean
operator that provides convergent prepaid and postpaid billing, rating,
invoicing, roaming, customer care, web Self-care, Point of Sale, inventory
management, web services, workflow engine, provisioning, lot management,
mediation, interconnect and reports to support wireless, wireline and
broadband services.
Monica Eisinger, Chairperson and CEO, commented: "Our backlog for the
future increased significantly this quarter, as we won new business that
will impact our revenue for the next two years. We continue to execute on
our profitability and cash flow strategy and remain confident in our
future. We are pleased that the ARS issue is now behind us and we can focus
on increasing our business."
Revenue Distribution for Q3 2009
MIND operates globally and continues to focus mainly in the Americas and
Europe. Sales in the Americas represented 38.9 % and sales in Europe
represented 52.9 % of total revenue.
Revenue from customer care and billing software totaled $3.3 million, while
revenue from enterprise call management software was $810 thousand. The
revenue from licenses was $1.3 million, or 32.7%, and MIND generated
revenue of $2.8 million, or 67.3%, from maintenance and additional
services.
Securities Class Action Lawsuit Update
MIND recently reported that a purported class action securities lawsuit has
been filed against the Company, certain officers and one director. The
complaint seeks unspecified compensatory damages for, among other things,
alleged misleading statements relating primarily to the Company's
investment in auction rate securities. MIND has reviewed the allegations
contained in the complaint and believes that they are without merit. MIND
intends to defend itself against the complaint vigorously.
Delisting from Tel Aviv Stock Exchange (TASE)
The Board of Directors resolved yesterday to delist the Company's ordinary
shares from the trading on the Tel Aviv Stock Exchange (TASE).
Consequently, MIND has applied to the TASE and requested that the TASE
initiate the delisting process. Under applicable Israeli law, the delisting
of MIND's ordinary shares from trading on the TASE is expected to become
effective within three months from the date of application to the TASE.
During the interim period, MIND's ordinary shares will continue to be
traded on the TASE. MIND will announce the exact date of the delisting when
it becomes available. Itay Barzilay, MIND's CFO, said: "Since MIND listed
its ordinary shares on the TASE in July 2002, trading volumes have been
relatively low. Most of the trading is conducted on NASDAQ. Therefore, our
Board of Directors has resolved that we, as a global company which conducts
its business mostly outside of Israel, should delist from the TASE and
continue trading on NASDAQ."
MIND's shares will continue to be listed on the NASDAQ Global Market, and
the Company will continue to file public reports in accordance with the
rules and regulations of NASDAQ and of the SEC as they apply to a foreign
private issuer such as MIND.
Buyback Update
MIND's Board of Directors authorized yesterday a new plan for the
repurchase of the Company's ordinary shares in the open market, in an
amount in cash of up to $1.8 million.
Monica Eisinger, Chairperson and CEO, commented: "We continue to believe
that in light of current share prices, the history of positive cash flow
from operations and the Company's resources, the purchase of the Company's
shares is a good investment and is in the best interests of the Company and
we can do this without sacrificing expansion, capital investment or growth
plans. We believe that at this time the repurchase of our stock at these
prices will deliver value to our shareholders and is one of the most
appropriate uses of our resources."
Under the repurchase program, share purchases may be made from time to time
depending on market conditions, share price, trading volume and other
factors. The repurchase may be suspended from time to time or discontinued.
Under the Israeli law, the repurchase program is considered a distribution
that requires prior court approval, which the Company will seek soon after
completing the dividend distribution mentioned below.
In the meantime, the first buyback program that was authorized in September
2008 and was reinstated on September 16, 2009 is still in place and the
remaining amount from this first program is approximately $400 thousand.
Dividend Distribution Update
In July 2003, the Board of Directors adopted the Company's current dividend
policy. MIND has since distributed dividends six times and it intends to
continue to distribute cash dividends based on factors that include its
cash position and activities.
On September 9, 2009, the Board of Directors authorized the necessary
steps, including applying for the requisite court approval, to enable the
distribution of a cash dividend in the amount of $0.80 per share, or
approximately $15 million in the aggregate. Under Israeli law, a company
with insufficient retained earnings is required to obtain approval from the
court for such a distribution.
We expect to obtain such court approval within two weeks, although there is
no guarantee that such approval will not be delayed or denied. Prior to
paying the dividend, MIND will issue a press release announcing the record
date and distribution date.
About MIND
MIND CTI Ltd. is a leading provider of convergent end-to-end billing and
customer care product based solutions for service providers as well as
telecom expense management (call management) solutions. MIND provides a
complete range of billing applications for any business model (license,
managed service or complete outsourced billing service) for Wireless,
Wireline, VoIP and Quad-play carriers in more than 40 countries around the
world.
A global company, with over ten years of experience in providing solutions
to carriers and enterprises, MIND operates from offices in the United
States, UK, Romania and Israel.
For more information, visit MIND at: www.mindcti.com. The financial results
can be found in the Investors section and in our Form 6-K as well.
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the
Private Securities Litigation Reform Act of 1995: All statements other than
historical facts included in the foregoing press release regarding the
Company's business strategy are "forward-looking statements." These
statements are based on management's beliefs and assumptions and on
information currently available to management. Forward-looking statements
are not guarantees of future performance, and actual results may materially
differ. The forward-looking statements involve risks, uncertainties, and
assumptions, including the risks discussed in the Company's filings with
the United States Securities Exchange Commission. The Company does not
undertake to update any forward-looking information.
Contact Information: For more information please contact: Andrea Dray MIND CTI Ltd. Tel: +972-4-993-6666