MIND CTI Reports Second Quarter 2016 Results

YOQNEAM, ISRAEL--(Marketwired - August 02, 2016) - MIND C.T.I. LTD. (NASDAQ: MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers as well as unified communications analytics and call accounting solutions for enterprises, today announced results for its second quarter ended June 30, 2016.

The following will summarize our major achievements in the second quarter of 2016 as well as our business. Full financial results can be found in the Investor Information section of our website at www.mindcti.com/investor/PressReleases.asp and in our Form 6-K.

Financial Highlights

• Revenues were $4.3 million, compared to $5.2 million in the second quarter of 2015.
• Operating income was $1.0 million, or 23% of total revenues, compared to $1.7 million or 33% of total revenues in the second quarter of 2015.
• Net income was $1.0 million, or $0.05 per share, compared to $1.6 million, or $0.08 per share in the second quarter of 2015.
• Large follow-on orders and one strategic win with our enterprise solutions.
• Cash flow from operating activities was $1.5 million.

Financial Six Months Highlights

• Revenues were $8.9 million, compared to $10.9 million in the first six months of 2015.
• Operating income was $2.1 million, or 24% of total revenues, compared to $3.3 million or 30% of total revenues in the first six months of 2015.
• Net income was $2.2 million, or $0.11 per share, compared to $2.5 million, or $0.13 per share in the first six months of 2015.
• Cash flow from operating activities in the first six months of 2016 was $2.3 million.

As of June 30, 2016 we had 295 employees, compared with 355 as of June 30, 2015.

Cash position was $16.8 million as of June 30, 2016, compared with $17.1 million as of June 30, 2015.

Monica Iancu, MIND CTI CEO, commented: "While we are disappointed with our weak revenues in the second quarter we are happy to announce that after quarter end we closed a significant new win. We repeatedly mentioned the hesitance of carriers in the markets we are active in, to commit to large projects of business transformation and the very long sales cycles. Such a long cycle came to completion recently and we expect to recognize the revenue of this multi-million deal mainly during 2017. We are pleased as always with the follow-on orders that reconfirm our customer satisfaction. We plan to enhance our focus on entering new markets and we continue the ongoing investment in maintaining an up-to-date billing platform while we expect to continue to execute on our profitability targets."

Revenue Distribution for Q2 2016

Revenues in the Americas represented 73.7%, revenues in Europe represented 16.4% and revenues in the rest of the world represented 9.9% of our total revenues.

Revenues from customer care and billing software totaled $3.4 million, or 79% of total revenues, while revenues from enterprise call accounting software totaled $0.9 million, or 21% of total revenues.

Revenues from licenses were $1.2 million, or 28% of total revenues, while revenues from maintenance and additional services were $3.1 million, or 72% of total revenues.

Multiple Orders

Similar to other quarters, our follow-on orders include license expansions, additional onsite services and customizations that enable our customers to support new technologies and offer new business models or new services (mainly LTE related services).

Our unified communications analytics and call accounting solutions for enterprises target mainly very large multinational corporates. We have partnered with one major vendor in this segment and for the last two years we worked together on several opportunities, one of which materialized in our first win with this important partner during the second quarter.

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 unified communications analytics and call accounting solutions for enterprises. MIND provides a complete range of billing applications for any business model (license, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers in more than 40 countries around the world. A global company, with over twenty years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, Romania and Israel.

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.