-- Revenues were $4.1 million, compared with $5.1 million in the first
quarter of 2008.
-- Operating income, excluding amortization of intangible assets of $80
thousand and equity-based compensation expense of $35 thousand, was $404
thousand, or 9.8 % of revenue.
-- GAAP operating income was $289 thousand, or 7.0 % of revenue.
-- Non-GAAP net income was $327 thousand or $0.02 per share.
-- GAAP net income was $212 thousand or $0.01 per share.
-- Cash flow from operating activities was $596 thousand.
-- Backlog as of March 31, 2009 includes $7.7 million that is expected to
be billed by year-end.
-- Cash position increased to $9.9 million as of March 31, 2009, after a
$151 thousand expenditure for the buyback of 224 thousand Company shares in
the first quarter.
Monica Eisinger, Chairperson and CEO, commented: "We are very pleased that
we anticipated the market deterioration and planned accordingly way ahead.
We have implemented efficient steps to lower our expenses and we already
see some of the results of these steps in our operating income. We will
continue to strive to improve our non-GAAP operating margins and maintain
positive cash flow. As we mentioned through the last year, the credit
markets' situation impacts economic activity around the world and the
effect on our potential customers' decision timing and our existing
customers' spending decisions is apparent. We remain confident in our
long-term strategy, prospects and future and in the meantime, we are
satisfied with our persistent revenue and our cash flow."
Revenue Distribution for Q1 2009
Sales in the Americas represented 41.1% and sales in Europe represented
48.9% of total revenue and the rest divided between Israel, Africa and
Asia-Pacific.
Revenue from customer care and billing software totaled $3.5 million, while
revenue from enterprise call management software was $645 thousand. The
revenue from licenses was $1.5 million, or 36.6% and revenue of $2.6
million, or 63.4% from maintenance and additional services.
Buyback
In September 2008 MIND announced its intention to execute for the first
time a buyback program. At that time, the Board of Directors authorized a
plan for the repurchase of up to 2.1 million of the Company's ordinary
shares in the open market, in an amount in cash of up to $2.8 million. On
February 18, 2009, the Board approved an increase in the number of the
Company's shares to be purchased pursuant to the buyback program, in the
amount of up to $1.2 million, as part of the original $2.8 million amount,
which was previously approved.
The buyback started in November 2008 and the Company has purchased until
March 31, 2009 a total of 2.3 million ordinary shares for a total of
approximately $1.8 million.
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.
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
interest of the Company. We continue to believe that at this time the
repurchase of our stock at these prices will deliver value to our
shareholders and it is the most appropriate use of our resources.
Auction Rate Investments
As previously announced, on February 20, 2008, we filed a Statement of
Claim with the Financial Industry Regulatory Authority and commenced
arbitration proceedings against Credit Suisse, the bank that invested funds
in asset backed auction rate securities called "Mantoloking CDO" on behalf
of the Company.
Recently we were advised that the Mantoloking CDO #564616AB6 has been
downgraded to Ca by Moody's. The security is rated CC by S&P. Meanwhile,
we continue to receive interest payments every month on the held security.
We intend to pursue the arbitration vigorously. The arbitration hearing
that was scheduled for June 2009 is now delayed until November - December
2009, but no predictions of the timing of a resolution or possible outcomes
can be made at this time.
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