YOQNEAM, ISRAEL--(Marketwire - August 3, 2010) - MIND C.T.I. LTD. (
Key Highlights
- Revenues were $4.9 million, a 10.9 % increase over the second quarter of 2009.
- One new customer and one important version upgrade.
- Operating income, excluding amortization of intangible assets of $82 thousand and equity-based compensation expense of $18 thousand, was $1,483 thousand, or 30.3 % of revenue.
- GAAP operating income was $1,383 thousand, or 28.2 % of revenue.
- GAAP net income was $1,284 thousand or $0.07 per share.
- Cash flow from operating activities was $1,235 thousand.
- Backlog as of June 30, 2010 includes $7.9 million that is expected to be billed by year-end.
- Cash position of $18.0 million on June 30, 2010, after a dividend distribution of $3.7 million in April 2010.
Revenue Distribution for Q2 2010
Sales in the Americas represented 47 % and sales in Europe represented 37 % of total revenue and the rest divided between Israel, Africa and Asia-Pacific.
Revenue from customer care and billing software totaled $4.05 million, while revenue from enterprise call accounting software was $853 thousand.
New Win & Important Upgrade
In the second quarter 2010 MIND secured one new European customer, as well as a solution upgrade with an existing African customer.
The new win is with a telecom vendor that has been awarded the prime contractor role in a project that is financed by the European Union. We are proud to have been chosen, following a lengthy selection process that had started almost two years ago. MIND will provide an end-to-end Billing and Customer Care solution for handling both prepaid and postpaid models. MIND enables the telecom operator to implement advanced rating schemes for the latest technology infrastructure being installed, based on IMS services: Voice, Video and IM; and Data services based on xDSL and WiMAX.
The upgrade is with a South African carrier providing a full suite of ISP services and VoIP solutions primarily to corporate customers. The rating and billing of voice services have been handled by the MIND system since the launch in 2005, while other solutions were used for data services. Following the decision to expand its service offering as well as consolidate all systems into a single platform, MIND was chosen as the converged platform. Migrating to MINDBill version 7 will enable cost efficiencies, eliminate duplicate roles, increase resource utilization and save on the overall operating expenses. At the same time the carrier will benefit from the flexibility of our product catalog and configurable rating metrics that will enable the swift rollout of competitive new marketing campaigns.
Monica Iancu (formerly Monica Eisinger), Chairperson and CEO, commented: "We are pleased that in these economic conditions we continue with our execution of positive cash flow and that during the quarter we succeeded to close additional business, but unfortunately at the same time we lost one US customer that was under a managed service agreement with our UK acquired entity. While we believe that the market is not strong enough to enable growth, we continue to focus on our targets: satisfied customers, successful project implementations, winning new business and positive cash flow. We continue to believe that as always these targets build our great company culture and the unprecedented spirit and team effort drive towards a successful future."
Conference Call Information
MIND will host a conference call on August 4, 2010 at 10:30 a.m., Eastern Time, to discuss the Company's second quarter 2010 results and other financial and business information. The call will be carried live on the Internet via www.earnings.com and the MIND website, www.mindcti.com. For those unable to listen to the live web cast, a replay will be available.
Full financial results can be found in the Investors section www.mindcti.com/investor/PressReleases.asp and in our Form 6-K as well.
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 accounting) 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 twelve 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
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