Key Highlights
-- The company distributed $0.20 per share in annual dividends.
-- Cash position remains strong with over $34 million.
-- New implementation at a Scandinavian IP carrier.
-- Multiple follow-on orders from mobile operators and IP carriers.
-- First quarter 2007 revenues were $4.81 million.
-- Non-GAAP operating income was $848 thousand, or 18% of revenue.
-- Non-GAAP net income was $1.33 million or $0.06 per share.
-- Full year 2007 guidance: non-GAAP EPS is expected to be approximately
20 cents.
MIND CTI Ltd. (
-- Revenues of $4.81 million, compared with $5.25 million in the first
quarter of 2006.
-- Operating income, excluding amortization of intangible assets of $116
thousand and equity-based compensation expense of $64 thousand, was $848
thousand, or 18% of revenue.
-- GAAP operating income was $668 thousand, or 14% of revenue, a 16%
increase over the first quarter of 2006.
-- Net income, excluding amortization of intangible assets of $116
thousand and equity-based compensation expense of $64 thousand, was $1.33
million or $0.06 per share.
-- GAAP net income was $1.15 million, or $0.05 per share, a 76% increase
over the first quarter of 2006.
-- Cash flow from operating activities in Q1 2007 was $855 thousand.
Revenue Distribution for Q1 2007
Sales in Europe represented 43% and sales in the Americas represented 41%
of total revenue. Revenue from our customer care and billing software
totaled $4.05 million, while revenue from our enterprise call management
software was $755 thousand. The revenue breakdown from our business lines
of products was $1.91 million, or 40% from licenses, $1.69 million, or 35%
from maintenance and $1.21 million, or 25% from services.
Conference Call Information
MIND will host a conference call on May 10, at 8:30 a.m., Eastern Daylight
Time, to discuss the Company's first quarter 2007 results and other
financial and business information. The call will be carried live on the
Internet via www.fulldisclosure.com and the MIND website, www.mindcti.com.
For those unable to listen to the live web cast, a replay will be
available.
About MIND
MIND CTI Ltd. is a leading provider of convergent prepaid and postpaid
end-to-end billing and customer care solutions for IP networks, Mobile,
Wireline and Quad-play carriers worldwide. Since 1997 MIND has been a
pioneer in enabling the VoIP technology for emerging and incumbent service
providers. In August 2005, MIND acquired Sentori, Inc., a US-based provider
of customer care and billing solutions to wireless carriers and mobile
virtual network operators (MVNOs). Sentori, Inc. brings over ten years of
wireless experience and eight years of a wireless operational solution to
carriers. A global company, MIND operates from offices in Europe, Israel
and the United States. MIND employs 300 IT professionals and serves
customers in more than 40 countries around the world. For financial
information, reports and presentations, please visit the Investor Relations
site: http://www.mindcti.com/ir.
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.
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31,
------------------------ December 31,
2007 2006 2006
----------- ----------- -------------
(Unaudited) (Audited)
------------------------ -------------
U.S. $ in thousands
---------------------------------------
Assets
CURRENT ASSETS:
Cash and cash equivalents $ 24,808 $ 6,905 $ 27,571
Accounts receivable:
Trade 5,819 5,191 5,385
Other 531 1,034 231
Deferred income taxes 158 154
Inventories 35 30 35
----------- ----------- -------------
Total current assets 31,351 13,160 33,376
INVESTMENTS AND OTHER NON CURRENT
ASSETS:
Marketable debentures 10,000 10,000
Long term bank deposits 30,000
Other 989 730 1,003
PROPERTY AND EQUIPMENT, net of
accumulated depreciation 1,547 1,950 1,558
INTANGIBLE ASSETS, net of
accumulated amortization 772 1,330 888
GOODWILL 6,966 6,966 6,966
----------- ----------- -------------
Total assets $ 51,625 $ 54,136 $ 53,791
=========== =========== =============
Liabilities and shareholders'
equity
CURRENT LIABILITIES:
Accounts payable and accruals:
Trade $ 503 $ 789 $ 464
Other 2,640 2,151 2,509
Deferred revenues 1,906 1,899 1,236
Advances from customers 241 575 241
----------- ----------- -------------
Total current liabilities 5,290 5,414 4,450
EMPLOYEE RIGHTS UPON RETIREMENT 1,498 1,404 1,482
----------- ----------- -------------
Total liabilities 6,788 6,818 5,932
----------- ----------- -------------
SHAREHOLDERS' EQUITY:
Share capital 54 53 54
Additional paid-in capital 59,628 59,510 59,547
Capital surplus 389 77 325
Accumulated deficit (15,234) (12,322) (12,067)
----------- ----------- -------------
Total shareholders' equity 44,837 47,318 47,859
----------- ----------- -------------
Total liabilities and
shareholders' equity $ 51,625 $ 54,136 $ 53,791
=========== =========== =============
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months
Ended March 31, Year Ended
------------------------ December 31,
2007 2006 2006
----------- ----------- -------------
(Unaudited) (Audited)
------------------------ -------------
U.S. $ in thousands
(except per share data)
---------------------------------------
REVENUES $ 4,807 $ 5,252 $ 20,060
COST OF REVENUES 1,345 1,598 5,675
------------ ------------ -------------
GROSS PROFIT 3,462 3,654 14,385
RESEARCH AND DEVELOPMENT
EXPENSES 1,416 1,738 6,118
SELLING AND MARKETING EXPENSES 935 982 3,628
GENERAL AND ADMINISTRATIVE
EXPENSES 443 359 2,135
------------ ------------ -------------
OPERATING INCOME 668 575 2,504
FINANCIAL INCOME (EXPENSES) - net 504 125 * (222)
------------ ------------ -------------
INCOME BEFORE TAXES ON INCOME 1,172 700 2,282
TAXES ON INCOME 21 46 1,373
------------ ------------ -------------
NET INCOME $ 1,151 $ 654 $ 909
============ ============ =============
EARNING PER ORDINARY SHARE:
Basic and diluted $ 0.05 $ 0.03 $ 0.04
============ ============ =============
WEIGHTED AVERAGE NUMBER OF
ORDINARY SHARES USED IN
COMPUTATION OF EARNINGS PER
ORDINARY SHARE - IN THOUSANDS:
Basic 21,566 21,439 21,515
============ ============ =============
Diluted 21,577 21,511 21,546
============ ============ =============
* Financial expenses for the year ended December 31, 2006 include a
loss from a premature withdrawal of long-term deposits in the amount
of $1,330,000.
MIND C.T.I. LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months
Ended March 31, Year Ended
------------------------ December 31,
2007 2006 2006
----------- ----------- -------------
U.S. $ in thousands
---------------------------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Income $ 1,151 $ 654 $ 909
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities:
Depreciation and amortization 245 486 1,391
Deferred income taxes, net 2 (293)
Accrued severance pay 16 102 176
Capital loss (gain) on sale of
property and equipment - net 7 (4) (3)
Employees share based
compensation expenses 64 77 325
Changes in operating asset and
liability items:
Decrease (increase) in
accounts receivable:
Trade (434) (1,802) (1,996)
Interest accrued on
marketable debentures (135) (37)
Other (165) (244) 537
Increase in Inventories (5)
Increase (decrease) in
accounts payable and accruals:
Trade 39 103 (222)
Other (605) 4 768
Increase (decrease) in
deferred revenues 670 255 (408)
Decrease in advances from
customers, net (215) (549)
----------- ----------- -------------
Net cash provided by (used in)
operating activities 855 (584) 593
----------- ----------- -------------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of property and
equipment (135) (174) (379)
Amounts funded in respect of
accrued severance pay 8 3 (119)
Acquisition of marketable
debentures held-to-maturity (10,000)
Withdrawal of long-term bank
deposits 30,000
Proceeds from sale of
Property and equipment 10 29 162
----------- ----------- -------------
Net cash provided by (used
in) investing activities (117) (142) 19,664
----------- ----------- -------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Employee stock options exercised
and paid 81 60 149
Dividend paid (3,582) (2,603) (3,009)
----------- ----------- -------------
Net cash used in financing
activities (3,501) (2,543) (2,860)
----------- ----------- -------------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (2,763) (3,269) 17,397
BALANCE OF CASH AND CASH
EQUIVALENTS AT BEGINNING OF YEAR 27,571 10,174 10,174
----------- ----------- -------------
BALANCE OF CASH AND CASH
EQUIVALENTS AT END OF PERIOD $ 24,808 $ 6,905 $ 27,571
=========== =========== =============
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW AND NON CASH ACTIVITIES
Cash paid during the year for
income tax $ 841 $ 11 $ 39
=========== =========== =============
Contact Information: For more information please contact: Andrea Dray MIND CTI Ltd. Tel: +972-4-993-6666 Email Contact