SOURCE: CTI Group (Holdings) Inc.

November 14, 2007 16:31 ET

CTI Group Reports Third Quarter 2007 Results

INDIANAPOLIS, IN--(Marketwire - November 14, 2007) - CTI Group (Holdings) Inc. (OTCBB: CTIG), an international provider of electronic invoice processing, enterprise communications management software and services solutions, and carrier class voice over internet protocol ("VoIP") management applications, reported revenues for the three and nine months ended September 30, 2007 of $5,348,509 and $16,504,191, respectively, as compared to revenues for the three and nine months ended September 30, 2006 of $3,175,944 and $9,543,815, respectively. The increase in revenues for the three and nine months ended September 30, 2007 of 68% and 83%, respectively, was primarily the result of operations associated with the acquisition in December 2006 of Ryder Systems, Ltd. located in Blackburn, UK. The Company reported net loss of ($808,473) for the three months September 30, 2007 as compared to a net income of $113,150 for the comparable period in 2006. The Company reported a net loss of ($1,342,412) for the nine months ended September 30, 2007 as compared to a net loss of ($969,273) for the comparable period in 2006. The increase in net loss in 2007 was primarily attributable to significant non contingent professional fees incurred in pursuit of patent enforcement activities.

Commenting on the results, John Birbeck, CTI Group President and CEO, stated, "Although our newly acquired UK operations of Ryder Systems, Ltd. continue to perform well, we incurred significant legal fees associated with a patent enforcement activity in the third quarter of 2007. The legal fees incurred were not contingent-based, as they typically are in other patent enforcement activities which CTI Group pursues. This particular enforcement activity was resolved in October 2007, which enabled the return of $1 million in escrow funds that can now be utilized for operating purposes. We anticipate the level of legal fees associated with patent enforcement activities to decline significantly for the remainder of the year."

Commenting on product developments, Mr. Birbeck stated, "We continue to develop our VoIP applications to meet new market opportunities and have signed significant agreements with major VoIP manufacturers. We believe that our unique product offerings, SmartRecord® IP and emPulse, are positioned well to take advantage of the high VoIP growth opportunities as service providers migrate their traditional users to these new services. SmartRecord® IP uniquely provides carrier class, integrated call recording options to VoIP service providers for their hosted and managed service customers. emPulse will provide ACD management; essential for distributed Call Centers and multi-site organizations which are target markets for VoIP service providers. Furthermore, the convergence of VoIP and mobile networks provides a compelling reason to deploy the new Dynamic Reports from our UK acquisition, to support customer loyalty and reduce Service Provider billing costs. We have recently entered into an agreement to provide Dynamic Reports to the first 3G service provider to integrate VoIP, which clearly demonstrates we are ahead of this growing market."

The Company's new hosted voice and video over IP applications are expected to help eliminate customer resistance to conversion to next-generation platforms, while creating new revenue opportunities for service providers through the delivery of compelling value added services. CTI Group's new products include emPulse, a web-based communications traffic analysis solution, and SmartRecord® IP, which enables service providers to selectively intercept and record any communications on behalf of their hosted and managed service customers, are specifically engineered to seamlessly integrate with the service provider's evolving online eBusiness strategy by providing enterprise customers with customized access to their provider's eBusiness portal and their complex service invoices.

The Proteus® suite of products are used by companies, institutions and government agencies to track communications activity and to control costs associated with operating communications networks. Proteus® performs functions of call recording, call accounting, cost allocation, client bill-back, analyses of trunk traffic and calling and usage patterns, toll fraud detection, directory services and integration with other private branch exchange peripheral products. Proteus® now also integrates Internet, e-mail and mobile data analysis and reporting with its traditional voice capabilities.

The Electronic Invoice Management suite of products includes: Analysis, for complete on-line customer care of mobile, fixed line and data services; SplitBill to enable users to automate Business vs Personal use; and Dynamic Reports, which is a "push" analysis, billing and advertising medium for mobile, data and fixed line, targeting the consumer and SMB markets.

About CTI Group -- CTI Group (Holdings) Inc. is an international provider of electronic invoice management and telemanagement software and services. CTI Group's SmartBill®, Analysis and Proteus® product suites offer a full array of solutions for traffic analysis, post-billing call analysis, and customer care. CTI Group's products are used by some of the top service providers in North America and the United Kingdom, and play a trusted role in managing telephony costs at major corporations internationally. Headquartered in Indianapolis, CTI Group maintains overseas offices in London and Blackburn, England. For more information, please visit CTI Group's website at www.ctigroup.com.

Safe Harbor Statement

This release may contain "forward-looking" statements. Examples of forward-looking statements include, but are not limited to: (a) projections of revenue, capital expenditures, growth, prospects, dividends, capital structure and other financial matters; (b) statements of plans and objectives of the Company or its management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about the Company and its business relating to the future; and (e) any statements using the words such as "could," "should," "anticipate," "expect," "believe," "may," "project," "intend," "will" or similar expressions. The Company's ability to predict projected results or the effect of events on the Company's operating results is inherently uncertain. Forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those discussed in this document. In addition to information provided elsewhere in this document, shareholders should consider the following: the risk that the Company will not be able to attract and retain customers to purchase its products, the risk that the Company will not be able to commercialize and market products; results of research and development; technological advances by third parties; competition; future capital needs of the Company; history of operating losses; dependence upon key personnel and general economic and business conditions. Readers are referred to documents filed by CTI Group with the U.S. Securities and Exchange Commission, including the Form 10-QSB for its most recent quarter ended September 30, 2007.

Contact Information

  • Contact:
    CTI Group (Holdings) Inc.
    John Birbeck
    317.262.4666