-- Revenues of $5.1 million, compared with $4.8 million in the first
quarter of 2007.
-- Operating income was $315 thousand, or 6.2% of revenue, excluding
amortization of intangible assets of $167 thousand and equity-based
compensation expense of $46 thousand.
-- GAAP operating income was $102 thousand, or 2% of revenue.
-- Impairment of Auction Rate Securities was $962 thousand.
-- Net loss was $268 thousand or $0.01 per share, excluding amortization
of intangible assets of $167 thousand and equity-based compensation expense
of $46 thousand.
-- GAAP net loss was $481 thousand, or $0.02 per share compared with GAAP
net income of $1,151 thousand or $0.05 per share in the first quarter of
2007.
Financial Highlights of Q2 2008
-- Revenues of $5.1 million, compared with $4 million in the second
quarter of 2007.
-- Operating income was $682 thousand, or 13.4% of revenue, excluding
amortization of intangible assets of $166 thousand and equity-based
compensation expense of $43 thousand.
-- GAAP operating income was $473 thousand, or 9.3% of revenue.
-- Impairment of Auction Rate Securities was $796 thousand.
-- Net loss was $87 thousand or $0.00 per share, excluding amortization
of intangible assets of $166 thousand and equity-based compensation expense
of $43 thousand.
-- GAAP net loss was $296 thousand, or $0.01 per share compared with GAAP
net income of $508 thousand or $0.02 per share in the second quarter of
2007.
Six Month Highlights
-- Revenues of $10.2 million, compared with $8.9 million in the first six
months of 2007.
-- Expenses of $862 thousand relating to deferred revenues were deferred
in the first six months of 2008.
-- Net loss was $355 thousand or $0.02 per share, excluding amortization
of intangible assets of $333 thousand and equity-based compensation expense
of $89 thousand.
-- GAAP net loss was $777 thousand, or $0.04 per share compared with GAAP
net income of $1,659 thousand or $0.08 per share in the first six months of
2007.
-- Cash flow from operating activities in first six months of 2008 was
$2.1 million.
-- Cash and cash equivalents of $9.7 million on June 30, 2008.
-- Backlog expected to be billed by year-end as of June 30, 2008 is $6.4
million.
The full financial results can be found in the "News" section on MIND's
website, www.mindcti.com.
Revenue Distribution for Six Months 2008
Sales in the Americas represented 42% and sales in Europe represented 50%
of total revenue. Revenue from our customer care and billing software
totaled $8.7 million, while revenue from our enterprise call management
software was $1.5 million. The revenue breakdown from our business lines of
products was $3.5 million, or 34% from licenses, $3.4 million, or 33% from
maintenance and $3.3 million, or 32% from services.
Auction Rate Securities
As previously announced, we continue to receive interest payments every
month on the held security, which is now rated BBB by S&P and Ba1 with
CreditWatch with negative implications by Moody's.
New Wins
In the second quarter MIND secured two new customers, one in the US and one
in Europe, as well as a major upgrade of license from an existing customer.
The win in the US is a six-year managed service contract with a regional
mobile operator. The win in Europe is also a managed service contract with
a small telecom reseller. The license upgrade from the existing customer
includes the new MIND offering, the Point of Sale module as well as an
upgrade of subscriber license.
Monica Eisinger, Chairperson and CEO, commented: "We continue to build for
the long term, to execute on profitability and to win new business. MIND
delivers an end-to-end solution that suits carrier specific needs. Our
integrated Point of Sale module completes our platform that includes
customer care, electronic bill presentment & payment, rating, billing,
provisioning and mediation.
"MIND now offers a truly convergent, real-time solution across any line of
business: voice, data, content, video; fixed, mobile, cable, satellite;
prepaid and postpaid. We support automated business processes and
sophisticated business models. Lately we encounter increased demand for our
services and the long-term contracts help us build a strong backlog and
increase our visibility."
The Company held its Annual General Meeting of Shareholders on August 18,
2008 and all the proposed resolutions were approved.
Conference Call Information
MIND will host a conference call on August 20, 2008 at 10:30 a.m., Eastern
Time, to discuss the Company's six months 2008 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 end-to-end billing and
customer care product based solutions for service providers as well as
telecom expense management (call accounting) solutions for the enterprise
market. 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.
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