SOURCE: MIND CTI Ltd.

August 01, 2006 16:00 ET

MIND CTI Reports Revenue of $5.1 Million for the Second Quarter of 2006

YOQNEAM, ISRAEL -- (MARKET WIRE) -- August 1, 2006 -- MIND CTI Ltd. (NASDAQ: MNDO), a leading provider of convergent end-to-end billing and customer care product based solutions for VoIP, Mobile, Wireline and Quad-play carriers worldwide, today announced results for the second quarter 2006.

Monica Eisinger, Chairperson and CEO, commented: "The second quarter results reflect the change in our business model and customer base. As we close more managed services deals we build long-term relationships with our customers as well as future revenue stream. As we achieve our goal of increased average deal size, our business model changes and the professional services part of our business grows as well. We are thrilled with our three new wins this quarter, which include a large operator in Europe to whom we will provide a complete end-to-end billing solution for Wireline, Wireless and IP services. As always, we are focused on successful and timely deliveries of our billing and customer care product based solutions, building our business for the long term and increasing our operating margins."

Financial Highlights of Q2 2006

--  Revenues of $5.07 million, a 48% increase over the second quarter of
    2005.
--  Net income, excluding amortization of intangible assets, loss from
    premature withdrawal of long-term bank deposits and equity-based
    compensation expense, of $1.09 million.
--  GAAP net loss of $492 thousand or $0.02 per share, resulting from a
    GAAP operating income of $710 thousand, offset by the loss from a premature
    withdrawal of long-term bank deposits in the amount of $1,330,000.
--  Cash flow from operating activities in Q2 2006 was $0.6 million.
--  Cash position remains strong with approximately $36 million on the
    balance sheet on June 30, 2006.
    
Six Months Highlights
--  Revenues were $10.33 million, a 59% increase over the first six months
    of 2005.
--  Net income, excluding amortization of intangible assets, loss from
    premature withdrawal of long-term bank deposits and equity-based
    compensation expense, of $2.15 million.
--  Five new wins, three in the US and two in Europe.
--  The company distributed $0.14 per share in annual dividends.
    
Revenue Distribution for Q2 2006

The geographic revenue breakdown, as a percentage of total revenues, was as follows: sales in the Americas represented 56%, Europe represented 31%, Africa, APAC and Israel represented 13%.

Revenue from our customer care and billing software totaled $4.45 million, while revenue from our enterprise call management software was $623 thousand. The revenue breakdown from our business lines of products was $1.96 million, or 39%, from licenses, $1.49 million, or 29%, from maintenance and $1.62 million, or 32%, from services.

Conference Call Information

MIND will host a conference call on August 2, 2006 at 8:30 a.m., Eastern Standard Time, to discuss the Company's second quarter 2006 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 VoIP, 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 (MVNO's). Sentori, Inc. brings over ten years of wireless experience staff and seven years of a wireless operational solution to carriers. A global company, MIND operates from offices in Europe, Israel and the United States. MIND employs over 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 June 30, December 31, 2006 2005 2005 ---------- ---------- ---------- (Unaudited) (Audited) U.S. $ in thousands Assets CURRENT ASSETS: Cash and cash equivalents $ 25,694 $ 6,354 $ 10,174 Accounts receivable: Trade 4,882 2,518 3,389 Interest accrued on long-term bank deposits 29 Other 956 726 739 Inventories 30 19 30 ---------- ---------- ---------- Total current assets 31,562 9,646 14,332 LONG-TERM BANK DEPOSITS 10,000 40,000 30,000 OTHER LONG-TERM ASSETS 492 403 480 PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization 1,910 1,885 1,957 INTANGIBLE ASSETS, net of accumulated amortization 1,160 1,660 GOODWILL 6,966 150 6,966 ---------- ---------- ---------- Total assets $ 52,090 $ 52,084 $ 55,395 ========== ========== ========== Liabilities and shareholders' equity CURRENT LIABILITIES - Accounts payable and accruals: Trade $ 699 $ 338 $ 686 Other 1,584 1,721 1,741 Deferred revenues 1,412 1,515 1,644 Advances from customers, net 342 790 ---------- ---------- ---------- Total current liabilities 4,037 3,574 4,861 EMPLOYEE RIGHTS UPON RETIREMENT 1,143 1,118 1,049 ---------- ---------- ---------- Total liabilities 5,180 4,692 5,910 ---------- ---------- ---------- SHAREHOLDERS' EQUITY: Share capital 53 53 53 Additional paid-in capital 59,510 59,357 59,399 Compensation in respect of options granted to empolyees 161 Accumulated deficit (12,814) (12,018) (9,967) ---------- ---------- ---------- Total shareholders' equity 46,910 47,392 49,485 ---------- ---------- ---------- Total liabilities and shareholders' equity $ 52,090 $ 52,084 $ 55,395 ========== ========== ========== MIND C.T.I. LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Six months Three months Year ended ended June 30 ended June 30 December 31, 2006 2005 2006 2005 2005 -------- --------- -------- --------- --------- (Unaudited) (Unaudited) (Audited) U.S. $ in thousands (except per share data) REVENUES $ 10,326 $ 6,504 $ 5,074 $ 3,422 $ 15,601 COST OF REVENUES 3,090 1,607 1,492 803 4,015 -------- --------- -------- --------- --------- GROSS PROFIT 7,236 4,897 3,582 2,619 11,586 RESEARCH AND DEVELOPMENT EXPENSES 3,326 2,109 1,588 1,110 5,086 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: Selling 1,867 1,020 885 428 2,148 General and administrative 758 753 399 394 1,507 -------- --------- -------- --------- --------- OPERATING INCOME 1,285 1,015 710 687 2,845 FINANCIAL INCOME (EXPENSES) - net *(1,053) 1,021 *(1,178) 303 1,260 -------- --------- -------- --------- --------- INCOME (LOSS) BEFORE TAXES ON INCOME 232 2,036 (468) 990 4,105 TAXES ON INCOME 70 25 24 10 43 -------- --------- -------- --------- --------- NET INCOME (LOSS) $ 162 $ 2,011 $ (492) $ 980 $ 4,062 ======== ========= ======== ========= ========= EARNING (LOSS) PER SHARE: Basic and diluted $ 0.01 $ 0.09 $ (0.02) $ 0.05 $ 0.19 ======== ========= ======== ========= ========= WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED IN COMPUTATION OF EARNINGS PER ORDINARY SHARE - IN THOUSANDS: Basic 21,500 21,417 21,528 21,453 21,431 ======== ========= ======== ========= ========= Diluted 21,565 21,574 21,577 21,558 21,619 ======== ========= ======== ========= ========= * Financial expenses for the 6 and 3 month periods ended June 30, 2006 include a loss from a premature withdrawal of long-term bank deposits in the amount of $1,330,000. MIND C.T.I. LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Year ended Six months Three months December ended June 30 ended June 30 31, ------------------ ------------------ 2006 2005 2006 2005 2005 -------- -------- -------- -------- -------- (Unaudited) (Unaudited) (Audited) U.S. $ in thousands CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 162 $ 2,011 $ (492) $ 980 $ 4,062 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 815 338 329 158 987 Accrued severance pay 94 12 (8) 73 (151) Capital gain on sale of property and equipment - net (8) (30) (4) (7) (38) Loss from withdrawal of long term deposits 1,330 1,330 Compensation in respect of options granted to Employees 161 84 Changes in operating asset and liability items: Decrease (increase) in accounts receivable: Trade (1,493) 900 309 (738) 196 Interest accrued on long-term bank Deposits 213 804 242 Other (217) 47 27 (271) 48 Increase (decrease) in accounts payable and accruals: Trade 13 (128) (90) (25) (697) Other (157) (568) (161) (233) (1,510) Increase in Inventories (1) (12) Decrease in deferred revenues (232) (487) (799) Decrease in advances from customers, net (448) (233) (1,467) -------- -------- -------- -------- -------- Net cash provided by operating activities 20 2,794 604 741 861 -------- -------- -------- -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (296) (421) (122) (205) (589) Acquisition of subsidiary (a) (4,233) Amounts withdrawal (funded) in respect of accrued severance pay (12) 41 (15) (53) 94 Investments in long-term bank deposits (10,000) (10,000) Withdrawal of long-term bank deposits 18,670 18,670 10,000 Proceeds from sale of property and equipment 36 118 7 29 175 -------- -------- -------- -------- -------- Net cash provided by (used in) investing activities 18,398 (10,262) 18,540 (229) (4,553) -------- -------- -------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Employee stock options exercised and paid 111 278 51 14 322 Dividend paid (3,009) (5,143) (406) (5,143) -------- -------- -------- -------- -------- Net cash provided by (used in) financing activities (2,898) (4,865) (355) 14 (4,821) -------- -------- -------- -------- -------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 15,520 (12,333) 18,789 526 (8,513) BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 10,174 18,687 6,905 5,828 18,687 -------- -------- -------- -------- -------- BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 25,694 $ 6,354 $ 25,694 $ 6,354 $ 10,174 ======== ======== ======== ======== ======== MIND C.T.I. LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Cont.) Year ended December 31, 2005 -------- (a) Acquisiiton of subsidiary: Assets and liabilities of the subsidiary upon acquisition: Working capital (excluding cash and cash equivalents) $ (4,881) Property and equipment 277 Intangible assets 1,871 Goodwill 6,966 -------- Cash paid - net $ 4,233 ========

Contact Information

  • For more information please contact:
    Andrea Dray
    MIND CTI Ltd.
    Tel: +972-4-993-6666
    Email Contact