SOURCE: CTI Group (Holdings) Inc.

May 15, 2007 17:51 ET

CTI Group Reports First Quarter 2007 Results - 64% Increase in Revenues

INDIANAPOLIS, IN -- (MARKET WIRE) -- May 15, 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 of $5,054,560 for the three months ended March 31, 2007 compared to $3,081,167 for the same period last year. The 64% increase in revenues was primarily due to the revenue recognized from the acquisition in December 2006 of newly acquired company, Ryder Systems, Ltd. located in Blackburn, UK. The Company reported net loss of $582,896 for the first quarter of 2007 compared to a net loss of $784,881 for the first quarter of 2006. The 26% decline in net loss was driven primarily from accretive earnings from Ryder and a reduction in patent license fee and enforcement cost which offset the increased interest expense and intangible amortization costs associated with the Ryder acquisition.

Commenting on the results, John Birbeck, CTI President and CEO, stated, "This represents the first full quarter that the operating results of Ryder Systems, Ltd. have been consolidated. Ryder, which was acquired in December 2006, appears to be operating as anticipated. We are optimistic that synergistic benefits regarding market, sales and costs will benefit the Company in the future."

Birbeck believes that CTI Group's innovation, founded upon its extensive product development experience within the telephony market, will open new market opportunities for the company's products: "I believe we are prepared to strengthen our position in our current electronic invoice management market as the adoption of our billing analytics solutions continue to rise particularly in the mobile market in Europe, whilst we enter into the new dynamic and exciting market of VoIP. We believe that our VoIP market product offerings, SmartRecord® IP and emPulse are positioned well to take advantage of the exceptional VoIP growth opportunities." SmartRecord® IP provides integrated call recording options to service providers for their hosted and managed service customers. "While we still believe this year will offer its challenges, our acquisition of Ryder, our new development technology and market know-how will position the company for better growth in the future," Birbeck said.

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 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.

About CTI Group -- CTI Group (Holdings) Inc. is an international provider of electronic invoice management and telemanagement software and services. CTI Group's SmartBill® 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

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 "could," "should," "anticipate," "expect," "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 March 31, 2007.

Contact Information