SOURCE: CTI Group (Holdings) Inc

March 30, 2006 17:45 ET

CTI Group Reports Profitable Year End Results for 2005

INDIANAPOLIS, IN -- (MARKET WIRE) -- March 30, 2006 -- CTI Group (Holdings) Inc., (OTC BB: CTIG), an international provider of electronic invoice management and communications management software and services, reported revenues of $15,300,657 for the fiscal year ended December 31, 2005 compared to $16,157,984 for the fiscal year ended December 31, 2004. The decline in revenue was associated with the discontinuance of an unprofitable product line, which more than offset a 12% growth in revenues from its UK operations. The Company reported net income of $523,134 or two cents a share in 2005 compared to a net income of $914,037 or three cents a share in 2004. The decline in net income was primarily attributable to increased research and development expenses and increased depreciation and amortization

"We are pleased to report profitable financial results reflecting the momentum we have generated through our continued focus on our core competencies related to the delivery of electronic invoice management, communications management software and services, and patent licensing and enforcement activities," said John Birbeck, chairman, president and chief executive officer of CTI Group. "Sales performance was particularly strong in the United Kingdom and South Africa, as we saw continued growth and penetration of our communications management product, Proteus™."

Birbeck believes that CTI Group's innovation, backed with many years of development experience, will open additional market opportunities for the company's products and offer greater value propositions to service providers, value added resellers and the end-users, which will allow the company to leverage its existing customer and distribution relationships while increasing its market share. CTI Group reports that it entered into a $1 million license arrangement with a customer in South Africa in the fourth quarter of 2005, of which, the Company has recognized approximately $600,000 in revenues and deferred approximately $400,000 in revenues which are to be recognized upon completion of remaining installations in 2006.

"This year will offer its challenges and rewards, but I am enthusiastic about leading the company into such a dynamic and exciting market," Birbeck said. "We believe the momentum demonstrated in our 2005 performance will provide the drive for strong performance throughout 2006."

CTI Group's new product, SmartBill® Connect, is specifically engineered to seamlessly integrate with the service provider's evolving online eBusiness strategy and provides enterprise customers with customized access to their provider's eBusiness portal and their complex service invoices. CTI Group believes that with SmartBill® Connect, service providers will better leverage existing investments in technology -- preserving the full functionality of current systems -- while allowing them to more profitably service and support current and future customers.

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 an overseas office in London. 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 CTI Group or its management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about CTI Group 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. CTI Group's ability to predict projected results or the effect of events on CTI Group'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 CTI Group will not be able to attract and retain customers to purchase its products, the risk that CTI Group will not be able to commercialize and market products; results of research and development; technological advances by third parties; competition; 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-KSB for its most recent fiscal year ended December 31, 2005.

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