SOURCE: CTI Group (Holdings) Inc.

November 14, 2005 20:52 ET

CTI Group Reports Results for the Third Quarter 2005

INDIANAPOLIS, IN -- (MARKET WIRE) -- November 14, 2005 --CTI Group (Holdings) Inc. (OTC BB: CTIG), an international provider of electronic invoice management and telemanagement software and services, reported revenues of $10,889,499 for the nine months ended September 30, 2005, a decrease of $889,963, or approximately 8%, below the $11,779,462 reported for the nine months ended September 30, 2004. The decrease was primarily the result of the discontinuance of an unprofitable product, MagnaFlex, at the end of 2004. Elimination of MagnaFlex resulted in lost revenue of $797,450 during the nine months ended September 30, 2005 as compared with the nine months ended September 30, 2004. The revenue reduction attributed to MagnaFlex offset the increases from Proteus software sales and patent license fee and enforcement revenues. Similarly, revenue for the three months ended September 30, 2005 was $4,080,013, down $144,209, or approximately 3%, from revenue of $4,224,222 reported for the three months ended September 30, 2004.

The Company reported net income of $157,163 for the nine months ended September 30, 2005, an increase of $133,613 compared to a net income of $23,550 for the nine months ended September 30, 2004. The improvement in net income was primarily attributable to the gain recognized on the sale of the Company's discontinued operations. The Company reported a net income of $10,545 for the three months ended September 30, 2005, a decrease to $439,251 when compared with the net income of $449,796 for the three months ended September 30, 2004. The decrease in net income for the three months ended September 30, 2005 was primarily due to increased operating expenses associated with the launch of SmartBill Connect on-line products and services to the Service Provider market.

Commenting on the results, John Birbeck, CTI Chairman, President and CEO, stated, "Clearly, we are pleased to report continued profits through the third quarter of 2005. At the same time, we recognize the importance of directing our focus on those new programs we have designed to drive the growth of new sales channels and increase our revenues. Our core competencies will enable us to expand the market opportunities for our products and offer a stronger value proposition to Service Providers, Value Added Distributors and end-users. This will allow us to leverage our existing customer and distribution relationships whilst expanding our market. This is a challenging and exciting time at CTI Group and I am pleased to lead the company into such a dynamic and exciting market."

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 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 "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 September 30, 2005.

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