SOURCE: CTI Group (Holdings) Inc.

April 02, 2007 17:53 ET

CTI Group Reports Year End Results for 2006

INDIANAPOLIS, IN -- (MARKET WIRE) -- April 2, 2007 -- CTI Group (Holdings) Inc. (OTCBB: CTIG), an international provider of electronic invoice management and telemanagement software and services, reported revenues of $12,811,385 for the year ended December 31, 2006 compared to $15,300,657 for the year ended 2005. The decrease in revenues was primarily the result of a decrease in revenues derived from patent license fee and enforcement revenue. The company reported a loss of $1,087,640, or $0.04 cents a share, in 2006 compared to a net income of $523,134, or $0.02 cents a share, in 2005. The loss was primarily attributable to the reduction in revenues outpacing the reduction in costs in 2006 as compared to 2005.

"Although the year's financial results were mixed, the acquisition of Ryder Systems Limited, which occurred at the end of December 2006, will help position us for future growth. The acquisition provides us with a growing recurring revenue stream with leading international telecommunication service providers, with an emphasis on mobility," said John Birbeck, chairman, president and chief executive officer of CTI Group.

Mr. Birbeck believes that CTI Group's new product innovations, backed with many years of development experience, will open additional market opportunities for the company's products and offer expanded value propositions for service providers, value added resellers and the enterprise end-user. "The year 2007 will offer its challenges and rewards; however, with our new acquisition, new development technology for VoIP markets and market know-how, I am confident we are prepared to strengthen our position in our current market and take advantage of the growth in VoIP market opportunities," John Birbeck said.

The Company's new carrier-class voice and video over IP applications will 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 and reporting solution, and SmartRecord® IP, a mission-critical hosted voice recording application that allows service providers to selectively record communications on behalf of their hosted and managed service customers as a web-based service. Both are specifically engineered to seamlessly integrate with the service provider's evolving online eBusiness strategy by providng their enterprise customers with customized access to their provider's eBusiness portal and their complex service invoices.

The Proteus® suite of products is used by enterprise 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.

Whilst SmartBill and Analysis (one of former Ryder's products) continue to be the benchmark for business EIM, the new Dynamic Reports provides low-cost consumer e-billing applications for Service Providers, opening new markets for CTI Group.

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, UK. 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," "believes," "intend," "will" or similar expressions. The Company's ability to predict projected results or the effect of certain 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: ability to successfully integrate the operations of, and to realize benefits from, the acquisition of Ryder Systems Limited, ability to attract and retain customers to purchase its products, ability to develop or launch new software products, technological advances by third parties and competition, ability to protect the Company's patented technology, ability to obtain settlements in connection with its patent enforcement activities. The 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, 2006.

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