SOURCE: MIND CTI Ltd.

March 15, 2010 12:54 ET

MIND CTI Reports Cash Flow From Operating Activities of $2 Million in Q4 2009 ($6.3 Million in Financial Year 2009)

Net Income of $1.1 Million in Q4 2009; Board Declares Cash Dividend

YOQNEAM, ISRAEL--(Marketwire - March 15, 2010) - MIND C.T.I. LTD. (NASDAQ: MNDO), a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as telecom expense management (call accounting) solutions, today announced results for the fourth quarter and year ended December 31, 2009.

Financial Highlights of Q4 2009

--  Revenues of $5.0 million, compared with $4.6 million in the fourth
    quarter of 2008.
--  Non-GAAP operating income was $1.4 million, or 28% of revenue,
    excluding amortization of intangible assets of $87 thousand and
    equity-based compensation expense of $36 thousand.
--  GAAP operating income was $1.2 million.
--  GAAP net income of $1.1 million or $0.06 per share, compared with
    GAAP net loss of $3.2 million or $0.15 per share in the fourth quarter
    of 2008.

Year 2009 Operating Highlights

--  Revenues of $17.6 million, compared with $19.5 million in 2008.
--  Non-GAAP operating income was $2.7 million, or 15% of revenue,
    excluding amortization of intangible assets of $338 thousand and
    equity-based compensation expense of $143 thousand.
--  GAAP operating income was $2.2 million, compared with operating
    loss of $2.3 million in 2008.
--  GAAP net income of $19.8 million or $1.04 per share, including a one
    time financial income from a cash settlement in the amount of
    $18.5 million, compared with GAAP net loss of $6.4 million or $0.30 per
    share in 2008 including impairment of ARS in the amount of
    $4.2 million.
--  Cash flow from operating activities was $6.3 million.
--  Cash position as of December 31, 2009 of $18.2 million after a special
    dividend distribution of $0.80 per share in the amount of $14.8 million
    and a $1.2 million expenditure for the buyback of 1.1 million shares.
--  The number of outstanding shares after completion of the buy-back plan
    is 18,428,918.
--  Backlog as of December 31, 2009 includes approximately $12.0 million
    that is expected to be billed by year-end.

Monica Eisinger, Chairperson and CEO, commented: "We believe that the revenue decrease encountered in 2009 was mainly due to lowered spending in the global telecom markets starting the end of 2007, the impact on MIND being a lack of significant new wins and follow-on orders in 2008. We are pleased that in 2009 we were more successful in closing deals that will generate future revenue. Of course, we are also pleased with our outstanding execution on cash flow and hope to re-achieve in the near future the 20% non GAAP operating margin that has been our ongoing target in the past and has become our goal again as the economy is expected to improve."

Revenue Distribution for Q4 2009

Sales in the Americas represented 53.5% and sales in Europe represented 37.5% of total revenue. Revenue from our customer care and billing software totaled $4.43 million, while revenue from our enterprise call accounting software was $539 thousand. Revenue from licenses was $2.0 million, or 39.7% and $3.0 million, or 60.3% from maintenance and additional services.

Revenue Distribution for Full Year 2009

Sales in the Americas represented 43.9% and sales in Europe represented 47.3% of total revenue. Revenue from our customer care and billing software totaled $15.1 million, while revenue from our enterprise call accounting software was $2.5 million. Revenue from licenses was $6.2 million, or 34.9% and $11.4 million, or 65.1% from maintenance and additional services, in line with our expectations.

Customer Wins

In 2009 we won and announced four new customers and two major upgrades.

--  a follow-on order with an existing US regional mobile operator, for
    our first implementation of prepaid IN.

--  a regional mobile operator in the US that offers postpaid and prepaid
    wireless, Internet, long distance and paging services.

--  a new operator in Africa, launching a WiMAX network.

--  a follow-on order with an existing Caribbean customer, for a complete
    end-to-end convergent prepaid and postpaid billing including among many
    modules the MIND Point of Sale, inventory management, and interconnect.
    The agreement is for four years and includes migration from existing
    solutions, license, implementation services and maintenance support.

--  a leading international communications provider offering mobile,
    broadband, domestic and international fixed line services, for their
    operation in one country in Central America. MIND will provide
    mediation, rating and billing for prepaid calling cards. The MINDBill
    solution will handle millions of prepaid calling cards supporting
    multiple services through its built-in balance manager.

--  a new NextGen operator that plans to start offering voice and IP
    services in Eastern Europe.

Dividend Distribution

As previously announced, on December 30, 2009 the Board of Directors resolved that the Company should seek the court approval formally required in order to enable a distribution of a cash dividend in the amount of $0.20 per share, similar to previous years. Under Israeli law, a company with insufficient retained earnings is required to obtain approval from the court for such a distribution. Following the receipt of approval from the District Court of Haifa, on March 14, 2010 the Board declared a cash dividend of $0.20 per share before withholding tax.

The record date for the dividend will be March 25, 2010 and the payment date will be April 12, 2010. Tax will be withheld at a rate of 20%.

About MIND

MIND CTI Ltd. is a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as telecom expense management (call accounting) solutions. MIND provides a complete range of billing applications for any business model (license, managed service or complete outsourced billing service) for Wireless, Wireline, VoIP and Quad-play carriers in more than 40 countries around the world.

A global company, with over twelve years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, UK, Romania and Israel.

For more information, visit MIND at: www.mindcti.com. The financial results can be found in the Investors section and in our Form 6-K as well.

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.

Contact Information

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