YOQNEAM, ISRAEL--(Marketwire - November 9, 2010) - MIND C.T.I. LTD. (
Financial Highlights
- Revenues were $4.7 million, a 15.8 % increase over the third quarter of 2009.
- Operating income was $298 thousand, including a non-cash impairment of $993 thousand, amortization of intangible assets of $64 thousand and equity-based compensation expense of $16 thousand.
- Net income was $356 thousand or $0.02 per share.
- Cash flow from operating activities was $1.7 million.
- Backlog as of September 30, 2010 includes $4 million that is expected to be billed by year-end.
- Cash position of $19.6 million on September 30, 2010.
Revenue Distribution for Q3 2010
Sales in the Americas represented 39.3% and sales in Europe represented 47.8% of total revenue.
Revenue from customer care and billing software totaled $3.9 million, while revenue from enterprise call accounting software was $0.8 million.
Impairment of Goodwill and another Intangible Asset
During the third quarter of each year we perform impairment tests for the value of goodwill and other intangible assets. Following the test performed in Q3 2010, we recorded an impairment charge of $586 thousand for goodwill and $407 thousand for intangible assets related to the company we acquired in the UK in 2007. The balance sheet as of September 30, 2010 shows a remaining amount of $5.4 million for goodwill, related to the company we acquired in US in 2005.
New Win & Follow-on Orders
The new win is a multi-year agreement with a regional wireless carrier that is a member of the Sprint Rural Alliance. MIND will implement its MINDBill end-to-end convergent billing solution. This operator will utilize MIND's convergent pay in advance and postpaid billing, rating, invoicing, roaming, customer care, web self-care, point of sale, inventory management, commissions, Web services, workflow engine, provisioning, mediation, and dashboard reporting, in order to support their wireless services.
The follow-on orders were received from various customers including two wireless carriers who have been MIND's customers since 2005 and one green-field operator that has halted its activity in the past and is re-starting it now. These follow-on orders are related to either enhanced rating capabilities, adding point of sale or order management to the existing MIND platform.
Monica Iancu, Chairperson and CEO, commented: "We are pleased with the year-to-year growth and believe that the decrease in revenue compared to the previous quarter is mainly related to timing of revenue recognition of one almost completed project. The new win this quarter increases the long-term backlog and strengthens our US footprint. We are especially pleased with the vote of confidence that we get from our customers as they enhance the part of their business that is supported by our solutions. This validates our strategy of developing additional modules to further enhance our solutions of billing and full customer-care, to support the carriers' point of sale, business intelligence reporting needs and much more. We continue to execute our strategy and to generate outstanding positive cash flow from operating activities."
Conference Call Information
MIND will host a conference call on November 10, 2010 at 10:30 a.m., Eastern Time, to discuss the Company's third quarter 2010 results and other financial and business information. The call will be carried live on the Internet via www.earnings.com and the MIND website, www.mindcti.com. For those unable to listen to the live web cast, a replay will be available.
Full financial results can be found in the Investors section www.mindcti.com/investor/PressReleases.asp and in our Form 6-K as well.
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
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