SOURCE: MIND CTI Ltd.

MIND CTI Ltd.

February 24, 2016 09:23 ET

MIND CTI Reports Fourth Quarter and Full Year 2015 Results

*Board Declares Cash Dividend

YOQNEAM, ISRAEL--(Marketwired - February 24, 2016) - MIND C.T.I. LTD. -- (NASDAQ: MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers as well as unified communications analytics and call accounting solutions for enterprises, today announced results for the fourth quarter and year ended December 31, 2015.

The following will summarize our business in the fourth quarter of 2015 and provide a more detailed review of the financial results for the quarter. The financial results can be found in the Investors Information section www.mindcti.com/investor/PressReleases.asp and in our Form 6-K.

Financial Highlights of Q4 2015

  • Revenues of $4.8 million, compared to $6.5 million in the fourth quarter of 2014.
  • Operating income was $1.4 million, compared to $2.5 million in the fourth quarter of 2014.
  • Net income of $1.0 million or $0.06 per share, compared to $1.9 million or $0.10 per share in the fourth quarter of 2014.
  • Multiple follow-on orders.

As of December 31, 2015 we had 337 employees, compared to 352 as of December 31, 2014.

  • Revenues of $20.9 million, down 16% from $25 million in 2014.
  • Operating income was $6.4 million, or 30.6% of revenue, compared to $7.5 million, or 29.8% of revenue, in 2014.
  • Net income of $5 million, or $0.26 per share, compared to $5.5 million or $0.29 per share in 2014.
  • Cash flow from operating activities was $6.3 million, compared to $3.8 million in 2014.
  • Cash position of approximately $19.6 million as of December 31, 2015.

Monica Iancu, CEO, commented: "We are pleased as always with the follow-on orders that reconfirm our customer satisfaction. While the markets appear to be very active, necessitating extensive pre-sales effort, showing continuous demand for our products and services, many processes are extended or constantly delayed. As previously mentioned, consolidation in the telecom markets was not favorable to us in 2015 and we closed only one new deal. We hope that the ongoing negotiations with potential new customers will materialize into new wins in the near term. In 2016, we plan to continue the ongoing investment in technology along with focus on entering new markets while we expect to continue as always to execute on our profitability targets."

Revenue Distribution for Q4 2015
Revenues in the Americas represented 57.7%, revenues in Europe represented 29.2% and revenues in Israel represented 6.6% of total revenues.

Revenues from our customer care and billing software totaled $3.8 million, or 78% of total revenues, while revenues from our enterprise call accounting software were $1.0 million, or 22% of total revenues.

Revenues from licenses were $0.9 million, or 19% of total revenues, while revenues from maintenance and additional services were $3.9 million, or 81% of total revenues.

Revenue Distribution for Full Year 2015
Revenues in the Americas represented 54%, revenues in Europe represented 32% and revenues in Israel represented 6.8% of total revenue.

Revenues from our customer care and billing software totaled $16.6 million, or 79% of total revenues, compared with $21.0 million, or 84% of total revenues in 2014, while revenues from our enterprise call accounting software were $4.3 million, or 21% of total revenue, compared with $4.0 million or 16% of total revenues in 2014.

Revenues from licenses were $3.9 million, or 18.8% of total revenues, compared with $5.4 million, or 21.6% of total revenues in 2014 while revenues from maintenance and additional services were $17.0 million, or 81.2%, compared with $19.6 million or 78.4% of total revenues in 2014.

Follow-on Orders in Q4 2015
Similar to all other quarters, we have experienced again that as our customers encounter business enhancement, they increase their relationship with us with multiple follow-on orders, mainly for customizations and license extensions.

Dividend Distribution
Since July 2003, when we first adopted a dividend policy, according to which we declare, subject to specific Board approval and applicable law, a dividend distribution once per year, we have distributed 12 yearly dividends with an average of 22 cents per share.

We continue to believe that our annual dividends enhance shareholders value and we plan to continue with yearly distributions.

Taking into consideration our dividend policy and the remaining cash after the distribution, our Board declared on February 24, 2016 a gross dividend of $0.27 per share. The record date for the dividend will be March 10, 2016 and the payment date will be March 24, 2016. Tax will be withheld at a rate of about 24%.

Investing in R&D
In order to maintain a state-of-the-art technology, each year we invest in R&D, sometimes adding new modules, sometimes in order to be compliant with new standards and many times to keep up with the new tools and new platforms that we use to build upon.

Update on Acquisitions
As we previously announced, we resumed our pursuit for acquisition targets at reasonable valuations that satisfy the criteria we defined: proven revenues, complementary technology and geography. We persist in our pursuit of suitable targets.

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 unified communications analytics and call accounting solutions for enterprises. MIND provides a complete range of billing applications for any business model (license, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers in more than 40 countries around the world. A global company, with over twenty years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, Romania and Israel.

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