SOURCE: MIND CTI Ltd.

MIND CTI Ltd.

February 23, 2017 09:43 ET

MIND CTI Reports Fourth Quarter and Full Year 2016 Results

*Board Declares Cash Dividend

YOQNEAM, ISRAEL--(Marketwired - February 23, 2017) - 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, 2016.

The following will summarize our business in the fourth quarter of 2016 and provide a more detailed review of the financial results for the quarter and for the full year. The financial results can be found in the Investor Information section of our website at www.mindcti.com/investor-information and in our Form 6-K.

Financial Highlights of Q4 2016

  • Revenues of $4.7 million, compared to $4.8 million in the fourth quarter of 2015.
  • Operating income was $1.8 million (including a one-time decrease in provisions), compared to $1.4 million in the fourth quarter of 2015.
  • Net income of $0.9 million or $0.05 per share, compared to $1.1 million or $0.06 per share in the fourth quarter of 2015.
  • Cash flow from operating activities was $0.9 million, compared to $1.7 million in the fourth quarter of 2015.
  • Multiple follow-on orders and one extension of a managed services contract.

Financial Highlights of Full Year 2016

  • Revenues of $18.1 million, down 13% from $20.9 million in 2015.
  • Operating income was $5.2 million, or 28.8% of revenue, compared to $6.4 million, or 30.6% of revenue, in 2015.
  • Net income of $4.2 million, or $0.22 per share, compared to $5.0 million or $0.26 per share in 2015.
  • Cash flow from operating activities was $5.2 million, compared to $6.3 million in 2015.
  • Cash position of approximately $19.8 million as of December 31, 2016.

As of December 31, 2016 we had 262 employees, compared to 337 as of December 31, 2015.

Monica Iancu, MIND CTI's President and Chief Executive Officer commented: "In 2016 we successfully implemented new technologies and new methodologies, won two new deals, one of them being significant and we obtained a very high number of follow-on orders. We effectively completed different phases in ongoing deployments. Nowadays, the telecom carriers compete mainly on price. Our customers encounter profitability challenges and continuously aim to reduce both operating and capital expenditures. We believe that our up-to-date, versatile, comprehensive product-based billing platform and agile delivery fit perfectly with multi-play service providers and address their challenge of reducing operational cost. During the last two years we invested significantly in the new version of MINDBill, which will be released this year and we intend to promote the sales of upgrades. We also intend to continue to invest in our cloud solutions and to execute on our long-term targets."

Revenue Distribution for Q4 2016
Revenues in the Americas represented 63.6%, revenues in Europe represented 22.3% and revenues in Israel represented 5.4% of our total revenues.

Revenues from our customer care and billing software totaled $3.6 million, or 77% of total revenues, while revenues from our enterprise call accounting software were $1.1 million, or 23% of total revenues.

Revenues from licenses were $0.7 million, or 16% of total revenues, while revenues from maintenance and additional services were $4.0 million, or 84% of total revenues.

Revenue Distribution for Full Year 2016
Revenues in the Americas represented 70.4%, revenues in Europe represented 18.5% and revenues in Israel represented 4.9% of our total revenues.

Revenues from our customer care and billing software totaled $14.6 million, or 81% of total revenues, compared with $16.6 million, or 79% of total revenues in 2015, while revenues from our enterprise call accounting software were $3.5 million, or 19% of total revenue, compared with $4.3 million or 21% of total revenues in 2015.

Revenues from licenses were $3.9 million, or 21.7% of total revenues, compared with $3.9 million, or 18.8% of total revenues in 2015, while revenues from maintenance and additional services were $14.2 million, or 78.3%, compared with $17.0 million or 81.2% of total revenues in 2015.

Follow-on Orders in Q4 2016
The MIND capability to deliver enhancements timely, in as short as a few weeks for small projects and a few months for larger projects, allows our customers to compete and adapt to changing market conditions. Similar to all other quarters, our customers strengthened their long-lasting relationships with us with multiple follow-on orders.

During the fourth quarter of 2016 MIND was awarded the first contract to upgrade a customer's existing MIND solution to our new version of MINDBill, which will be released in Q2 2017. MIND's latest version offers enhanced capabilities and a brand new Point-of-Sale module, with improved user experience. Similar to previous versions, this new solution supports prepaid and postpaid subscribers from a single platform, includes real-time monetization and subscriber management that enables service providers to support new business models, monetize next generation services, and create an omni-channel customer experience.

A second award is a two-year extension of a managed services agreement with an existing customer of nine years, confirming once again their belief in MIND's capabilities to improve their competitiveness and to support their business goals.

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 13 annual dividends and one special dividend. We continue to believe that our annual dividends enhance shareholders value and we plan to continue with annual distributions.

Taking into consideration the longstanding positive cash flow, the current and foreseeable needs and the remaining cash after the distribution, our Board decided on a distribution based on available retained earnings and declared on February 23, 2017 a gross dividend of $6.16 million, or $0.32 per share. The record date for the dividend will be March 9, 2017 and the payment date will be March 23, 2017. Tax will be withheld at a rate of 25%.

Investing in R&D and Cloud Solutions
As carriers started to adopt cloud-based platforms, we increased our investment in extending our offering for SaaS and cloud-based solutions. Our products are already available for deployment on cloud as well as on premise and we aim towards a 'one click deployment' for cloud and virtualization technologies in order to increase operational efficiency. Our ongoing investment in maintaining a state-of-the-art technology, adding new modules and supporting new platforms is now more focused on cloud technologies and platforms.

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. 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
    investor@mindcti.com