SOURCE: MIND CTI Ltd.

November 05, 2013 11:59 ET

MIND CTI Reports Results for Q3 2013

YOQNEAM, ISRAEL--(Marketwired - Nov 5, 2013) - 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 call accounting solutions, today announced results for its third quarter ended September 30, 2013.

The following will summarize our business in the third quarter of 2013 and provide a more detailed review of the financial results for the quarter. Full financial results can be found in the Investors section www.mindcti.com/investor/PressReleases.asp and in our Form 6-K.

Financial Highlights

  • Revenues were $4.53 million, compared with $4.71 million in the third quarter of 2012 and $4.42 million in the second quarter of 2013.
  • Operating income was $587 thousand, or 13% of revenue, compared with $1.15 million in the third quarter of 2012.
  • Net income was $604 thousand or $0.03 per share, compared with $1.25 million in the third quarter of 2012 or $0.07 per share.
  • Cash flow from operating activities was $728 thousand.
  • 1 new customer and multiple follow-on orders.
  • Cash position of $18.4 million on September 30, 2013.

As of September 30, 2013 we had 359 employees in our four offices, compared with 340 as of September 30, 2012.

Revenue Distribution for Q3 2013
Sales in the Americas represented 64.9%, sales in Europe represented 21.1% and sales in Israel represented 7.4% of total revenue.

Revenue from customer care and billing software totaled $3.6 million, while revenue from enterprise call accounting software was $929 thousand.

Revenue from licenses was $1.04 million, or 23% of total revenue, while revenue from maintenance and additional services was $3.49 million, or 77%.

New Win and Follow-on Orders
We signed a new contract to support a prepaid wireless business. The contract includes real time interfaces for voice, SMS and data. MIND's unique promotions, alerting and Voice & Data rating capabilities will help this customer increase subscriber base and improve ARPU.

One follow-on order is with an existing customer who is expanding its service offerings engaging corporate customers by sending SMS campaigns in bulks (e.g. supermarket sales, theater discounted tickets, etc.) starting with more than a hundred million SMSs per month. The MINDBill platform enables elaborate pricing schemes including tiered pricing intervals and promotion bulks which help carriers gain market share.

Other follow-on orders include enhanced professional services, consultancy and customizations.

Monica Iancu, MIND CEO, commented: "In the third quarter we made progress in the implementation of our multiple ongoing projects and won a mid-size deal in the Americas. Our increased expenses, when compared to the third quarter of 2012, are mainly due to the planned increase in our workforce, that we believe has reached the size we need in order to support our growing customer base, and to detrimental exchange rates, that had some impact on our lower than targeted margins. We are pleased as always with the follow-on orders that reconfirm our customer satisfaction. We continue to invest in our market-leading real-time convergent billing to support the growth, marketing plans and profitability strategies of our customers. Medium term, the net income is expected to be lower than in previous years, but we focus on increasing our operating margins in the long term through revenue growth and increased efficiencies."

Dividend Update
The Board of Directors resolved to consider a cash distribution that maintains the dividend rate of previous years and take the necessary actions. Thus, the Board of Directors resolved that the Company should seek court approval formally required in order to enable a distribution for the year 2013, in an amount of up to $4.6 million. Under Israeli law, a company with insufficient retained earnings is required to obtain approval from the court for such a cash distribution.

Prior to paying any dividend, which is still subject to specific Board approval, the Company will issue a press release announcing the exact dividend amount, record date and distribution date.

"Given our strong cash position and our positive operating cash flow, we believe that our dividends enhance shareholders value," stated Monica. "We are well positioned and have the required resources to respond to potentially increasing market needs and at the same time target potential acquisitions that could benefit the company results."

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 thirteen years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, UK, 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