SOURCE: MIND CTI Ltd.

November 10, 2008 16:00 ET

MIND CTI Reports Results for the Third Quarter 2008

*Cash Flow From Operating Activities of $1.2 Million

YOQNEAM, ISRAEL--(Marketwire - November 10, 2008) - MIND CTI 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 management) solutions for the enterprise market, today announced results for the third quarter 2008.

Monica Eisinger, Chairperson and CEO, commented: "In this period of global economy turmoil, we continue to execute our strategy of focusing on profitability and cash flow. We will continue to build for the future, based on our comprehensive offering, solid balance sheet and valuable customers. We believe that the extent to which an organization is effective in planning for a crisis will have a large impact on its success in managing that crisis. We have successfully overcome past challenging periods and we believe that our experience helps us not only to better understand the current financial crisis but also to plan the steps we should be considering right now and to execute those steps promptly and effectively."

Financial Highlights of Q3 2008

--  Revenues of $4.6 million, compared with $4.0 million in the third
    quarter of 2007.
--  Non-cash impairment of intangible assets, mainly goodwill, in the
    amount of $1.5 million.
--  Non-GAAP operating income was $481 thousand, or 10.4% of revenue,
    excluding impairment of $1.5 million, amortization of intangible assets of
    $130 thousand and equity-based compensation expense of $45 thousand.
--  GAAP operating loss was $1.2 million.
--  Impairment of Auction Rate Security in the amount of $1.1 million.
--  GAAP net loss of $2.4 million or $0.11 per share, compared with GAAP
    net income of $955 thousand or $0.04 per share in the third quarter of
    2007.
--  Cash flow from operating activities of $1.2 million.
--  Strong cash position of approximately $10.9 million on September 30,
    2008.
    

Stock Repurchase

On September 8, 2008 we announced that the Board of Directors authorized a plan for the repurchase of up to 2.1 million of the Company's ordinary shares in the open market, in an amount in cash of up to $2.8 million. Under the repurchase program, share purchases may be made from time to time depending on market conditions, share price, trading volume and other factors. The repurchase may be suspended from time to time or discontinued.

Since the repurchase program required prior court approval, we expect to activate the program towards the end of November 2008, as originally estimated.

Auction Rate Securities

As previously announced, we continue to receive interest payments every month on the held security, which is now rated CC by S&P and Caa3 with CreditWatch with negative implications by Moody's. The arbitration process with Credit Suisse is still ongoing.

Conference Call Information

MIND will host a conference call on November 11, 2008 at 10:30 a.m., Eastern Time, to discuss the Company's third quarter 2008 results and other financial and business information. The call will be carried live on the Internet via www.fulldisclosure.com and the MIND website, www.mindcti.com. For those unable to listen to the live web cast, a replay will be available.

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 management) 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 ten 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
    Email Contact