Yoqneam, Israel, February 18, 2009
MIND CTI Reports Cash Flow from Operating Activities of $4.1 Million for 2008
Revenues of $19.5 Million for Full Year 2008
Yoqneam, Israel, February 18, 2009
- MIND CTI Ltd. (NasdaqNM: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, today announced results for the fourth quarter and year ended December 31, 2008.
Financial Highlights of Q4 2008
- Revenues of $4.6 million, compared with $5.6 million in the fourth quarter of 2007.
- Non-GAAP operating income was $640 thousand, or 13.8% of revenue, excluding amortization of intangible assets of $85 thousand, equity-based compensation expense of $47 thousand and impairment of goodwill of $2.2 million.
- GAAP operating loss was $1.6 million.
- Impairment of Auction Rate Security in the amount of $1.3 million.
- GAAP net loss of $3.2 million or $0.15 per share, compared with GAAP net loss of $14.6 million or $0.67 per share in the fourth quarter of 2007.
Year 2008 Operating Highlights
- Revenues were $19.5 million, compared with $18.4 million in 2007.
- Non-GAAP operating income was $2,118 thousand, or 10.9% of revenue, excluding amortization of intangible assets of $547 thousand, equity-based compensation expense of $181 thousand and impairment of goodwill and intangible asset of $3.7 million.
- GAAP operating loss was $2.3 million, compared with operating income of $1.3 million in 2007.
- Impairment of Auction Rate Security in the amount of $4.2 million.
- GAAP net loss of $6.4 million or $0.30 per share, compared with GAAP net loss of $12 million or $0.55 per share in 2007.
- Cash position as of December 31, 2008 of $9.7 million after a $1.6 million expenditure for the buyback of 2.1 million Company shares.
Monica Eisinger, Chairperson and CEO, commented: "We believe that our results reflect the existing market conditions and we are pleased that we have the skills, experience and understanding to react quickly to any change. We have made practical decisions to reduce cost over the course of the quarter and, as a result, we improved our non-GAAP operating margins and reached our annual cash flow target. We remain confident in our long-term strategy, prospects and future. We serve service providers around the world, supporting their mission-critical activities in long-term relationships including managed services. Service providers continue to invest and enhance their offerings, although in a more cautious way and during the last six months, we experienced delays in deal closing. In the meantime, we are pleased with our backlog, our margins and our cash flow."
Revenue Distribution for Q4 2008
Sales in the Americas represented 44% and sales in Europe represented 48% of total revenue.
Revenue from our customer care and billing software totaled $3.87 million, while revenue from our enterprise call management software was $766 thousand. The revenue breakdown from our business lines of products was $1.36 million, or 29% from licenses and $3.28 million, or 71% from maintenance and additional services.
Revenue Distribution for Full Year 2008
Sales in the Americas represented 41% and sales in Europe represented 51% of total revenue.
Revenue from our customer care and billing software totaled $16.2 million, while revenue from our enterprise call management software was $3.3 million. The revenue breakdown from our business lines of products was $6.2 million, or 32% from licenses and $13.3 million, or 68% from maintenance and additional services.
Conference Call Information
MIND will host a conference call on February 19, 2009 at 10:30 a.m., Eastern Standard Time, to discuss the Company's fourth 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.
MIND C.T.I. LTD.
CONSOLIDATED BALANCE SHEETS
|
December 31
|
|
2008
|
2007
|
|
(Unaudited)
|
(Audited)
|
|
U.S. dollars in thousands
|
|
|
|
| A s s e t s |
|
|
| |
|
| |
|
| CURRENT ASSETS: | | |
| Cash and cash equivalents | | |
$ | 9,722 |
|
$ | 12,390 |
|
| Accounts receivable: | | |
| Trade | | |
| 3,823 |
|
| 4,967 |
|
| Other | | |
| 275 |
|
| 156 |
|
| Prepaid expenses | | |
| 36 |
|
| 166 |
|
| Deferred charges | | |
| 124 |
|
| Deferred income taxes | | |
| 44 |
|
| 131 |
|
| Inventories | | |
| 36 |
|
| 44 |
|
|
| |
| |
| T o t a l current assets | | |
| 14,060 |
|
| 17,854 |
|
|
| |
| |
| INVESTMENTS AND OTHER NON CURRENT ASSETS: | | |
| Long-term investment | | |
| 941 |
|
| 5,113 |
|
| Deferred charges | | |
| 467 |
|
| Other | | |
| 726 |
|
| 968 |
|
| PROPERTY AND EQUIPMENT, net of accumulated | | |
| depreciation and amortization | | |
| 1,287 |
|
| 1,616 |
|
| INTANGIBLE ASSETS, net of accumulated amortization | | |
| 917 |
|
| 1,951 |
|
| GOODWILL | | |
| 5,965 |
|
| 10,224 |
|
|
| |
| |
| T o t a l assets | | |
$ | 24,363 |
|
$ | 37,726 |
|
|
| |
| |
| Liabilities and shareholders' equity | | |
| CURRENT LIABILITIES: | | |
| Accounts payable and accruals: | | |
| Trade | | |
$ | 466 |
|
$ | 741 |
|
| Other | | |
| 1,720 |
|
| 2,406 |
|
| Deferred revenues | | |
| 1,911 |
|
| 1,053 |
|
| Advances from customers | | |
| 295 |
|
| 213 |
|
|
| |
| |
| T o t a l current liabilities | | |
| 4,392 |
|
| 4,413 |
|
|
| |
| |
| LONG-TERM LIABILITIES: | | |
| Deferred revenues | | |
| 239 |
|
| |
|
| Employee rights upon retirement | | |
| 1,298 |
|
| 1,504 |
|
|
| |
| |
| T o t a l long-term liabilities | | |
| 1,537 |
|
| 1,504 |
|
|
| |
| |
| T o t a l liabilities | | |
| 5,929 |
|
| 5,917 |
|
|
| |
| |
| SHAREHOLDERS' EQUITY: | | |
| Share capital - ordinary shares of | | |
| NIS 0.01 par value (authorized as of December 31, 2008 | | |
| and 2007 - 88,000,000 shares; issued as of December 31, 2008 | | |
| and 2007 - 21,594,010 shares; outstanding: | | |
| as of December 31, 2008 - 19,494,010 shares; | | |
| as of December 31, 2007 - 21,594,010 shares) | | |
| 54 |
|
| 54 |
|
| Additional paid-in capital | | |
| 53,742 |
|
| 57,880 |
|
| Differences from translation of foreign currency | | |
| financial statements of a subsidiary | | |
| (1,324 |
) |
| (141 |
) |
| Accumulated deficit | | |
| (32,407 |
) |
| (25,984 |
) |
| Treasury shares (as of December 31, 2008- 2,100,000 shares) | | |
| (1,631 |
) |
| |
|
|
| |
| |
| T o t a l shareholders' equity | | |
| 18,434 |
|
| 31,809 |
|
|
| |
| |
| T o t a l liabilities and shareholders' equity | | |
$ | 24,363 |
|
$ | 37,726 |
|
|
| |
| |
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
Years
ended December 31
|
Three months
ended
December 31
|
|
2008
|
2007
|
2008
|
2007
|
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
(Audited)
|
|
U.S. $ in thousands
(except per share data)
|
|
|
|
|
|
| REVENUES |
|
|
$ | 19,473 |
|
$ | 18,447 |
|
$ | 4,638 |
|
$ | 5,563 |
|
| COST OF REVENUES | | |
| 5,783 |
|
| 5,784 |
|
| 1,343 |
|
| 2,125 |
|
|
| |
| |
| |
| |
| GROSS PROFIT | | |
| 13,690 |
|
| 12,663 |
|
| 3,295 |
|
| 3,438 |
|
| RESEARCH AND DEVELOPMENT EXPENSES | | |
| 6,185 |
|
| 5,714 |
|
| 1,459 |
|
| 1,661 |
|
| SELLING AND MARKETING EXPENSES | | |
| 3,805 |
|
| 3,846 |
|
| 751 |
|
| 1,044 |
|
| GENERAL AND ADMINISTRATIVE | | |
| EXPENSES | | |
| 2,311 |
|
| 1,845 |
|
| 577 |
|
| 576 |
|
| IMPAIRMENT OF GOODWILL | | |
| 3,498 |
|
| |
|
| 2,151 |
|
| |
|
| IMPAIRMENT OF INTANGIBLE ASSET | | |
| 185 |
|
| |
|
| |
|
| |
|
|
| |
| |
| |
| |
| OPERATING INCOME (LOSS) | | |
| (2,294 |
) |
| 1,258 |
|
| (1,643 |
) |
| 157 |
|
| FINANCIAL INCOME (EXPENSES): | | |
| IMPAIRMENT OF AUCTION RATE SECURITIES | | |
| (4,172 |
) |
| (15,187 |
) |
| (1,307 |
) |
| (15,187 |
) |
| OTHER FINANCIAL INCOME (EXPENSES) - net | | |
| 568 |
|
| 2,082 |
|
| (17 |
) |
| 508 |
|
|
| |
| |
| |
| |
| INCOME (LOSS) BEFORE TAXES ON | | |
| INCOME | | |
| (5,898 |
) |
| (11,847 |
) |
| (2,967 |
) |
| (14,522 |
) |
| TAXES ON INCOME | | |
| 525 |
|
| 108 |
|
| 233 |
|
| 47 |
|
|
| |
| |
| |
| |
| LOSS FOR THE PERIOD | | |
$ | (6,423 |
) |
$ | (11,955 |
) |
| (3,200 |
) |
$ | (14,569 |
) |
|
| |
| |
| |
| |
| EARNINGS (LOSS) PER ORDINARY SHARE- | | |
| Basic and diluted | | |
$ | (0.30 |
) |
$ | (0.55 |
) |
$ | (0.15 |
) |
$ | (0.67 |
) |
|
| |
| |
| |
| |
| WEIGHTED AVERAGE NUMBER OF | | |
| ORDINARY SHARES USED IN | | |
| COMPUTATION OF LOSS PER | | |
| ORDINARY SHARE - IN THOUSANDS: | | |
| Basic | | |
| 21,473 |
|
| 21,586 |
|
| 21,115 |
|
| 21,594 |
|
|
| |
| |
| |
| |
MIND C.T.I. LTD.
CONSOLIDATED STATEMENTS
OF CASH FLOWS
|
Years ended December 31
|
Three months ended
December 31
|
|
2008
|
2007
|
2008
|
2007
|
|
(Unaudited)
|
(Audited)
|
(Unaudited)
|
(Audited)
|
|
U.S. dollars in thousands
|
|
|
|
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
| |
|
| |
|
| |
|
| |
|
| Loss for the period | | |
$ | (6,423 |
) |
$ | (11,955 |
) |
$ | (3,200 |
) |
$ | (14,569 |
) |
| Adjustments to reconcile net income (loss) to net cash | | |
| provided by operating activities: | | |
| Depreciation and amortization | | |
| 1,088 |
|
| 950 |
|
| 213 |
|
| 300 |
|
| Impairment of auction rate securities | | |
| 4,172 |
|
| 15,187 |
|
| 1,307 |
|
| 15,187 |
|
| Impairment of goodwill | | |
| 3,498 |
|
| |
|
| 2,151 |
|
| |
|
| Impairment of intangible asset | | |
| 185 |
|
| |
|
| |
|
| |
|
| Deferred income taxes, net | | |
| 248 |
|
| 78 |
|
| 218 |
|
| 2 |
|
| Accrued severance pay and losses on amounts funded | | |
| 190 |
|
| 22 |
|
| 79 |
|
| 16 |
|
| Capital loss (gain) on sale of property and equipment, net | | |
| (40 |
) |
| 8 |
|
| (7 |
) |
| (2 |
) |
| Employees share based compensation | | |
| 181 |
|
| 269 |
|
| 47 |
|
| 69 |
|
| Realized loss on sale of marketable debentures held-to- | | |
| maturity | | |
| |
|
| 4 |
|
| (1 |
) |
| 4 |
|
| Changes in operating asset and liability items: | | |
| Decrease (increase) in accounts receivable: | | |
| Trade | | |
| 960 |
|
| 1,330 |
|
| (286 |
) |
| (257 |
) |
| Interest accrued on marketable securities and | | |
| Marketable debentures | | |
| |
|
| |
|
| (7 |
) |
| 150 |
|
| Other | | |
| 128 |
|
| 8 |
|
| 258 |
|
| 244 |
|
| Decrease (increase) in prepaid expenses | | |
| 128 |
|
| (17 |
) |
| 106 |
|
| (4 |
) |
| Increase in deferred charges | | |
| (591 |
) |
| |
|
| (4 |
) |
| |
|
| Decrease (increase) in inventories | | |
| 8 |
|
| (9 |
) |
| 8 |
|
| (9 |
) |
| Increase (decrease) in accounts payable and accruals: | | |
| Trade | | |
| (262 |
) |
| 156 |
|
| (45 |
) |
| 125 |
|
| Other | | |
| (553 |
) |
| (1,127 |
) |
| (376 |
) |
| (214 |
) |
| Increase (decrease) in deferred revenues | | |
| 1,113 |
|
| (205 |
) |
| 997 |
|
| (455 |
) |
| Increase (decrease) in advances from customers | | |
| 82 |
|
| (28 |
) |
| (607 |
) |
| (152 |
) |
|
| |
| |
| |
| |
| Net cash provided by operating activities | | |
| 4,112 |
|
| 4,671 |
|
| 851 |
|
| 435 |
|
|
| |
| |
| |
| |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | |
| Purchase of marketable securities | | |
| |
|
| (166,300 |
) |
| |
|
| |
|
| Sale of marketable securities | | |
| |
|
| 168,800 |
|
| |
|
| |
|
| Purchase of property and equipment | | |
| (436 |
) |
| (445 |
) |
| (7 |
) |
| (189 |
) |
| Acquisition of subsidiaries, net of cash acquired | | |
| |
|
| (4,979 |
) |
| |
|
| (4,979 |
) |
| Severance pay funds | | |
| (213 |
) |
| (20 |
) |
| (146 |
) |
| (10 |
) |
| Sale (acquisition) of marketable debentures held-to-maturity | | |
| |
|
| 9,996 |
|
| |
|
| 9,996 |
|
| Proceeds from sale of property and equipment | | |
| 207 |
|
| 139 |
|
| 39 |
|
| 19 |
|
|
| |
| |
| |
| |
| Net cash provided by (used in) investing activities | | |
| (442 |
) |
| 7,191 |
|
| (114 |
) |
| 4,837 |
|
|
| |
| |
| |
| |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | |
| Cost of acquisition of treasury shares | | |
| (1,631 |
) |
| |
|
| (1,631 |
) |
| |
|
| Employee stock options exercised | | |
| |
|
| 95 |
|
| |
|
| |
|
| Dividend paid | | |
| (4,319 |
) |
| (4,318 |
) |
| |
|
| |
|
|
| |
| |
| |
| |
| Net cash used in financing activities | | |
| (5,950 |
) |
| (4,223 |
) |
| (1,631 |
) |
| -,- |
|
|
| |
| |
| |
| |
TRANSLATION ADJUSTMENTS ON CASH AND CASH
EQUIVALENTS | | |
| (388 |
) |
| (20 |
) |
| (282 |
) |
| (20 |
) |
|
| |
| |
| |
| |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | | |
| (2,668 |
) |
| 7,619 |
|
| (1,176 |
) |
| 5,252 |
|
| BALANCE OF CASH AND CASH EQUIVALENTS AT | | |
| BEGINNING OF PERIOD | | |
| 12,390 |
|
| 4,771 |
|
| 10,898 |
|
| 7,138 |
|
|
| |
| |
| |
| |
| BALANCE OF CASH AND CASH EQUIVALENTS | | |
| AT END OF PERIOD | | |
$ | 9,722 |
|
$ | 12,390 |
|
$ | 9,722 |
|
$ | 12,390 |
|
|
| |
| |
| |
| |
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.
For more information please
contact:
Andrea Dray
MIND
CTI Ltd.
Tel: +972-4-993-6666
investor@mindcti.com
|
