Yoqneam, Israel, May 05, 2010
MIND CTI Reports 28% Rise in Revenue and $0.07 Profit per Share
Cash Flow from Operating Activities of $2.4 Million in Q1 2010
Conference Call Scheduled for May 6, 2010 at 8:30 AM Eastern Time
Yoqneam, Israel, May 05, 2010
- MIND C.T.I. LTD. (NasdaqGM: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 accounting) solutions, today announced results for the first quarter 2010.
Key Highlights
- Revenues were $5.3 million, a 28% increase over the first quarter of 2009.
- One new customer, one major upgrade and one major enhancement.
- Operating income, excluding amortization of intangible assets of $84 thousand and equity-based compensation expense of $42 thousand, was $1,598 thousand, or 30% of revenue.
- GAAP operating income was $1,472 thousand, or 28% of revenue.
- GAAP net income was $1,356 thousand or $0.07 per share.
- Cash flow from operating activities was $2,446 thousand.
- Backlog as of March 31, 2010 includes $10 million that is expected to be billed by year-end.
- Cash position increased by $2.3 million to $20.5 million on March 31, 2010.
Revenue Distribution for Q1 2010
Sales in the Americas represented 51.7% and sales in Europe represented 33.1% of total revenue and the rest divided between Israel, Africa and Asia-Pacific.
Revenue from customer care and billing software totaled $4.3 million, while revenue from enterprise call accounting software was $956 thousand.
Conference Call Information
MIND will host a conference call on May 6, 2010 at 8:30 a.m., Eastern Time, to discuss the Company's first quarter 2010 results and other financial and business information. The call will be carried live on the Internet via www.earnings.com and the MIND website, www.mindcti.com. For those unable to listen to the live web cast, a replay will be available.
Full financial results can be found in the Investors section www.mindcti.com/investor/PressReleases.asp and in our Form 6-K as well.
MIND
C.T.I. LTD.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
Three
months
|
|
|
Year
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
$ in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
5,278 |
|
|
$ |
4,111 |
|
|
$ |
17,574 |
|
|
Cost
of revenues
|
|
|
1,674 |
|
|
|
1,428 |
|
|
|
6,413 |
|
|
Gross
profit
|
|
|
3,604 |
|
|
|
2,683 |
|
|
|
11,161 |
|
|
Research
and development expenses
|
|
|
1,081 |
|
|
|
1,205 |
|
|
|
4,448 |
|
|
Selling
and marketing expenses
|
|
|
617 |
|
|
|
491 |
|
|
|
2,220 |
|
|
General
and administrative expenses
|
|
|
434 |
|
|
|
698 |
|
|
|
2,324 |
|
|
Operating
income
|
|
|
1,472 |
|
|
|
289 |
|
|
|
2,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auction rate securities
settlement
|
|
|
|
|
|
|
|
|
|
|
18,500 |
|
|
Impairment of auction rate
securities
|
|
|
|
|
|
|
|
|
|
|
(941 |
) |
|
Other financial income
(expenses) - net
|
|
|
(94 |
) |
|
|
(28 |
) |
|
|
256 |
|
|
Income
before taxes on income
|
|
|
1,378 |
|
|
|
261 |
|
|
|
19,984 |
|
|
Taxes
on income
|
|
|
22 |
|
|
|
49 |
|
|
|
197 |
|
|
Net
income for the year
|
|
$ |
1,356 |
|
|
$ |
212 |
|
|
$ |
19,787 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning
per ordinary share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$ |
0.07 |
|
|
$ |
0.01 |
|
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary shares used
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in computation of earnings per
ordinary share -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in thousands:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
18,429 |
|
|
|
19,438 |
|
|
|
19,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
18,489 |
|
|
|
19,438 |
|
|
|
19,012 |
|
MIND
C.T.I. LTD.
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ |
19,411 |
|
|
$ |
15,995 |
|
|
Short term bank
deposits
|
|
|
1,065 |
|
|
|
2,183 |
|
|
Accounts
receivable:
|
|
|
|
|
|
|
|
|
|
Trade
|
|
|
880 |
|
|
|
1,246 |
|
|
Other
|
|
|
185 |
|
|
|
201 |
|
|
Prepaid
expenses
|
|
|
152 |
|
|
|
91 |
|
|
Deferred
cost of revenues
|
|
|
288 |
|
|
|
141 |
|
|
Inventories
|
|
|
34 |
|
|
|
34 |
|
|
Total
current assets
|
|
|
22,015 |
|
|
|
19,891 |
|
|
|
|
|
|
|
|
|
|
|
|
INVESTMENTS
AND OTHER NON CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
Severance
pay fund
|
|
|
1,236 |
|
|
|
1,208 |
|
|
Deferred
cost of revenues
|
|
|
215 |
|
|
|
125 |
|
|
PROPERTY AND EQUIPMENT,
net of accumulated depreciation
|
|
|
|
|
|
|
|
|
|
and
amortization
|
|
|
970 |
|
|
|
1,043 |
|
|
INTANGIBLE ASSETS, net
of accumulated amortization
|
|
|
534 |
|
|
|
655 |
|
|
GOODWILL
|
|
|
5,989 |
|
|
|
6,029 |
|
|
Total
assets
|
|
$ |
30,959 |
|
|
$ |
28,951 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and shareholders’ equity
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES :
|
|
|
|
|
|
|
|
|
|
Accounts payable and
accruals:
|
|
|
|
|
|
|
|
|
|
Trade
|
|
$ |
375 |
|
|
$ |
450 |
|
|
Other
|
|
|
1,604 |
|
|
|
1,581 |
|
|
Deferred
revenues
|
|
|
3,428 |
|
|
|
2,545 |
|
|
Dividend
payable
|
|
|
3,686 |
|
|
|
|
|
|
Total
current liabilities
|
|
|
9,093 |
|
|
|
4,576 |
|
|
LONG
TERM LIABILITIES :
|
|
|
|
|
|
|
|
|
|
Deferred
revenues
|
|
|
97 |
|
|
|
216 |
|
|
Employee rights upon
retirement
|
|
|
1,533 |
|
|
|
1,472 |
|
|
Total
liabilities
|
|
|
10,723 |
|
|
|
6,264 |
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’
EQUITY:
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
54 |
|
|
|
54 |
|
|
Additional paid-in
capital
|
|
|
39,147 |
|
|
|
39,105 |
|
|
Differences from translation of
foreign currency financial statements
of
a subsidiary
|
|
|
(1,215 |
) |
|
|
(1,052 |
) |
|
Treasury shares
|
|
|
(2,800 |
) |
|
|
(2,800 |
) |
|
Accumulated
deficit
|
|
|
(14,950 |
) |
|
|
(12,620 |
) |
|
Total
shareholders’ equity
|
|
|
20,236 |
|
|
|
22,687 |
|
|
Total
liabilities and shareholders’ equity
|
|
$ |
30,959 |
|
|
$ |
28,951 |
|
MIND
C.T.I. LTD.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Three
months
|
|
|
Year
ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$ |
1,356 |
|
|
$ |
212 |
|
|
$ |
19,787 |
|
|
Adjustments
to reconcile net income to net cash provided by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auction rate
securities settlement
|
|
|
|
|
|
|
|
|
|
|
(18,500 |
) |
|
Depreciation and
amortization
|
|
|
180 |
|
|
|
200 |
|
|
|
778 |
|
|
Impairment of
auction rate securities
|
|
|
|
|
|
|
|
|
|
|
941 |
|
|
Deferred income
taxes, net
|
|
|
|
|
|
|
39 |
|
|
|
113 |
|
|
Accrued severance
pay
|
|
|
79 |
|
|
|
19 |
|
|
|
39 |
|
|
Capital gain on
sale of property and equipment - net
|
|
|
(4 |
) |
|
|
(9 |
) |
|
|
(10 |
) |
|
Employees
share-based compensation expenses
|
|
|
42 |
|
|
|
36 |
|
|
|
143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in
operating asset and liability items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease
(increase) in accounts receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
|
|
|
348 |
|
|
|
27 |
|
|
|
2,265 |
|
|
Other
|
|
|
15 |
|
|
|
88 |
|
|
|
(51 |
) |
|
Decrease (increase)
in prepaid expenses and deferred charges
|
|
|
(299 |
) |
|
|
(38 |
) |
|
|
270 |
|
|
Decrease
in inventories
|
|
|
|
|
|
|
|
|
|
|
2 |
|
|
Increase
(decrease) in accounts payable and accruals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade
|
|
|
(73 |
) |
|
|
(155 |
) |
|
|
(19 |
) |
|
Other
|
|
|
37 |
|
|
|
(3 |
) |
|
|
(169 |
) |
|
Increase in
deferred revenues
|
|
|
765 |
|
|
|
180 |
|
|
|
677 |
|
|
Net
cash provided by operating activities
|
|
|
2,446 |
|
|
|
596 |
|
|
|
6,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from cash settlement
|
|
|
|
|
|
|
|
|
|
|
18,500 |
|
|
Purchase
of property and equipment
|
|
|
(35 |
) |
|
|
(75 |
) |
|
|
(367 |
) |
|
Severance
pay funds
|
|
|
(46 |
) |
|
|
(220 |
) |
|
|
(416 |
) |
|
Investment
in short term bank deposits
|
|
|
|
|
|
|
(1,104 |
) |
|
|
(2,183 |
) |
|
Proceeds
from short term bank deposits
|
|
|
1,118 |
|
|
|
|
|
|
|
|
|
|
Proceeds
from sale of property and equipment
|
|
|
12 |
|
|
|
68 |
|
|
|
194 |
|
|
Net
cash provided by (used in) investing activities
|
|
|
1,049 |
|
|
|
(1,331 |
) |
|
|
15,728 |
|
|
Cash
flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of acquisition of treasury shares
|
|
|
|
|
|
|
(151 |
) |
|
|
(1,169 |
) |
|
Dividend
paid
|
|
|
|
|
|
|
|
|
|
|
(14,780 |
) |
|
Net
cash used in financing activities
|
|
|
|
|
|
|
(151 |
) |
|
|
(15,949 |
) |
|
Translation
adjustments on cash and Cash equivalents
|
|
|
(79 |
) |
|
|
(28 |
) |
|
|
228 |
|
|
Increase
(decrease) in cash and cash equivalents
|
|
|
3,416 |
|
|
|
(914 |
) |
|
|
6,273 |
|
|
Balance
of cash and cash equivalents at beginning
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Of period
|
|
|
15,995 |
|
|
|
9,722 |
|
|
|
9,722 |
|
|
Balance
of cash and cash equivalents at end of period
|
|
$ |
19,411 |
|
|
$ |
8,808 |
|
|
$ |
15,995 |
|
|
