MIND CTI Reports First Quarter 2025 Results
Yoqneam, Israel, May 6, 2025 MIND C.T.I. LTD. – (NasdaqGM: MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers, unified communications (UC) analytics and call accounting solutions for enterprises as well as enterprise messaging solutions, today announced results for its first quarter ended March 31, 2025.
The following will summarize our major achievements in the first quarter of 2025, as well as our business. The financial results can be found in the Company News section of our website at http://www.mindcti.com/company/news/ and in our Form 6-K.
Financial Highlights
- Revenues were $5.0 million, compared with $5.8 million in the first quarter of 2024.
- Operating income was $0.4 million, or 7% of total revenues, compared with $1.2 million, or 22% of total revenues in the first quarter of 2024.
- Net income was $0.5 million, or $0.02 per share, compared with $1.3 million, or $0.07 per share in the first quarter of 2024.
- Cash flow from operating activities was $0.7 million, compared with $0.9 million in the first quarter of 2024.
- Cash position was $14.9 million as of March 31, 2025 (before the dividend distribution of $4.5 million in April 2025).
Ariel Glassner, MIND CTI’s Chief Executive Officer, commented: “The year-over-year revenue decrease was due to our messaging segment, which enjoyed a temporary positive impact of large customer campaigns in Q1 2024, and a decrease in our customer care and billing segment. The decline in operating income is mainly attributed to an allowance for credit loss of a specific customer and to costs related to the Aurenz acquisition, which was completed this quarter.
“As previously announced, multiple factors are expected to negatively impact our revenue and income from our customer care and billing software, which we already started to experience in Q1 2025. In addition, we plan to continue to invest in potential growth initiatives, which are not expected to bear fruit this year. Accordingly, we expect a significant negative impact on our 2025 revenues, net income and dividend distribution.
“We have a strong cash position and ongoing positive cash flow. We believe that our initiatives are the right steps to take in seeking to preserve our current business and grow in the future.”
Revenue Distribution
Revenues in Europe represented 61% (including the messaging segment revenues in Germany, which represented 35%), the Americas represented 33%, and the rest of the world represented 6% of total revenues.
Revenues from our customer care and billing software were $2.5 million, or 50% of total revenues, enterprise messaging and payment solutions were $1.7 million, or 35%, and enterprise call accounting software were $0.8 million (including the full quarter revenues of Aurenz), or 15% of total revenues.
Revenues from maintenance and additional services were $4.8 million, or 96% of total revenues, while licenses were $0.2 million, or 4% of total revenues.
Dividend Distribution
As previously announced, the Board declared on March 4, 2025 a gross dividend of $0.22 per share, with tax being withheld at a rate of 20%.
The dividend of approximately $4.5 million is presented in our balance sheet as of March 31, 2025, among other current liabilities. The distribution and the impact on our cash position occurred in Q2 2025.
AGM and Board of Directors Update
The Company held its Annual General Meeting of Shareholders on May 6, 2025, and all the proposed resolutions were approved.
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months | ||||||||
| Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
|
U.S. dollars in thousands |
||||||||
| REVENUES | $ | 4,996 | $ | 5,765 | ||||
| COST OF REVENUES | 2,487 | 2,974 | ||||||
| GROSS PROFIT | 2,509 | 2,791 | ||||||
| OPERATING EXPENSES: | ||||||||
| Research and development | 894 | 882 | ||||||
| Selling and marketing | 356 | 315 | ||||||
| General and administrative | 889 | 351 | ||||||
| Total operating expenses | 2,139 | 1,548 | ||||||
| OPERATING INCOME | 370 | 1,243 | ||||||
| FINANCIAL INCOME, net | 174 | 188 | ||||||
| INCOME BEFORE TAXES ON INCOME | 544 | 1,431 | ||||||
| TAXES ON INCOME | 54 | 97 | ||||||
| NET INCOME | $ | 490 | $ | 1,334 | ||||
| EARNINGS PER SHARE – basic and diluted – in U.S. dollars |
$ | 0.02 | $ | 0.07 | ||||
| WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF EARNINGS PER SHARE – in thousands: |
||||||||
| Basic | 20,387 | 20,205 | ||||||
| Diluted | 20,604 | 20,520 | ||||||
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| U.S. dollars in thousands | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 3,331 | $ | 4,452 | ||||
| Short-term bank deposits | 11,386 | 11,108 | ||||||
| Marketable securities | 194 | 193 | ||||||
| Accounts receivable, net | 2,414 | 2,498 | ||||||
| Other current assets | 620 | 493 | ||||||
| Prepaid expenses | 323 | 175 | ||||||
| Total current assets | 18,268 | 18,919 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Accounts receivable, net | 36 | 448 | ||||||
| Severance pay fund | 2,355 | 2,346 | ||||||
| Deferred income taxes | 125 | 108 | ||||||
| Property and equipment, net | 163 | 156 | ||||||
| Right-of-use assets, net | 812 | 861 | ||||||
| Intangible assets, net | 1,709 | 135 | ||||||
| Goodwill | 9,392 | 7,729 | ||||||
| Total assets | $ | 32,860 | $ | 30,702 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 733 | $ | 769 | ||||
| Other current liabilities and accruals | 6,379 | 1,469 | ||||||
| Current maturities of lease liabilities | 187 | 188 | ||||||
| Deferred revenues | 1,280 | 849 | ||||||
| Total current liabilities | 8,579 | 3,275 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Deferred revenues | 292 | 108 | ||||||
| Lease liabilities, net of current maturities | 602 | 637 | ||||||
| Accrued severance pay | 2,355 | 2,346 | ||||||
| Deferred income taxes | 513 | 40 | ||||||
| Total liabilities | 12,341 | 6,406 | ||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Share capital | 54 | 54 | ||||||
| Additional paid-in capital | 27,896 | 27,904 | ||||||
| Accumulated other comprehensive loss | (1,032 | ) | (1,207 | ) | ||||
| Accumulated deficit | (5,584 | ) | (1,572 | ) | ||||
| Treasury shares | (815 | ) | (883 | ) | ||||
| Total shareholders’ equity | 20,519 | 24,296 | ||||||
| Total liabilities and shareholders’ equity | $ | 32,860 | $ | 30,702 | ||||
MIND C.T.I. LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months | ||||||||
| Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| U.S. dollars in thousands | ||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 490 | $ | 1,334 | ||||
| Adjustments to reconcile net income to net cash provided by | ||||||||
| operating activities: | ||||||||
| Depreciation and amortization | 74 | 48 | ||||||
| Deferred income taxes, net | (33 | ) | (13 | ) | ||||
| Accrued severance pay | 14 | 6 | ||||||
| Unrealized loss (gain) from marketable securities, net | (1 | ) | (1 | ) | ||||
| Employees share-based compensation expenses | 58 | 64 | ||||||
| Changes in operating asset and liability items: | ||||||||
| Decrease (increase) in accounts receivable, net | 672 | (237 | ) | |||||
| Increase in other current assets | (87 | ) | (87 | ) | ||||
| Increase in prepaid expenses | (133 | ) | (114 | ) | ||||
| Increase (decrease) in accounts payable | (85 | ) | 133 | |||||
| Decrease in other current liabilities and accruals | (302 | ) | (106 | ) | ||||
| Change in operating lease liability | 13 | (4 | ) | |||||
| Increase (decrease) in deferred revenues | 5 | (146 | ) | |||||
| Net cash provided by operating activities | 685 | 877 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | (5 | ) | – | |||||
| Acquisition of a subsidiary | (1,533 | ) | – | |||||
| Severance pay funds | (14 | ) | (11 | ) | ||||
| Proceeds from redemption of (investment in) short-term bank deposits | (271 | ) | 933 | |||||
| Net cash provided by (used in) investing activities | (1,823 | ) | 922 | |||||
| TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS | 17 | (13 | ) | |||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,121 | ) | 1,786 | |||||
| BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 4,452 | 2,958 | ||||||
| BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 3,331 | $ | 4,744 | ||||
About MIND
MIND CTI Ltd. is a leading provider of convergent end-to-end billing and customer care product-based solutions for service providers, unified communications analytics and call accounting solutions for enterprises as well as enterprise messaging solutions. MIND provides a complete range of billing applications for any business model (license, SaaS, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers. A global company, with over twenty-five years of experience in providing solutions to carriers and enterprises, MIND operates from offices in Israel, Romania, Germany and the United States.
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”, expectations of the results of the Company’s business optimization initiative, integration of the company’s acquisitions and its projected outlook and results of operations. 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, but not limited to, economic conditions in our key markets, as well as the risks discussed in the Company’s annual report and other 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