PETACH TIKVA, Israel, Nov. 14, 2007 (PRIME NEWSWIRE) -- TTI Team Telecom International Ltd. (Nasdaq:TTIL), ('the Company'), a global supplier of Operations Support Systems (OSS) to communications service providers, today announced results for the third quarter and nine months ended September 30, 2007.
Total revenues for the third quarter were $11.7 million, compared with $11.3 million in the second quarter of 2007, and $11.0 million for the third quarter of 2006. Total operating expenses were $6.0 million, compared to $6.3 million in the second quarter and $6.9 million in the third quarter of 2006.
Operating income for the quarter was $437,000 compared with $42,000 in the second quarter and an operating loss of $2.3 million for the third quarter last year. Net income was $1.0 million, or $0.05 per basic and diluted share, compared to $856,000, or $0.05 per basic and $0.04 per diluted share for the second quarter of 2007 and a net loss of $1.8 million, or $0.09 per basic and diluted share in the third quarter of 2006.
Total Revenues for the nine months ended September 30, 2007 were $33.7 million, compared to $36.0 million in the nine months ended September 30, 2006. Total operating expenses for the period were $18.1 million, compared to $19.3 million in the first nine months of 2006.
Operating income for the period was $62,000 compared with an operating loss of $1.4 million in the comparable period in 2006. Net income was $1.8 million, or $0.10 per basic and diluted share, compared to a net loss of $786,000, or $0.04 per basic and diluted share for the first nine months of 2006.
As of September 30, 2007, the Company had approximately $31 million in cash and liquid investments.
Commenting on the results, Meir Lipshes, Chairman and CEO of TTI Telecom, stated, "We are pleased with our results for the third quarter, which reflect the continued improvement of the Company, both sequentially and on a year-over-year basis. Our net income for the quarter was slightly over $1 million, compared to a loss of nearly $1.8 million in the third quarter of 2006. This dramatic turnaround is indicative of the success of our efforts to reduce costs and improve the overall efficiency of the organization."
Lipshes added, "We continue making progress with our OSS and Fault Management solutions, having recently added several important customers which we hope to announce during the fourth quarter. We believe our technology is gaining recognition among telecom carriers and enterprise operators as an optimal solution to enhance and bring value to multi-vendor, multi-technology network environments. We have several important projects underway and are excited about what the future holds for TTI."
Conference Call Information:
A conference call has been scheduled for 9:00am ET today, November 14, 2007, during which management will discuss the Company's performance for the quarter. The call can be accessed via live webcast through the Investor Relations section of the TTI Telecom web site, www.tti-telecom.com and at www.kcsa.com. A telephone replay of the call will also be available starting two hours after the completion of the call until 11:59pm ET on, November 23, 2007. To access the replay, please dial +1.877-519-4471 (International dialers can call +1.973-341-3080), participant code: 9447864. The webcast of the conference call will be archived on the TTI Telecom and KCSA web sites for 90 days.
About TTI Telecom:
TTI Team Telecom International Ltd. ("TTI Telecom") is a leading provider of next generation Operations Support Systems (OSS) to communications service providers worldwide. The company's Netrac portfolio delivers an automated, proactive and customer-centric approach to service assurance and network management.
Anchored by market-leading service assurance solutions -- Fault Management (FaM) and Performance Management (PMM) -- that give customers an end-to-end view of their network, TTI Telecom's Netrac enables service providers to reduce operating costs, enhance profitability and launch new, revenue-generating services more rapidly. Netrac is compatible with multiple technologies and industry standards, and is uniquely positioned to bridge legacy, next-generation, convergent, and IMS Networks. TTI Telecom's customer base consists of tier-one and tier-two service providers globally, including large incumbents in the Americas, Europe and Asia-Pacific.
Forward-looking statements in this release involve a number of risks and uncertainties including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed in the Company's SEC filings.
TTI TEAM TELECOM INTERNATIONAL LTD. STATEMENTS OF INCOME --------------------------------------------------------------------- (in thousands of U.S. dollars) Three Months Ended Nine Months Ended ------------------ ----------------- September 30, September 30, ------------- ------------- 2007 2006 2007 2006 ---- ---- ---- ---- Unaudited Unaudited --------- --------- Revenues Product $ 6,367 $ 6,027 $ 18,718 $ 21,766 Services 5,374 4,932 15,005 14,239 ----------- ----------- ----------- ----------- Total revenues 11,741 10,959 33,723 36,005 ----------- ----------- ----------- ----------- Cost of revenues: Product 3,225 3,986 9,150 11,128 Services 2,062 2,341 6,405 6,925 ----------- ----------- ----------- ----------- Total cost of revenues 5,287 6,327 15,555 18,053 ----------- ----------- ----------- ----------- Gross profit 6,454 4,632 18,168 17,952 ----------- ----------- ----------- ----------- Operating expenses: Research and development 2,443 2,533 6,788 6,914 Sales and marketing 2,064 2,632 5,567 7,702 General and administrative 1,510 1,762 5,751 4,710 ----------- ----------- ----------- ----------- Total operating expenses 6,017 6,927 18,106 19,326 ----------- ----------- ----------- ----------- Operating income (loss) 437 (2,295) 62 (1,374) Financial income, net 540 90 1,559 151 Other income -- -- 33 -- ----------- ----------- ----------- ----------- Income (loss) before taxes on income 977 (2,205) 1,654 (1,223) Taxes on income (38) (450) (175) (437) ----------- ----------- ----------- ----------- Net income (loss) $ 1,015 $ (1,755) $ 1,829 $ (786) =========== =========== =========== =========== Net income (loss) attributed to preferred shares $ 157 $ (325) $ 284 $ (145) =========== =========== =========== =========== Net income (loss) available to ordinary shares $ 858 $ (1,430) $ 1,545 $ (641) =========== =========== =========== =========== Basic income (loss) per share attributable to ordinary shareholders $ 0.05 $ (0.09) $ 0.10 $ (0.04) =========== =========== =========== =========== Diluted income (loss) per share attributable to ordinary shareholders $ 0.05 $ (0.09) $ 0.10 $ (0.04) =========== =========== =========== =========== Weighted average number of shares used for computing net income (loss) per share attributed to ordinary shareholders Basic 16,000,579 15,417,249 16,000,481 14,891,202 =========== =========== =========== =========== Diluted 16,286,891 15,417,249 16,164,073 14,891,202 =========== =========== =========== =========== TTI TEAM TELECOM INTERNATIONAL LTD. CONSOLIDATED BALANCE SHEET --------------------------------------------------------------------- (in thousands of U.S dollars) Sept. 30, Dec. 31, 2007 2006 ------- ------- Unaudited ------- ASSETS CURRENT ASSETS: Cash and cash equivalents $30,825 $31,410 Short term deposits 87 984 Trade receivables 6,792 4,664 Unbilled receivables 2,899 2,834 Related parties 392 373 Other accounts receivable and prepaid expenses 1,606 2,265 ------- ------- Total current assets 42,601 42,530 ------- ------- LONG-TERM INVESTMENTS: Long term deposits 97 97 Investment in affiliate 165 165 Severance pay fund 3,621 3,627 Long-term receivables -- 3,324 ------- ------- Total long-term investments 3,883 7,213 ------- ------- PROPERTY AND EQUIPMENT: Cost 25,651 23,612 Less - accumulated depreciation 20,142 19,770 ------- ------- Property and equipment, net 5,509 3,842 ------- ------- Total Assets $51,993 $53,585 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 2,241 $ 2,508 Related parties 890 40 Deferred revenues 4,518 8,333 Other accounts payable and accrued expenses 6,623 7,187 ------- ------- Total current liabilities 14,272 18,068 ------- ------- ACCRUED SEVERANCE PAY 5,299 5,022 ------- ------- SHAREHOLDERS' EQUITY: Share capital: 2,595 2,594 Additional paid-in capital 75,056 74,919 Accumulated deficit (45,229) (47,018) ------- ------- Total shareholders' equity 32,422 30,495 ------- ------- Total liabilities and shareholders' equity $51,993 $53,585 ======= ======= TTI TELECOM INTERNATIONAL LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS --------------------------------------------------------------------- (in thousands of U.S. dollars) Nine months ended ----------------- September 30, ------------- 2007 2006 --------- --------- Unaudited Unaudited --------- --------- Cash flows from operating activities: ----------------------------------------- Net income (loss) $ 1,829 $ (786) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 1,491 1,872 Gain from sale of property and equipment (215) (58) Accrued interest on short - term bank deposits (4) (18) Severance pay, net 283 398 Decrease (increase) in trade receivables (2,128) 221 Increase in unbilled receivables (65) (2,869) Decrease in long term trade and unbilled receivables 3,324 769 Decrease in other accounts receivable and prepaid expenses 659 547 Increase (decrease) in trade payables (267) 523 Increase in related parties 831 1,067 Decrease in deferred revenues (3,815) (3,411) Decrease in other accounts payable and accrued expenses (604) (1,041) Stock based compensation 131 382 Loss from sale of marketable securities -- 330 Amortization of premium and accretion of accrued interest on available for sale marketable securities -- 732 -------- -------- Net cash provided by (used in) operating activities 1,450 (1,342) Cash flows from investing activities: ----------------------------------------- Investment in short-term and long-term bank deposits (2,000) (188) Investment in available-for-sale marketable securities -- (10,203) Proceeds from sale and redemption of available-for-sale marketable securities -- 21,334 Proceeds from short-term and long-term bank deposits 2,901 1,283 Proceeds from sale of property and equipment 342 101 Purchase of property and equipment (3,285) (1,306) -------- -------- Net cash provided by (used in) investing activities (2,042) 11,021 Cash flows from financing activities: ----------------------------------------- Proceeds from issuance of preferred A convertible shares and warrants, net 7 1,068 -------- -------- Net cash provided by financing activities 7 1,068 -------- -------- Increase (decrease) in cash and cash equivalents (585) 10,747 Cash and cash equivalents at the beginning of the period 31,410 18,034 -------- -------- Cash and cash equivalents at the end of the period $ 30,825 $ 28,781 ======== ========