Q4 Revenues Increase 21% Year-over-Year
Q4 Net Income $0.06 Per Share
ROSH HA'AYIN, Israel, Feb. 19, 2008 (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 fourth quarter and full year ended December 31, 2007.
Total revenues for the fourth quarter were $12.2 million, compared with $11.7 million in the third quarter of 2007, and $10.1 million for the fourth quarter of 2006. Total operating expenses were $6.1 million, compared to $6.0 million in the third quarter and $7.1 million in the fourth quarter of 2006.
Operating income for the quarter was $564,000 compared with $437,000 in the third quarter and an operating loss of $3.3 million for the fourth quarter last year. Net income was $1.1 million, or $0.06 per basic and diluted share, compared to $1.0 million, or $0.05 per basic and diluted share for the third quarter of 2007 and a net loss of $3.0 million, or $0.16 per basic and diluted share in the fourth quarter of 2006.
Total Revenues for the twelve months ended December 31, 2007 were $45.9 million, compared to $46.1 million in 2006. Total operating expenses for the period were $24.2 million, compared to $26.5 million a year ago.
Operating income for the period was $626,000 compared with an operating loss of $4.7 million in 2006. Net income was $2.9 million, or $0.15 per basic and diluted share, compared to a net loss of $3.8 million, or $0.20 per basic and diluted share for the year ended December 31, 2006.
As of December 31, 2007, the Company had approximately $33.5 million in cash, liquid investments and short term deposits.
Commenting on the results, Meir Lipshes, Chairman and CEO of TTI Telecom, stated, "We are pleased with our results for the fourth quarter and the progress we made throughout 2007. We have increased revenue each quarter this year and, with Q4, have achieved three consecutive quarters of profitability. This progress is indicative of the commitment and dedication of each member of the TTI Telecom team, whose collective efforts enabled us to quickly turn the Company around following the difficulties we faced at the end of 2006 and who have helped position TTI Telecom for continued growth and success as we move ahead."
"Additionally, we reached an agreement to acquire Telesens LLC, a Ukrainian software house, for $2.7 million. This acquisition, which closed in January, improves our software development capability, enabling us to reduce our associated costs, and helping to offset the weakness in the U.S. dollar. Telesens' Ukrainian headquarters and strong position in the CIS market enhances TTI Telecom's local presence in the region, which we believe presents significant growth potential and is an important part of our overall strategy."
Conference Call Information:
A conference call has been scheduled for 9:00am ET today, February 19, 2008, during which management will discuss the Company's performance for the quarter. To access the call, please dial +1.888-694-4739 (International dialers can call +1.973-582-2749) and giving the access code: 34935246. 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 three hours after the completion of the call until 11:59pm ET on, February 26, 2008. To access the replay, please dial +1.800-642-1687 (International dialers can call +1.706-645-9291), participant code: 34935246. The webcast of the conference call will be archived on the TTI Telecom and KCSA web sites for 30 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.
TEAM TELECOM INTERNATIONAL LTD.
STATEMENTS OF INCOME
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(in thousands of U.S. dollars)
Three months ended
Year ended December 31, December 31,
------------------------ ------------------------
2006 2007 2006 2007
---- ---- ---- ----
Revenues
Product $ 27,554 $ 25,722 $ 5,788 $ 7,004
Services 18,560 20,195 4,321 5,190
----------- ----------- ----------- -----------
Total revenues 46,114 45,917 10,109 12,194
----------- ----------- ----------- -----------
Cost of revenues:
Product 14,783 12,504 3,655 3,354
Services 9,571 8,545 2,646 2,140
----------- ----------- ----------- -----------
Total cost of
revenues 24,354 21,049 6,301 5,494
----------- ----------- ----------- -----------
Gross profit 21,760 24,868 3,808 6,700
Operating
expenses:
Research and
development 9,578 9,433 2,664 2,645
Sales and
marketing 10,214 7,857 2,512 2,290
General and
administrative 6,679 6,952 1,969 1,201
----------- ----------- ----------- -----------
Total operating
expenses 26,471 24,242 7,145 6,136
----------- ----------- ----------- -----------
Operating income
(loss) (4,711) 626 (3,337) 564
Financial income,
net 662 2,150 511 591
Other income 150 33 150 --
----------- ----------- ----------- -----------
Income (loss)
before taxes on
income (3,899) 2,809 (2,676) 1,155
Taxes on income (96) (87) 341 88
----------- ----------- ----------- -----------
Net income (loss) $ (3,803) $ 2,896 $ (3,017) $ 1,067
=========== =========== =========== ===========
Net income
attributed to
preferred shares -- $ 449 -- $ 165
=========== =========== =========== ===========
Net income (loss)
available to
ordinary shares $ (3,803) $ 2,447 $ (3,017) $ 902
=========== =========== =========== ===========
Basic and diluted
income (loss) per
share
attributable to
Ordinary
shareholders $ (0.20) $ 0.15 $ (0.16) $ 0.06
=========== =========== =========== ===========
Weighted average
number of shares
used for computing
net income (loss)
per share to
ordinary
shareholders
Basic 15,075,881 16,001,148 15,640,846 16,003,158
=========== =========== =========== ===========
Diluted 15,075,881 16,123,842 15,640,846 16,003,158
=========== =========== =========== ===========
TEAM TELECOM INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEET
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(in thousands of U.S dollars)
December 31, December 31,
------------ ------------
2006 2007
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 31,410 $ 33,408
Short term deposits 984 98
Trade receivables 4,664 8,185
Unbilled receivables 2,834 3,155
Related parties 373 409
Other accounts receivable and prepaid
expenses 2,265 3,192
-------- --------
Total current assets 42,530 48,447
-------- --------
LONG-TERM INVESTMENTS:
Long term deposits 97 --
Investment in affiliate 165 165
Severance pay fund 3,627 3,937
Long-term receivables 3,324 --
-------- --------
Total long-term investments 7,213 4,102
-------- --------
PROPERTY AND EQUIPMENT
Cost 23,612 26,612
Less - accumulated depreciation 19,770 20,567
-------- --------
Property and equipment, net 3,842 6,045
-------- --------
Total Assets $ 53,585 $ 58,594
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 2,508 $ 2,364
Related parties 40 3,932
Deferred revenues 8,333 4,666
Other accounts payable and accrued expenses 7,187 6,760
-------- --------
Total current liabilities 18,068 17,722
-------- --------
ACCRUED SEVERANCE PAY 5,022 5,651
-------- --------
Long term liability -- 1,785
-------- --------
SHAREHOLDERS' EQUITY: 30,495 33,436
-------- --------
Total liabilities and shareholders' equity $ 53,585 $ 58,594
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