Q1 Operating Income Increase 12% Year-over-Year
Q1 Operating Expenses Decrease 22% Year-over-Year
Q1 Revenues Decrease 15% Year-over-Year
ROSH HA'AYIN, Israel, May 20, 2009 (GLOBE NEWSWIRE) -- TTI Team Telecom International Ltd. (Nasdaq:TTIL), ('the Company'), a global supplier of Operations Support Systems (OSS) to communications service providers, today announced the results of the first quarter ending on March 31, 2009.
Total revenues for the first quarter were $11.1 million, compared to $13 million in the first quarter of 2008, and $11.7 million in the fourth quarter of 2008. Total operating expenses were $5.3 million, compared to $6.8 million in the first quarter of 2008 and $7.8 million in the fourth quarter of 2008.
The Company noted that the decrease in operating expenses can be explained by the cost saving measures that the company has taken and by the volatility in the currency markets, particularly the strength of the US dollar compared to the Israeli Shekel.
Operating income for the quarter was $531 thousand compared with an operating income of $473 thousand for the first quarter of 2008 and an operating loss of 1.7 million in the fourth quarter of 2008. Net income was $466 thousand, or $0.02 per basic and diluted share, compared to a net income of $873 thousand, or $0.05 per basic and diluted share in the first quarter of 2008 and a net loss of $2.1 million, or $0.13 per basic and diluted share in the fourth quarter of 2008.
As of March 31, 2009, the Company had approximately 26.7 million dollars in cash and cash equivalents. This compares to 25 million dollars of cash and cash equivalents that the company had on December 31, 2008.
"While TTI had a positive first quarter, visibility for future business remains limited. We therefore continue to monitor the market trends while maintaining tight cost controls," said Meir Lipshes, Chairman and CEO of TTI Telecom. "We are encouraged by the increase in our cash and cash equivalents which emphasizes the financial stability of the company and its ability to weather this recession smoothly."
Mr. Lipshes continued, "Staying in close contact with our customers, we do see a continuous need for efficient service assurance solutions. Yet our customers are also taking cost saving measures; the solutions that they require need to be quickly implemented and need to provide a fast return on investment. Understanding that, we continue to support our current customers while gaining new customers that appreciate our strong products, our fast responsiveness, TTI's stable financial balance sheet, our highly skilled workforce and our ability to continue to innovate, even in tough times."
Conference Call Information:
TTI Team Telecom International Ltd. (Nasdaq:TTIL), ('TTI Telecom'), a global supplier of Operations Support Systems (OSS) to communication service providers, announced today that it will release the first quarter 2009 results on May 20, 2009. Management will host a conference call at 9:00 a.m. ET for interested investors and analysts.
To participate in the live call, please dial the following teleconferencing numbers at least five minutes before the scheduled start time: (888) 229-0736 in the U.S., or (706) 679-0692 internationally. Participants will be asked to provide the following access code: 99814691.
For those unable to participate in the live call, a replay will be available two hours after the call's completion. To access the replay, please call (800) 642-1687 in the U.S., and (706) 645-9291 internationally. The access code for the replay is 99814691. The recording will be available from: 05/20/2009 12:15 to 05/25/2009 23:59.
Additionally, a recording of the call will be available, twelve hours after the call's completion, as an MP3 file at www.tti-telecom.com.
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
March 31
-------------------------
Unaudited
-------------------------
2008 2009
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Revenues
Product $ 8,462 $ 5,591
Services 4,587 5,515
----------- ------------
Total revenues 13,049 11,106
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Cost of revenues:
Product 3,821 3,573
Services 1,970 1,726
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Total cost of revenues 5,791 5,299
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Gross profit 7,258 5,807
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Operating expenses:
Research and development 3,002 2,086
Sales and marketing 2,420 2,067
General and administrative 1,363 1,123
----------- ------------
Total operating expenses 6,785 5,276
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Operating income 473 531
Financial income (loss), net 578 (14)
----------- ------------
Income before taxes on income 1,051 517
Taxes on income 178 51
----------- ------------
Net income $ 873 $ 466
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Net income attributed to preferred shares $ 135 $ 72
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Net income available to ordinary shares $ 738 $ 394
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Basic and diluted income per share
attributable to Ordinary shareholders $ 0.05 $ 0.02
=========== ============
Weighted average number of shares used for
computing net income per share to
ordinary shareholders
Basic and diluted 16,003,158 16,003,158
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TTI TEAM TELECOM INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEET
(in thousands of U.S dollars)
Dec. 31, March 31,
2008 2009
--------- ---------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 24,957 $ 26,700
Trade receivables 10,032 7,700
Unbilled receivables 3,215 3,149
Related parties 459 451
Other accounts receivable and
prepaid expenses 2,305 2,736
--------- ---------
Total current assets 40,968 40,736
--------- ---------
LONG-TERM INVESTMENTS:
Investment in affiliate 165 165
Severance pay fund 3,836 3,413
--------- ---------
Total long-term investments 4,001 3,578
--------- ---------
PROPERTY AND EQUIPMENT
Cost 26,332 20,269
Less - accumulated depreciation 19,049 13,180
--------- ---------
Property and equipment, net 7,283 7,089
--------- ---------
OTHER INTANGIBLE ASSETS, Net 149 149
--------- ---------
Total assets $ 52,401 $ 51,552
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 2,284 $ 2,096
Related parties 420 426
Deferred revenues 3,648 4,530
Other accounts payable and accrued expenses 6,787 5,579
--------- ---------
Total current liabilities 13,139 12,631
--------- ---------
ACCRUED SEVERANCE PAY 6,412 5,724
--------- ---------
Long term liability 1,372 1,224
--------- ---------
SHAREHOLDERS' EQUITY:
Share capital 2,595 2,595
Additional paid-in capital 75,251 75,280
Accumulated other comprehensive loss (170) (170)
Accumulated deficit (46,198) (45,732)
--------- ---------
Total shareholders' equity 31,478 31,973
--------- ---------
$ 52,401 $ 51,552
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