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
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