-- Revenues were $5.4 million, representing an 11.5 % increase over the
first quarter of 2007, compared to $5.6 million in the fourth quarter of
2007.
-- Operating income, excluding amortization of intangible assets and
equity-based compensation expense, was $ 291 thousand, or 5.4 % of revenue.
-- GAAP operating income was $79 thousand, or 1.5 % of revenue.
-- Backlog for our billing product line as of March 31, 2008 is $16.5
million, of which $8.7 million is expected to be billed by year-end.
Revenue Distribution for Q1 2008
Sales in the Americas represented 37 % and sales in Europe represented 53 %
of total revenue.
Revenue from our customer care and billing software totaled $4.6 million,
while revenue from our enterprise call management software was $ 768
thousand. The revenue breakdown from our business lines of products was
$1.6 million, or 30 % from licenses and $3.8 million, or 70 % from
maintenance and additional services.
Auction Rate Securities
As previously announced, we continue to receive interest payments every
month on the held ARS, which is now rated BBB by S&P and A3 with
CreditWatch with negative implications by Moody's.
Two New Wins
The first win in the UK, since our latest acquisition, is a rapidly growing
UK Communications company that provides various services through
large-scale IP networks and complex Converged Voice and IP Networks, as
well as traditional Voice and Line Rental Services. This is a rolling
one-year contract for a fully outsourced service, including performing
day-to-day operational billing tasks, production of month-end billing and
revenue share statements, invoicing and support of the customer service
team.
The second win is with a regional mobile operator in the US that offers
"pay as go" plans.
This is a managed service contract for five years including performing
day-to-day operational billing tasks, support for software configuration
changes, support for 3rd party interfaces and proactive monitoring of the
system. The solution includes the new MIND offering, the point of sale
module as well as customer care, electronic bill presentment & payment,
rating, billing, provisioning and mediation.
Monica Eisinger, Chairperson and CEO, commented: "Lately we have seen
increasing interest in our solutions in the UK and the US, mainly for
billing and CRM managed services from wireless and tripe-play operators. We
are pleased with the continued momentum and we believe that the new wins
strengthen our position as the leader in billing and CRM solutions for
mobile operators providing regional coverage with unlimited wireless
calling plans. The new five-year managed service agreements increase our
long term visibility."
Appointment of New CFO
MIND also announced today the appointment of Itay Barzilay, 34, as the
Company's new Chief Financial Officer (CFO). Itay comes to MIND after
holding several financial management positions since 2003 at Avaya (US).
Prior to Avaya he served as a Consultant for the Corporate Finance Group at
Ernst & Young (Tel Aviv, Israel). Itay is a Certified Public Accountant and
holds a B.A. degree in Accounting and Economics from Tel Aviv University
and an M.B.A. degree from New York University, Stern School of Business.
Appointment of New Board Member
Mr. Rimon Ben-Shaoul, who served on the Company's Board of Directors since
2002, resigned lately in order to pursue other business opportunities. MIND
and Monica Eisinger personally express their profound gratitude and
appreciation to Rimon for his significant contribution to the company.
The Board of Directors elected Mr. Michael Rothenberg to serve as a Class
II director and member of all committees. Mr. Rothenberg is the founder of
BreezeCOM, later to become Alvarion (Contact Information: For more information please contact: Andrea Dray MIND CTI Ltd. Tel: +972-4-993-6666