TTI Telecom Revenues Grow 14% in 2008
Q4 Revenues Decrease 4% Year-over-year
Q4 Net Loss $0.13 Per Share
ROSH HA'AYIN, Israel, Feb. 23, 2009 (GLOBE NEWSWIRE) -- TTI Team Telecom International Ltd. (Nasdaq:TTIL), ('the Company'), a global supplier of Operations Support Systems (OSS) to communications service providers, announced today the results for the fourth quarter and full year ending December 31, 2008.
Total revenues for the fourth quarter were 11.7 million dollars. This compares with 12.2 million in the fourth quarter of 2007, and revenues of 13.2 million in the third quarter of 2008. Total operating expenses were 7.8 million dollars, including a one-time expense of 1.4 million dollars that is attributed to the impairment of goodwill and other assets. The 7.8 amount compares to 6.1 million in the fourth quarter of 2007, and to 7.1 million in the third quarter of 2008.
Operating loss for the quarter was 1.7 million dollars, compared with an operating income of 564 thousand dollars in the fourth quarter of 2007 and an operating loss of 419 thousand dollars in the third quarter of this year. Net loss in the fourth quarter was 2.1 million dollars, or 13 cents per basic and diluted share, compared with a net income of 1.1 million dollars, or 6 cents per basic and diluted share in the fourth quarter of 2007, and a net loss of 1 million dollars or 6 cents per basic and diluted share in the third quarter of 2008.
Turning to our results for the full year, total revenues for the twelve months that ended on December 31, 2008, were 52.3 million dollars. This compares with 45.9 million in 2007. Total operating expenses for 2008 were 29.2 million dollars, compared with 24.2 million dollars a year ago. Operating loss was 1.1 million dollars, compared with an operating income of 626 thousand dollars a year ago. Net loss for the period was 2 million dollars, or 13 cents per basic and diluted share, compared with a net income of 2.9 million, or 15 cents per basic and diluted share in 2007.
As of December 31, 2008, the Company had approximately 25 million dollars in cash and liquid investments. This compares to 25.6 million dollars of cash and liquid assets that the company had on September 31, 2008 and 33.5 million dollars that the company had on December 31, 2007.
With respect to the previously announced internal investigation of the Telesens acquisition, TTI Telecom announces today that its Audit Committee has received the report of the independent investigator. However, the Audit Committee has not yet completed its work or reached any final conclusions. TTI Telecom will provide additional details about the findings and recommendations of the Audit Committee as soon as they are available.
Commenting on the results of the fourth quarter and year end, Meir Lipshes, Chairman and CEO of TTI Telecom, said, "We finished the fourth quarter of 2008 with our Book-to-Bill ratio increasing back to above 1 after being below 1 for the last two quarters. This achievement is especially notable considering the challenging economic situation.
"TTI Telecom, similar to its customers, cannot escape the effects of this economic recession. Influences of this recession are apparent in the slow decision making processes that customers take these days, in the increasing pressure to lower prices and in the increasing difficulty to collect revenue.
"In an effort to keep our Book-to-Bill ratio above 1, TTI Telecom will continue to monitor the market trends while continuing to maintain tight cost controls on all variable expenses."
Conference Call Information:
A conference call has been scheduled for 12:00pm ET today, February 23, 2009, during which management will discuss the Company's performance for the quarter. 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: 83144175. 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 83144175. The recording will be available from: 02/23/2009 15:00 to 02/27/2009 23:59. Additionally, the call will be available, two hours after the call's completion, as an MP3 recording 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
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(in thousands of U.S. dollars)
Year ended Three months ended
December 31, December 31,
---------------------- ----------------------
2007 2008 2007 2008
---- ---- ---- ----
Revenues
Product 25,722 30,134 7,004 5,752
Services 20,195 22,152 5,190 5,973
---------- ---------- ---------- ----------
Total revenues 45,917 52,286 12,194 11,725
---------- ---------- ---------- ----------
Cost of revenues:
Product 12,504 16,381 3,354 3,677
Services 8,545 7,865 2,140 1,907
---------- ---------- ---------- ----------
Total cost of
revenues 21,049 24,246 5,494 5,584
---------- ---------- ---------- ----------
Gross profit 24,868 28,040 6,700 6,141
---------- ---------- ---------- ----------
Operating expenses:
Research and
development 9,433 11,407 2,645 2,736
Sales and marketing 7,857 9,996 2,290 2,308
General and
administrative 6,952 6,351 1,201 1,396
Impairment of
goodwill and
other assets -- 1,401 -- 1,401
---------- ---------- ---------- ----------
Total operating
expenses 24,242 29,155 6,136 7,841
---------- ---------- ---------- ----------
Operating income
(loss) 626 (1, 115) 564 (1,700)
Financial income
(loss), net 2,150 (515) 591 (363)
Other income 33 -- -- --
---------- ---------- ---------- ----------
Income (loss) before
taxes on income 2,809 (1,630) 1,155 (2,063)
Taxes on income (87) 371 88 57
---------- ---------- ---------- ----------
Net income (loss) 2,896 (2,001) 1,067 (2,120)
========== ========== ========== ==========
Net income attributed
to preferred shares 449 -- 165 --
========== ========== ========== ==========
Net income (loss)
available to
ordinary shares 2,447 (2,001) 902 (2,120)
========== ========== ========== ==========
Basic income (loss)
per share
attributable to
Ordinary
shareholders 0.15 (0.13) 0.06 (0.13)
========== ========== ========== ==========
Dilured income (loss)
per share
attributable to
Ordinary
shareholders 0.15 (0.13) 0.06 (0.13)
========== ========== ========== ==========
Weighted average
number of shares
used for computing
net income per share
to ordinary
shareholders
Basic 16,001,148 16,003,158 16,003,158 16,003,158
========== ========== ========== ==========
Diluted 16,121,989 16,003,158 16,003,158 16,003,158
========== ========== ========== ==========
TTI TEAM TELECOM INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------
(in thousands of U.S dollars)
Dec. 31, Dec. 31,
-------- --------
2007 2008
-------- --------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 33,408 24,957
Short term deposits 98 --
Trade receivables 8,185 10,032
Unbilled receivables 3,155 3,215
Related parties 409 459
Other accounts receivable and prepaid expenses 3,192 2,305
-------- --------
Total current assets 48,447 40,968
-------- --------
LONG-TERM INVESTMENTS:
Investment in affiliate 165 165
Severance pay fund 3,937 3,836
-------- --------
Total long-term investments 4,102 4,001
-------- --------
PROPERTY AND EQUIPMENT
Cost 26,612 29,647
Less - accumulated depreciation 20,567 22,364
-------- --------
Property and equipment, net 6,045 7,283
-------- --------
OTHER INTANGIBLE ASSETS, Net -- 149
-------- --------
Total assets 58,594 52,401
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables 2,364 2,284
Related parties 3,932 420
Deferred revenues 4,666 3,648
Other accounts payable and accrued expenses 6,966 6,787
-------- --------
Total current liabilities 17,928 13,139
-------- --------
ACCRUED SEVERANCE PAY 5,651 6,412
-------- --------
Long term liability 1,579 1,372
-------- --------
SHAREHOLDERS' EQUITY:
Share capital 2,595 2,595
Additional paid-in capital 75,038 75,251
Accumulated other comprehensive income (loss) -- (170)
Retained earnings (Accumulated deficit) (44,197) (46,198)
-------- --------
Total shareholders' equity 33,436 31,478
-------- --------
58,594 52,401
======== ========