Q2 Operating Income Increase 103% Year-over-Year
Q2 Operating Expenses Decrease 28% Year-over-Year
ROSH HA'AYIN, Israel, Aug. 25, 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 second quarter that ended on June 30, 2009.
Total revenues for the second quarter were $10.7 million, compared with $13.9 million in the second quarter of 2008, and $10.8 million for the first quarter of 2009. Total operating expenses were $5.3 million, compared to $7.4 million in the second quarter of 2008 and $5.2 million in the first quarter of 2009.
Operating income for the quarter was $644 thousand, compared with an operating income of $318 thousand for the second quarter last year and an operating income of $596 thousand in the first quarter of 2009. Net income was $912 thousand, or $0.05 per basic and diluted share, compared to net income of $260 thousand, or $0.01 per basic and diluted share in the second quarter of 2008, and net income of $513 thousand, or $0.03 per basic and diluted share for the first quarter of 2009.
Total revenues for the six months ended June 30, 2009 were $21.5 million, compared to $26.4 million in the six months ended June 30, 2008. Total operating expenses for the period were $10.5 million compared to $14 million in the first six months of 2008.
Operating income for the six months ending on June 30, 2009 was $1.2 million compared with an operating income of $536 thousand in the comparable period in 2008. Net income for the six months period that ended in June 30, 2009 was $1.4 million, or $0.07 per basic and diluted share, compared with a net income of $1.1 million, or $0.06 per basic and diluted share for the first six months of 2008.
As of June 30, 2009, the Company had approximately $27.4 million in cash and liquid investments.
TTI Telecom would like to note that due to the settlement with Telesens, as announced several weeks ago, the financial results of Telesens are presented separately, in the financial reports, as 'discontinued operations.'
Meir Lipshes, CEO of TTI Telecom, commented, "This quarter, as the previous one, stands in light of continuing uncertainty and limited business visibility. In dealing with these business challenges, we at TTI Telecom are balancing our short term priorities with the company's long term growth ambitions. In the short term, and in the face of limited market visibility, we continue our relentless efforts to decrease our operating expenses and increase our operating income while maintaining a high level of service that is important to our loyal and long term customers. Looking at the long term, we do see customers searching for Operations Support Systems that can supervise and optimize today's advanced and constantly changing networks. To be able to capture this opportunity we are currently investing resources that in the future will leverage our advanced products, telecom know-how, and broad customer base."
Conference Call Information:
A conference call has been scheduled for 9:00am EDT today, August 25, 2009, during which management will discuss the Company's performance for the quarter. To access the call, please dial (877) 643-9538. International dialers can call (706) 679-0570 and give the access code: 23719340. A telephone replay of the call will also be available starting twelve hours after the completion of the call until 11:59pm EST on August 30, 2009. To access the replay, please dial (800) 642-1687. International dialers can call (706) 645-9291 and enter the participant code: 23719340.
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)
Six months ended Three months ended
---------------------- ----------------------
June 30, June 30,
---------------------- ----------------------
2008 2009 2008 2009
---------- ---------- ---------- ----------
Unaudited Unaudited
--------- ---------
Revenues
Product 16,792 11,494 8,682 6,042
Services 9,581 9,981 5,208 4,619
---------- ---------- ---------- ----------
Total revenues 26,373 21,475 13,890 10,661
---------- ---------- ---------- ----------
Cost of revenues:
Product 8,059 6,486 4,374 3,102
Services 3,733 3,276 1,826 1,610
---------- ---------- ---------- ----------
Total cost of
revenues 11,792 9,762 6,200 4,712
---------- ---------- ---------- ----------
Gross profit 14,581 11,713 7,690 5,949
---------- ---------- ---------- ----------
Operating expenses:
Research and
development 5,950 4,062 2,948 1,976
Sales and marketing 4,927 4,124 2,536 2,085
General and
administrative 3,168 2,287 1,888 1,244
---------- ---------- ---------- ----------
Total operating
expenses 14,045 10,473 7,372 5,305
---------- ---------- ---------- ----------
Operating income 536 1,240 318 644
Financial income
(Loss), net 390 562 (193) 599
---------- ---------- ---------- ----------
Income before taxes
on income 926 1,802 125 1,243
Taxes on income 240 109 73 62
---------- ---------- ---------- ----------
Income from
continuing
operations 686 1,693 52 1,181
========== ========== ========== ==========
Income (Loss) from
discontinued
operations 446 (315) 208 (269)
========== ========== ========== ==========
Net income 1,132 1,378 260 912
========== ========== ========== ==========
Net income
attributed to
preferred shares
from continuing and
discontinued
operations 176 262 40 183
========== ========== ========== ==========
Net income attributed
to ordinary shares
from continuing
operations 579 1,431 44 998
========== ========== ========== ==========
Net Income (Loss)
attributed to
ordinary shares from
discontinued
operations 377 (315) 176 (269)
========== ========== ========== ==========
Basic and diluted
income (Loss) per
share attributable to
Ordinary shareholders
From continuing
operations 0.04 0.09 0.00 0.06
========== ========== ========== ==========
From discontinued
operations 0.02 (0.02) 0.01 (0.01)
========== ========== ========== ==========
Net income per share 0.06 0.07 0.01 0.05
========== ========== ========== ==========
Weighted average
number of shares used
for computing net
income per share to
ordinary shareholders
- Basic and Diluted 16,003,158 16,003,158 16,003,158 16,003,158
========== ========== ========== ==========
TTI TEAM TELECOM INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEET
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(in thousands of U.S dollars)
December 31, June 30,
------------ ------------
2008 2009
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 24,921 27,410
Trade receivables 9,790 8,431
Unbilled receivables 3,093 3,414
Related parties 459 493
Other accounts receivable and prepaid
expenses 2,150 2,851
Current Assets of discontinued operations 958 1,009
------------ ------------
Total current assets 41,371 43,608
------------ ------------
LONG-TERM INVESTMENTS:
Investment in affiliate 165 165
Severance pay fund 3,836 3,805
------------ ------------
Total long-term investments 4,001 3,970
------------ ------------
PROPERTY AND EQUIPMENT
Cost 25,771 18,563
Less - accumulated depreciation 18,572 12,193
------------ ------------
Property and equipment, net 7,199 6,370
------------ ------------
Total assets 52,571 53,948
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables 2,187 1,782
Related parties 420 607
Deferred revenues 3,648 4,816
Other accounts payable and accrued
expenses 6,040 5,315
Liabilities of discounted operations 844 1,210
------------ ------------
Total current liabilities 13,139 13,730
------------ ------------
ACCRUED SEVERANCE PAY 6,412 5,960
------------ ------------
Long term liability 1,372 1,277
------------ ------------
SHAREHOLDERS' EQUITY:
Share capital 2,595 2,595
Additional paid-in capital 75,251 75,256
Accumulated deficit (46,198) (44,870)
------------ ------------
Total shareholders' equity 31,648 32,981
------------ ------------
52,571 53,948
============ ============