ROSH HA'AYIN, Israel, Feb. 24, 2010 (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 results for the fourth quarter and full year ended December 31, 2009.
Total revenues for the fourth quarter were $10.7 million, compared with $10.3 million in the third quarter of 2009, and $11.3 million for the fourth quarter of 2008. Total operating expenses were $5.0 million, compared to $4.9 million in the third quarter of 2009 and $6.1 million in the fourth quarter of 2008.
Operating income for the quarter was $566,000 compared with $744,000 in the third quarter of 2009 and an operating loss of $150,000 for the fourth quarter of 2008. Net income was $15,000, or $0.00 per basic and diluted share, compared to $1.3 million, or $0.07 per basic and diluted share for the third quarter of 2009 and a net loss of $2.1 million, or $0.13 per basic and diluted share in the fourth quarter of 2008.
Total revenues for the twelve months ended December 31, 2009 were $42.5 million, compared to $50.3 million in 2008. Total operating expenses for 2009 were $20.4 million, compared to $27.1 million in 2008.
As part of the 2004 capital draft, the company issued warrants that were intended for purchasing ordinary company shares. As a result of the adoption of a new accounting standard on January 1st, 2009, these warrants are no longer eligible to be classified as equity. Therefore, the company is now required to present the fair value of the warrants as a liability and to record any changes in their fair value during the period as a financial expense or as income. During the course of 2009, the fair value of these warrants appreciated by approximately 600 thousand dollars that offset part of our financial income. Excluding this non-cash charge, our net income for 2009 was 3.3 million dollars.
Operating income for the period was $2.6 million compared with an operating loss of $54,000 in 2008. Net income was $2.7 million, or $0.14 per basic and diluted share, compared to a net loss of $2.0 million, or $0.12 per basic and diluted share for the year ended December 31, 2008.
As of December 31, 2009, the Company had approximately $30.9 million in cash, liquid investments, and short term deposits.
Commenting on the results, Meir Lipshes, Chairman and CEO of TTI Telecom, stated, "Looking at 2010, we rely on the overall anticipation of a gradual recovery in capital spending. We believe that there are many opportunities for sustainable growth. However, we do expect our customers to still remain cautious and we also expect them to continue seeking high value, low TCO, and fast ROI. We believe that our investments in the LTE domain, the awareness of customers changed decision making practices and the still effective cautious financial management of TTI's operations will all bolster TTI in its goal to be a preferred choice for customers and hence TTI's market position."
Conference Call Information:
Management will host a conference call on February 24, 2010, 9:00am 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: 56356365. 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 56356365. The recording will be available from: 02/24/2010 12:30 to 03/03/2010 23:59. Additionally, a recording of the call will be available, 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) | ||||||
|
Year ended December 31, |
Three months ended December 31, | |||||
| 2008 | 2009 | 2008 | 2009 | |||
| Revenues | ||||||
| Product | 29,101 | 22,741 | 5,593 | 5,737 | ||
| Services | 21,232 | 19,794 | 5,659 | 4,999 | ||
| Total revenues | 50,333 | 42,535 | 11,252 | 10,736 | ||
| Cost of revenues: | ||||||
| Product | 15,627 | 13,473 | 3,449 | 3,712 | ||
| Services | 7,627 | 6,141 | 1,836 | 1,487 | ||
| Total cost of revenues | 23,254 | 19,614 | 5,285 | 5,199 | ||
| Gross profit | 27,079 | 22,921 | 5,967 | 5,537 | ||
| Operating expenses: | ||||||
| Research and development | 11,407 | 7,478 | 2,736 | 1,635 | ||
| Sales and marketing | 9,883 | 7,994 | 2,274 | 2,013 | ||
| General and administrative | 5,843 | 4,899 | 1,107 | 1,323 | ||
| Total operating expenses | 27,133 | 20,371 | 6,117 | 4,971 | ||
| Operating income (loss) | (54) | 2,550 | (150) | 566 | ||
| Financial income (loss), net | (554) | 522 | (440) | (606) | ||
| Income (loss) before taxes on income | (608) | 3,072 | (590) | (40) | ||
| Taxes on income | 371 | 79 | 85 | (55) | ||
| Income from continuing operations | (979) | 2,993 | (675) | 15 | ||
| Income (loss) from discontinued operations | (1,022) | (314) | (1,445) | 0 | ||
| Net Income | (2,001) | 2,679 | (2,120) | 15 | ||
| Net income attributed to preferred shares from continuing and discontinued operation | 0 | 464 | 0 | 2 | ||
| Net income (loss) attributed to ordinary shares from continuing operation | (979) | 2,529 | (675) | 13 | ||
| Net loss attributed to ordinary shares from discontinued operation | (1,022) | (314) | (1,445) | 0 | ||
|
Basic and diluted income (loss) per share attributable to Ordinary shareholders |
||||||
| From continuing operations | (0.06) | 0.16 | (0.04) | 0.00 | ||
| From discontinued operations | (0.06) | (0.02) | (0.09) | 0.00 | ||
| Net income per share | (0.12) | 0.14 | (0.13) | 0.00 | ||
| 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 | ||||
| (in thousands of U.S dollars) | ||||
|
December 31, 2008 |
December 31, 2009 |
|||
| ASSETS | ||||
| CURRENT ASSETS: | ||||
| Cash and cash equivalents | 24,921 | 22,980 | ||
| Short term deposits | 0 | 7,887 | ||
| Trade receivables | 9,790 | 7,904 | ||
| Unbilled receivables | 3,093 | 1,630 | ||
| Related parties | 459 | 529 | ||
| Other accounts receivable and prepaid expenses | 2,150 | 2,295 | ||
| Current assets of discontinued operations | 958 | 0 | ||
| Total current assets | 41,371 | 43,225 | ||
| LONG-TERM INVESTMENTS: | ||||
| Investment in affiliate | 165 | 165 | ||
| Severance pay fund | 3,836 | 4,229 | ||
| Total long-term investments | 4,001 | 4,394 | ||
| PROPERTY AND EQUIPMENT | ||||
| Cost | 25,771 | 18,458 | ||
| Less - accumulated depreciation | 18,572 | 12,594 | ||
| Property and equipment, net | 7,199 | 5,864 | ||
| Total Assets | 52,571 | 53,483 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES: | ||||
| Trade payables | 2,187 | 1,594 | ||
| Related parties | 420 | 194 | ||
| Deferred revenues | 3,648 | 3,368 | ||
| Other accounts payable and accrued expenses | 6,040 | 6,603 | ||
| Liabilities of discontinued operations | 844 | 0 | ||
| Total current liabilities | 13,139 | 11,759 | ||
| ACCRUED SEVERANCE PAY | 6,412 | 6,279 | ||
| Long term liability | 1,372 | 1,141 | ||
| SHAREHOLDERS' EQUITY: | ||||
| Share capital | 2,595 | 2,595 | ||
| Additional paid-in capital | 75,251 | 75,278 | ||
| Retained earnings (Accumulated deficit) | (46,198) | (43,569) | ||
| Total liabilities and shareholders' equity | 31,648 | 34,304 | ||
| 52,571 | 53,483 | |||