ROSH HA'AYIN, Israel, May 25, 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 the results of the first quarter ending on March 31, 2010.
Total revenues for the first quarter were $10.5 million, compared to $10.8 million in the first quarter of 2009, and $10.7 million in the fourth quarter of 2009. Total operating expenses were $4.8 million, compared to $5.2 million in the first quarter of 2009 and $5 million in the fourth quarter of 2009.
Operating income for the quarter was $291 thousand compared to an operating income of $596 thousand for the first quarter of 2009 and an operating income of $566 thousand in the fourth quarter of 2009. Net loss was $192 thousand, or $0.01 per basic and diluted share, compared to a net income of $466 thousand, or $0.02 per basic and diluted share in the first quarter of 2009 and a net income of $15 thousand, or $0.00 per basic and diluted share in the fourth quarter of 2009.
The increase in financial expenses this quarter can be mainly explained by the weakening Euro compared to the American dollar.
As of March 31, 2010, the Company had approximately 31 million dollars in cash and cash equivalents.
Commenting on the results of the quarter, Meir Lipshes, Chairman and CEO of TTI Telecom, said, "Solutions wise, we have stabilized our LTE team and are working vigorously to create our LTE solution, to present its demo to customers and to ensure its fast integration with LTE networks. Financially, we are cautiously balancing between the required future investments and the need to still keep our expenses tightly controlled."
Conference Call Information:
Management will host a conference call on May 25, 9:00 a.m. 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) 2290736 in the U.S., or (706) 679-0692 internationally. Participants will be asked to provide the following access code: 74834104. 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 74834104. The recording will be available from: 05/25/2010 12:30 to 06/01/2010 23:59. Additionally, a recording of the call will be available, twelve hours after the call's completion, 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) | ||
|
Three Months Ended March 31, |
||
| 2009 | 2010 | |
| Unaudited | ||
| Revenues | ||
| Product | 5,452 | 5,472 |
| Services | 5,362 | 5,051 |
| Total revenues | 10,814 | 10,523 |
| Cost of revenues: | ||
| Product | 3,383 | 3,851 |
| Services | 1,666 | 1,573 |
| Total cost of revenues | 5,049 | 5,424 |
| Gross profit | 5,765 | 5,099 |
| Operating expenses: | ||
| Research and development | 2,086 | 1,433 |
| Sales and marketing | 2,039 | 2,270 |
| General and administrative | 1,044 | 1,105 |
| Total operating expenses | 5,169 | 4,808 |
| Operating income | 596 | 291 |
| Financial expenses, net | 37 | 370 |
| Income (loss) before taxes on income | 559 | (79) |
| Taxes on income | 46 | 113 |
| Income (loss) from continuing operations | 513 | (192) |
| Loss from discontinued operations | (47) | 0 |
| Net Income (loss) | 466 | (192) |
|
Net income attributed to preferred shares from continuing and discontinued operation |
80 | 0 |
| Net income (loss) attributed to ordinary shares from continuing operation | 433 | (192) |
| Net loss attributed to ordinary shares from discontinued operation | (47) | 0 |
|
Basic and diluted income (loss) per share attributable to Ordinary shareholders |
||
| From continuing operations | 0.02 | (0.01) |
| From discontinued operations | 0.00 | 0.00 |
| Net income (loss) per share | 0.02 | (0.01) |
|
Weighted average number of shares used for computing net income per share to ordinary shareholders-Basic and Diluted |
16,003,158 | 16,093,663 |
| TTI TEAM TELECOM INTERNATIONAL LTD. | ||
| CONSOLIDATED BALANCE SHEET | ||
| (in thousands of U.S dollars) | ||
|
December 31, 2009 |
March 31, 2010 |
|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | 22,980 | 25,939 |
| Short term deposits | 7,887 | 100 |
| Trade receivables | 7,904 | 6,830 |
| Unbilled receivables | 1,630 | 2,524 |
| Related parties | 529 | 535 |
| Other accounts receivable and prepaid expenses | 2,296 | 3,301 |
| Total current assets | 43,226 | 39,229 |
| LONG-TERM INVESTMENTS AND RECEIVABLES: | ||
| Marketable Securities | 0 | 4,912 |
| Investment in affiliate | 165 | 165 |
| Severance pay fund | 4,229 | 4,404 |
| Total long-term investments | 4,394 | 9,481 |
| PROPERTY AND EQUIPMENT | ||
| Cost | 18,458 | 18,195 |
| Less - accumulated depreciation | 12,594 | 12,521 |
| Property and equipment, net | 5,864 | 5,674 |
| Total assets | 53,484 | 54,384 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Trade payables | 1,594 | 1,868 |
| Related parties | 194 | 445 |
| Deferred revenues | 3,368 | 3,647 |
| Other accounts payable and accrued expenses | 5,957 | 6,602 |
| Total current liabilities | 11,113 | 12,562 |
| ACCRUED SEVERANCE PAY | 6,279 | 6,613 |
| Long term liability | 1,788 | 1,093 |
| SHAREHOLDERS' EQUITY: | ||
| Share capital | 2,595 | 2,595 |
| Additional paid-in capital | 75,278 | 75,286 |
| Accumulated other comprehensive loss | 0 | (4) |
| Accumulated deficit | (43,569) | (43,761) |
| Total shareholders' equity | 34,304 | 34,116 |
| 53,484 | 54,384 | |