-- Revenues of $4.05 million, compared with $5.07 million in the second
quarter of 2006.
-- Operating income was $211 thousand, or 5% of revenue, excluding
amortization of intangible assets of $102 thousand and equity-based
compensation expense of $67 thousand.
-- GAAP operating income was $42 thousand, or 1% of revenue.
-- Net income was $677 thousand or $0.03 per share, excluding
amortization of intangible assets of $102 thousand and equity-based
compensation expense of $67 thousand.
-- GAAP net income was $508 thousand, or $0.02 per share compared with
GAAP net loss of $492 thousand or $0.02 per share in the second quarter of
2006.
-- Cash flow from operating activities in Q2 2007 was $1.34 million.
Six Months Highlights
-- Revenues of $8.86 million, compared with $10.33 million in the first
six months of 2006.
-- Net income was $2.01 million or $0.09 per share, excluding
amortization of intangible assets of $218 thousand and equity-based
compensation expense of $131 thousand.
-- GAAP net income was $1.66 million, or $0.08 per share compared with
GAAP net income of $162 thousand or $0.01 per share in the first six months
of 2006.
-- Cash flow from operating activities in first six months of 2007 was
$2.20 million.
-- Cash position of approximately $35.5 million on June 30, 2007.
Monica Eisinger, Chairperson and CEO, commented: "Although in the first
half of 2007 we experienced a decline in our revenues, we succeeded in
managing our expenses accordingly and we generated over $2 million in cash
flow from our operations. While the results reflect the effect of delayed
decisions and long sales cycles, we operate in a very active market that
shows continuous demand for our products and services. The strong install
base and the long-term relationships with our customers continue to
represent the majority of our revenue and are the basis for future revenue
stream. We are pleased to announce a new win this quarter, a Pan-European
IP services carrier to whom we will provide a complete customer care and
billing solution. We expect to see new wins in the following quarters and
we expect to increase our profitability as well."
Revenue Distribution for Q2 2007
Sales in the Americas represented 43% and sales in Europe represented 38%
of total revenue. Revenue from our customer care and billing software
totaled $3.13 million, while revenue from our enterprise call management
software was $915 thousand. The revenue breakdown from our business lines
of products was $1.13 million, or 28% from licenses, $1.74 million, or 43%
from maintenance and $1.18 million, or 29% from services.
Conference Call Information
MIND will host a conference call on August 8, 2007 at 8:30 a.m., Eastern
Time, to discuss the Company's second quarter 2007 results and other
financial and business information. The call will be carried live on the
Internet via www.fulldisclosure.com and the MIND website, www.mindcti.com.
For those unable to listen to the live web cast, a replay will be
available.
About MIND
MIND CTI Ltd. is a leading provider of convergent prepaid and postpaid
end-to-end billing and customer care solutions for VoIP, Mobile, Wireline
and Quad-play carriers worldwide. Since 1997 MIND has been a pioneer in
enabling the VoIP technology for emerging and incumbent service providers.
In August 2005 MIND acquired Sentori, Inc., a US based provider of customer
care and billing solutions to wireless carriers and mobile virtual network
operators (MVNOs). Sentori, Inc. brings over ten years of wireless
experience and eight years of a wireless operational solution to carriers.
A global company, MIND operates from offices in Europe, Israel and the
United States, serving customers in more than 40 countries around the
world. For financial information, reports and presentations, please visit
the Investor Relations site: http://www.mindcti.com/ir
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the
Private Securities Litigation Reform Act of 1995: All statements other than
historical facts included in the foregoing press release regarding the
Company's business strategy are "forward-looking statements." These
statements are based on management's beliefs and assumptions and on
information currently available to management. Forward-looking statements
are not guarantees of future performance, and actual results may materially
differ. The forward-looking statements involve risks, uncertainties, and
assumptions, including the risks discussed in the Company's filings with
the United States Securities Exchange Commission. The Company does not
undertake to update any forward-looking information.
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30
---------------------- December 31,
2007 2006 2006
---------- ---------- ----------
(Unaudited) (Audited)
---------------------- ----------
U.S. $ in thousands
----------------------------------
Assets
CURRENT ASSETS:
Cash and cash equivalents $ 25,484 $ 25,694 $ 27,571
Accounts receivable:
Trade 4,672 4,882 5,385
Other 368 948 231
Deferred income taxes 148 8 154
Inventories 35 30 35
---------- ---------- ----------
Total current assets 30,707 31,562 33,376
INVESTMENTS AND OTHER NON CURRENT
ASSETS:
Marketable debentures 10,000 10,000
Long term bank deposit 10,000
Other 908 746 1,003
PROPERTY AND EQUIPMENT, net of
accumulated depreciation 1,393 1,910 1,558
INTANGIBLE ASSETS, net of accumulated
amortization 670 1,160 888
GOODWILL 6,966 6,966 6,966
---------- ---------- ----------
Total assets $ 50,644 $ 52,344 $ 53,791
========== ========== ==========
Liabilities and shareholders equity
CURRENT LIABILITIES:
Accounts payable and accruals:
Trade $ 440 $ 699 $ 464
Other 1,611 1,584 2,509
Deferred revenues 1,339 1,412 1,236
Advances from customers 366 342 241
---------- ---------- ----------
Total current liabilities 3,756 4,037 4,450
EMPLOYEE RIGHTS UPON RETIREMENT 1,466 1,397 1,482
---------- ---------- ----------
Total liabilities 5,222 5,434 5,932
---------- ---------- ----------
SHAREHOLDERS' EQUITY:
Share capital 54 53 54
Additional paid-in capital 59,638 59,510 59,547
Capital surplus 456 161 325
Accumulated deficit (14,726) (12,814) (12,067)
---------- ---------- ----------
Total shareholders' equity 45,422 46,910 47,859
---------- ---------- ----------
Total liabilities and shareholders'
equity $ 50,644 $ 52,344 $ 53,791
========== ========== ==========
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Six months Three months Year ended
ended June 30 ended June 30 December 31,
-------------------- --------------------
2007 2006 2007 2006 2006
---------- --------- ---------- --------- ---------
(Unaudited) (Unaudited) (Audited)
-------------------- -------------------- ---------
U.S. $ in thousands (except per share data)
-----------------------------------------------------
REVENUES $ 8,856 $ 10,326 $ 4,049 $ 5,074 $ 20,060
COST OF REVENUES 2,620 3,090 1,275 1,492 5,675
---------- --------- ---------- --------- ---------
GROSS PROFIT 6,236 7,236 2,774 3,582 14,385
RESEARCH AND
DEVELOPMENT EXPENSES 2,782 3,326 1,366 1,588 6,118
SELLING AND
MARKETING EXPENSES 1,922 1,867 987 885 3,628
GENERAL AND
ADMINISTRATIVE
EXPENSES 822 758 379 399 2,135
---------- --------- ---------- --------- ---------
OPERATING INCOME 710 1,285 42 710 2,504
FINANCIAL INCOME
(EXPENSES) - net 988 *(1,053) 484 *(1,178) *(222)
---------- --------- ---------- --------- ---------
INCOME (LOSS) BEFORE
TAXES ON INCOME 1,698 232 526 (468) 2,282
TAXES ON INCOME 39 70 18 24 1,373
---------- --------- ---------- --------- ---------
NET INCOME (LOSS) $ 1,659 $ 162 $ 508 $ (492) $ 909
========== ========= ========== ========= =========
EARNING (LOSS) PER
SHARE:
Basic and diluted $ 0.08 $ 0.01 $ 0.02 $ (0.02) $ 0.04
========== ========= ========== ========= =========
WEIGHTED AVERAGE
NUMBER OF ORDINARY
SHARES USED IN
COMPUTATION OF
EARNINGS PER
ORDINARY SHARE -
IN THOUSANDS:
Basic 21,578 21,500 21,590 21,528 21,515
========== ========= ========== ========= =========
Diluted 21,591 21,565 21,606 21,577 21,546
========== ========= ========== ========= =========
* Financial expenses for the 6 and 3 month periods ended June 30, 2006 and
for the year ended December 31, 2006 include a loss from a premature
withdrawal of long-term bank deposits in the amount of $1,330,000.
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months Three months Year ended
ended June 30 ended June 30 December 31,
-------------------- --------------------
2007 2006 2007 2006 2006
--------- --------- --------- --------- ---------
(Unaudited) (Unaudited) (Audited)
-------------------- -------------------- ---------
U.S. $ in thousands
-----------------------------------------------------
CASH FLOWS FROM
OPERATING
ACTIVITIES:
Net income (loss) $ 1,659 $ 162 $ 508 $ (492) $ 909
Adjustments to
reconcile net
income (loss) to
net cash provided
by (used in)
operating activities:
Depreciation and
amortization 464 815 219 329 1,391
Deferred income
taxes, net 68 66 (293)
Accrued severance
pay (16) 94 (32) (8) 176
Capital loss (gain)
on sale of property
and equipment - net 8 (8) 2 (4) (3)
Employees share
based compensation
expenses 131 161 67 84 325
Changes in operating
asset and liability
items:
Decrease (increase)
in accounts
receivable:
Trade 713 (1,493) 1,147 309 (1,996)
Interest accrued on
marketable
debentures 2 137 (37)
Other (139) (217) 26 27 537
Increase in
inventories (5)
Increase (decrease)
in accounts payable
and accruals:
Trade (24) 13 (63) (90) (222)
Other (898) (157) (293) (161) 768
Increase (decrease)
in deferred
revenues 103 (232) (567) (487) (408)
Increase (decrease)
in advances from
customers, net 125 (448) 125 (233) (549)
--------- --------- --------- --------- ---------
Net cash provided
by (used in)
operating
activities 2,196 (1,310) 1,342 (726) 593
--------- --------- --------- --------- ---------
CASH FLOWS FROM
INVESTING ACTIVITIES:
Purchase of property
and equipment (167) (296) (33) (122) (379)
Amounts withdrawal
(funded) in respect
of accrued
severance pay 33 (12) 25 (15) (119)
Acquisition of
marketable
debentures held-to-
maturity (10,000)
Withdrawal of
long-term bank
deposits 20,000 20,000 30,000
Proceeds from sale
of property and
equipment 78 36 68 7 162
--------- --------- --------- --------- ---------
Net cash provided
by (used in)
investing
activities (56) 19,728 60 19,870 19,664
--------- --------- --------- --------- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Employee stock
options exercised
and paid 91 111 10 51 149
Dividend paid (4,318) (3,009) (736) (406) (3,009)
--------- --------- --------- --------- ---------
Net cash used
in financing
activities (4,227) (2,898) (726) (355) (2,860)
--------- --------- --------- --------- ---------
INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS (2,087) 15,520 676 18,789 17,397
BALANCE OF CASH AND
CASH EQUIVALENTS AT
BEGINNING OF PERIOD 27,571 10,174 24,808 6,905 10,174
--------- --------- --------- --------- ---------
BALANCE OF CASH AND
CASH EQUIVALENTS
AT END OF PERIOD $ 25,484 $ 25,694 $ 25,484 $ 25,694 $ 27,571
========= ========= ========= ========= =========
SUPPLEMENTAL DISCLOSURE
OF CASH FLOW AND NON
CASH ACTIVITIES
Cash paid during the
year for income tax $ 853 $ 22 $ 6 $ 12 $ 39
========= ========= ========= ========= =========
Contact Information: For more information please contact: Andrea Dray MIND CTI Ltd. Tel: +972-4-993-6666