ROSH HA'AYIN, Israel, Nov. 12, 2008 (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 third quarter ended September 30, 2008.
Total revenues for the third quarter were $13.2 million, compared with $11.7 million in the third quarter of 2007, and $14.3 million for the second quarter of 2008. Total operating expenses were $7.1 million, compared to $6.0 million in the third quarter of 2007 and $7.5 million in the second quarter of 2008.
Operating loss for the quarter was $419,000 compared with operating income of $437,000 for the third quarter last year and operating income of $531,000 in the second quarter of 2008. Net loss was of $1 million or $0.05 dollar per basic and diluted share, compared to a net income of $1 million or $0.05 dollar per basic share and diluted share, in the third quarter of 2007 and net income of $260,000 or $0.01 dollar per basic and diluted share, for the second quarter of 2008.
Total Revenues for the nine months ended September 30, 2008 were $40.6 million, compared to $33.7 million in the nine months ended September 30, 2007. Total operating expenses for the period were $21.3 million, compared to $18.1 million in the first nine months of 2007.
Operating income for the nine months ended September 30, 2008 was $585,000 compared with operating income of $62,000 in the comparable period in 2007. Net income was $119,000 or $0.01 dollar per basic and diluted share, compared to net income of $1.8 million or $0.10 dollar per basic and diluted share for the first nine months of 2007.
As of September 30, 2008, the Company had approximately $25.6 million in cash and liquid investments.
Commenting on this quarter's results, Meir Lipshes, CEO of TTI, said "The global economic slowdown is affecting TTI Telecom. We see a notable deceleration in the pace of decision making processes at customers' sites."
Mr. Lipshes continued saying, "We are taking precautionary steps to adjust our operating expenses on one side while pushing to keep a positive pipeline on the other side."
Conference Call Information:
A conference call has been scheduled for 9:00am EST today, November 12, 2008, during which management will discuss the Company's performance for the quarter. To access the call, please dial (888) 694-4739 (International dialers can call (973) 582-2749) and giving the access code: 72646377. The call can be accessed via live webcast through the Investor Relations section of the TTI Telecom web site, www.tti-telecom.com and at www.kcsa.com. A telephone replay of the call will also be available starting after the call at 10:00 a.m. EST until 11:59pm EST on, December 12, 2008. To access the replay, please dial (800) 642-1687 (International dialers can call (706) 645-9291), participant code: 72646377. The webcast of the conference call will be archived on the TTI Telecom and KCSA web sites for 30 days.
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)
Nine Months ended Three Months ended
----------------- ------------------
September 30, September 30,
------------- -------------
2007 2008 2007 2008
---- ---- ---- ----
Unaudited Unaudited
--------- ---------
Revenues
Product 18,718 26,382 6,367 8,954
Services 15,005 14,179 5,374 4,274
---------- ---------- ---------- ----------
Total revenues 33,723 40,561 11,741 13,228
---------- ---------- ---------- ----------
Cost of revenues:
Product 9,150 12,704 3,225 4,466
Services 6,405 5,958 2,062 2,113
---------- ---------- ---------- ----------
Total cost of revenues 15,555 18,662 5,287 6,579
---------- ---------- ---------- ----------
Gross profit 18,168 21,899 6,454 6,649
---------- ---------- ---------- ----------
Operating expenses:
Research and
development 6,788 8,671 2,443 2,721
Sales and marketing 5,567 7,688 2,064 2,708
General and
administrative 5,751 4,955 1,510 1,639
---------- ---------- ---------- ----------
Total operating
expenses 18,106 21,314 6,017 7,068
---------- ---------- ---------- ----------
Operating income (loss) 62 585 437 (419)
Financial income
(loss), net 1,559 (152) 540 (535)
Other income 33 -- -- --
---------- ---------- ---------- ----------
Income before taxes on
income 1,654 433 977 (954)
Taxes on income (175) 314 (38) 60
---------- ---------- ---------- ----------
Net income (loss) 1,829 119 1,015 (1,014)
========== ========== ========== ==========
Net income (loss)
attributed to
preferred shares 284 18 157 --
========== ========== ========== ==========
Net income (loss)
available to ordinary
shares 1,545 101 858 (1,014)
========== ========== ========== ==========
Basic income (loss)
per share attributable
to Ordinary
shareholders 0.10 0.01 0.05 (0.05)
========== ========== ========== ==========
Diluted income (loss)
per share attributable
to Ordinary
shareholders 0.10 0.01 0.05 (0.05)
========== ========== ========== ==========
Weighted average number
of shares used for
computing net income
per share to ordinary
shareholders
Basic 16,000,481 16,003,158 16,000,579 16,003,158
========== ========== ========== ==========
Diluted 16,164,073 16,003,158 16,286,891 16,003,158
========== ========== ========== ==========
TTI TEAM TELECOM INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEET
---------------------------------------------------------------------
(in thousands of U.S dollars)
December 31, September 30,
------------ -------------
2007 2008
---- ----
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 33,408 25,605
Short term deposits 98 --
Trade receivables 8,185 9,739
Unbilled receivables 3,155 4,545
Related parties 409 686
Other accounts receivable and prepaid
expenses 3,192 2,045
------------ ------------
Total current assets 48,447 42,620
------------ ------------
LONG-TERM INVESTMENTS:
Investment in affiliate 165 165
Severance pay fund 3,937 4,821
------------ ------------
Total long-term investments 4,102 4,986
------------ ------------
PROPERTY AND EQUIPMENT
Cost 26,612 28,902
Less - accumulated depreciation 20,567 21,365
------------ ------------
Property and equipment, net 6,045 7,537
------------ ------------
Other Intangible Assets -- 259
------------ ------------
Goodwill -- 1,150
------------ ------------
Total Assets 58,594 56,552
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables 2,364 2,817
Related parties 3,932 --
Deferred revenues 4,666 4,619
Other accounts payable and accrued expenses 6,966 6,570
------------ ------------
Total current liabilities 17,928 14,006
------------ ------------
ACCRUED SEVERANCE PAY 5,651 7,123
------------ ------------
Long term liability 1,579 1,774
------------ ------------
SHAREHOLDERS' EQUITY:
Share capital 2,595 2,595
Additional paid-in capital 75,038 75,132
Accumulated deficit (44,197) (44,078)
------------ ------------
Total shareholders' equity 33,436 33,649
------------ ------------
Total liabilities and shareholders' equity 58,594 56,552
============ ============