Contact Information: For more information please contact: Andrea Dray MIND CTI Ltd. Tel: 1-888-270-4056 Email Contact
MIND CTI Announces Improved Cash Liquidity
Steps Towards Dividend Distribution
| Source: MIND CTI Ltd.
YOQNEAM, ISRAEL -- (MARKET WIRE) -- December 6, 2006 -- MIND CTI Ltd. (NASDAQ : MNDO ), a leading
provider of convergent end-to-end billing and customer care product based
solutions for tier 2 and tier 3 carriers worldwide, today announced that on
November 20, 2006 all of the Company's funds became liquid and are now
invested in risk-free bank deposits and AAA bonds.
In June 2006, we announced a change in our cash management policy and that
we have withdrawn two deposits of $10 M each and converted them into highly
liquid bank deposits. The remaining $10 million deposit was placed in
November 2004, for a period of up to ten-years, callable by the bank every
six months, with interest dependant on LIBOR daily values. Due to the
increase in the six-month LIBOR, since May 20, 2005 this deposit has not
earned any interest. On November 20, 2006 the last $10 million deposit was
called and no financial expense was incurred. In accordance with our
existing cash management policy all of our funds are invested in risk-free
bank deposits and AAA bonds bearing interest.
"We intend to increase our marketing and sales activities in 2007, as we
see more opportunities in the Americas and Europe. Our strong cash position
and our positive operating cash flow enable us to increase the investment
required to support the long-term expected internal growth. At the same
time we believe that our dividend policy enhances shareholders value,"
stated Monica Eisinger, Chairperson and CEO.
In July 2003, the Board of Directors had adopted our dividend policy. We
have since distributed cash dividends four times and we intend to continue
to distribute dividends based on factors that include our cash position and
our activities.
On October 30, 2006 the Board of Directors resolved that the Company should
seek the court approval formally required in order to enable a distribution
for the year 2006, in an amount similar to previous years. Under Israeli
law, a company with insufficient retained earnings is required to obtain
approval from the court for such a distribution in order to ensure that the
Company's creditors are not harmed by the action. The Company filed an
application to approve future distributions of up to $ 8 million and we
expect to obtain such court approval within six to eight weeks, although
there is no guarantee that such approval will not be delayed or denied.
Prior to paying any dividend, which is still subject to specific Board
approval, the Company will issue a press release announcing the exact
dividend amount, record date and distribution date.
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 seven years of a wireless operational solution to carriers.
A global company, MIND operates from offices in Europe, Israel and the
United States. MIND employs over 300 IT professionals and serves 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.