YOQNEAM, ISRAEL -- (Marketwire) -- 11/02/11 -- MIND C.T.I. LTD. (NASDAQ: MNDO), a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as telecom expense management (enterprise call accounting) solutions, today announced results for the third quarter of 2011.
Financial Highlights
- Revenues were $4.63 million, compared with $4.71 million in the third quarter of 2010 and $4.55 million in the second quarter of 2011.
- Operating income was $992 thousand, or 21.4 % of revenue, compared with $298 thousand (after a non-cash impairment of $993 thousand) in the third quarter of 2010.
- Net income was $891 thousand or $0.05 per share, compared with $356 thousand in the third quarter of 2010.
- Cash flow from operating activities was $310 thousand.
- One new customer and multiple follow-on orders.
- Cash position of $17.6 million on September 30, 2011.
Revenue Distribution for Q3 2011
Sales in the Americas represented 49.5 % and sales in Europe represented 36.0 % of total revenue and the rest divided between Israel, Africa and Asia-Pacific.
Revenue from customer care and billing software totaled $3.57 million, while revenue from enterprise call accounting software was $1.06 million.
New Win & Follow-on Orders
The new win is with an Israeli MVNO that is expected to offer cellular services in Israel's communication market starting 2012. MIND will supply a complete MVNO-in-a-box solution, including the platform required as well as all the integration and implementation services.
MIND's existing satisfied customers initiate each quarter follow-on orders mainly for support of new business models or additional functionality and we proudly announce multiple such orders this quarter as well.
Monica Iancu, Chairperson and CEO, commented: "We are excited to have been selected for the second time by an Israeli MVNO (mobile virtual network operator). We believe that this win after a long selection process was mainly based on our proven delivery execution. We expect to complete this project on time and within budget, just as we did with our previous implementations."
AGM Update
MIND's Annual General Meeting was held on Tuesday, September 27, 2011. The Board of Directors approved all of the proposals.
Dividend Update
In July 2003, our board of directors adopted our dividend policy and in October 2010 our board of directors updated this policy slightly. Under the existing policy, subject to specific board approval and applicable law, we declare a dividend distribution once per year, the amount being equal to our EBITDA plus financial income (expenses) minus taxes on income. Since 2003, we have distributed yearly dividends eight times, as well as one special dividend of $0.80 per share, distributed in December 2009, with an aggregated amount of approximately $2.37 per share. We intend to continue to distribute cash dividends based on factors that include our cash position and activities.
In the last years, we needed to receive court approval formally required in order to enable a distribution since under Israeli law, a company with insufficient retained earnings is required to obtain approval from the court for such a cash distribution. Since we believe that by the end of 2011 we will have sufficient earnings to enable an additional dividend distribution, we expect to declare the 2011 dividend in February 2012, without the need for Court approval.
Conference Call Information
MIND will host a conference call on November 3, 2011 at 8:30 a.m., Eastern Time, to discuss the Company's third quarter 2011 results and other financial and business information. The call will be carried live on the Internet via www.earnings.com and the MIND website, www.mindcti.com. For those unable to listen to the live web cast, a replay will be available.
Full financial results can be found in the Investors section www.mindcti.com/investor/PressReleases.asp and in our Form 6-K as well.
About MIND
MIND CTI Ltd. is a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as telecom expense management (call accounting) solutions. MIND provides a complete range of billing applications for any business model (license, managed service or complete outsourced billing service) for Wireless, Wireline, VoIP and Quad-play carriers in more than 40 countries around the world. A global company, with over twelve years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, UK, Romania and Israel.
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.
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For more information please contact:
Andrea Dray
MIND CTI Ltd.
Tel: +972-4-993-6666
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