YOQNEAM, ISRAEL -- (Marketwire) -- 02/29/12 -- 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 fourth quarter and year ended December 31, 2011.
MIND also announced today that its 2012 Annual General Meeting of Shareholders will be held on April 10, 2012, at 10:00 A.M. (Israel time), at the offices of the Company, Industrial Park, Building 7, Yoqneam 20692, Israel.
Shareholders of record at the close of business on March 9, 2012 are entitled to vote at the Meeting. All shareholders are cordially invited to attend the Meeting in person. Proxy statements and proxy cards for use by shareholders that cannot attend the meeting in person will be sent by mail.
The agenda of the meeting is as follows:
(i) to re-appoint Brightman Almagor Zohar & Co., certified public accountants in Israel and a member of Deloitte Touche Tohmatsu, as the Company's independent auditors, until the close of next year's Annual General Meeting, and to authorize the Board of Directors of the Company to determine its remuneration or to delegate the Audit Committee thereof to do so; and
(ii) to approve the service of Monica Iancu as both (i) President and CEO and (ii) Chairperson of the Board of Directors of the Company, for a period of up to three (3) years; and
(iii) to discuss the Company's audited financial statements for the year ended December 31, 2011.
Approval of the matter in paragraph (i) above requires the affirmative vote of a majority of the ordinary shares present in person or by proxy and voting on the matter.
Approval of the matter in paragraph (ii) above requires the affirmative vote of the holders of a majority of the ordinary shares present, in person or by proxy or written ballot, and voting on the matter, which affirmative vote must include at least two-thirds of the votes cast by non-controlling shareholders (if any) and by shareholders who do not have a personal interest in the matter (if any); or, alternatively, the total shareholdings of the votes cast against the proposal, by non-controlling shareholders and by shareholders who do not have a personal interest in the matter, does not exceed two percent of the total voting rights in the Company.
Financial Highlights of Q4 2011
- Revenues of close to $5.3 million, compared with $5.0 million in the fourth quarter of 2010.
- Operating income was $1.2 million, compared with operating income of $1.8 million in the fourth quarter of 2010.
- Net income of $1.3 million or $0.07 per share, compared with net income of $1.9 million or $0.10 per share in the fourth quarter of 2010.
- Two new wins.
Year 2011 Financial Highlights
- Revenues of $18.9 million, compared with $19.9 million in 2010.
- Operating income was $3.9 million, or 21 % of revenue, compared with $5 million, or 25 % of revenue, in 2010.
- Net income of $4.3 million, or $0.23 per share, compared with $4.9 million, or $0.26 per share in 2010.
- Cash flow from operating activities was $4.4 million.
- Cash position of approximately $19 million as of December 31, 2011
- Five new wins and multiple upgrades.
Monica Iancu, Chairperson and CEO, commented: "We had a strong quarter, with two new wins and progress with some of our prospects and existing customers. We plan to increase the company size in the first half of 2012 to support the new projects and the multiple requests of engineering resources we receive from our growing customer base. We expect the latest important wins to have a positive impact on our 2012 results. At the same time, mainly due to consolidation of platforms at large existing customers where we supplied niche solutions, some maintenance agreements will not be renewed in 2012 and we expect that will bear some negative impact on our 2012 revenues and profitability. We feel that we reached many of our targets -- very high visibility, increased average deal size, significant recurrent revenue and fully convergent technology. We believe that now, with our highly qualified team, our proven methodology and technology we can aim to the next long term target -- internal growth."
Revenue Distribution for Q4 2011
Sales in the Americas represented 51.7 % and sales in Europe represented 32.0 % of total revenue.
Revenue from our customer care and billing software totaled $4.2 million, while revenue from our enterprise call accounting software was $1.1 million. Revenue from licenses was $1.6 million, or 31.0 % of total revenue, while revenue from maintenance and additional services was $3.7 million, or 69.0 %.
Revenue Distribution for Full Year 2011
Sales in the Americas represented 50.0 % and sales in Europe represented 35.3 % of total revenue.
Revenue from our customer care and billing software totaled $14.8 million, while revenue from our enterprise call accounting software was $4.1 million. Revenue from licenses was $5.2 million, or 27.2 % of total revenue, while revenue from maintenance and additional services was $13.7 million, or 72.8 %.
New Wins & Follow-on Orders
The two new wins are with rural telephone carriers based in the United States. One carrier chose MIND to supply the proven fully convergent postpaid & prepaid MIND platform, to support wireless (both CDMA and LTE infrastructure), wireline, Broadband and IPTV services. The other selected MIND to replace its existing postpaid solution in order to better support the carrier's wireless services (over a CDMA network).
Similar to other quarters we also received follow-on orders from existing customers.
Based on our dividend policy and taking into consideration the strong cash flow in 2011 and the remaining cash after the distribution, the Board declared on February 29, 2012 a cash dividend of $0.24 per share before withholding tax.
"Given our strong cash position ($19 million as of December 31, 2011) and our long-standing positive operating cash flow, we believe that our dividend policy enhances shareholders value and that we are well positioned and have the required resources to respond to potentially increasing market needs," stated Monica.
The record date for the dividend will be March 14, 2012 and the payment date will be March 28, 2012. Tax will be withheld at a rate of 25 %.
Conference Call Information
MIND will host a conference call on March 1, 2012 at 9:30 a.m., Eastern Time, to discuss the Company's fourth quarter and full year 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.
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 thirteen 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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MIND CTI Ltd.