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| Press Release - April 19, 2004 |
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Yoqneam, Israel, April 19, 2004 MIND CTI Exceeds Guidance on First Quarter Revenue and Earnings * Sequential revenue growth of 10% * Operating income margin of 15% Key Highlights MIND C.T.I. LTD. (NASDAQ: MNDO), a leading global provider of real-time mediation, rating, billing and customer care solutions for pre-paid and post-paid voice, data and content, today announced results for the first quarter ended March 31, 2004. Monica Eisinger, President and CEO, commented: “We are extremely pleased with our revenue growth and improved operating income. For the last eight quarters we have succeeded to increase our revenue, invest in the future and at the same time improve our net income. We have achieved another step in our plan to reach operating margins of 18% in the medium term and over 20% in the long term. Our first quarter results reflect the increase in the deal size at MIND for the billing sector and the improving environment in the enterprise sector. We believe that there is a slight current improvement in both the telecom and the enterprise market, especially thanks to the IP solutions acceptance and we are in the process of increasing our employee force to address future needs and to better support our growing customer base. We expect to see further sequential revenue growth and improved operating income.” As of March 31, 2004, we had 206 employees in our offices in the United States, Romania, China and Israel. Financial Highlights of Q1 2004 Sales Highlights During the first quarter, our bookings included five new customer wins, as well as two major license upgrades: Revenue Distribution for Q1 2004 The geographic revenue breakdown, as a percentage of total revenues, was as follows: sales in Europe represented 54%, Africa represented 10%, the Americas represented 25%, APAC represented 4% and Israel represented 7%. Revenue from our customer care and billing software totaled $3.15 million, while revenue from our enterprise call management software was $854 thousand. The revenue breakdown from our business lines of products was $2.68 million, or 67%, from licenses, $920 thousand, or 23%, from maintenance and $410 thousand, or 10%, from services. Conference Call Information MIND will host a conference call on April 20, at 8:30 a.m., Eastern Standard Time, to discuss the Company's first quarter and 2004 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.
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31 December
-------------- 31,
2004 2003 2003
-----------------------
(Unaudited)(Audited)
-----------------------
U.S. $ in thousands
-----------------------
A s s e t s
CURRENT ASSETS:
Cash and cash equivalents $5,945 $44,626 $4,391
Accounts receivable:
Trade 1,960 1,522 2,181
Other 889 923 864
Inventories 11 14 11
------------------------
T o t a l current assets 8,805 47,085 7,447
LONG-TERM BANK DEPOSITS 38,227 40,482
PROPERTY AND EQUIPMENT, net of
accumulated depreciation and amortization 1,508 1,320 1,182
OTHER ASSETS, net of accumulated amortization 824 933 868
------------------------
T o t a l assets $49,364 $49,338 $49,979
========================
Liabilities and shareholders' equity
CURRENT LIABILITIES -
accounts payable and accruals:
Trade $530 $250 $718
Other 3,603 2,932 2,723
------------------------
T o t a l current liabilities 4,133 3,182 3,441
EMPLOYEE RIGHTS UPON RETIREMENT 1,009 841 998
------------------------
T o t a l liabilities 5,142 4,023 4,439
------------------------
SHAREHOLDERS' EQUITY:
Share capital 53 52 53
Additional paid-in capital 58,591 61,090 58,514
Accumulated deficit (14,422)(15,827)(13,027)
------------------------
T o t a l shareholders' equity 44,222 45,315 45,540
------------------------
To t a l liabilities and
shareholders' equity $49,364 $49,338 $49,979
========================
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Year
Three months ended ended
March 31 December
----------------------- 31,
2004 2003 2003
----------------------- ---------
(Unaudited) (Audited)
----------------------- ---------
U.S. $ in thousands
(except per share data)
-----------------------------------
REVENUES $4,005 $2,824 $12,936
COST OF REVENUES 1,001 674 3,208
-----------------------------------
GROSS PROFIT 3,004 2,150 9,728
RESEARCH AND DEVELOPMENT
EXPENSES 951 777 3,319
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES:
Selling 1,117 912 4,065
General and administrative 334 266 1,149
-----------------------------------
OPERATING INCOME 602 195 1,195
FINANCIAL AND OTHER INCOME - net 790 680 2,607
-----------------------------------
INCOME BEFORE TAXES ON INCOME 1,392 875 3,802
TAXES ON INCOME 51 42 169
-----------------------------------
NET INCOME $1,341 $833 $3,633
===================================
EARNING PER SHARE:
Basic $0.06 $0.04 $0.18
===================================
Diluted $0.06 $0.04 $0.17
===================================
WEIGHTED AVERAGE NUMBER OF
ORDINARY SHARES USED IN
COMPUTATION OF EARNINGS PER
SHARE - IN THOUSANDS:
Basic 21,016 20,686 20,732
===================================
Diluted 21,552 20,775 21,143
===================================
MIND C.T.I. LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three
months Year
ended ended
March 31 December
-------------- 31,
2004 2003 2003
-----------------------
(In thousands of
U.S. dollars)
-----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $1,341 $833 $3,633
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 187 216 806
Accrued severance pay 11 32 189
Capital loss (gain) on sale of property
and equipment - net 6 (6) (35)
Interest accrued on long-term bank
deposits (871) (544) (2,159)
Changes in operating asset and liability
items:
Decrease (increase) in accounts
receivable:
Trade 221 504 (155)
Other (25) (265) (206)
Increase (decrease) in accounts payable
and accruals:
Trade (188) 83 551
Other 880 423 214
Decrease in inventories 3
-----------------------
Net cash provided by operating activities 1,562 1,276 2,841
-----------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (470) (146) (499)
Amounts funded in respect of accrued
severance pay (6) (20) (105)
Investment in long-term bank deposits 32,175 (77,000)
Withdrawal of long-term bank deposits 3,126 70,308
Proceeds from sale of property and equipment 1 29 109
-----------------------
Net cash provided by (used in) investing
activities 2,651 32,038 (7,187)
-----------------------
CASH FLOWS FROM FINANCING ACTIVITIES :
Employee stock options exercised and paid 77 354
Dividend paid (2,736)
Dividend paid out of share premium (2,929)
------- --------
Net cash used in financing activities (2,659) (2,575)
-----------------------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 1,554 33,314 (6,921)
BALANCE OF CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 4,391 11,312 11,312
-----------------------
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF
PERIOD $5,945 $44,626 $4,391
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About MIND MIND is a leading global provider of real-time mediation, rating, billing and customer care solutions for pre-paid and post-paid voice, data and content. Our customers include worldwide leading carriers servicing millions of subscribers, using our end-to-end solutions for the deployment of new services. MIND operates from offices in the United States, Europe, China and Israeli headquarters. 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. For more information please contact:
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