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| Press Release - May 9, 2007 |
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Yoqneam, Israel, May 9, 2007
MIND CTI Reports EPS of 5 Cents for the First Quarter of 2007
- MIND CTI Ltd. (NasdaqNM: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 results for the first quarter 2007.
Monica Eisinger, Chairperson and CEO, commented: "In the first quarter of 2007 we once again proved our unique model of execution on profitability, in an environment that is almost universally weakened by delayed decisions. During the quarter we continued to enhance our suite of products that generate new wins and follow-on orders from existing customers. We focus on delivering high quality solutions and on expanding our relationship with our customers as they grow their business or transform their businesses to address convergence. While the sales cycles are long and the timing of required deliveries is difficult to predict, we see demand for our products and services that we expect to provide us with growth opportunities for years to come."
Financial Highlights of Q1 2007
- Revenues of $4.81 million, compared with $5.25 million in the first quarter of 2006.
- Operating income, excluding amortization of intangible assets of $116 thousand and equity-based compensation expense of $64 thousand, was $848 thousand, or 18% of revenue.
- GAAP operating income was $668 thousand, or 14% of revenue, a 16% increase over the first quarter of 2006.
- Net income, excluding amortization of intangible assets of $116 thousand and equity-based compensation expense of $64 thousand, was $1.33 million or $0.06 per share.
- GAAP net income was $1.15 million, or $0.05 per share, a 76% increase over the first quarter of 2006.
- Cash flow from operating activities in Q1 2007 was $855 thousand.
Revenue Distribution for Q1 2007
Sales in Europe represented 43% and sales in the Americas represented 41% of total revenue.
Revenue from our customer care and billing software totaled $4.05 million, while revenue from our enterprise call management software was $755 thousand. The revenue breakdown from our business lines of products was $1.91 million, or 40% from licenses, $1.69 million, or 35% from maintenance and $1.21 million, or 25% from services.
Conference Call Information
MIND will host a conference call on May 10, at 8:30 a.m., Eastern Standard Time, to discuss the Company's first quarter 2007 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.
(An Israeli Corporation)
INTERIM
REPORT
(Unaudited)
AS OF MARCH 31, 2007
TABLE OF CONTENTS
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Page |
| CONDENSED CONSOLIDATED FINANCIAL STATEMENTS: |
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| Balance sheets |
1 |
| Statements of operations |
2 |
| Statements of cash flows |
3 |
(tables to follow)
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MIND C.T.I LTD
CONDENSED CONSOLIDATED BALANCE SHEETS
| | March 31 | December 31
| | |
| | 2007 | 2006 | 2006
| | | |
| | (Unaudited) | (Audited)
| | |
| | U.S. $ in thousands |
| | | |
| | A s s e t s | | |
| | CURRENT ASSETS: | | |
| | Cash and cash equivalents | $24,808 | $6,905 | $27,571
| Accounts receivable: | | |
| | Trade | 5,819 | 5,191 | 5,385
| Other | 531 | 1,034 | 231
| Deferred income taxes | 158 | | 154
| Inventories | 35 | 30 | 35
| | | |
| | T o t a l current assets | 31,351 | 13,160 | 33,376
| INVESTMENTS AND OTHER NON CURRENT ASSETS: | | |
| Marketable debentures | 10,000 | | 10,000
| Long term bank deposits | | 30,000 |
| Other | 989 | 730 | 1,003
| PROPERTY AND EQUIPMENT, net of accumulated depreciation | 1,547 | 1,950 | 1,558
| INTANGIBLE ASSETS, net of accumulated amortization | 772 | 1,330 | 888
| GOODWILL | 6,966 | 6,966 | 6,966
| | | |
| | T o t a l assets | $51,625 | $54,136 | $53,791
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| | | | |
| | Liabilities and shareholders' equity | | |
| | CURRENT LIABILITIES: | | |
| | Accounts payable and accruals: | | |
| | Trade | $503 | $789 | $464
| Other | 2,640 | 2,151 | 2,509
| Deferred revenues | 1,906 | 1,899 | 1,236
| Advances from customers | 241 | 575 | 241
| | | |
| | T o t a l current liabilities | 5,290 | 5,414 | 4,450
| EMPLOYEE RIGHTS UPON RETIREMENT | 1,498 | 1,404 | 1,482
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| | T o t a l liabilities | 6,788 | 6,818 | 5,932
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| | SHAREHOLDERS' EQUITY: | | |
| | Share capital | 54 | 53 | 54
| Additional paid-in capital | 59,628 | 59,510 | 59,547
| Capital surplus | 389 | 77 | 325
| Accumulated deficit | (15,234) | (12,322) | (12,067)
| | | |
| | T o t a l shareholders' equity | 44,837 | 47,318 | 47,859
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| | T o t a l liabilities and shareholders' equity | $51,625 | $54,136 | $53,791
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I
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MIND C.T.I LTD
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| | Three months ended March 31 | Year ended December 31 |
| | |
| | 2007 | 2006 | 2006 |
| | | | |
| | (Unaudited) | (Audited) |
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| | U.S. $ in thousands (except per share data) |
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| REVENUES | $4,807 | $5,252 | $20,060 |
| COST OF REVENUES | 1,345 | 1,598 | 5,675 |
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| GROSS PROFIT | 3,462 | 3,654 | 14,385 |
| RESEARCH AND DEVELOPMENT EXPENSES | 1,416 | 1,738 | 6,118 |
| SELLING AND MARKETING EXPENSES | 935 | 982 | 3,628 |
| GENERAL AND ADMINISTRATIVE EXPENSES | 443 | 359 | 2,135 |
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| OPERATING INCOME | 668 | 575 | 2,504 |
| FINANCIAL INCOME (EXPENSES) - net | 504 | 125 | * (222) |
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| INCOME BEFORE TAXES ON INCOME | 1,172 | 700 | 2,282 |
| TAXES ON INCOME | 21 | 46 | 1,373 |
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| NET INCOME | $1,151 | $654 | $909 |
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| EARNING PER ORDINARY SHARE: |
| Basic and diluted | $0.05 | $0.03 | $0.04 |
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| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED IN COMPUTATION OF EARNINGS PER ORDINARY SHARE - IN THOUSANDS: |
| Basic | 21,566 | 21,439 | 21,515 |
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| Diluted | 21,577 | 21,511 | 21,546 |
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| * | Financial expenses for the year ended December 31, 2006 include a loss from a premature withdrawal of long-term deposits in the amount of $1,330,000. |
II
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MIND C.T.I LTD
CONSOLIDATED STATEMENTS OF CASH FLOWS
| | Three months ended March 31 | Year ended December 31 |
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| | 2007 | 2006 | 2006 |
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| | (Unaudited) | (Audited) |
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| | U.S. $ in thousands |
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| CASH FLOWS FROM OPERATING ACTIVITIES: |
| Net income | $1,151 | $654 | $909 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | |
| Depreciation and amortization | 245 | 486 | 1,391 |
| Deffered income taxes, net | 2 | | (293) |
| Accrued severance pay | 16 | 102 | 176 |
| Capital loss (gain) on sale of property and equipment - net | 7 | (4) | (3) |
| Employees share based compensation expenses | 64 | 77 | 325 |
| Changes in operating asset and liability items: |
| Decrease (increase) in accounts receivable: |
| Trade | (434) | (1,802) | (1,996) |
| Interest accrued on marketable debentures | (135) | | (37) |
| Other | (165) | (244) | 537 |
| Increase in inventories | | | (5) |
| Increase (decrease) in accounts payable and accruals: |
| Trade | 39 | 103 | (222) |
| Other | (605) | 4 | 768 |
| Increase (decrease) in deferred revenues | 670 | 255 | (408) |
| Decrease in advances from customers, net | | (215) | (549) |
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| Net cash provided by (used in) operating activities | 855 | (584) | 593 |
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| CASH FLOWS FROM INVESTING ACTIVITIES: | | | |
| Purchase of property and equipment | (135) | (174) | (379) |
| Amounts funded in respect of accrued severance pay | 8 | 3 | (119) |
| Acquisition of marketable debentures held-to-maturity | | | (10,000) |
| Withdrawal of long-term bank deposits | | | 30,000 |
| Proceeds from sale of property and equipment | 10 | 29 | 162 |
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| Net cash provided by (used in) investing activities | (117) | (142) | 19,664 |
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| CASH FLOWS FROM FINANCING ACTIVITIES: | | | |
| Employee stock options exercised and paid | 81 | 60 | 149 |
| Dividend paid | (3,582) | (2,603) | (3,009) |
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| Net cash used in financing activities | (3,501) | (2,543) | (2,860) |
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| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (2,763) | (3,269) | 17,397 |
| BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 27,571 | 10,174 | 10,174 |
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| BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD | $24,808 | $6,905 | $27,571 |
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| SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON CASH ACTIVITIES | | | |
| Cash paid during the year for income tax | $841 | $11 | $39 |
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III
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