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 2004Revenue 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.
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:
Andrea Dray
MIND CTI Ltd.
Tel: +972-4-993-6666
investor@mindcti.com
| March 31 | December 30 | ||
| 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 |
52 | 52 | 52 |
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 |
| Three months ended march 31 | Year ended 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 (LOSS) | 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 (LOSS) PER ORDINARY SHARE - IN THOUSANDS: | ||||
Basic |
21,016 | 20,686 | 20,732 | |
Diluted |
21,552 | 20,775 | 21,143 | |
| Three months ended march, 1 | Year ended December 31, | |||
| 2004 | 2004 | 2003 | ||
| U.S. $ in thousands | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net Income |
$1,341 | $833 | $3,633 | |
Adjustments to reconcile net income or loss to net cash provided by or used in 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 (increase) 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) | |
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 paide |
(2,736) | (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 | |