MIND CTI Reports EPS of 6 Cents for the First Quarter of 2012
(Marketwire Via Acquire Media NewsEdge) YOQNEAM, ISRAEL -- (Marketwire) -- 05/09/12 --
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 its first quarter ended March 31, 2012.
The following will summarize our major achievements in the first quarter of 2012 as well as our business. Full financial results can be found in the Investors section www.mindcti.com/investor/PressReleases.asp and in our Form 6-K as well.
Revenues were $5.26 million, compared with $4.46 million in the first quarter of 2011. Operating income was $1.14 million, or 21.6% of revenue, compared with $922 thousand in the first quarter of 2011. Net income was $1.11 million or $0.06 per share, compared with $1.16 million in the first quarter of 2011. Cash flow from operating activities was $1.58 million. Two wins and multiple follow-on orders.Cash Position and Annual Dividend DistributionThe cash position including available for sale securities was $17.3 million as of March 31, 2012.
As previously announced, based on our policy of annual dividend distribution, the Board declared on February 29, 2012 a cash dividend of $0.24 per share before withholding tax.
The record date was March 14, 2012 and the payment date was March 28, 2012. Tax was withheld at a rate of 25%.
The dividend declared and distributed was approximately $4.5 million -- approximately $3.3 million that was paid to the shareholders in March 2012 and approximately $1.2 million was paid for the withholding tax to the Israeli Tax authority in April 2012.
Revenue Distribution for Q1 2012Sales in the Americas represented 48.5% and sales in Europe represented 30.7% of total revenue and the rest divided between Israel, Africa and Asia-Pacific.
Revenue from customer care and billing software totaled $4.19 million, while revenue from enterprise call accounting software was $1.07 million.
Revenue from licenses was $2.07 million, or 39.4% of total revenue, while revenue from maintenance and additional services was $3.19 million, or 60.6%.
New Wins & Follow-on OrdersA major win is with a provider of wireline and wireless services in the US region, operating both GSM and CDMA networks. MIND won last year's tender for deployment of a complete prepaid platform based on our powerful real-time rating. This new win, following an additional tender is for a full end-to-end postpaid billing solution to support wireless, wireline and broadband services.
We have won a contract with Sapphire Networks, a leading provider of data and Internet solutions located in Gibraltar, specializing in high availability and quality services. MIND is providing them with a convergent Data and VOIP billing and customer care system. Sapphire Networks are primary provider to some of the world's leading names in the online gaming and financial services industries, providing world-class enterprise services, designed in consultation with industry leaders to suit global companies operating out of Gibraltar. They also cater to residential and business customers and will soon offer a competitive suite of bundled solutions requiring innovative schemes to achieve further market penetration.
A significant additional win is at an existing valued customer in Turkey. Following the acquisition of two of our customers in Turkey by one major international carrier that plans to merge their entire operations, MIND was chosen to supply one consolidated platform in order to achieve operations efficiency. Since 2002, when we implemented our billing system for Voice over IP at this leading ISP in Turkey, it has been a loyal customer. In 2008 we enhanced our billing platform replacing the existing billing for Data and ISP services, enabling them to offer bundled packages targeting different market segments. The new upgrade to MINDBill's latest version will also replace a niche solution still in use. The goal of this project is enabling the combined carrier to consolidate customer care, services and reporting for the entire revenue generated by the merged operations.
Monica Iancu, MIND CEO, commented: "We are excited to have a few customers going live in parallel and we are thrilled to be extremely busy with supporting our customers' growth along with fulfilling multiple ongoing pre-sales processes. At the same time, we are disappointed that, as previously announced, some maintenance agreements were not renewed and we expect that this will bear negative impact mainly on profitability in 2012."
New Chairman of the BoardMIND's Annual General Meeting held on April 10th, 2012, resolved to reject the proposal to approve the continuing service of Monica Iancu as both Chief Executive Officer and Chairperson of the Board of Directors of the Company for an additional period of up to three years. This Resolution was rejected in the absence of the special majority required pursuant to Section 121 (c) of the Israeli Companies Law, 1999.
On May 8, 2012 the Board of Directors elected Mihail Rotenberg as our new Chairman of the Board.
Sales and Marketing PlansOur marketing plans are focused on creating awareness, interest and preference for our products and services. We sometimes participate in industry trade shows, such as CTIA (Cellular Telecommunications and Internet Association), RCA (Rural Cellular Association) and NTCA (National Telecommunications Cooperative Association) in the US and MWC (Mobile World Congress) in Europe.
RCA is the premier association representing competitive wireless telecommunications providers across the United States, NTCA is the premier non-profit association representing over 570 small and rural telephone cooperatives and commercial companies, and CTIA Wireless is the premier marketplace for wireless, telecom and broadband. We believe that these three shows are the main places to meet our existing and future US and Central America customers.
MWC is a truly international mobile industry trade show for leaders in the mobile technology to gather, network, and conduct business. Mobile is enhancing and Mobile World Congress consistently brings together successful operators, companies and manufacturers and we believe it helps in creating awareness for the MIND brand.
We conduct our sales and marketing activities primarily communicating directly with the carrier as well as through marketing alliances with some equipment vendors and system integrators. These allies provide us with a global extension of our direct sales force and are an additional source of leads and referrals.
About MINDMIND 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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Source: MIND CTI Ltd.
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