Yoqneam, Israel, October 22, 2003- 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 quarter ended September 30, 2003.
Monica Eisinger, President and CEO, commented: "Since 1997 MIND has been a pioneer in enabling the VoIP technology for emerging and incumbent service providers. MIND's know-how in the IP space enabled us to successfully deploy "best-in-class" solutions for Service Enabling of IP services in the wireless arena. We continue to add functionality to our product that now offers a complete solution for convergent billing for carriers that provide both traditional and IP services, voice, data and content.
The uniqueness of our offering is providing out-of-the-box solutions for pre-paid and post-paid billing; pre-integrated and fully interoperable with network elements; end-to-end solutions that include mediation, real-time rating, billing and customer care. Our pay-as-you-grow pricing model allows service providers to achieve a faster return on investment.
Our product-based approach and our customer-oriented business model enabled us to grow revenues for the sixth consecutive quarter. We are confident that we are well positioned and have the technology and the team to seize opportunities worldwide."
Financial Highlights of Q3 2003
Revenue Distribution for Q3 2003 The geographic revenue breakdown, as a percentage of total revenues, is as follows: sales in the Europe/Middle East/Africa (EMEA) region represented 56%, sales in the Americas represented 29% and sales in Asia represented 15%.
Revenue from our customer care and billing software totaled $2.79 million, while revenue from our enterprise call management software was $572 thousand. The revenue breakdown from our business lines of products was $2.25 million, or 67%, from licenses, $797 thousand, or 23%, from maintenance and $320 thousand, or 10%, from services. Dividend Distribution The Board approved a cash distribution of $3 million on August 15, 2003. The cash distribution is subject to court approval. Under Israeli law, a Company with insufficient retained earnings is required to obtain approval from the court for such a distribution in order to ensure that the Company's creditors are not harmed by the action. While the Company expects to obtain such court approval shortly, there is no guarantee that such approval will not be delayed or denied.
Prior to paying any dividend, the Company will issue a press release announcing the dividend amount, record date and distribution date.
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
| September 30 | December 31 | ||
| 2003 | 2002 | 2002 | |
| U.S. $ in thousands | |||
| A s s e t s | |||
| CURRENT ASSETS: | |||
Cash and cash equivalents |
6,085 | 10,300 | 11,312 |
Accounts receivable: |
|||
Trade |
1,476 | 2,629 | 2,026 |
Other |
848 | 754 | 658 |
Inventories |
14 | 28 | 14 |
T o t a l current assets |
8,423 | 13,711 | 14,010 |
| LONG-TERM BANK DEPOSITS | 40,958 | 30,824 | 31,631 |
| PROPERTY AND EQUIPMENT, net of accumulated depreciation and amortization | 1,230 | 1,474 | 1,363 |
| OTHER ASSETS, net of accumulated amortization | 886 | 986 | 963 |
T o t a l assets |
51,497 | 46,995 | 47,967 |
| Liabilities and shareholders' equity | |||
| CURRENT LIABILITIES - | |||
accounts payable and accruals: |
|||
Trade |
224 | 473 | 167 |
Other |
3,198 | 2,252 | 2,509 |
T o t a l current liabilities |
3,422 | 2,725 | 2,676 |
| EMPLOYEE RIGHTS UPON RETIREMENT | 942 | 763 | 809 |
| T o t a l liabilities | 4,364 | 3,488 | 3,485 |
| SHAREHOLDERS' EQUITY: | |||
Share capital |
52 | 52 | 52 |
Additional paid-in capital |
61,187 | 61,078 | 61,090 |
Deferred stock compensation |
(31) | ||
Accumulated deficit |
(14,106) | (17,592) | (16,660) |
T o t a l shareholders' equity |
47,133 | 43,507 | 44,482 |
To t a l liabilities and shareholders' equity |
51,497 | 46,995 | 47,967 |
| Nine months ended June 30 | Three months ended June 30 | Year ended December 31, | ||||
| 2003 | 2002 | 2003 | 2002 | 2002 | ||
| (Unaudited) | (Unaudited) | (Audited) | ||||
| U.S. $ in thousands (except per share data) | ||||||
| REVENUES | 9,294 | 7,447 | 3,363 | 2,527 | 10,008 | |
| COST OF REVENUES | 2,306 | 1,873 | 852 | 589 | 2,479 | |
| GROSS PROFIT | 6,988 | 5,574 | 2,511 | 1,938 | 7,529 | |
| RESEARCH AND DEVELOPMENT EXPENSES - net | 2,430 | 2,903 | 848 | 949 | 3,723 | |
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: | ||||||
Selling |
2,945 | 3,396 | 1,067 | 1,028 | 4,154 | |
General and administrative |
853 | 994 | 296 | 353 | 1,279 | |
| OPERATING INCOME (LOSS) | 760 | (1,719) | 300 | (392) | (1,627) | |
| FINANCIAL AND OTHER INCOME - net | 1,869 | 1,121 | 618 | 574 | 2,078 | |
| INCOME (LOSS) BEFORE TAXES ON INCOME | 2,629 | (598) | 918 | 182 | 451 | |
| TAXES ON INCOME | 75 | 3 | 117 | |||
| NET INCOME (LOSS) | 2,554 | (598) | 915 | 182 | 334 | |
| EARNING (LOSS) PER SHARE - basic and diluted</font> | $0.12 | $(0.03) | $0.04 | $0.01 | $0.02 | |
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED IN COMPUTATION OF EARNINGS (LOSS) PER ORDINARY SHARE - IN THOUSANDS: | ||||||
Basic |
20,690 | 20,666 | 20,703 | 20,666 | 20,677 | |
Diluted |
21,173 | 20,666 | 20,183 | 20,730 | 20,761 | |
| Nine months ended June 30, 2003 | Three months ended June 30, 2003 | Year ended December 31, 2002 | |
| (Unaudited) | (Unaudited) | (Audited) | |
| U.S. $ in thousands (except per share data) | |||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net Income |
$2,554 | $915 | $334 |
Adjustments to reconcile net income or loss to net cash provided by or used in operating activities: |
|||
Depreciation and amortization |
617 | 199 | 944 |
Deferred income taxes - net |
(8) | (8) | 16 |
|
Compensation expense resulting from options granted to employees |
138 | ||
Accrued severance pay - net |
60 | 11 | |
Capital loss (gain) on sale of property and equipment - net |
(-11) | (-7) | 14 |
Interest accrued on long-term bank deposits |
(1,502) | (578) | (1,631) |
hanges in operating asset and liability items: |
|||
Decrease (increase) in accounts receivable: |
|||
Trade |
550 | 152 | 888 |
Other |
(182) | (106) | 281 |
Increase (decrease) in accounts payable and accruals: |
|||
Trade |
57 | (360) | (318) |
Other |
689 | 536 | 1,023 |
Decrease (increase) in Inventories |
12 | ||
Net cash provided by operating activities |
2,824 | 754 | 1,701 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment |
(382) | (90) | (180) |
Long-term bank deposits |
(40,000) | (3,000) | (30,000) |
Withdrawal of long-term bank deposits |
32,175 | ||
Proceeds from sale of property and equipment |
59 | 19 | 49 |
Net cash used in (provided by) investing activities |
(8,148) | (3,071) | (30,131) |
| CASH FLOWS FROM FINANCING ACTIVITIES - | |||
employee stock options exercised and paid |
97 | 97 | 19 |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (5,227) | (2,220) | (28,411) |
| BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 11,312 | 8,305 | 39,723 |
| BALANCE OF CASH AND CASH | |||
| EQUIVALENTS AT END OF PERIOD | $6,085 | $6,085 | $11,312 |