Date: August 08, 2007
| MIND C.T.I. LTD. | |
|
By: /s/ Monica Eisinger Name: Monica Eisinger =================== Title: Chairperson of the Board of Directors, President and Chief Executive Officer |
EXHIBIT INDEX
| Exhibit Number | Description of Exhibit |
| 1. | Press Release: Cash Flow from Operating Activities of $1.34 Million. Dated August 7, 2007. |
Yoqneam, Israel, August 7, 2007 - MIND CTI Ltd. (NasdaqGM: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 second quarter 2007.
Financial Highlights of Q2 2007
Six Months Highlights
Monica Eisinger, Chairperson and CEO, commented: "Although in the first half of 2007 we experienced a decline in our revenues, we succeeded in managing our expenses accordingly and we generated over $2 million in cash flow from our operations. While the results reflect the effect of delayed decisions and long sales cycles, we operate in a very active market that shows continuous demand for our products and services. The strong install base and the long-term relationships with our customers continue to represent the majority of our revenue and are the basis for future revenue stream. We are pleased to announce a new win this quarter, a Pan-European IP services carrier to whom we will provide a complete customer care and billing solution. We expect to see new wins in the following quarters and we expect to increase our profitability as well."
Revenue Distribution for Q2
2007
Sales in the Americas represented 43% and sales
in Europe represented 38% of total revenue. Revenue from our customer care and
billing software totaled $3.13 million, while revenue from our enterprise call
management software was $915 thousand. The revenue breakdown from our business
lines of products was $1.13 million, or 28% from licenses, $1.74 million, or 43%
from maintenance and $1.18 million, or 29% from services.
Conference Call Information
MIND will host a conference call on August 8, 2007
at 8:30 a.m., Eastern Time, to discuss the Company's second 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.
About MIND
MIND CTI Ltd. is a leading provider of convergent prepaid
and postpaid end-to-end billing and customer care solutions for VoIP, Mobile,
Wireline and Quad-play carriers worldwide. Since 1997 MIND has been a pioneer in
enabling the VoIP technology for emerging and incumbent service providers. In
August 2005 MIND acquired Sentori, Inc., a US based provider of customer care
and billing solutions to wireless carriers and mobile virtual network operators
(MVNOs). Sentori, Inc. brings over ten years of wireless experience and eight
years of a wireless operational solution to carriers. A global company, MIND
operates from offices in Europe, Israel and the United States, serving customers
in more than 40 countries around the world. 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
| June 30 | December 31, | |||
| 2007 | 2006 | 2006 | ||
| (Unaudited) | (Audited) | |||
| U.S. $ in thousands | ||||
| A s s e t s | ||||
| CURRENT ASSETS: | ||||
| Cash and cash equivalents | $ 25,484 | $ 25,694 | $ 27,571 | |
| Accounts receivable: | ||||
| Trade | 4,672 | 4,882 | 5,385 | |
| Other | 368 | 948 | 231 | |
| Deferred income taxes | 148 | 8 | 154 | |
| Inventories | 35 | 30 | 35 | |
| T o t a l current assets | 30,707 | 31,562 | 33,376 | |
| INVESTMENTS AND OTHER NON CURRENT ASSETS: | ||||
| Marketable debentures | 10,000 | 10,000 | ||
| Long term bank deposits | 10,000 | |||
| Other | 908 | 746 | 1,003 | |
| PROPERTY AND EQUIPMENT, net of accumulated depreciation | 1,393 | 1,910 | 1,558 | |
| INTANGIBLE ASSETS, net of accumulated amortization | 670 | 1,160 | 888 | |
| GOODWILL | 6,966 | 6,966 | 6,966 | |
| T o t a l assets | $ 50,644 | $ 52,344 | $ 53,791 | |
| Liabilities and shareholders' equity | ||||
| CURRENT LIABILITIES: | ||||
| Accounts payable and accruals: | ||||
| Trade | $ 440 | $ 699 | $ 464 | |
| Other | 1,611 | 1,584 | 2,509 | |
| Deferred revenues | 1,339 | 1,412 | 1,236 | |
| Advances from customers | 366 | 342 | 241 | |
| T o t a l current liabilities | 3,756 | 4,037 | 4,450 | |
| EMPLOYEE RIGHTS UPON RETIREMENT | 1,466 | 1,397 | 1,482 | |
| T o t a l liabilities | 5,222 | 5,434 | 5,932 | |
| SHAREHOLDERS' EQUITY: | ||||
| Share capital | 54 | 53 | 54 | |
| Additional paid-in capital | 59,638 | 59,510 | 59,547 | |
| Capital surplus | 456 | 161 | 325 | |
| Accumulated deficit | (14,726) | (12,814) | (12,067) | |
| T o t a l shareholders' equity | 45,422 | 46,910 | 47,859 | |
| T o t a l liabilities and shareholders' equity | $ 50,644 | $ 52,344 | $ 53,791 | |
I
|
Six months |
Three months |
Year ended | ||||
|
2007 |
2006 |
2007 |
2006 |
2006 | ||
|
(Unaudited) |
(Unaudited) |
(Audited) | ||||
|
U.S. $ in thousands (except per share data) | ||||||
|
REVENUES |
$ 8,856 |
$ 10,326 |
$ 4,049 |
$ 5,074 |
$ 20,060 | |
|
COST OF REVENUES |
2,620 |
3,090 |
1,275 |
1,492 |
5,675 | |
|
GROSS PROFIT |
6,236 |
7,236 |
2,774 |
3,582 |
14,385 | |
|
RESEARCH AND DEVELOPMENT EXPENSES |
2,782 |
3,326 |
1,366 |
1,588 |
6,118 | |
|
SELLING AND MARKETING EXPENSES |
1,922 |
1,867 |
987 |
885 |
3,628 | |
|
GENERAL AND ADMINISTRATIVE EXPENSES |
822 |
758 |
379 |
399 |
2,135 | |
|
OPERATING INCOME |
710 |
1,285 |
42 |
710 |
2,504 | |
|
FINANCIAL INCOME (EXPENSES) - net |
988 |
* (1,053) |
484 |
* (1,178) |
* (222) | |
|
INCOME (LOSS) BEFORE TAXES ON INCOME |
1,698 |
232 |
526 |
(468) |
2,282 | |
|
TAXES ON INCOME |
39 |
70 |
18 |
24 |
1,373 | |
|
NET INCOME (LOSS) |
$ 1,659 |
$ 162 |
$ 508 |
$ (492) |
$ 909 | |
|
EARNING (LOSS) PER SHARE: |
||||||
|
Basic and diluted |
$ 0.08 |
$ 0.01 |
$ 0.02 |
$ (0.02) |
$ 0.04 | |
|
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED IN COMPUTATION OF EARNINGS PER ORDINARY SHARE - IN THOUSANDS: |
||||||
|
Basic |
21,578 |
21,500 |
21,590 |
21,528 |
21,515 | |
|
Diluted |
21,591 |
21,565 |
21,606 |
21,577 |
21,546 | |
| * |
Financial expenses for the 6 and 3 month periods ended June 30, 2006 and for the year ended December 31, 2006 include a loss from a premature withdrawal of long-term bank deposits in the amount of $1,330,000. |
II
|
Six months |
Three months |
Year ended | |||
|
2007 |
2006 |
2007 |
2006 |
2006 | |
|
(Unaudited) |
(Unaudited) |
(Audited) | |||
|
U.S. $ in thousands | |||||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||
|
Net income (loss) |
$ 1,659 |
$ 162 |
$ 508 |
$ (492) |
$ 909 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|||||
|
Depreciation and amortization |
464 |
815 |
219 |
329 |
1,391 |
|
Deferred income taxes, net |
68 |
66 |
(293) | ||
|
Accrued severance pay |
(16) |
94 |
(32) |
(8) |
176 |
|
Capital loss (gain) on sale of property and equipment - net |
8 |
(8) |
2 |
(4) |
(3) |
|
Employees share based compensation expenses |
131 |
161 |
67 |
84 |
325 |
|
Changes in operating asset and liability items: |
|||||
|
Decrease (increase) in accounts receivable: | |||||
|
Trade |
713 |
(1,493) |
1,147 |
309 |
(1,996) |
|
Interest accrued on marketable debentures |
2 |
137 |
(37) | ||
|
Other |
(139) |
(217) |
26 |
27 |
537 |
|
Increase in inventories |
(5) | ||||
|
Increase (decrease) in accounts payable and accruals: |
|||||
|
Trade |
(24) |
13 |
(63) |
(90) |
(222) |
|
Other |
(898) |
(157) |
(293) |
(161) |
768 |
|
Increase (decrease) in deferred revenues |
103 |
(232) |
(567) |
(487) |
(408) |
|
Increase (decrease) in advances from customers, net |
125 |
(448) |
125 |
(233) |
(549) |
|
Net cash provided by (used in) operating activities |
2,196 |
(1,310) |
1,342 |
(726) |
593 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||
|
Purchase of property and equipment |
(167) |
(296) |
(33) |
(122) |
(379) |
|
Amounts withdrawal (funded) in respect of accrued severance pay |
33 |
(12) |
25 |
(15) |
(119) |
|
Acquisition of marketable debentures held-to-maturity |
(10,000) | ||||
|
Withdrawal of long-term bank deposits |
20,000 |
20,000 |
30,000 | ||
|
Proceeds from sale of property and equipment |
78 |
36 |
68 |
7 |
162 |
|
Net cash provided by (used in) investing activities |
(56) |
19,728 |
60 |
19,870 |
19,664 |
|
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
|
Employee stock options exercised and paid |
91 |
111 |
10 |
51 |
149 |
|
Dividend paid |
(4,318) |
(3,009) |
(736) |
(406) |
(3,009) |
|
Net cash used in financing activities |
(4,227) |
(2,898) |
(726) |
(355) |
(2,860) |
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(2,087) |
15,520 |
676 |
18,789 |
17,397 |
|
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
27,571 |
10,174 |
24,808 |
6,905 |
10,174 |
|
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ 25,484 |
$ 25,694 |
$ 25,484 |
$ 25,694 |
$ 27,571 |
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON CASH ACTIVITIES |
|||||
|
Cash paid during the year for income tax |
$ 853 |
$ 22 |
$ 6 |
$ 12 |
$ 39 |
III
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