YOQNEAM, ISRAEL--(Marketwired - October 29, 2015) - MIND C.T.I. Ltd. - (
The following will summarize our major achievements in the third quarter of 2015, as well as our business. Full financial results can be found in the Investor Information section of our website at www.mindcti.com/investor/PressReleases.asp and in our Form 6-K.
Q3 2015 Financial Highlights
- Revenues were $5.2 million, compared to $6.5 million in the third quarter of 2014.
- Operating income was $1.7 million, or 33.2% of total revenues, compared to $2.2 million, or 33.6% of total revenues in the third quarter of 2014.
- Net income was $1.5 million, or $0.08 per share, compared to $1.1 million, or $0.06 per share in the third quarter of 2014.
- Multiple follow-on orders.
- Cash flow from operating activities was $0.8 million.
- Cash position was $17.8 million as of September 30, 2015, compared with $18.9 million as of September 30, 2014.
Nine Months Financial Highlights
- Revenues were $16.1 million, compared to $18.5 million in the first nine months of 2014.
- Operating income was $5.0 million, or 31% of total revenues, compared with $4.9 million, or 27% of total revenues in the first nine months of 2014.
- Net income was $3.9 million, or $0.21 per share, compared with $3.6 million, or $0.19 per share in the first nine months of 2014.
- Cash flow from operating activities in the first nine months of 2015 was $4.6 million.
As of September 30, 2015 we had 344 employees, compared with 362 as of September 30, 2014.
Monica Iancu, MIND CTI CEO, commented: "We invest pre-sales efforts in multiple opportunities both in the U.S. and in Europe, but as we succeed in being chosen as the finalist or one of the finalists, we continue to experience the impact of hesitance and delays. Sometimes the delayed deals turn into wins, such as the new deal that we announced last quarter. Sometimes they evaporate, such as a deal that for the last year we expected to materialize but recently that potential customer was acquired by a larger carrier.
"The consolidation in our markets is challenging for us but we continue to execute our strategy of focusing on profitability and cash flow. We continue to build for the future, targeting new markets with similar needs based on our comprehensive offering. We have successfully overcome past challenging periods and we believe that our experience helps us plan and execute the proper steps promptly and effectively."
Operating Margins and Net Income
Similar to our previous quarter, the high operating margins, significantly higher than our target of 20%, are mainly the result of a decrease in expenses due to the devaluation of currencies against the U.S. dollar, a mix of revenues with lower third party expenses, changes in some provisions and some efficiency measures.
As previously mentioned, fluctuation in exchange rates contributes to volatility in our revenues, our expenses and our net income.
Revenue Distribution for Q3 2015
Revenues in the Americas represented 50%, revenues in Europe represented 35% and revenues in the rest of the world represented 15% of our total revenues.
Revenues from customer care and billing software totaled $4.1 million, or 79% of total revenues, while revenues from enterprise call accounting software totaled $1.1 million, or 21% of total revenues.
Revenues from licenses were $0.9 million, or 17% of total revenues, while revenues from maintenance and additional services were $4.3 million, or 83% of total revenues.
Follow-on Orders
When we sign managed services contracts they initially include a period of three to six years. This quarter, an existing U.S. customer has signed an ongoing extension of the existing managed services agreement, initially signed in 2010. We believe that such extensions demonstrate the high level of trust developed between MIND and its customers.
As our customer base continues to gradually encounter business enhancement, they increase their relationship with us with multiple follow-on orders, mainly for customizations and license extensions.
Update on Acquisitions
As we previously announced, we resumed our pursuit for acquisition targets at reasonable valuations that satisfy the criteria we defined: proven revenues, complementary technology and geography.
For the last six months we focused on the evaluation and negotiations of a potential acquisition in Europe. We decided now to put that on hold, but we persist in our pursuit of suitable targets.
About MIND
MIND C.T.I. Ltd. is a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as unified communications analytics and call accounting solutions for enterprises. MIND provides a complete range of billing applications for any business model (license, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers. A global company, with over twenty years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, 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.
Contact Information:
For more information please contact:
Andrea Dray
MIND C.T.I. Ltd.
Tel: +972-4-993-6666