MIND C.T.I. LTD. – (NasdaqGM: MNDO), a leading provider of
convergent end-to-end prepaid/postpaid billing and customer care
product based solutions for service providers, unified
communications analytics and call accounting solutions for
enterprises as well as enterprise messaging solutions, today
announced results for its third quarter ended September 30, 2019.
The following will summarize our major
achievements in the third quarter of 2019, as well as our business.
Full financial results can be found in the Company News section of
our website at http://www.mindcti.com/company/news/ and in our Form
6-K.
Q3 2019 Financial
Highlights
- Revenues were $6.1 million,
compared to $4.6 million in the third quarter of 2018, with the
increase attributed to the acquisition of Message Mobile GmbH in
March 2019, which generated revenues of approximately $2.0 million
during the quarter.
- Operating income was $1.3 million,
compared to $1.3 million in the third quarter of 2018.
- Net income was $1.2 million, or
$0.06 per share, compared to $1.4 million, or $0.07 per share in
the third quarter of 2018.
- Cash flow from operating activities
was $2.0 million, compared to $1.6 million in the second quarter of
2019. The strong cash flow is attributable to large payments
received upon completion of final project milestones.
- Two new small wins.
- Cash position was $14.0 million as
of September 30, 2019.
Nine Months Financial
Highlights
- Revenues were $16.6 million,
compared to $13.7 million in the first nine months of 2018, with
the increase attributed to the acquisition of Message Mobile GmbH
in March 2019, which generated revenues of approximately $4.0
million during the last two quarters.
- Operating income was $3.8 million,
or 23% of total revenues, compared to $3.9 million, or 28% of total
revenues in the first nine months of 2018, with the decrease in
operating income margin primarily reflecting the lower margins in
the acquired business.
- Net income was $3.7 million, or
$0.19 per share, compared to $3.7 million, or $0.19 per share in
the first nine months of 2018.
- Cash flow from operating activities
in the first nine months of 2019 was $5.4 million, compared to $3.9
million in the first nine months of 2018.
As of September 30, 2019, we had 220 employees,
similar to September 30, 2018 and compared to 229 as of June 30,
2019.
Monica Iancu, MIND CTI CEO, commented: “Our
telecom markets remain challenging with carriers consolidation,
multiple small providers disappearance and continuously decreasing
budgets, as described at length in previous press releases. While
we succeeded to secure new wins, they are small in size and as we
expected, they are structured as SaaS, with low down payments for
deployment services but multi-year commitments. We are excited with
the new partnership described below, as we believe that small U.S.
rural carriers providing fixed wireless broadband or any other
services, need one convergent platform that helps them manage their
business efficiently with fully automated processes.
“In the messaging field, we focus on the
integration of the two companies we acquired in Germany and
continue to examine the potential growth in this area, including
through additional acquisitions. As mentioned in the past, given
our strong cash position and our experienced organization, we
believe that we have the required resources to respond to market
needs, continue to invest in our core business, bringing permanent
value to existing customers and maintaining up-to-date technology
and at the same time focus on targeting potential acquisitions that
could benefit the company's growth.”
Revenue Distribution for Q3
2019
Revenues in the Americas represented 45%,
revenues in Europe represented 46% (including the Message Mobile
revenues in Germany that represented 34%) and revenues in the rest
of the world represented 9% of our total revenues.
Revenues from customer care and billing software
totaled $3.4 million, or 56% of total revenues, revenues from
enterprise messaging and payment solutions were $2.0 million, or
33% of total revenues, and revenues from enterprise call accounting
software totaled $0.7 million, or 11% of our total revenues.
Revenues from licenses were $0.7 million, or
11.5% of total revenues, while revenues from maintenance and
additional services were $5.4 million, or 88.5% of our total
revenues.
New Wins
One new win is with Defiance Holdings (an Ohio
limited liability company) to support their four carriers,
including a CLEC, (QualStar Communications, Inc.), with a
competitive local phone service, a full-service fixed wireless
Internet Service Provider (MetaLINK Technologies, Inc.) and an
affiliated LEC (Ayersville Telephone Co.) providing residential,
business, DSL and FTTH lines. Each of these carriers provide
different services, including fixed wireless broadband, phone and
Internet services, fiber transport, co-location, web hosting and
hosted phone services. They will all be supported within MIND’s
multi-tenant platform.
In addition to providing billing and customer
care software to Defiance Holdings, MIND has partnered with
Defiance Holdings to support additional communication service
providers on the multi-tenant billing and customer care platform.
New carriers can be onboarded within 60 days and achieve the
benefits of MIND’s full automation of business processes, reach a
360-degree customer view and improve time to market for new
marketing initiatives.
Another new small win is with a
telecommunication service provider in the Caribbean Islands.
Established in 1976, this government-owned organization provides a
variety of telecommunication products and services to its local
clients. This company selected MIND to provide a convergent Billing
and Customer Care solution for its residential and business
customers.
Update on
Acquisitions
As previously announced, we believe that
messaging needs are expanding worldwide, be it in traditional text
(SMS) or in instant messaging and we continue targeting potential
acquisitions that could benefit the company's growth.
Following our first acquisition in messaging in
March 2019 in Germany, we decided to focus in the next few quarters
on the integration of Message Mobile as well as on exploring growth
through consolidation with additional targets, resulting in our
acquisition of GTX GmbH in the third quarter of 2019.
GTX offers global SMS services for B-2-B
customers, providing business partners a robust and easy-to-use
system to send SMS to end-users at the best possible quality and
attractive pricing, acting as a one-stop-platform for clients
aiming to extend their messaging activities on different channels,
e.g. WhatsApp, Chatbot on Messenger and Rich Communication Services
(RCS).
About MIND
MIND CTI Ltd. is a leading provider of
convergent end-to-end billing and customer care product-based
solutions for service providers, unified communications analytics
and call accounting solutions for enterprises as well as enterprise
messaging solutions. MIND provides a complete range of billing
applications for any business model (license, SaaS, 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, Germany 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 risk that the
acquisition will not succeed in achieving its intended goals due to
competitive, personnel, technological or other integration issues
and 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 DrayMIND C.T.I. Ltd.Tel:
+972-4-993-6666investor@mindcti.com
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