MIND CTI Reports First Quarter 2020 Results
May 14 2020 - 7:33AM
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 first quarter ended March 31, 2020.
The following will summarize our major
achievements in the first quarter of 2020 as well as our business.
The 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.
Financial
Highlights
- Revenues were $6.0 million,
compared with $4.5 million in the first quarter of 2019, with the
increase attributed to the acquisition of Message Mobile in March
2019 and GTX in September 2019, which generated revenues of
approximately $2.3 million during the quarter.
- Operating income was $1.3 million,
or 21% of total revenues, compared with $1.5 million, or 33% of
total revenues in the first quarter of 2019.
- Net income was $1.2 million, or
$0.06 per share, compared with $1.5 million, or $0.08 per share in
the first quarter of 2019.
- Cash flow from operating activities
during the quarter was $1.1 million, compared with $2.3 million in
the first quarter of 2019.
- Cash position was $16.2 million as
of March 31, 2020 (before the dividend distribution of $4.8 million
on April 16, 2020).
As of March 31, 2020, we had 204 employees in
our Romania, Israel, Germany and U.S. offices, compared with 220 as
of March 31, 2019.
Monica Iancu, MIND CTI CEO, commented: “In these
unprecedented times, our top priority is to ensure that our
employees and customers are safe and that we remain resilient and
agile. We have successfully transitioned into a new mode of
operations to best support our customers under a firm business
continuity program wherein most of our employees are working
partially or fully from home using secured access. We informed our
customers that as always, they can count on us to tirelessly
maintain and strengthen their business.
“As we continue to face the many challenges
mentioned in previous press releases and the additional impact
caused by the COVID-19 pandemic, we expect a decline in our
revenues and income in 2020. Nevertheless, we are encouraged that
even in these times of uncertainty we have the experience, the
resilience and the cash to weather the storm.”
Impact of
COVID-19We experience the effect of the pandemic
in all areas of our business, mainly due to the following
reasons:
- Ongoing project delays: Delays in
the pace of ongoing implementation rollouts in all our lines of
business, due to lockdowns and other COVID-19 related
measures.
- New opportunities freeze: As much
of the population remains homebound, service providers are taking
action to ramp up their network infrastructure, but we believe that
at the same time they are reluctant to promote billing
transformation projects. The Messaging segment is also harmed due
to a lack of campaigns and a freeze of new enrollments.
- Existing customers reducing budget:
Due to the general economic uncertainty, the majority of our
customers, both enterprises and carriers, are restricting their
budgets. Especially, due to lack of revenues from supplying
communication services to tourists, carriers’ willingness to invest
in enhancements in new features is extremely low.
Revenue
DistributionThe Americas represented 45%, Europe
represented 49% (including the Message Mobile and GTX revenues in
Germany that represented 38%) and the rest of the world
represented 6% of total revenues.
Customer care and billing software totaled $3.0
million, or 50% of total revenues, enterprise messaging and payment
solutions were $2.3 million, or 38% of total revenues and
enterprise call accounting software totaled $0.7 million, or 12% of
total revenues.
Licenses totaled $0.4 million, or 6.5% of total
revenues, while maintenance and additional services were $5.6
million, or 93.5% of total revenues.
Dividend
DistributionAs previously announced, the Board
declared on March 11, 2020 a cash dividend of $0.24 per share.
The dividend of approximately $4.8 million, is
presented in our March 31, 2020 balance sheet among other
payables and was distributed to our shareholders in April 2020.
AGM UpdateThe
Company held its Annual General Meeting of Shareholders on May 12,
2020 and all the proposed resolutions were approved.
Board of Directors
UpdateMr. Meir Nissensohn was appointed as MIND’s
new Chairman of the Board of Directors. Mr. Nissensohn has served
as an independent director of our company since August 2014. Mr.
Nissensohn served as the Chairman of the Board of Directors and
Chief Executive Officer of IBM Israel Ltd. from 1996 to 2012. Since
his retirement from IBM, he is involved in various business
initiatives and serves on the Board of several companies.
About MINDMIND
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 risks discussed in
the Company's annual report and other 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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