* Board Declares Cash
Dividend* MIND CTI to Host Annual Meeting of
Shareholders
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 as well as unified
communications analytics and call accounting solutions for
enterprises, today announced results for the fourth quarter and
year ended December 31, 2018.
The following will summarize our business in the
fourth quarter of 2018 and provide a more detailed review of the
financial results for the quarter and for the full year. 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.
Financial Highlights of Q4
2018
- Revenues of $4.5 million, similar to revenues in the fourth
quarter of 2017.
- Operating income was $1.5 million, compared to $1.1 million in
the fourth quarter of 2017.
- Net income of $1.4 million or $0.07 per share, compared to $1.6
million (including a one-time decrease of $0.7 million in taxes on
income) or $0.08 per share in the fourth quarter of 2017.
- Cash flow from operating activities was $0.5 million, compared
to $0.8 million in the fourth quarter of 2017.
Financial Highlights of Full
Year 2018
- Revenues of $18.1 million, same as in 2017.
- Operating income was $5.3 million, or 30.0% of revenue,
compared to $4.7 million, or 25.9% of revenue, in 2017.
- Net income of $5.1 million, or $0.27 per share, compared to
$5.6 million, or $0.29 per share in 2017. Net income in 2017
includes a one-time net capital gain of $0.9 million.
- Cash flow from operating activities was $4.4 million, compared
to $2.7 million in 2017.
- Cash position of approximately $16 million as of December 31,
2018.
As of December 31, 2018, we had 221 employees,
compared to 240 as of December 31, 2017.
Monica Iancu, MIND CTI’s President and Chief
Executive Officer commented: “Our flat 2018 revenues reflect the
expected and previously announced negative impact of a few
customers under maintenance or SaaS agreements that decided to exit
their business, offset by increased orders from other existing
customers. We continue to be challenged by the shrinking relevant
telecom markets and strong competition. We expect additional
terminations of maintenance agreements in 2019 that will have a
negative impact on our revenue and profitability in 2019. We
believe that we made the necessary adjustments to our workforce to
prepare for this. As previously announced, during our over twenty
years of operation, we have experienced similar market trend
changes and we executed successfully in shifting our focus towards
new opportunities."
Revenue Distribution for Q4
2018Revenues in the Americas represented 75%,
revenues in Europe represented 16% and revenues in Israel
represented 5% of our total revenues.
Revenues from our customer care and billing
software totaled $3.8 million, or 86% of total revenues, while
revenues from our enterprise call accounting software were $0.6
million, or 14% of total revenues.
Revenues from licenses were $0.3 million, or 7%
of total revenues, while revenues from maintenance and additional
services were $4.1 million, or 93% of total revenues.
Revenue Distribution for Full
Year 2018Revenues in the Americas represented
72%, revenues in Europe represented 18% and revenues in Israel
represented 5% of our total revenues.
Revenues from our customer care and billing
software totaled $14.9 million, or 82% of total revenues, same as
in 2017. Revenues from our unified communications analytics and
call accounting solutions for enterprises were $3.2 million, or 18%
of total revenue, same as in 2017.
Revenues from licenses were $2.4 million, or 13%
of total revenues, compared with $2.5 million, or 14% of total
revenues in 2017, while revenues from maintenance and additional
services were $15.7 million, or 87%, compared with $15.6 million or
86% of total revenues in 2017.
2018 Follow-on
OrdersWe continually invest in updating our
technology and enhancing our products and always strive to maintain
the highest level of support possible in order to achieve customer
satisfaction.
Over the years, our follow-on orders consisted
mainly of specific customizations for new functionalities, license
increases and additional professional services.
During the last two years, however, our
follow-on orders consisted mainly of upgrades to the new versions
of our platforms, specific enhancements performed with Agile teams
and license increases.
Dividend DistributionSince July
2003, when we first adopted a dividend policy, according to which
we declare, subject to specific Board approval and applicable law,
a dividend distribution once per year, we have distributed 15
annual dividends and one special dividend. We continue to believe
that our annual dividends enhance shareholders value and we plan to
continue with annual distributions.
Taking into consideration our dividend policy
and the remaining cash after the distribution, our Board declared
on March 4, 2019 a gross dividend of $0.26 per share. The record
date for the dividend will be March 18, 2019 and the payment date
will be March 28, 2019. Tax will be withheld at a rate of 20%.
Update on Pursuit of
AcquisitionsFollowing our previous elucidations
on our pursuit for potential targets for acquisition, we wish to
update that we made some additional progress with a small company
that meets our criteria. We hope that the lengthy process of
evaluation and negotiations will be successful. If we reach an
agreement, we will announce it before the end of March 2019.
AGMMIND also
announced today that its 2019 Annual General Meeting of
Shareholders will be held on Sunday, May 26, 2019 at 10:00 A.M.
(Israel time), at the offices of the Company, Industrial Park,
Building 7, Yoqneam 2069202, Israel.
Shareholders of record at the close of business
on April 23, 2019 are entitled to vote at the Meeting. All
shareholders are cordially invited to attend the Meeting in person.
Proxy statements and proxy cards for use by shareholders that
cannot attend the meeting in person will be sent by mail to
shareholders that hold shares registered with the American Stock
Transfer & Trust Company, including shares held via DTC
members.
The agenda of the meeting is as follows:
(i)
|
to
re-appoint Brightman Almagor Zohar (member of Deloitte Touche
Tohmatsu), as the Company’s independent auditor until the close of
the following Annual General Meeting and to authorize the Board of
Directors of the Company to determine its remuneration or to
delegate the Audit Committee thereof to do so; |
|
|
(ii) |
to approve
an amendment to the Compensation Policy for the Company’s officers
and directors with respect to D&O Insurance, Exculpation and
Indemnification and to approve the D&O insurance policy terms
accordingly; |
|
|
(iii) |
to re-elect
Ms. Monica Iancu as a Class I director of the Company until the
close of 2022 Annual General Meeting of Shareholders of the
Company; |
|
|
(iv) |
to discuss
the Company’s audited financial statements for the year ended
December 31, 2018. |
About MINDMIND
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.
For more information please
contact:Andrea DrayMIND CTI Ltd.Tel:
+972-4-993-6666investor@mindcti.com
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