MIND C.T.I. LTD. – (Nasdaq: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 its first quarter ended
March 31, 2018.
The following will summarize our major
achievements in the first quarter of 2018 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 $4.5 million, same as in the first quarter of
2017.
- Operating income was $1.3 million, or 28% of total revenues,
compared with $0.9 million, or 21% of total revenues in the first
quarter of 2017. The unusually high operating margins are the
result of higher than usual revenue from licenses.
- Net income was $1.2 million, or $0.06 per share, compared with
$0.9 million, or $0.05 per share in the first quarter of 2017.
- One SaaS new customer and multiple follow-on orders.
- Cash flow from operating activities during the quarter was $1.3
million, compared with $0.5 million in the first quarter of
2017.
As of March 31, 2018, we had 228 employees in
our offices, compared with 250 as of March 31, 2017.
Monica Iancu, MIND CTI CEO, commented: “As
previously announced, we continue to generate significant revenues
from our existing customer base and we are active in presale
processes, but sales cycles are long and competition is even more
intense. There is severe pricing pressure, especially when we
compete against vendors that focus on specific markets. As planned,
we continue to improve our operating efficiency and productivity
and at the same time the professional services component of our
business revenues increases. We continue to invest in technology
and in enhancing our offering to include omni-channel engagement
and business analytics.”
New Win and Multiple Follow-on
OrdersThe new win is a 6-year SaaS contract,
based on a revenue sharing model, with a US customer offering Avaya
Hosted IP Office for mid-market partners. MIND will deploy the
MINDBill Essentials product based solution.
This quarter we received multiple orders from
different customers including one large license increase, an
additional upgrade to MINDBill Version 8, specific customizations
to be delivered with Agile methodology and additional professional
services.
Cash Position and Annual Dividend
DistributionOur cash position, including long-term
available-for-sale securities, was $14.4 million as of March 31,
2018.
As previously announced, the Board declared on
February 22, 2018 a cash dividend of $0.30 per share before
withholding tax at a rate of 20%.
The dividend declared and distributed was
approximately $5.8 million, out of which approximately $4.6 million
was paid to the shareholders in March 2018 and approximately $1.2
million was paid for the withholding tax to the Israel Tax
Authority after the quarter end, in April 2018.
Revenue
DistributionRevenues in the Americas represented
64%, revenues in Europe represented 27% and revenues in the rest of
the world represented 9% of our total revenues.
Revenues from customer care and billing software
totaled $3.6 million, or 79% of total revenues, while revenues from
enterprise call accounting software totaled $0.9 million, or 21% of
total revenues.
Revenues from licenses were $0.8 million, or 18%
of total revenues, while revenues from maintenance and additional
services were $3.7 million, or 82% of total revenues.
Changes in Management TeamMIND
also announced today the appointment of new CFO and CTO.
Ran Mendelaw, (41), joined us in order to
replace Mr. Aviram Cohen as the new CFO, starting June 2018. Mr.
Cohen joined MIND in 2006 and served as CFO since 2010 and now
intends to pursue other business opportunities. We thank Mr. Cohen
for his contribution to the company's success. Mr. Mendelaw comes
to MIND after serving as a group controller in a public industrial
company, Tadir-Gan Precision Products (1993) Ltd. (TDGN on the
Tel-Aviv Stock Exchange). Prior to that, he served 10 years at PwC
Israel, including as a senior manager. Ran is a Certified Public
Accountant and holds a B.A. degree in Accounting and Economics from
the Haifa University.
Reuben Halevi rejoined MIND in April 2018 as
CTO, bringing over 25 years of a proven track record as an
executive, business and technical leader and consultant in the US
and Israeli software industry. For the last three years Mr. Halevi
worked as a consultant, assisting hi-tech startup companies in all
strategy and business aspects. Prior to that, he served in several
executive roles, including as VP Engineering at MIND in 2014-2015,
VP R&D and US COO at Retalix (acquired by NCR). Reuben holds a
B.Sc. in Industrial Engineering and Management (Cum Laude) from the
Technion – Israel Institute of Technology.
AGM
MIND also announced today that its 2018 Annual
General Meeting of Shareholders will be held on Tuesday, August 14,
2018 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 July 11, 2018 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:
- to re-appoint Brightman Almagor Zohar & Co. (member of
Deloitte Touche Tohmatsu Limited), as the Company’s independent
auditor until the close of the following 2019 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;
- to approve an amendment to the Company’s Compensation Policy
with respect to D&O Insurance, Exculpation and Indemnification
and approval of the D&O insurance policy terms
accordingly;
- to approve the election of Mr. Meir Nissensohn as a Class III
director of the Company until the close of 2021 Annual General
Meeting and his compensation for his services as director;
- to discuss the Company’s audited financial statements for the
year ended December 31, 2017.
About MIND
MIND CTI 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, 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 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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