MIND C.T.I. LTD. – (NasdaqGM:MNDO), a leading provider of
convergent 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 second quarter
ended June 30, 2019.
The following will summarize our major
achievements in the second quarter of 2019 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, a 32.7% increase when compared with
$4.6 in the second quarter of 2018, with the increase attributed to
the acquisition of Message Mobile GmbH in March 2019, which
generated revenues of approximately $1.9 million during the
quarter.
- Operating income was $1.0 million, or 17.2% of total revenues,
compared with $1.3 million, or 28.4% of total revenues in the
second quarter of 2018, with the decrease in operating income
margin primarily reflecting the lower margins in the acquired
business.
- Net income was $1.0 million, or $0.05 per share, compared with
$1.2 million, or $0.06 per share in the second quarter of
2018.
- Cash flow from operating activities in the quarter was $1.1
million, compared with $0.9 million in the second quarter of
2018.
Six Month Financial
Highlights
- Revenues were $10.5 million, compared with $9.1 million in the
first six months of 2018.
- Operating income was $2.5 million, or 24.0% of total revenues,
compared with $2.6 million or 28.1% of total revenues in the first
six months of 2018.
- Net income was $2.5 million, or $0.13 per share, compared with
$2.3 million or $0.12 per share in the first six months of
2018.
- Cash flow from operating activities in the first six months of
2019 was $3.4 million, compared with $2.3 million in the first six
months of 2018.
As of June 30, 2019, we had 229 employees in our
Romania, Israel, Germany and U.S. offices, compared with 216 as of
June 30, 2018.
Monica Iancu, MIND CTI CEO, commented: “The
financial results reflect the operating activities inclusive of the
enterprise messaging solutions acquisition for the full second
quarter. We continue to be challenged by the shrinking relevant
markets and strong competition in both our billing and our
enterprise solutions, as previously announced multiple times. We
started to experience the expected continuous negative impact and
we continue making the necessary adjustments to our cost structure.
Revenue-wise we see the visible impact of the acquisition, while
operating margins in the enterprise messaging space are much lower
than in our traditional business. As previously mentioned, we
expect to focus in the next few quarters on the integration of
Message Mobile and on exploring its potential growth, including
through additional acquisitions, while striving to find ways to
increase margins in this field. At the same time we continue our
planned investments aimed at responding to market needs and
continue with our dividend policy.”
Financial Income and Cash
Position Our cash position, including short and
long-term deposits and marketable securities, was $12.2 million as
of June 30, 2019, compared with $14.1 million as of June 30, 2018.
The decrease is primarily attributed to the $2.25 million used in
the Message Mobile acquisition.
As previously announced, the Board declared on
March 4, 2019 a cash dividend of $0.26 per share before withholding
tax. The record date was March 18, 2019 and the payment date was
March 28, 2019. Tax was withheld at a rate of 20%.
The dividend declared and distributed was
approximately $5 million – approximately $4 million was paid to the
shareholders in March 2019 and approximately $1 million was paid
for the withholding tax to the Israel Tax Authority in April 2019,
similar to the process in 2018.
Revenue Distribution for Q2
2019Revenues in the Americas represented 50%,
revenues in Europe represented 43% (including the Message Mobile
revenues in Germany that represented 32%) and revenues in the rest
of the world represented 7% of our total revenues.
Revenues from customer care and billing software
totaled $3.3 million, or 55% of total revenues, revenues from
enterprise messaging and payment solutions were $1.9 million, or
32% of total revenues, and revenues from enterprise call accounting
software totaled $0.8 million, or 13% of total revenues.
Revenues from licenses were $0.4 million, or 7%
of total revenues, while revenues from maintenance and additional
services were $5.6 million, or 93% of total revenues.
Acquisition Update As
previously announced, MIND acquired Message Mobile GmbH, a leading
provider of enterprise messaging, communication and payment
solutions, based in Lüneburg, Germany with more than 15 years’
experience in the mobile industry. Its messaging platform enables
enterprises to easily communicate with clients and partners via
text / SMS, voice and instant messaging services like WhatsApp,
Facebook Messenger and Telegram. Message Mobile also offers mobile
payment solutions that use phone bill charging for a wide range of
applications such as mobile parking payment.
The financial results reflect the operating
activities inclusive of the acquisition as from April 1, 2019.
AGM UpdateThe
company held its Annual General Meeting of Shareholders on May 26,
2019 and all the proposed resolutions were approved.
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 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 CTI Ltd.Tel:
+972-4-993-6666investor@mindcti.com
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