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 first quarter
ended March 31, 2019.
The following will summarize our major
achievements in the first 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 $4.5 million, same as
in the first quarter of 2018.
- Operating income was $1.5 million,
or 33% of total revenues, compared with $1.3 million, or 28% of
total revenues in the first quarter of 2018.
- Net income was $1.5 million, or
$0.08 per share, compared with $1.2 million, or $0.06 per share in
the first quarter of 2018.
- Cash flow from operating activities
during the quarter was $2.3 million, compared with $1.3 million in
the first quarter of 2018.
As of March 31, 2019, we had 220 employees in
our Romania, Israel and U.S. offices, compared with 228 as of March
31, 2018.
Acquisition Update As
previously announced on March 25, 2019, 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 before the acquisition only, while the balance sheet
reflects assets and liabilities inclusive of the acquired
company.
Monica Iancu, MIND CTI CEO, commented: “We
believe that messaging needs are expanding worldwide, be it in
traditional text (SMS) or in instant messaging. We expect to focus
in the next few quarters on the integration of Message Mobile and
on exploring the potential growth in this field based on its solid
reputation and proven expertise in the German market. At the same
time, we continue to invest in bringing permanent value to existing
customers, maintaining up-to-date technology and to be relevant for
future market trends in our core billing and analytics platforms.
Given our cash position and our experienced organization, we
believe that we are well positioned and have the required resources
to respond to market needs, continue with our dividend policy and
we plan to continue targeting potential acquisitions that could
benefit the company's growth.”
Cash Flow from Operating Activities,
Cash Position and Annual Dividend DistributionThe strong
cash flow from operating activities in the first quarter of 2019 is
mainly due to the timing of one large payment received for the
completion of a significant milestone. In past years we had
encountered fluctuations in cash flows as well.
Our cash position, including long-term
available-for-sale securities, was approximately $12.1 million as
of March 31, 2019 after the payment of $2.25 million for the cash
part of the total acquisition price of Message Mobile.
As previously announced, the Board declared on
March 4, 2019 a cash dividend of $0.26 per share, before
withholding tax at a rate of 20%.
The dividend declared and distributed was
approximately $5.0 million, out of which approximately $4.0 million
was paid to the shareholders in March 2019 and approximately $1.0
million was paid for the withholding tax to the Israel Tax
Authority after the quarter end, in April 2019.
Revenue
DistributionRevenues in the Americas represented
78%, revenues in Europe represented 12% and revenues in the rest of
the world represented 10% of our total revenues.
Revenues from customer care and billing software
totaled $3.8 million, or 86% of total revenues, while revenues from
enterprise call accounting software totaled $0.6 million, or 14% of
total revenues.
Revenues from licenses were $0.5 million, or 11%
of total revenues, while revenues from maintenance and additional
services were $4.0 million, or 89% of total revenues.
Changes in Management TeamMIND
also announced today the appointment of a new CFO.
Mr. Shoham Shitrit, (39), will join us as the
new CFO, starting June 2019 and will replace Mr. Ran Mendelaw that
joined MIND in 2018 and now intends to pursue other business
opportunities. We thank Mr. Mendelaw for his contribution and wish
him continued success. Mr. Shitrit comes to MIND after serving as a
controller of a public technology corporation – Elbit Systems Ltd.
Prior to that, he served for four years as a controller of a public
medical device company – Lumenis Ltd. (which was traded on Nasdaq
until June 2015 under the symbol LMNS) and before that, he served
three years as a senior auditor at Ernst & Young (Israel).
Shoham holds a B.A. degree in Accounting and Economics from Bar-
Ilan University and is a Certified Public Accountant in Israel.
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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