Yoqneam, Israel, August 19, 2008
MIND CTI Reports Q1 and Q2 2008 Results
Six Months Cash Flow from Operating Activities of $2.1 Million
AGM Resolutions Approved
MIND CTI Ltd. (NasdaqGM:MNDO), a leading provider of convergent end-to-end billing and customer care product based solutions for tier 2 and tier 3 carriers worldwide, today announced results for the first and second quarter of 2008.
Financial Highlights of Q1 2008
- Revenues of $5.1 million, compared with $4.8 million in the first quarter of 2007.
- Operating income was $315 thousand, or 6.2% of revenue, excluding amortization of intangible assets of $167 thousand and equity-based compensation expense of $46 thousand.
- GAAP operating income was $102 thousand, or 2% of revenue.
- Impairment of Auction Rate Securities was $962 thousandwith $4.8 million in the first quarter of 2007.
- Net loss was $268 thousand or $0.01 per share, excluding amortization of intangible assets of $167 thousand and equity-based compensation expense of $46 thousand.
- GAAP net loss was $481 thousand, or $0.02 per share compared with GAAP net income of $1,151 thousand or $0.05 per share in the first quarter of 2007.
Financial Highlights of Q2 2008
- Revenues of $5.1 million, compared with $4 million in the second quarter of 2007.
- Operating income was $682 thousand, or 13.4% of revenue, excluding amortization of intangible assets of $166 thousand and equity-based compensation expense of $43 thousand.
- GAAP operating income was $473 thousand, or 9.3% of revenue.
- Impairment of Auction Rate Securities was $796 thousand.
- Net loss was $87 thousand or $0.00 per share, excluding amortization of intangible assets of $166 thousand and equity-based compensation expense of $43 thousand.
- GAAP net loss was $296 thousand, or $0.01 per share compared with GAAP net income of $508 thousand or $0.02 per share in the second quarter of 2007.
Six Month Highlights
- Revenues of $10.2 million, compared with $8.9 million in the first six months of 2007.
- Expenses of $862 thousand relating to deferred revenues were deferred in the first six months of 2008.
- Net loss was $355 thousand or $0.02 per share, excluding amortization of intangible assets of $333 thousand and equity-based compensation expense of $89 thousand.
- GAAP net loss was $777 thousand, or $0.04 per share compared with GAAP net income of $1,659 thousand or $0.08 per share in the first six months of 2007.
- Cash flow from operating activities in first six months of 2008 was $2.1 million.
- Cash and cash equivalents of $9.7 million on June 30, 2008.
- Backlog expected to be billed by year-end as of June 30, 2008 is $6.4 million.
Revenue Distribution for Six Months 2008
Sales in the Americas represented 42% and sales in Europe represented 50% of total revenue.
Revenue from our customer care and billing software totaled $8.7 million, while revenue from our enterprise call management software was $1.5 million. The revenue breakdown from our business lines of products was $3.5 million, or 34% from licenses, $3.4 million, or 33% from maintenance and $3.3 million, or 32% from services.
Auction Rate Securities
As previously announced, we continue to receive interest payments every month on the held security, which is now rated BBB by S&P and Ba1 with CreditWatch with negative implications by Moody's.
New Wins
In the second quarter MIND secured two new customers, one in the US and one in Europe, as well as a major upgrade of license from an existing customer. The win in the US is a six-year managed service contract with a regional mobile operator. The win in Europe is also a managed service contract with a small telecom reseller. The license upgrade from the existing customer includes the new MIND offering, the Point of Sale module as well as an upgrade of subscriber license.
Monica Eisinger, Chairperson and CEO, commented: "We continue to build for the long term, to execute on profitability and to win new business. MIND delivers an end-to-end solution that suits carrier specific needs. Our integrated Point of Sale module completes our platform that includes customer care, electronic bill presentment & payment, rating, billing, provisioning and mediation.
MIND now offers a truly convergent, real-time solution across any line of business: voice, data, content, video; fixed, mobile, cable, satellite; prepaid and postpaid. We support automated business processes and sophisticated business models. Lately we encounter increased demand for our services and the long-term contracts help us build a strong backlog and increase our visibility."
The Company held its Annual General Meeting of Shareholders on August 18, 2008 and all the proposed resolutions were approved.
Conference Call Information
MIND will host a conference call on August 20, 2008 at 10:30 a.m., Eastern Time, to discuss the Company's six months 2008 results and other financial and business information. The call will be carried live on the Internet via :www.fulldisclosure.com and the MIND website, :www.mindcti.com. For those unable to listen to the live web cast, a replay will be available.
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
|
March 31
|
December 31,
2007
|
|
2008
|
2007
|
|
(Unaudited)
|
(Audited)
|
|
U.S. $ in thousands
|
| |
|
|
|
| A s s e t s |
|
|
| |
|
| |
|
| |
|
| CURRENT ASSETS: | | |
| Cash and cash equivalents | | |
$ | 13,819 |
|
$ | 4,772 |
|
$ | 12,390 |
|
| Marketable securities | | |
| 27 |
|
| 20,036 |
|
| 21 |
|
| Accounts receivable: | | |
| Trade | | |
| 4,680 |
|
| 5,819 |
|
| 4,967 |
|
| Other | | |
| 139 |
|
| 288 |
|
| 135 |
|
| Prepaid expenses and deferred costs | | |
| 282 |
|
| 243 |
|
| 166 |
|
| Deferred income taxes | | |
| 158 |
|
| 158 |
|
| 131 |
|
| Inventories | | |
| 44 |
|
| 35 |
|
| 44 |
|
|
| |
| |
| |
| T o t a l current assets | | |
| 19,149 |
|
| 31,351 |
|
| 17,854 |
|
|
| |
| |
| |
| INVESTMENTS AND OTHER NON CURRENT | | |
| ASSETS: | | |
| Marketable debentures | | |
|
|
|
| 10,000 |
|
|
|
|
| Long-term investment | | |
| 4,151 |
|
|
|
|
| 5,113 |
|
| Other | | |
| 1,055 |
|
| 989 |
|
| 968 |
|
| PROPERTY AND EQUIPMENT, net of | | |
| accumulated depreciation and amortization | | |
| 1,567 |
|
| 1,547 |
|
| 1,616 |
|
| INTANGIBLE ASSETS, net of accumulated | | |
| amortization | | |
| 1,783 |
|
| 772 |
|
| 1,951 |
|
| GOODWILL | | |
| 10,219 |
|
| 6,966 |
|
| 10,224 |
|
|
| |
| |
| |
| T o t a l assets | | |
$ | 37,924 |
|
$ | 51,625 |
|
$ | 37,726 |
|
|
| |
| |
| |
| Liabilities and shareholders' equity | | |
| CURRENT LIABILITIES : | | |
| Accounts payable and accruals: | | |
| Trade | | |
$ | 659 |
|
$ | 503 |
|
$ | 741 |
|
| Other | | |
| 2,619 |
|
| 2,640 |
|
| 2,406 |
|
| Deferred revenues and advances from customers | | |
| 1,556 |
|
| 2,147 |
|
| 1,266 |
|
|
| |
| |
| |
| T o t a l current liabilities | | |
| 4,834 |
|
| 5,290 |
|
| 4,413 |
|
|
| |
| |
| |
| EMPLOYEE RIGHTS UPON RETIREMENT | | |
| 1,721 |
|
| 1,498 |
|
| 1,504 |
|
|
| |
| |
| |
| T o t a l liabilities | | |
| 6,555 |
|
| 6,788 |
|
| 5,917 |
|
|
| |
| |
| |
| SHAREHOLDERS' EQUITY: | | |
| Share capital | | |
| 54 |
|
| 54 |
|
| 54 |
|
| Additional paid-in capital | | |
| 57,926 |
|
| 60,017 |
|
| 57,880 |
|
| Differences from translation of foreign currency | | |
| financial statements of a subsidiary | | |
| (146 |
) |
|
|
|
| (141 |
) |
| Accumulated deficit | | |
| (26,465 |
) |
| (15,234 |
) |
| (25,984 |
) |
|
| |
| |
| |
| T o t a l shareholders' equity | | |
| 31,369 |
|
| 44,837 |
|
| 31,809 |
|
|
| |
| |
| |
| T o t a l liabilities and shareholders' equity | | |
$ | 37,924 |
|
$ | 51,625 |
|
$ | 37,726 |
|
|
| |
| |
| |
| * |
2007
numbers were classified in accordance with the accounting treatment for Auction Rate
Securities as described by the Company in its form 20-F/A dated December 6, 2007. |
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
Three months
ended March 31
|
Year ended
December 31,
2007
|
|
2008
|
2007
|
|
(Unaudited)
|
(Audited)
|
|
U.S. $ in thousands
(except per share data)
|
| |
|
|
|
| REVENUES |
|
|
$ | 5,112 |
|
$ | 4,807 |
|
$ | 18,447 |
|
| COST OF REVENUES | | |
| 1,641 |
|
| 1,345 |
|
| 5,784 |
|
|
| |
| |
| |
| GROSS PROFIT | | |
| 3,471 |
|
| 3,462 |
|
| 12,663 |
|
| RESEARCH AND DEVELOPMENT | | |
| EXPENSES | | |
| 1,740 |
|
| 1,416 |
|
| 5,714 |
|
| SELLING AND MARKETING EXPENSES | | |
| 1,045 |
|
| 935 |
|
| 3,846 |
|
| GENERAL AND ADMINISTRATIVE EXPENSES | | |
| 584 |
|
| 443 |
|
| 1,845 |
|
|
| |
| |
| |
| OPERATING INCOME | | |
| 102 |
|
| 668 |
|
| 1,258 |
|
| FINANCIAL INCOME (EXPENSES): | | |
| IMPAIRMENT OF AUCTION RATE | | |
| SECURITIES | | |
| (962 |
) |
| |
|
| (15,187 |
) |
| OTHER FINANCIAL INCOME, net | | |
| 405 |
|
| 504 |
|
| 2,082 |
|
|
| |
| |
| |
| INCOME (LOSS) BEFORE TAXES ON INCOME | | |
| (455 |
) |
| 1,172 |
|
| (11,847 |
) |
| TAXES ON INCOME | | |
| 26 |
|
| 21 |
|
| 108 |
|
|
| |
| |
| |
| NET INCOME (LOSS) | | |
$ | (481 |
) |
$ | 1,151 |
|
$ | (11,955 |
) |
|
| |
| |
| |
| EARNING (LOSS) PER ORDINARY SHARE: | | |
| Basic and diluted | | |
$ | (0.02 |
) |
$ | 0.05 |
|
$ | (0.55 |
) |
|
| |
| |
| |
| WEIGHTED AVERAGE NUMBER OF | | |
| ORDINARY SHARES USED IN | | |
| COMPUTATION OF EARNINGS PER | | |
| ORDINARY SHARE - IN THOUSANDS: | | |
| Basic | | |
| 21,594 |
|
| 21,566 |
|
| 21,586 |
|
|
| |
| |
| |
| Diluted | | |
| 21,594 |
|
| 21,577 |
|
| 21,586 |
|
|
| |
| |
| |
MIND C.T.I. LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three months
ended March 31
|
Year ended
December 31,
2007
|
|
2008
|
2007
|
|
U.S. $ in thousands
|
| |
|
|
|
|
|
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
| |
|
| |
|
| |
|
| Net income (loss) | | |
$ | (481 |
) |
$ | 1,151 |
|
$ | (11,955 |
) |
| Adjustments to reconcile net income to net cash provided by | | |
| operating activities: | | |
| Depreciation and amortization | | |
| 304 |
|
| 245 |
|
| 950 |
|
| Impairment of auction rate securities | | |
| 962 |
|
| |
|
| 15,187 |
|
| Deferred income taxes, net | | |
| (2 |
) |
| 2 |
|
| 78 |
|
| Accrued severance pay | | |
| 217 |
|
| 16 |
|
| 22 |
|
| Capital loss (gain) on sale of property and | | |
| equipment - net | | |
| (8 |
) |
| 7 |
|
| 8 |
|
| Employees share-based compensation expenses | | |
| 46 |
|
| 64 |
|
| 269 |
|
| Realized loss on sale of marketable securities and marketable debentures | | |
| held-to-maturity | | |
| (6 |
) |
| |
|
| 4 |
|
| Changes in operating asset and liability items: | | |
| Decrease (increase) in accounts receivable: | | |
| Trade | | |
| 290 |
|
| (434 |
) |
| 1,330 |
|
| Interest accrued on marketable debentures | | |
| 6 |
|
| (136 |
) |
| 19 |
|
| Other | | |
| (10 |
) |
| (28 |
) |
| (11 |
) |
| Increase in prepaid expenses and deferred costs | | |
| (116 |
) |
| (136 |
) |
| (17 |
) |
| Increase in inventories | | |
| |
|
| |
|
| (9 |
) |
| Increase (decrease) in accounts payable and accruals: | | |
| Trade | | |
| (82 |
) |
| 39 |
|
| 156 |
|
| Other | | |
| 213 |
|
| (605 |
) |
| (1,127 |
) |
| Increase (decrease) in deferred revenues and advances from customers | | |
| 290 |
|
| 670 |
|
| (233 |
) |
|
| |
| |
| |
| Net cash provided by operating activities | | |
| 1,623 |
|
| 855 |
|
| 4,671 |
|
|
| |
| |
| |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | |
| Purchase of marketable securities | | |
| |
|
| (65,600 |
) |
| (166,300 |
) |
| Sale of marketable securities | | |
| |
|
| 68,364 |
|
| 168,800 |
|
| Purchase of property and equipment | | |
| (117 |
) |
| (135 |
) |
| (445 |
) |
| Acquisition of a subsidiary, net of cash acquired | | |
| |
|
| |
|
| (4,979 |
) |
| Severance pay funds | | |
| (112 |
) |
| 8 |
|
| (20 |
) |
| Acquisition of marketable debentures held-to-maturity | | |
| |
|
| |
|
| 9,996 |
|
| Proceeds from sale of property and equipment | | |
| 38 |
|
| 10 |
|
| 139 |
|
|
| |
| |
| |
| Net cash provided by (used in) investing activities | | |
| (191 |
) |
| 2,647 |
|
| 7,191 |
|
|
| |
| |
| |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | |
| Employee stock options exercised and paid | | |
| |
|
| 81 |
|
| 95 |
|
| Dividend paid | | |
| |
|
| (3,582 |
) |
| (4,318 |
) |
|
| |
| |
| |
| Net cash used in financing activities | | |
| -,- |
|
| (3,501 |
) |
| (4,223 |
) |
|
| |
| |
| |
| TRANSLATION ADJUSTMENTS ON CASH AND | | |
| CASH EQUIVALENTS | | |
| (3 |
) |
| -,- |
|
| (20 |
) |
|
| |
| |
| |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | | |
| 1,429 |
|
| 1 |
|
| 7,619 |
|
| BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING | | |
| OF PERIOD* | | |
| 12,390 |
|
| 4,771 |
|
| 4,771 |
|
|
| |
| |
| |
| BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD* | | |
$ | 13,819 |
|
$ | 4,772 |
|
$ | 12,390 |
|
|
| |
| |
| |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON CASH | | |
| ACTIVITIES - | | |
| Cash paid during the year for income tax | | |
$ | 23 |
|
$ | 841 |
|
$ | 902 |
|
|
| |
| |
| |
| * |
2007
numbers were classified in accordance with the accounting treatment for Auction Rate
Securities as described by the Company in its form 20-F/A dated December 6, 2007. |
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
|
June 30
|
December 31,
2007
|
|
2008
|
2007
|
|
(Unaudited)
|
(Audited)
|
|
U.S. $ in thousands
|
| |
|
|
|
| A s s e t s |
|
|
| |
|
| |
|
| |
|
| CURRENT ASSETS: | | |
| Cash and cash equivalents | | |
$ | 9,656 |
|
$ | 5,469 |
|
$ | 12,390 |
|
| Marketable securities | | |
| 20 |
|
| 20,015 |
|
| 21 |
|
| Accounts receivable: | | |
| Trade | | |
| 4,925 |
|
| 4,672 |
|
| 4,967 |
|
| Other | | |
| 236 |
|
| 170 |
|
| 135 |
|
| Prepaid expenses and deferred costs | | |
| 569 |
|
| 198 |
|
| 166 |
|
| Deferred income taxes | | |
| 167 |
|
| 148 |
|
| 131 |
|
| Inventories | | |
| 44 |
|
| 35 |
|
| 44 |
|
|
| |
| |
| |
| T o t a l current assets | | |
| 15,617 |
|
| 30,707 |
|
| 17,854 |
|
|
| |
| |
| |
| INVESTMENTS AND OTHER NON CURRENT | | |
| ASSETS: | | |
| Marketable debentures | | |
| |
|
| 10,000 |
|
| |
|
| Long-term investment | | |
| 3,355 |
|
| |
|
| 5,113 |
|
| Other | | |
| 1,162 |
|
| 908 |
|
| 968 |
|
| PROPERTY AND EQUIPMENT, net of | | |
| accumulated depreciation and amortization | | |
| 1,641 |
|
| 1,393 |
|
| 1,616 |
|
| INTANGIBLE ASSETS, net of accumulated | | |
| amortization | | |
| 1,617 |
|
| 670 |
|
| 1,951 |
|
| GOODWILL | | |
| 10,219 |
|
| 6,966 |
|
| 10,224 |
|
|
| |
| |
| |
| T o t a l assets | | |
$ | 33,611 |
|
$ | 50,644 |
|
$ | 37,726 |
|
|
| |
| |
| |
| Liabilities and shareholders' equity | | |
| CURRENT LIABILITIES : | | |
| Accounts payable and accruals: | | |
| Trade | | |
$ | 512 |
|
$ | 440 |
|
$ | 741 |
|
| Other | | |
| 2,401 |
|
| 1,611 |
|
| 2,406 |
|
| Deferred revenues and advances from customers | | |
| 2,084 |
|
| 1,705 |
|
| 1,266 |
|
|
| |
| |
| |
| T o t a l current liabilities | | |
| 4,997 |
|
| 3,756 |
|
| 4,413 |
|
|
| |
| |
| |
| EMPLOYEE RIGHTS UPON RETIREMENT | | |
| 1,814 |
|
| 1,466 |
|
| 1,504 |
|
|
| |
| |
| |
| T o t a l liabilities | | |
| 6,811 |
|
| 5,222 |
|
| 5,917 |
|
|
| |
| |
| |
| SHAREHOLDERS' EQUITY: | | |
| Share capital | | |
| 54 |
|
| 54 |
|
| 54 |
|
| Additional paid-in capital | | |
| 53,650 |
|
| 60,094 |
|
| 57,880 |
|
| Differences from translation of foreign currency | | |
| financial statements of a subsidiary | | |
| (143 |
) |
| |
|
| (141 |
) |
| Accumulated deficit | | |
| (26,761 |
) |
| (14,726 |
) |
| (25,984 |
) |
|
| |
| |
| |
| T o t a l shareholders' equity | | |
| 26,800 |
|
| 45,422 |
|
| 31,809 |
|
|
| |
| |
| |
| T o t a l liabilities and shareholders' equity | | |
$ | 33,611 |
|
$ | 50,644 |
|
$ | 37,726 |
|
|
| |
| |
| |
| * |
2007
numbers were classified in accordance with the accounting treatment for Auction Rate
Securities as described by the Company in its form 20-F/A dated December 6, 2007. |
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
Six months
ended
June 30
|
Three months
ended
June 30
|
Year ended
December 31,
2007
|
|
2008
|
2007
|
2008
|
2007
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
U.S. $ in thousands (except per share data)
|
| |
|
|
|
|
|
| REVENUES |
|
|
$ | 10,193 |
|
$ | 8,856 |
|
$ | 5,081 |
|
$ | 4,049 |
|
$ | 18,447 |
|
| COST OF REVENUES | | |
| 3,081 |
|
| 2,620 |
|
| 1,440 |
|
| 1,275 |
|
| 5,784 |
|
|
| |
| |
| |
| |
| |
| GROSS PROFIT | | |
| 7,112 |
|
| 6,236 |
|
| 3,641 |
|
| 2,774 |
|
| 12,663 |
|
| RESEARCH AND DEVELOPMENT | | |
| EXPENSES | | |
| 3,301 |
|
| 2,782 |
|
| 1,561 |
|
| 1,366 |
|
| 5,714 |
|
| SELLING AND MARKETING EXPENSES | | |
| 2,033 |
|
| 1,922 |
|
| 988 |
|
| 987 |
|
| 3,846 |
|
| GENERAL AND ADMINISTRATIVE | | |
| EXPENSES | | |
| 1,203 |
|
| 822 |
|
| 619 |
|
| 379 |
|
| 1,845 |
|
|
| |
| |
| |
| |
| |
| OPERATING INCOME | | |
| 575 |
|
| 710 |
|
| 473 |
|
| 42 |
|
| 1,258 |
|
| FINANCIAL INCOME (EXPENSES): | | |
| IMPAIRMENT OF AUCTION RATE | | |
| SECURITIES | | |
| (1,758 |
) |
|
|
|
| (796 |
) |
|
|
|
| (15,187 |
) |
| OTHER FINANCIAL INCOME, net | | |
| 567 |
|
| 988 |
|
| 162 |
|
| 484 |
|
| 2,082 |
|
|
| |
| |
| |
| |
| |
| INCOME (LOSS) BEFORE TAXES ON | | |
| INCOME | | |
| (616 |
) |
| 1,698 |
|
| (161 |
) |
| 526 |
|
| (11,847 |
) |
| TAXES ON INCOME | | |
| 161 |
|
| 39 |
|
| 135 |
|
| 18 |
|
| 108 |
|
|
| |
| |
| |
| |
| |
| NET INCOME (LOSS) | | |
$ | (777 |
) |
$ | 1,659 |
|
$ | (296 |
) |
$ | 508 |
|
$ | (11,955 |
) |
|
| |
| |
| |
| |
| |
| EARNING (LOSS) PER SHARE: | | |
| Basic and diluted | | |
$ | (0.04 |
) |
$ | 0.08 |
|
$ | (0.01 |
) |
$ | 0.02 |
|
$ | (0.55 |
) |
|
| |
| |
| |
| |
| |
| WEIGHTED AVERAGE NUMBER OF | | |
| ORDINARY SHARES USED IN | | |
| COMPUTATION OF EARNINGS PER | | |
| ORDINARY SHARE - IN THOUSANDS: | | |
| Basic | | |
| 21,594 |
|
| 21,578 |
|
| 21,594 |
|
| 21,590 |
|
| 21,586 |
|
|
| |
| |
| |
| |
| |
| Diluted | | |
| 21,594 |
|
| 21,591 |
|
| 21,594 |
|
| 21,606 |
|
| 21,586 |
|
|
| |
| |
| |
| |
| |
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Six months
ended June 30
|
Three months
ended June 30
|
Year ended
December 31,
2007
|
|
2008
|
2007
|
2008
|
2007
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
U.S. $ in thousands
|
| |
|
|
|
|
|
| CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| Net income (loss) | | |
$ | (777 |
) |
$ | 1,659 |
|
$ | (296 |
) |
$ | 508 |
|
$ | (11,955 |
) |
| Adjustments to reconcile net income to net | | |
| cash provided by operating activities: | | |
| Depreciation and amortization | | |
| 610 |
|
| 464 |
|
| 306 |
|
| 219 |
|
| 950 |
|
| Impairment of auction rate securities | | |
| 1,758 |
|
| |
|
| 796 |
|
| |
|
| 15,187 |
|
| Deferred income taxes, net | | |
| (19 |
) |
| 68 |
|
| (17 |
) |
| 66 |
|
| 78 |
|
| Accrued severance pay | | |
| 310 |
|
| (16 |
) |
| 93 |
|
| (32 |
) |
| 22 |
|
| Capital loss (gain) on sale of property and | | |
| equipment - net | | |
| (22 |
) |
| 8 |
|
| (14 |
) |
| 1 |
|
| 8 |
|
| Employees share-based compensation expenses | | |
| 89 |
|
| 131 |
|
| 43 |
|
| 67 |
|
| 269 |
|
| Realized loss on sale of marketable securities | | |
| and marketable debentures held-to-maturity | | |
| 1 |
|
| |
|
| 7 |
|
| |
|
| 4 |
|
| Changes in operating asset and liability items: | | |
| Decrease (increase) in accounts receivable: | | |
| Trade | | |
| 40 |
|
| 713 |
|
| (250 |
) |
| 1,147 |
|
| 1,330 |
|
| Interest accrued on marketable securities and | | |
| marketable debentures | | |
| 7 |
|
| 2 |
|
| 1 |
|
| 138 |
|
| 19 |
|
| Other | | |
| (108 |
) |
| (48 |
) |
| (98 |
) |
| (20 |
) |
| (11 |
) |
| Increase in prepaid expenses and deferred costs | | |
| (403 |
) |
| (91 |
) |
| (287 |
) |
| 45 |
|
| (17 |
) |
| Increase in inventories | | |
|
|
|
|
|
|
|
|
|
|
|
|
| (9 |
) |
| Increase (decrease) in accounts payable and accruals: | | |
| Trade | | |
| (229 |
) |
| (24 |
) |
| (147 |
) |
| (63 |
) |
| 156 |
|
| Other | | |
| (3 |
) |
| (898 |
) |
| (216 |
) |
| (293 |
) |
| (1,127 |
) |
| Increase (decrease) in deferred revenues | | |
| and advances from customers, net | | |
| 818 |
|
| 228 |
|
| 528 |
|
| (442 |
) |
| (233 |
) |
|
| |
| |
| |
| |
| |
| Net cash provided by operating activities | | |
| 2,072 |
|
| 2,196 |
|
| 449 |
|
| 1,341 |
|
| 4,671 |
|
|
| |
| |
| |
| |
| |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | |
| Purchase of marketable securities | | |
| |
|
| (125,600 |
) |
| |
|
| (60,000 |
) |
| (166,300 |
) |
| Sale of marketable securities | | |
| |
|
| 128,385 |
|
| |
|
| 60,021 |
|
| 168,800 |
|
| Purchase of property and equipment | | |
| (380 |
) |
| (167 |
) |
| (263 |
) |
| (32 |
) |
| (445 |
) |
| Acquisition of a subsidiary, net of cash acquired | | |
|
|
|
|
|
|
|
|
|
|
|
|
| (4,979 |
) |
| Severance pay funds | | |
| (211 |
) |
| 33 |
|
| (99 |
) |
| 25 |
|
| (20 |
) |
| Acquisition of marketable debentures held-to-maturity | | |
|
|
|
|
|
|
|
|
|
|
|
|
| 9,996 |
|
| Proceeds from sale of property and equipment | | |
| 101 |
|
| 78 |
|
| 63 |
|
| 68 |
|
| 139 |
|
|
| |
| |
| |
| |
| |
| Net cash provided by (used in) investing activities | | |
| (490 |
) |
| 2,729 |
|
| (299 |
) |
| 82 |
|
| 7,191 |
|
|
| |
| |
| |
| |
| |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | |
| Employee stock options exercised and paid | | |
| |
|
| 91 |
|
| |
|
| 10 |
|
| 95 |
|
| Dividend paid | | |
| (4,319 |
) |
| (4,318 |
) |
| (4,319 |
) |
| (736 |
) |
| (4,318 |
) |
|
| |
| |
| |
| |
| |
| Net cash used in financing activities | | |
| (4,319 |
) |
| (4,227 |
) |
| (4,319 |
) |
| (726 |
) |
| (4,223 |
) |
|
| |
| |
| |
| |
| |
| TRANSLATION ADJUSTMENTS ON CASH AND | | |
| CASH EQUIVALENTS | | |
| 3 |
|
| -,- |
|
| 6 |
|
| -,- |
|
| (20 |
) |
|
| |
| |
| |
| |
| |
| INCREASE (DECREASE) IN CASH AND | | |
| CASH EQUIVALENTS | | |
| (2,734 |
) |
| 698 |
|
| (4,163 |
) |
| 697 |
|
| 7,619 |
|
| BALANCE OF CASH AND CASH EQUIVALENTS | | |
| AT BEGINNING OF PERIOD | | |
| 12,390 |
|
| 4,771 |
|
| 13,819 |
|
| 4,772 |
|
| 4,771 |
|
|
| |
| |
| |
| |
| |
| BALANCE OF CASH AND CASH | | |
| EQUIVALENTS AT END OF PERIOD | | |
$ | 9,656 |
|
$ | 5,469 |
|
$ | 9,656 |
|
$ | 5,469 |
|
$ | 12,390 |
|
|
| |
| |
| |
| |
| |
| SUPPLEMENTAL DISCLOSURE OF CASH | | |
| FLOW AND NON CASH ACTIVITIES | | |
| Cash paid during the year for income tax | | |
$ | 254 |
|
$ | 853 |
|
$ | 231 |
|
$ | 6 |
|
$ | 902 |
|
|
| |
| |
| |
| |
| |
| * |
2007
numbers were classified in accordance with the accounting treatment for Auction Rate
Securities as described by the Company in its form 20-F/A dated December 6, 2007. |
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 telecom expense management (call accounting) solutions for the enterprise market. MIND provides a complete range of billing applications for any business model (license, managed service or complete outsourced billing service) for Wireless, Wireline, VoIP and Quad-play carriers in more than 40 countries around the world. A global company, with over ten years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, UK, Romania and Israel. For more information, visit MIND at: www.mindcti.com.
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 Dray
MIND
CTI Ltd.
Tel: +972-4-993-6666
investor@mindcti.com
|
