YOQNEAM, ISRAEL — (Marketwire) — 03/06/13 — MIND C.T.I. LTD. (NASDAQ: MNDO), a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as telecom expense management (enterprise call accounting) solutions, today announced results for the fourth quarter and year ended December 31, 2012.
The following will summarize our business in the fourth quarter of 2012 and provide a more detailed review of the financial results for the quarter. The financial results can be found in the Investors section and in our Form 6-K.
Revenues of close to $5.0 million, compared with $5.3 million in the fourth quarter of 2011.
Operating income was $1.4 million, compared with operating income of $1.2 million in the fourth quarter of 2011.
Net income of $1.4 million or $0.07 per share, compared with net income of $1.3 million or $0.07 per share in the fourth quarter of 2011.
One new win and multiple upgrades/ follow on orders.
As of December 31, 2012 we had 339 employees in our four offices, compared with 319 as of December 31, 2011.
Revenues of $20.2 million, compared with $18.9 million in 2011.
Operating income was $4.4 million, or 21.6 % of revenue, compared with $3.9 million, or 20.8% of revenue, in 2011.
Net income of $4.3 million, or $0.23 per share, same as in 2011.
Cash flow from operating activities was $4.9 million.
Cash position of approximately $19.4 million as of December 31, 2012.
5 new wins and multiple upgrades.
Monica Iancu, CEO, commented: “Every year has its challenges and its rewards and 2012 was full of both, with new customers as well as an increased number of existing customers enhancing their existing MIND solution to support additional business models and migrations to newer versions. A year ago we announced that we plan to increase the company size in order to support the new projects and the multiple requests of engineering resources we receive from our growing customer base and we did. This trend is expected to continue in 2013 at approximately the same rate as we continue to encounter high demand for professional services. 2012 was mainly about delivery and we executed on that as well. As we expected, the important wins of 2011 had a positive impact on our 2012 results as those wins materialized into new platforms in production and we worked extremely hard to support the enlarged customer base. There was also an impact on the gross margins that were lower than in previous years. This trend is expected to continue since we believe we have completed the R&D tasks we defined a few years ago and our engineering efforts are dedicated more to customizations for new and existing customers. As previously announced repeatedly and as expected, some maintenance agreements were not renewed in 2012 and we expect that will bear a negative impact on our 2013 revenues and profitability. We believe that our fully convergent technology is unique indeed and that carriers around the world will discover its real value bringing us closer to the genuine long term target — internal growth.”
Sales in the Americas represented 68.1%, sales in Europe represented 20.3% of total revenue and sales in Israel represented 6.4%.
Revenue from our customer care and billing software totaled $3.9 million, while revenue from our enterprise call accounting software was $1.1 million. Revenue from licenses was $1.0 million, or 20.2% of total revenue, while revenue from maintenance and additional services was $4.0 million, or 79.8 %.
Sales in the Americas represented 53.8%, sales in Europe represented 26.0% and sales in Israel represented 15.1% of total revenue.
Revenue from our customer care and billing software totaled $15.7 million, while revenue from our enterprise call accounting software was $4.5 million. Revenue from licenses was $6.0 million, or 29.5 % of total revenue, while revenue from maintenance and additional services was $14.2 million, or 70.5%.
The new win in the fourth quarter is with a US rural carrier that will implement MIND-s Convergent Real Time Prepaid and Postpaid Rating, Point of Sale, Customer Care and Customer Self-care. This customer will be deploying LTE services.
Similar to previous quarters we also received follow-on orders from existing customers, including an upgrade to our newest version from a veteran customer to support their new mobile operation along with their VoIP telephony that we support for over a decade.
Based on our dividend policy and taking into consideration the strong cash flow in 2012 and the remaining cash after the distribution, the Board declared on March 6, 2013 a gross dividend of $0.24 per share.
The record date for the dividend will be March 20, 2013 and the payment date will be April 3, 2013. Tax will be withheld at a rate of 19%.
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. 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 twelve years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, UK, 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.
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Andrea Dray
MIND CTI Ltd.
Tel: +972-4-993-6666
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