EX-99.1 2 ea022002501ex99-1_mind.htm MIND CTI REPORTS THIRD QUARTER 2024 RESULTS

Exhibit 99.1

 

MIND CTI Reports Third Quarter 2024 Results

 

Yoqneam, Israel, November 5, 2024 MIND C.T.I. LTD. – (NasdaqGM: MNDO), a leading provider of convergent end-to-end prepaid/postpaid 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 third quarter ended September 30, 2024.

 

The following will summarize our major achievements in the third quarter of 2024, as well as our business. Full 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.

 

Q3 2024 Financial Highlights

 

Revenues were $5.2 million, compared with $5.3 million in the third quarter of 2023.

 

Operating income was $0.7 million, compared to $1.2 million in the third quarter of 2023, with the increase in cost of revenues attributed to an infrequent high cost of third-party hardware and licenses supplied as part of our solutions to a customer.

 

Net income was $0.9 million, or $0.05 per share, compared to $1.3 million, or $0.06 per share in the third quarter of 2023.

 

Cash flow from operating activities was $1.0 million, the same as in the third quarter of 2023.

 

One new win with an existing customer and multiple follow-on orders.

 

Cash position was $15.5 million as of September 30, 2024.

 

Nine Months Financial Highlights

 

Revenues were $16.2 million, compared with $16.0 million in the first nine months of 2023.

 

Operating income was $3.1 million, compared to $3.6 million in the first nine months of 2023.

 

Net income was $3.4 million, or $0.17 per share, compared to $3.7 million, or $0.19 per share in the first nine months of 2023.

 

Cash flow from operating activities in the first nine months of 2024 was $3.8 million, compared to $3.4 million in the first nine months of 2023.

 

Monica Iancu, MIND CTI’s Chief Executive Officer, commented: “Similar to previous quarters, we continue to benefit from the long-term successful relationships with our customers that value our commitment to provide the highest level of support and the best products and services, and from time to time, increase the scope of their solutions. We work with well-designed processes that ensure operating efficiency and productivity. We remain active in our search for suitable acquisitions and continue our ongoing investment to better support digital transformations and 5G networks, and to maintain up-to-date technology and infrastructure with increased security. MIND is a global company, operating from different countries, according to an extensive business continuity plan that ensures resilience, seamless delivery, development, and ongoing support to our customers.

 

“As I hand over the CEO position to Ariel Glassner, I wish to thank our long-term investors, employees, customers, and partners for enabling my long, eventful, and gratifying leadership journey.”

 

Revenue Distribution for Q3 2024

 

Europe represented 53% (including the messaging segment revenues in Germany that represented 34%), the Americas represented 40%, and the rest of the world represented 7% of total revenues.

 

 

 

 

Customer care and billing software totaled $2.9 million, or 56% of total revenues, enterprise messaging and payment solutions were $1.8 million, or 35% of total revenues, and enterprise call accounting software totaled $0.5 million, or 9% of total revenues.

 

Revenue Distribution for Nine Months 2024

 

Europe represented 55% (including the messaging segment revenues in Germany that represented 37%), the Americas represented 39%, and the rest of the world represented 6% of total revenues.

 

Customer care and billing software totaled $8.8 million, or 54% of total revenues, enterprise messaging and payment solutions totaled $6 million, or 37% of total revenues, and enterprise call accounting software totaled $1.4 million, or 9% of total revenues.

 

New Win & Follow-on Orders

 

Our customers, from time to time, increase their licenses and the scope of the solutions we provide to them. This quarter, like in all previous quarters, we received follow-on orders from existing customers for additional functionality and license upgrades.

 

The new win is with an existing customer to enhance and customize the MINDBill platform to support a Hosted Mobile (MVNO) – transforming the existing customer into a full MVNE.  The MVNE platform includes all MINDBill modules, omnichannel ecommerce, mobile app and WEB selfcare for residential and commercial users. The MINDBill platform enables integration with external applications such as ERP, support for multiple languages, branding throughout the applications and communication methods and the customizations include contract layout, invoice layout, receipt layout, and notifications.

 

Active Pursuit of Acquisitions

 

As previously announced, we continue targeting potential acquisitions that could be a source of growth, by focusing on acquisition targets at reasonable valuations that satisfy the criteria we defined: proven revenues, complementary technology or geography and expected accretion to earnings within two to three quarters.

 

About MIND

 

MIND 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-five years of experience in providing solutions to carriers and enterprises, MIND operates from offices in Israel, Romania, Germany and the United States.

 

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”, including estimations relating to the impact of the political situation in Ukraine, expectations of the results of the Company’s business optimization initiative, integration of the company’s acquisitions and its projected outlook and results of operations. 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, but not limited to, economic conditions in our key markets, as well as the risks discussed in the Company’s annual report and other 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 C.T.I. Ltd.

Tel: +972-4-993-6666

investor@mindcti.com

 

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MIND C.T.I. LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

   Three Months   Nine Months 
   Ended September 30,   Ended September 30, 
   2024   2023   2024   2023 
   U.S. dollars in thousands (except per share data) 
REVENUES  $5,208   $5,264   $16,247   $16,003 
COST OF REVENUES   2,952    2,590    8,400    7,912 
GROSS PROFIT   2,256    2,674    7,847    8,091 
OPERATING EXPENSES:                    
Research and development   841    865    2,564    2,670 
Selling and marketing   331    240    947    804 
General and administrative   341    354    1,279    1,022 
Total operating expenses   1,513    1,459    4,790    4,496 
OPERATING INCOME   743    1,215    3,057    3,595 
FINANCIAL INCOME, net   192    142    520    432 
INCOME BEFORE TAXES ON INCOME   935    1,357    3,577    4,027 
TAXES ON INCOME   6    107    185    294 
NET INCOME  $929   $1,250   $3,392   $3,733 
                     
                     
EARNINGS PER SHARE - in U.S. dollars                    
Basic  $0.05   $0.06   $0.17   $0.19 
Diluted  $0.04   $0.06   $0.16   $0.18 
                     
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF EARNINGS PER SHARE - in thousands:                    
Basic   20,463    20,212    20,279    20,158 
Diluted   20,691    20,489    20,568    20,460 

 

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MIND C.T.I. LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

   September 30,   December 31, 
   2024   2023 
   U.S. dollars in thousands 
ASSETS        
CURRENT ASSETS:        
Cash and cash equivalents  $2,734   $2,958 
Short-term bank deposits   12,605    13,464 
Marketable securities   192    182 
Accounts receivable, net   2,185    2,295 
Other current assets   366    538 
Prepaid expenses   273    277 
Total current assets   18,355    19,714 
           
NON-CURRENT ASSETS:          
Accounts receivable, net   448    714 
Severance pay fund   2,181    2,051 
Deferred income taxes    112    102 
Property and equipment, net   173    216 
Right-of-use assets, net    502    690 
Intangible assets, net   176    266 
Goodwill   7,902    7,872 
Total assets  $29,849   $31,625 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
CURRENT LIABILITIES:          
Accounts payable  $583   $989 
Other current liabilities and accruals   1,798    1,749 
Current maturities of lease liabilities   132    218 
Deferred revenues   1,422    1,517 
Total current liabilities   3,935    4,473 
           
LONG-TERM LIABILITIES:          
Deferred revenues   108    100 
Lease liabilities, net of current maturities   327    424 
Accrued severance pay   2,181    2,060 
Deferred income taxes   53    80 
Total liabilities   6,604    7,137 
           
SHAREHOLDERS’ EQUITY:          
Share capital   54    54 
Additional paid-in capital   27,856    27,776 
Accumulated other comprehensive loss   (958)   (1,001)
Accumulated deficit   (2,810)   (1,334)
Treasury shares   (897)   (1,007)
Total shareholders’ equity   23,245    24,488 
Total liabilities and shareholders’ equity  $29,849   $31,625 

 

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MIND C.T.I. LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   Three Months   Nine Months 
   Ended September 30,   Ended September 30, 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net income  $929   $1,250   $3,392   $3,733 
Adjustments to reconcile net income to net cash provided                     
by operating activities:                    
Depreciation and amortization   47    47    141    147 
Deferred income taxes, net   (15)   (3)   (37)   (25)
Accrued severance pay   11    9    24    28 
Unrealized gain from marketable securities, net   (6)   (1)   (10)   (2)
Employees share-based compensation expenses   62    72    190    213 
Changes in operating asset and liability items:                    
Decrease (increase) in accounts receivable, net   (40)   2    376    (137)
Decrease (increase) in other current assets   222    (51)   171    (119)
Decrease (increase) in prepaid expenses   77    (162)   4    (269)
Decrease in accounts payable   (154)   (257)   (405)   (152)
Increase (decrease) in other current liabilities and accruals   301    352    42    (278)
Change in operating lease liability   10    (12)   5    (18)
Increase (decrease) in deferred revenues   (492)   (269)   (87)   268 
Net cash provided by operating activities   952    977    3,806    3,389 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Purchase of property and equipment   (5)   (9)   (7)   (53)
Severance pay funds   (11)   (13)   (33)   (41)
Proceeds from redemption of (investment in) short-term bank deposits   (1,410)   (4,482)   859    (1,144)
Net cash provided by (used in) investing activities   (1,426)   (4,504)   819    (1,238)
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Dividend paid   -    -    (4,868)   (4,839)
Net cash used in financing activities   -    -    (4,868)   (4,839)
                     
TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS   38    (22)   19    (1)
                     
DECREASE IN CASH AND CASH EQUIVALENTS   (436)   (3,549)   (224)   (2,689)
BALANCE OF CASH AND CASH EQUIVALENTS AT                    
BEGINNING OF PERIOD   3,170    6,125    2,958    5,265 
BALANCE OF CASH AND CASH EQUIVALENTS AT                    
END OF PERIOD  $2,734   $2,576   $2,734   $2,576 

 

 

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