MIND CTI Reports First Quarter 2015 Results

YOQNEAM, ISRAEL--(Marketwired - April 27, 2015) - MIND C.T.I. LTD. - (MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers as well as unified communications analytics and call accounting solutions for enterprises, today announced results for its first quarter ended March 31, 2015.

The following will summarize our major achievements in the first quarter of 2015 as well as our business. Full financial results can be found in the Investors section of our website at www.mindcti.com/investor/PressReleases.asp and in our Form 6-K.

Financial Highlights

• Revenues were $5.7 million, same as in the first quarter of 2014 and compared with $6.5 million in Q4 2014.

• Operating income was $1.6 million, or 27% of total revenues, up from $1.1 million in the first quarter of 2014 or 20% of total revenues.

• Net income was $0.9 million, or $0.05 per share, compared with $1.0 million, or $0.05 per share in the first quarter of 2014.

• Multiple follow-on orders, including a significant one.

• Cash flow from operating activities was $1.7 million, compared with $1.0 million in the first quarter of 2014.

As of March 31, 2015 we had 354 employees in our offices, compared with 357 as of March 31, 2014.

Monica Iancu, MIND CTI CEO, commented: "In recent years, as we competed for multifaceted projects of several business support systems migration into one convergent solution, the sales cycles became even longer and the sales process more complex. Further delays in wins that we anticipated to materialize in the first quarter are expected to impact our 2015 revenues. We continued with the implementation of previously announced large deals and the professional services component of our business is continuously growing as we support our diversified customer base.

"We continue to target and support larger customers who are able to obtain a feature rich platform to support their convergent wireline, wireless, cable TV and Internet platform billing operations at an excellent value and return on investment. The telecom competitive landscape requires that we provide timely upgrades to support our customers in the ever changing market place. We are satisfied when existing customers enhance their relationship with us, confirming their appreciation for our technology and support. We hope to close the deals that were pushed to later dates in the near term."

Follow-on Orders
As initial deals become more significant, the follow-on orders are of higher magnitude as well. This quarter we had multiple follow-on orders, including one significant enhancement of functionality at an existing quad-play customer. MIND will implement additional capabilities to their current convergent wireline, wireless, cable TV and Internet platform to enhance and automate business processes resulting in improved efficiencies for their business.

Cash Position and Annual Dividend Distribution
The cash position including long-term available-for-sale securities was $15.2 million as of March 31, 2015, after the payment of the annual cash dividend.

As previously announced, the Board declared on February 26, 2015 a cash dividend of $0.30 per share before withholding tax that was paid in full in March 2015.

The dividend declared and distributed was approximately $5.8 million.

Operating Margins and Net Income
The devaluation of currencies against the U.S. dollar impacted both our operating margins and our net income.

The high operating margins, significantly over our target of 20%, are mainly the result of a significant decrease in expenses due to the devaluation of currencies against the U.S. dollar.

At the same time, we incurred financial expenses due to the lower U.S. dollar value of our Euro and Canadian dollar denominated accounts. The net income was impacted by the higher taxes that we are now required to pay in some of our locations.

Fluctuation in exchange rates contributes to volatility both in our revenues and our expenses.

Revenue Distribution
Revenues in the Americas represented 49%, revenues in Europe represented 36% and revenues in the rest of the world represented 15% of our total revenues.

Revenues from customer care and billing software totaled $4.7 million, or 82% of total revenues, while revenues from enterprise call accounting software totaled $1.0 million, or 18% of total revenues.

Revenues from licenses were $1.2 million, or 20% of total revenues, while revenues from maintenance and additional services were $4.5 million, or 80% of total revenues.

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 unified communications analytics and call accounting solutions for enterprises. MIND provides a complete range of billing applications for any business model (license, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers in more than 40 countries around the world. A global company, with over eighteen years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, 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.