YOQNEAM, Israel, May 14, 2020 (GLOBE NEWSWIRE) -- 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 first quarter ended March 31, 2020.
The following will summarize our major achievements in the first quarter of 2020 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.
Revenues were $6.0 million, compared with $4.5 million in the first quarter of 2019, with the increase attributed to the acquisition of Message Mobile in March 2019 and GTX in September 2019, which generated revenues of approximately $2.3 million during the quarter.
Operating income was $1.3 million, or 21% of total revenues, compared with $1.5 million, or 33% of total revenues in the first quarter of 2019.
Net income was $1.2 million, or $0.06 per share, compared with $1.5 million, or $0.08 per share in the first quarter of 2019.
Cash flow from operating activities during the quarter was $1.1 million, compared with $2.3 million in the first quarter of 2019.
Cash position was $16.2 million as of March 31, 2020 (before the dividend distribution of $4.8 million on April 16, 2020).
As of March 31, 2020, we had 204 employees in our Romania, Israel, Germany and U.S. offices, compared with 220 as of March 31, 2019.
Monica Iancu, MIND CTI CEO, commented: “In these unprecedented times, our top priority is to ensure that our employees and customers are safe and that we remain resilient and agile. We have successfully transitioned into a new mode of operations to best support our customers under a firm business continuity program wherein most of our employees are working partially or fully from home using secured access. We informed our customers that as always, they can count on us to tirelessly maintain and strengthen their business.
“As we continue to face the many challenges mentioned in previous press releases and the additional impact caused by the COVID-19 pandemic, we expect a decline in our revenues and income in 2020. Nevertheless, we are encouraged that even in these times of uncertainty we have the experience, the resilience and the cash to weather the storm.”
Impact of COVID-19
We experience the effect of the pandemic in all areas of our business, mainly due to the following reasons:
Ongoing project delays: Delays in the pace of ongoing implementation rollouts in all our lines of business, due to lockdowns and other COVID-19 related measures.
New opportunities freeze: As much of the population remains homebound, service providers are taking action to ramp up their network infrastructure, but we believe that at the same time they are reluctant to promote billing transformation projects. The Messaging segment is also harmed due to a lack of campaigns and a freeze of new enrollments.
Existing customers reducing budget: Due to the general economic uncertainty, the majority of our customers, both enterprises and carriers, are restricting their budgets. Especially, due to lack of revenues from supplying communication services to tourists, carriers’ willingness to invest in enhancements in new features is extremely low.
The Americas represented 45%, Europe represented 49% (including the Message Mobile and GTX revenues in Germany that represented 38%) and the rest of the world represented 6% of total revenues.
Customer care and billing software totaled $3.0 million, or 50% of total revenues, enterprise messaging and payment solutions were $2.3 million, or 38% of total revenues and enterprise call accounting software totaled $0.7 million, or 12% of total revenues.
Licenses totaled $0.4 million, or 6.5% of total revenues, while maintenance and additional services were $5.6 million, or 93.5% of total revenues.
As previously announced, the Board declared on March 11, 2020 a cash dividend of $0.24 per share.
The dividend of approximately $4.8 million, is presented in our March 31, 2020 balance sheet among other payables and was distributed to our shareholders in April 2020.
The Company held its Annual General Meeting of Shareholders on May 12, 2020 and all the proposed resolutions were approved.
Board of Directors Update
Mr. Meir Nissensohn was appointed as MIND’s new Chairman of the Board of Directors. Mr. Nissensohn has served as an independent director of our company since August 2014. Mr. Nissensohn served as the Chairman of the Board of Directors and Chief Executive Officer of IBM Israel Ltd. from 1996 to 2012. Since his retirement from IBM, he is involved in various business initiatives and serves on the Board of several companies.
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 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 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.
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MIND C.T.I. Ltd.