MIND C T I : CTI Reports Second Quarter 2021 Results

YOQNEAM, Israel, Aug. 10, 2021 (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 its results for the second quarter ended June 30, 2021.

The following will summarize our major achievements in the second quarter of 2021 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.

Financial Highlights

• Revenues of $7.2 million, compared with $5.6 in the second quarter of 2020.
• Operating income of $1.9 million, or 26% of total revenues, compared with $1.4 million, or 25% of total revenues in the second quarter of 2020.
• Net income was $1.5 million, or $0.07 per share, compared with $1.4 million, or $0.07 per share in the second quarter of 2020.
• Cash flow from operating activities in the quarter of $3.2 million, compared with $1.3 million in the second quarter of 2020.

Six Month Financial Highlights

• Revenues of $13.3 million, compared with $11.6 million in the first six months of 2020, with the increase attributed to the messaging segment.
• Operating income of $3.5 million, or 26% of total revenues, compared with $2.7 million or 23% of total revenues in the first six months of 2020.
• Net income of $3.0 million, or $0.15 per share, compared with $2.6 million, or $0.13 per share in the first six months of 2020.
• Cash flow from operating activities in the first six months of 2021 was $3.8 million, compared with $2.3 million in the first six months of 2020.

Monica Iancu, MIND CTI CEO, commented: “Our messaging segment was favorably impacted by singular campaigns carried out by a few customers. This unprecedented growth in our messaging segment is temporary in nature. At the same time, our telecom markets continue to be challenging, with low demand and strong competition. The messaging markets, unlike our traditional ones, are difficult to predict, as external factors have a strong impact on both revenues and margins. As the proportion of messaging business out of our total revenue increases, we expect our business results to present higher volatility in revenue, margins, and cash flows compared to past years. We continue to invest in new technologies and are expanding our platforms to better support digital transformations.”

Cash Position
Our cash position, including short and long-term deposits and marketable securities, was $15.4 million as of June 30, 2021, compared with $12.8 million as of June 30, 2020. Cash position fluctuates between quarters as a result of timing of payments, mainly in the messaging segment.

As previously announced, the Board declared, on March 4, 2021, a cash dividend of $0.26 per share before withholding tax. The dividend declared and distributed in April 2021 was approximately $5.2 million.

Revenue Distribution for Q2 2021
The Americas represented 35%, Europe represented 57% and the rest of the world represented 8% of total revenues.

Customer care and billing software totaled $3.0 million, or 43% of total revenues, enterprise messaging and payment solutions were $3.6 million, or 50% of total revenues and enterprise call accounting software totaled $0.6 million, or 7% of total revenues.

Maintenance and additional services were over 99% of total revenues.

Revenue Distribution for the First Six Months of 2021
The Americas represented 34%, Europe represented 57% and the rest of the world represented 9% of total revenues.

Customer care and billing software totaled $6.1 million, or 46% of total revenues, enterprise messaging and payment solutions were $6.1 million, or 46% of total revenues and enterprise call accounting software totaled $1.1 million, or 8% of total revenues.

Maintenance and additional services were 94% of total revenues.

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.

In the last few years, when evaluating acquisition targets, we faced increased competition from cash-rich corporations as well as the private equity industry, both sectors having high liquidity that they allocate to M&A activities.

The excess of demand for acquisition targets has pushed valuations to highs, making it ever more challenging for us to find attractive deals.

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 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", including estimations relating to the impact of the COVID-19 pandemic and mitigation measures in connection thereto, 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, the impact of the COVID-19 pandemic on our customers and 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 CTI Ltd.
Tel: [phone]
[e-mail] 

Source: MIND CTI Ltd.

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