TTI Team Telecom International (Nasdaq: TTIL), which provides operations support systems (OSS) to communications service providers, announced preliminary third quarter results yesterday.
The company said it expected revenue for the third quarter in the range of $11.0 million to $11.5 million. Operating loss is expected to be in the range of $1.8 million to $2.3 million, and a net loss in the range of $1.6 million to $2.1 million, or $0.10 to $0.13 per diluted share.
This compares with revenue of $12.6 million in the second quarter 2006 with an operating income of $0.02 million and net income of $0.02, or $0.01 pre diluted share.
CIBC, the only investment house that continues to cover the company, had estimated revenue of $12.7 million for the third quarter.
TTI expects to report final third quarter results and hold a conference call during the week of November 13, 2006.
"Our weaker than expected performance in the quarter was the result of the ongoing, soft spending environment for OSS in North America brought on by operator consolidation," said TTI CEO Ruben Markus. "As a result, three of our largest customers have temporarily delayed OSS decisions. Concurrently, international demand for our solutions remained strong and was the primary driver for a sequentially higher book-to-bill.
"Operating expenses in the quarter, while sequentially higher, were in line with our plans to support the establishment of new revenue streams and research and development efforts to better position our solutions towards the global network transformation opportunity.
"We eventually anticipate an improvement in the spending environment in North America, however, financial discipline requires us to take measures today to realign costs to expected revenues. At the same time, we are hopeful that additional growth drivers will start to bear fruit, including our growing number of partnerships with systems integrators and equipment vendors. We have also made significant progress in expanding the initial opportunity with our recent global tier one network transformation customer and are working to further broaden our presence within it with additional solutions sales," Markus concluded.
Published by Globes [online], Israel business news - www.globes.co.il - on October 12, 2006
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