Mind CTI Ltd. (Nasdaq: MNDO; TASE: MNDO) chairperson and CEO Monica Eisinger says that Mind CTI and the telecom industry are in a transition phase. The company provides end-to-end billing and customer relations management (CRM) solutions for tier-2 and tier-3 communications services providers.
The company ought to benefit from entry of wireless devices and the expansion of IP infrastructures. However, the company has not yet completed the change in its business model, which is intended to win larger deals and follow-on contracts, and the result is seen in its financials.
Mind CTI posted $4.7 million revenue for the third quarter, up 15% on the corresponding quarter of 2005, but less than the $5.1 million posted in the preceding quarter. Operating profit, excluding amortization of intangible assets and employee options, was $677,000, and its non-GAAP profit was $972,000, or $0.05 per share.
The company posted an operating profit, including expenses, of $415,000. Financing income boosted the GAAP net profit to $710,000, or $0.03 per share. No analysts cover the share, so it is impossible to compare the results with analysts’ forecasts.
Mind CTI’s cash flow from current operations was $1 million for the third quarter, and it had $37 million in cash. Since July 2003, the company has distributed four dividends, and it announced yesterday that the board had decided to distribute a $4 million dividend for 2006, around the average of recent years. The company will need court permission to distribute the dividend because it does not meet the profit criteria under Israel’s Companies Law (1999).
Published by Globes [online], Israel business news - www.globes.co.il - on October 31, 2006
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