Billing and customer care solutions developer Mind CTI Ltd. (Nasdaq: MNDO; TASE: MNDO) today published its financial report for the third quarter of 2008. A $1.1 million write-off on Auction Rate Securities (ARS) caused the company to post a GAAP-based net loss of $2.4 million ($0.11 per share), compared with a net profit of $955,000 for the corresponding quarter of 2007.
Revenue rose to $4.6 million for the third quarter from $4 million for the corresponding quarter.
Mind CTI chairwoman and CEO Monica Eisinger said, "In this period of global economy turmoil, we continue to execute our strategy of focusing on profitability and cash flow. We will continue to build for the future, based on our comprehensive offering, solid balance sheet and valuable customers."
During the first half of 2008, Mind CTI wrote off $15.2 million on its ARS portfolio.
The company had a cash flow from operating activities of $1.2 million for the third quarter, boosting its cash and cash equivalents to $10.9 million at the end of September. The cash flow was well below the $2 million for the corresponding quarter. The company did not disclose its cash flow for the second quarter, merely saying that it was $2.1 million in the first half.
Mind CTI has not been publishing regular quarterly financial reports since the fourth quarter of 2007, because of the company's problems with its ARS portfolio. The company claims that these problems kept it from presenting detailed financial data. The company is in arbitration with its ARS broker, Credit Suisse, for allegedly making investments in contravention of the company's instructions. Earlier this year, the company reported that it had a total of $20.3 million invested in asset backed ARS called "Mantoloking CDO"; this figure is now listed in the company's profit and loss statement as worth $10.9 million.
The company added that it expects to begin a share buyback of up to 2.1 million shares for $2.8 million in November, after obtaining court permission.
Mind CTI's share rose 1.1% on Nasdaq yesterday to $0.99, giving a market cap of $21 million. The share was unchanged on the TASE today at NIS 3.77.
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008