Mind CTI Ltd. (Nasdaq: MNDO; TASE: MNDO) today published its financial report for the fourth quarter and full year of 2008, a month after announcing an update its share buyback plan and expected quarterly results. The results were in line with the guidance.
The billing and customer care solutions developer wrote off an additional $1.3 million on auction rate securities (ARS) in the quarter, bringing its ARS write-offs up to $4.2 million for the year. The company made $15.2 million in ARS write-offs in late 2007.
Mind CTI is also in arbitration with Credit Suisse over a claim that Credit Suisse made investments in violation of the company's guidelines. STMicroelectronics NV (NYSE: STM) recently won a $406 million arbitration award in a similar case against the Swiss bank.
Mind CTI posted $4.6 million revenue for the fourth quarter of 2008, down from $5.6 million for the corresponding quarter of 2007. GAAP-based net loss narrowed to $3.2 million ($0.15 per share) from $14.6 million for the corresponding quarter. It posted a GAAP-based operating loss of $1.6 million for the fourth quarter, but a non-GAAP operating profit of $640,000.
For the year as a whole, Mind CTI posted $19.5 million revenue, compared with $18.4 million revenue in 2007. GAAP net loss was nearly halved to $6.4 million ($0.30 per share) from a loss of $12 million in 2007.
The company had a positive cash flow of $4.1 million in 2008. It had $9.7 million in cash at the end of 2008 after buying back 2.1 million shares for $1.6 million.
Mind CTO chairwoman and CEO Monica Eisinger said, "We remain confident in our long-term strategy, prospects and future. Service providers continue to invest and enhance their offerings, although in a more cautious way and during the last six months, we experienced delays in deal closing. In the meantime, we are pleased with our backlog, our margins and our cash flow."
Mind CTI's share closed at $0.73 on Nasdaq yesterday, giving a market cap of $15.8 million. The share was unchanged on the TASE today at NIS 2.86.
Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2009
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