Billing and customer care solutions developer Mind CTI Ltd. (Nasdaq: MNDO; TASE:MNDO) today published its financial report for the second quarter of 2009.
The company reported revenue of $4.4 million, compared with $5.1 million in the corresponding quarter of 2008. Operating income, excluding amortization of intangible assets of $84,000 and equity-based compensation expense of $35,000 was $184,000, or 4.2 % of revenue. Operating income was adversely impacted by a one-time $694,000 write-off of deferred charges, which was partially offset by deferred revenue of $379,000.
Non-GAAP net loss was $635,000 ($0.03 per share), compared with $268,000 ($0.01 per share) in the corresponding quarter last year, while GAAP net loss was $754,000 ($0.04 per share) compared with $481,000 ($0.02 per share) in the corresponding quarter last year.
Cash flow from operating activities was $2.1 million. Backlog at the end of the second quarter included $7.2 million that is expected to be billed by year-end. Cash increased to $11.8 million at the end of the second quarter, after a $305,000 expenditure for the buyback of 288,000 company shares.
Mind CTI chairperson and CEO Monica Eisinger said, "While we experienced write-offs of deferred charges and deferred revenues related to two customers that terminated long term contracts due to lack of financing, we see the second quarter as a positive one. Excluding the one-time charges, our cost structure is at the planned levels. We have signed a new customer during the quarter and we believe that business for us is picking up as we have seen more opportunities since the quarter's end."
Eisinger told "Globes" that the company was summarizing the quarter with an optimistic tone toward the future, saying "Although some parts of the world are still in a crisis, some parts of the world are already seeing recovery, and we see that in the number of approaches we are getting."
The company's share closed at $0.98 on Nasdaq yesterday, giving a market cap of $19.05 million. The share was unchanged on the TASE today at NIS 3.78.
Published by Globes [online], Israel business news - www.globes-online.com - on August 20, 2009
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