Shares in TTI Team Telecom International Ltd. (Nasdaq: TTIL) jumped 83% on Thursday and Friday on the largest ever trading volume in the company's history. The reason for the unusual investors' interest in the company cannot be found in the financial report for the third quarter, published on Thursday, and which showed no material change in the company's business, but in the statement that it intended to develop solutions for 4G telephony - LTE.
TTI develops Operations Support Systems (OSS) for communications service providers. The company has 300 employees, including 200 in Israel and 60 in the US.
In the financial report TTI chairman and CEO Meir Lipshes said, "Since we do see an awakening in the market, we carefully look forward to seeing the results of the fourth quarter. In preparation for a market awakening, we have decided to accelerate our investment in the building of an LTE solution that will offer product capabilities and additional services for the LTE domain. We believe that these investments will strengthen TTI's market position".
Lipshes told "Globes", "The market for LTE control systems is estimated at hundreds of millions of dollars. The first tenders for LTE control systems are now being published. We're at the starting line along with our competitors, and we have a good chance of success, on the assumption that the level of engineering and Israeli innovation is higher."
TTI posted $10.3 million revenue for the third quarter, down from $10.7 million for the preceding quarter and $12.7 million for the corresponding quarter of 2008. However, the company posted a net profit of $1.3 million ($0.07 per share) for the third quarter compared with a net loss of $1 million for the corresponding quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on November 22, 2009
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