MIND CTI Reports First Quarter 2024 Results
MIND CTI reported its first quarter 2024 results with revenues of $5.8 million, operating income of $1.2 million, net income of $1.3 million, and cash flow from operating activities of $0.9 million. The company highlighted investments in new technologies to support 5G and IoT, released a SIM OTA provisioning platform, and maintained a cash position of $17.4 million. Revenues were distributed with 60% in Europe, 34% in the Americas, and 6% in the rest of the world. The company also declared a dividend of $0.24 per share and updated on its AGM and Board of Directors meeting.
Revenues increased from $5.5 million in Q1 2023 to $5.8 million in Q1 2024.
Operating income remained strong at $1.2 million, representing 22% of total revenues.
Net income held steady at $1.3 million, or $0.07 per share.
The company's cash flow from operating activities improved to $0.9 million.
MIND CTI released a new SIM OTA provisioning platform to support customers remotely managing SIM card resources.
The company maintained a cash position of $17.4 million as of March 31, 2024, before the dividend distribution.
- None.
Insights
MIND CTI's report of $5.8 million in revenue for Q1 2024, which is marginally higher than the $5.5 million reported in Q1 2023, indicates a modest year-over-year growth. The operating income has slightly decreased from 24% to 22% of total revenues, suggesting a potential increase in operational costs or investment in new technologies. The maintained net income of $1.3 million and earnings per share at $0.07 demonstrate consistent profitability despite these investments.
The increase in cash flow from operating activities, from $0.6 million to $0.9 million, hints at better working capital management or collection processes. However, investors should note the upcoming dividend distribution of $4.9 million, recorded as a payable in Q1 but affecting the cash position in Q2 2024. This distribution may reflect a generous shareholder return policy but also reduces the company's cash reserves. Analyzing the revenue distribution, Europe's dominance with 60% of total revenues, especially the messaging segment in Germany, shows a significant market presence in that region. Nevertheless, the revenue from licenses is only 1% of total revenues, which may raise concerns about long-term scalability and new customer acquisition.
The launch of the SIM OTA provisioning platform is a notable development, positioning MIND CTI at the forefront of 5G and IoT services. The ability to remotely manage SIM resources is important for telecommunications operators, particularly with the proliferation of IoT devices. However, the financial impact of this new technology on MIND CTI's bottom line remains to be seen and is not immediately reflected in the Q1 results.
The company's resilience and continued support to customers despite the tense situation in Israel is commendable and may improve investor confidence in their business continuity plans. The emphasis on digital transformation and ongoing investment in new technologies could pay dividends in the future, but assessing the ROI of these investments will be key for investors.
YOQNEAM, Israel, May 08, 2024 (GLOBE NEWSWIRE) -- MIND C.T.I. LTD. – (NasdaqGM:MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product-based solutions for service providers, enterprise solutions for unified communications analytics and call accounting solutions as well as enterprise messaging solutions, today announced results for its first quarter ended March 31, 2024.
The following will summarize our major achievements in the first quarter of 2024, as well as our business. The financial results can be found in the Company News section of our website at http://www.mindcti.com/company/news/ and in our Form 6-K.
Financial Highlights
- Revenues were
$5.8 million , compared with$5.5 million in the first quarter of 2023. - Operating income was
$1.2 million , or22% of total revenues, compared with$1.3 million , or24% of total revenues in the first quarter of 2023. - Net income was
$1.3 million , or$0.07 per share, same as in the first quarter of 2023. - Cash flow from operating activities was
$0.9 million , compared with$0.6 million in the first quarter of 2023. - Multiple follow-on orders.
- Cash position was
$17.4 million as of March 31, 2024 (before the dividend distribution of$4.9 million in April 2024).
Monica Iancu, MIND CTI’s Chief Executive Officer, commented: “Our messaging segment was favorably impacted this quarter by larger than usual customer campaigns. In our billing segment, we continue to invest in new technologies, mainly to support the 5G and IoT, and to expand our platforms to better support digital transformations. This quarter we released the first version of our SIM OTA (Over-The-Air) provisioning platform that helps our customers to remotely manage the SIM card resources, mainly the encryption keys, the applications on the SIMs and the preferred PLMN (Public Land Mobile Network).
“The situation in Israel is still tense, but we continue to operate as usual and support our customers worldwide. MIND is a global company, operating from different countries, according to an extensive business continuity plan that ensures resilience, seamless delivery, development, and ongoing support to our customers.”
Revenue Distribution
Revenues in Europe represented
Revenues from our customer care and billing software were
Revenues from maintenance and additional services were
Dividend Distribution
As previously announced, the Board declared on March 6, 2024 a gross dividend of
The dividend of approximately
AGM and Board of Directors Update
The Company held its Annual General Meeting of Shareholders on May 6, 2024 and all the proposed resolutions were approved.
About MIND
MIND CTI Ltd. is a leading provider of convergent end-to-end billing and customer care product-based solutions for service providers, unified communications analytics and call accounting solutions for enterprises as well as enterprise messaging solutions. MIND provides a complete range of billing applications for any business model (license, SaaS, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers. A global company, with over twenty-five years of experience in providing solutions to carriers and enterprises, MIND operates from offices in Israel, Romania, Germany and the United States.
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company's business strategy are "forward-looking statements", including estimations relating to the impact of the political situation in Ukraine, expectations of the results of the Company’s business optimization initiative, integration of the company’s acquisitions and its projected outlook and results of operations. These statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including, but not limited to, economic conditions in our key markets, as well as the risks discussed in the Company's annual report and other filings with the United States Securities Exchange Commission. The Company does not undertake to update any forward-looking information.
For more information please contact:
Andrea Dray
MIND C.T.I. Ltd.
Tel: +972-4-993-6666
investor@mindcti.com
