MIND CTI Reports Second Quarter 2023 Results

YOQNEAM, Israel, Aug. 08, 2023 (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, unified communications analytics and call accounting solutions for enterprises as well as enterprise messaging solutions, today announced results for its second quarter ended June 30, 2023.

The following will summarize our major developments in the second quarter of 2023 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 of $5.3 million, compared with $5.2 million in the second quarter of 2022.
• Operating income of $1.1 million, or 20% of total revenues, compared with $1.3 million, or 25% of total revenues in the second quarter of 2022.
• Net income was $1.1 million, or $0.06 per share, compared with $1.2 million, or $0.06 per share in the second quarter of 2022.
• New win after quarter end.
• Cash flow from operating activities in the quarter of $1.9 million, compared with $1.6 million in the second quarter of 2022.

Six Month Financial Highlights

• Revenues of $10.7 million, compared with $10.9 million in the first six months of 2022.
• Operating income of $2.4 million, or 22% of total revenues, compared with $2.9 million or 27% of total revenues in the first six months of 2022.
• Net income of $2.5 million, or $0.12 per share, compared with $2.7 million, or $0.14 per share in the first six months of 2022.
• Cash flow from operating activities in the first six months of 2023 was $2.4 million, compared with $2.1 million in the first six months of 2022.

Monica Iancu, MIND CTI CEO, commented: “We are pleased to announce that after a very long selection process, we were chosen to supply our comprehensive billing and customer care solution to a telecommunications customer, which operates in Europe. The new contract, closed after second quarter end, includes implementation revenues that are expected to be recognized in the coming three quarters and additional revenues starting the second quarter of 2024, encompassing managed services, support and license subscription.

“We continue to invest in our product suite and we cautiously mention that we see a modest increase in search for billing solutions from telcos that are looking for system replacements.

“At the same time, we continue to promote our online store / e-commerce platform to existing customers and potential new ones. We believe that our ongoing investment in maintaining up-to-date technology and infrastructure with increased security and additional functionality, keep us relevant and competitive.”

Cash Position
Our cash position, including short-term deposits and marketable securities, was $15 million as of June 30, 2023, compared with $15.1 million as of June 30, 2022.

As previously announced, the Board declared on March 8, 2023, a cash dividend of $0.24 per share before withholding tax. The dividend sum of approximately $4.8 million was distributed in April 2023.

Revenue Distribution for Q2 2023
Europe represented 50% (including the messaging segment revenues in Germany that represented 35%), the Americas represented 38%, and the rest of the world represented 12% of total revenues.

Customer care and billing software totaled $2.9 million, or 54% of total revenues, enterprise messaging and payment solutions were $1.8 million, or 35% of total revenues and enterprise call accounting software totaled $0.5 million, or 11% of total revenues.

Licenses totaled $0.1 million, or 2% of total revenues, while maintenance and additional services were $5.1 million, or 98% of total revenues.

Revenue Distribution for the First Six Months of 2023
Europe represented 52% (including the messaging segment revenues in Germany that represented 37%), the Americas represented 38%, and the rest of the world represented 10% of total revenues.

Customer care and billing software totaled $5.7 million, or 53% of total revenues, enterprise messaging and payment solutions were $3.9 million, or 37% of total revenues and enterprise call accounting software totaled $1.1 million, or 10% of total revenues.

Licenses totaled $0.3 million, or 3% of total revenues, while maintenance and additional services were $10.4 million, or 97% of total revenues.

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 the United States, Romania, Germany and Israel.

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