MIND CTI Reports Third Quarter 2020 Results

YOQNEAM, Israel, Nov. 10, 2020 (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 third quarter ended September 30, 2020.

The following will summarize our major achievements in the third quarter of 2020, as well as our business. Full 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.

Q3 2020 Financial Highlights

• Revenues were $5.9 million, compared to $5.8 million in the third quarter of 2019, with the increase attributed to the acquisition of GTX GmbH in September 2019, which generated revenues of approximately $1.0 million during the quarter.
• Operating income was $1.4 million, compared to $1.3 million in the third quarter of 2019.
• Net income was $1.4 million, or $0.07 per share, compared to $1.2 million, or $0.06 per share in the third quarter of 2019.
• Cash flow from operating activities was $1.9 million, compared to $2.0 million in the third quarter of 2019.
• New win and multiple follow-on orders
• Cash position was $14.7 million as of September 30, 2020.

Nine Months Financial Highlights

• Revenues were $17.6 million, compared to $16.0 million in the first nine months of 2019, with the increase attributed to the acquisition of GTX GmbH in September 2019, which generated revenues of approximately $2.8 million during the first nine months of 2020 and to the acquisition of Message Mobile GmbH in March 2019, which generated revenues of approximately $1.3 million during the first quarter of 2020.
• Operating income was $4.1 million, or 24% of total revenues, compared to $3.8 million, or 24% of total revenues in the first nine months of 2019.
• Net income was $4.0 million, or $0.20 per share, compared to $3.7 million, or $0.19 per share in the first nine months of 2019.
• Cash flows from operating activities in the first nine months of 2020 was $4.2 million, compared to $5.4 million in the first nine months of 2019.

Monica Iancu, MIND CTI CEO, commented: “The environment remains challenging as described in the last few years’ previous press releases. Communications service providers continue to face major challenges. Moreover, some of them are experiencing additional negative impact on revenues from reduction in tourism, associated with COVID-19. They are expected to develop new services and offer multi-play discounted bundles and at the same time they attempt to reduce their costs. While there is demand for our products and services, most processes are constantly delayed, and competition is fierce. As previously stated, during our over twenty years of operation, we have experienced challenging market conditions and we executed successfully in shifting our focus towards new opportunities.”