MIND CTI Reports Fourth Quarter and Full Year 2020 Results

*Board Declares Cash Dividend
* MIND CTI to Host Annual Meeting of Shareholders

YOQNEAM, Israel, March 04, 2021 (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 fourth quarter and full year ended December 31, 2020.

The following will summarize our business in the fourth quarter of 2020 and provide a more detailed review of the financial results for the quarter and for the full year. 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.

Financial Highlights of Q4 2020

• Revenues of $5.8 million, compared to $6.7 million in the fourth quarter of 2019.
• Operating income of $1.3 million, or 23% of total revenue, compared to $1.2 million, or 18% of revenue in the fourth quarter of 2019.
• Net income of $1.4 million or $0.07 per share, compared to $1.3 million or $0.07 per share in the fourth quarter of 2019.
• Cash flow from operating activities of $2.3 million, compared to $1.2 million in the fourth quarter of 2019.

Financial Highlights of Full Year 2020

• Revenues of $23.4 million, compared to $22.7 million in 2019, with the increase attributed to the acquisition of Message Mobile in March 2019 and GTX in September 2019, which generated revenues of approximately $8.7 million during 2020 and revenues of approximately $6.1 million during the period we consolidated their results in 2019.
• Operating income of $5.5 million, or 23% of total revenue, compared to $5.0 million, or 22.0% of total revenue in 2019.
• Net income of $5.4 million, or $0.27 per share, compared to $5.1 million, or $0.26 per share in 2019.
• Cash flow from operating activities of $6.5 million, compared to $6.7 million in 2019.
• Cash position of approximately $17 million as of December 31, 2020.

Monica Iancu, MIND CTI’s President and Chief Executive Officer, commented: “Our lower revenues reflect the expected and previously announced negative impact of the shrinking relevant telecom markets and strong competition. We experience the effect of the COVID-19 pandemic in all areas of our business. We believe that due to the general economic uncertainty, the majority of our customers, both enterprises and carriers, are restricting their budgets and are delaying new projects. Regarding the two acquisitions we completed in 2019, we successfully integrated these two subsidiaries, and they have both performed well. While for the near term we expect a negative impact of the abovementioned circumstances on our results, we believe that we have the required resources to respond to market needs, to be relevant for future market trends in our core billing, analytics and messaging platforms, as well as continue with our dividend policy and at the same time focus on targeting potential acquisitions that could be a source of growth.”