EX-99.1 2 ea025262101ex99-1_mind.htm MIND CTI REPORTS SECOND QUARTER 2025 RESULTS

Exhibit 1

 

MIND CTI Reports Second Quarter 2025 Results

 

Yoqneam, Israel, August 11, 2025 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 (UC) analytics and call accounting solutions for enterprises as well as enterprise messaging solutions, today announced results for its second quarter ended June 30, 2025.

 

The following will summarize our major developments in the second quarter of 2025 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 $4.8 million, compared with $5.3 million in the second quarter of 2024, with the decrease mainly attributed to the billing segment.

 

●Operating income was $0.3 million, or 6% of total revenues, compared with $1.1 million, or 20% of total revenues in the second quarter of 2024.

 

●Net income was $0.5 million, or $0.02 per share, compared with $1.1 million, or $0.06 per share in the second quarter of 2024.

 

●Cash flow from operating activities was $0.9 million, compared with $2.0 million in the second quarter of 2024.

 

Six Months Financial Highlights

 

●Revenues were $9.7 million, compared with $11.0 million in the first six months of 2024.

 

●Operating income of $0.6 million, or 7% of total revenues, compared with $2.3 million or 21% of total revenues in the first six months of 2024.

 

●Net income of $1.0 million, or $0.05 per share, compared with $2.5 million, or $0.12 per share in the first six months of 2024.

 

●Cash flow from operating activities in the first six months of 2025 was $1.6 million, compared with $2.9 million in the first six months of 2024.

 

Ariel Glassner, MIND CTI’s CEO, commented: “We continue to be challenged by shrinking relevant markets and strong competition in both our billing and enterprise solutions, as previously announced, and we are experiencing the negative impact on our financial results. We continuously monitor our cost structure, striving for efficiency across the organization. At the same time, we continue to invest in key areas to address market needs and to maintain a strong engineering team to support our customers. We believe that continued focus on execution and adaptability, along with maintaining our growth drivers, positions us well for the future.”

 

Cash Position

 

Our cash position, including short-term deposits and marketable securities, was $11.4 million as of June 30, 2025, compared with $14.6 million as of June 30, 2024. As previously announced, in Q1 2025 we completed the acquisition of Aurenz and $1.7 million was paid in cash to date.

 

As previously announced, the Board declared on March 4, 2025, a cash dividend of $0.22 per share before withholding tax. The dividend sum of approximately $4.5 million was distributed in April 2025.

 

 

 

 

Revenue Distribution for Q2 2025

 

Revenues in Europe represented 60% (including the messaging segment revenues in Germany, which represented 38%), the Americas represented 30%, and the rest of the world represented 10% of total revenues.

 

Revenues from our customer care and billing software were $2.2 million, or 47% of total revenues, enterprise messaging and payment solutions were $1.8 million, or 38% of total revenues and enterprise call accounting software were $0.7 million (including the full quarter revenues of Aurenz), or 15% of total revenues.

 

Revenues from maintenance and additional services were $4.5 million, or 94% of total revenues, while licenses were $0.3 million, or 6% of total revenues.

 

Revenue Distribution for the First Six Months of 2025

 

Revenues in Europe represented 61% (including the messaging segment revenues in Germany, which represented 36%), the Americas represented 32%, and the rest of the world represented 7% of total revenues.

 

Revenues from our customer care and billing software were $4.7 million, or 49% of total revenues, enterprise messaging and payment solutions were $3.5 million, or 36% of total revenues and enterprise call accounting software were $1.5 million (including the full first six months revenues of Aurenz), or 15% of total revenues.

 

Revenues from maintenance and additional services were $9.3 million, or 95% of total revenues, while licenses were $0.4 million, or 5% 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 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:

 

Janice Kaye

MIND C.T.I. Ltd.

Tel: +972-4-993-6666

investor@mindcti.com

 

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MIND C.T.I. LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

    Three Months    Six Months 
    Ended June 30,    Ended June 30, 
    2025    2024    2025    2024 
    U.S. dollars in thousands (except per share data) 
                     
REVENUES  $4,752   $5,274   $9,748   $11,039 
COST OF REVENUES   2,602    2,474    5,089    5,448 
GROSS PROFIT   2,150    2,800    4,659    5,591 
OPERATING EXPENSES:                    
Research and development   995    841    1,889    1,723 
Selling and marketing   358    301    714    616 
General and administrative   531    587    1,420    938 
Total operating expenses   1,884    1,729    4,023    3,277 
OPERATING INCOME   266    1,071    636    2,314 
FINANCIAL INCOME, net   251    140    425    328 
INCOME BEFORE TAXES ON INCOME   517    1,211    1,061    2,642 
TAXES ON INCOME   34    82    88    179 
NET INCOME  $483   $1,129   $973   $2,463 
                     
                     
EARNINGS PER SHARE - in U.S. dollars                    
Basic  $0.02   $0.06   $0.05   $0.12 
Diluted  $0.02   $0.05   $0.05   $0.12 
                     
WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTATION OF EARNINGS PER SHARE - in thousands:                    
Basic   20,572    20,398    20,430    20,253 
Diluted   20,705    20,640    20,611    20,547 

 

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MIND C.T.I. LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

   June 30,   December 31, 
   2025   2024 
   U.S. dollars in thousands 
ASSETS        
CURRENT ASSETS:        
Cash and cash equivalents  $2,751   $4,452 
Short-term bank deposits   8,407    11,108 
Marketable securities   196    193 
Accounts receivable, net   2,541    2,498 
Other current assets   631    493 
Prepaid expenses   410    175 
Total current assets   14,936    18,919 
           
NON-CURRENT ASSETS:          
Accounts receivable, net   20    448 
Severance pay fund   1,354    2,346 
Deferred income taxes    160    108 
Property and equipment, net   142    156 
Right-of-use assets, net    985    861 
Intangible assets, net   1,790    135 
Goodwill   9,726    7,729 
Total assets  $29,113   $30,702 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
CURRENT LIABILITIES:          
Accounts payable  $767   $769 
Other current liabilities and accruals   1,522    1,469 
Current maturities of lease liabilities   303    188 
Deferred revenues   2,010    849 
Total current liabilities   4,602    3,275 
           
LONG-TERM LIABILITIES:          
Deferred revenues   443    108 
Lease liabilities, net of current maturities   726    637 
Accrued severance pay   1,354    2,346 
Deferred income taxes   537    40 
Total liabilities   7,662    6,406 
           
SHAREHOLDERS’ EQUITY:          
Share capital   54    54 
Additional paid-in capital   27,936    27,904 
Accumulated other comprehensive loss   (630)   (1,207)
Accumulated deficit   (5,101)   (1,572)
Treasury shares   (808)   (883)
Total shareholders’ equity   21,451    24,296 
Total liabilities and shareholders’ equity  $29,113   $30,702 

 

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MIND C.T.I. LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

   Three Months   Six Months 
   Ended June 30,   Ended June 30, 
   2025   2024   2025   2024 
   U.S. dollars in thousands 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net income  $483   $1,129   $973   $2,463 
Adjustments to reconcile net income to net cash provided by operating activities:                    
Depreciation and amortization   79    46    153    94 
Deferred income taxes, net   (54)   (9)   (87)   (22)
Accrued severance pay   14    7    28    13 
Unrealized gain from marketable securities, net   (2)   (3)   (3)   (4)
Realized loss on sale of property and equipment   11    -    11    - 
Employees share-based compensation expenses   49    64    107    128 
Changes in operating asset and liability items:                    
Decrease (increase) in accounts receivable, net   (18)   653    654    416 
Decrease (increase) in other current assets   (7)   36    (94)   (51)
Decrease (increase) in prepaid expenses   (83)   41    (216)   (73)
Decrease in accounts payable   (22)   (384)   (107)   (251)
Decrease in other current liabilities and accruals   (425)   (153)   (727)   (259)
Change in operating lease liability   67    (1)   80    (5)
Increase in deferred revenues   829    551    834    405 
Net cash provided by operating activities   921    1,977    1,606    2,854 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Purchase of property and equipment   (5)   (2)   (10)   (2)
Acquisition of a subsidiary   -    -    (1,533)   - 
Severance pay funds   (14)   (11)   (28)   (22)
Proceeds from redemption of short-term bank deposits   2,991    1,336    2,720    2,269 
Net cash provided by investing activities   2,972    1,323    1,149    2,245 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Dividend paid   (4,502)   (4,868)   (4,502)   (4,868)
Net cash used in financing activities   (4,502)   (4,868)   (4,502)   (4,868)
                     
TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS   29    (6)   46    (19)
                     
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (580)   (1,574)   (1,701)   212 
BALANCE OF CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD   3,331    4,744    4,452    2,958 
BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD  $2,751   $3,170   $2,751   $3,170 

 

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