TTI Telecom Reports Fourth Quarter and Year-End 2009
Financial Results
GlobeNewswire
2010-02-24
ROSH HA'AYIN, Israel, Feb. 24, 2010 (GLOBE NEWSWIRE) -- TTI Team
Telecom International Ltd. (Nasdaq:TTIL), ('the Company'), a global
supplier of Operations Support Systems (OSS) to communications service
providers, today announced results for the fourth quarter and full year
ended December 31, 2009.
Total revenues for the fourth quarter were $10.7 million, compared with
$10.3 million in the third quarter of 2009, and $11.3 million for the
fourth quarter of 2008. Total operating expenses were $5.0 million,
compared to $4.9 million in the third quarter of 2009 and $6.1 million
in the fourth quarter of 2008.
Operating income for the quarter was $566,000 compared with $744,000 in
the third quarter of 2009 and an operating loss of $150,000 for the
fourth quarter of 2008. Net income was $15,000, or $0.00 per basic and
diluted share, compared to $1.3 million, or $0.07 per basic and diluted
share for the third quarter of 2009 and a net loss of $2.1 million, or
$0.13 per basic and diluted share in the fourth quarter of 2008.
Total revenues for the twelve months ended December 31, 2009 were $42.5
million, compared to $50.3 million in 2008. Total operating expenses
for 2009 were $20.4 million, compared to $27.1 million in 2008.
As part of the 2004 capital draft, the company issued warrants that
were intended for purchasing ordinary company shares. As a result of
the adoption of a new accounting standard on January 1st, 2009, these
warrants are no longer eligible to be classified as equity. Therefore,
the company is now required to present the fair value of the warrants
as a liability and to record any changes in their fair value during the
period as a financial expense or as income. During the course of 2009,
the fair value of these warrants appreciated by approximately 600
thousand dollars that offset part of our financial income. Excluding
this non-cash charge, our net income for 2009 was 3.3 million dollars.
Operating income for the period was $2.6 million compared with an
operating loss of $54,000 in 2008. Net income was $2.7 million, or
$0.14 per basic and diluted share, compared to a net loss of $2.0
million, or $0.12 per basic and diluted share for the year ended
December 31, 2008.
As of December 31, 2009, the Company had approximately $30.9 million in
cash, liquid investments, and short term deposits.
Commenting on the results, Meir Lipshes, Chairman and CEO of TTI
Telecom, stated, "Looking at 2010, we rely on the overall anticipation
of a gradual recovery in capital spending. We believe that there are
many opportunities for sustainable growth. However, we do expect our
customers to still remain cautious and we also expect them to continue
seeking high value, low TCO, and fast ROI. We believe that our
investments in the LTE domain, the awareness of customers changed
decision making practices and the still effective cautious financial
management of TTI's operations will all bolster TTI in its goal to be a
preferred choice for customers and hence TTI's market position."
Conference Call Information:
Management will host a conference call on February 24, 2010, 9:00am ET
for interested investors and analysts. To participate in the live call,
please dial the following teleconferencing numbers at least five
minutes before the scheduled start time: (888) 229-0736 in the U.S., or
(706) 679-0692 internationally. Participants will be asked to provide
the following access code: 56356365. For those unable to participate in
the live call, a replay will be available two hours after the call's
completion. To access the replay, please call (800) 642-1687 in the
U.S., and (706) 645-9291 internationally. The access code for the
replay is 56356365. The recording will be available from: 02/24/2010
12:30 to 03/03/2010 23:59. Additionally, a recording of the call will
be available, as an MP3 file at www.tti-telecom.com
About TTI Telecom:
TTI Team Telecom International Ltd. ("TTI Telecom") is a leading
provider of next generation Operations Support Systems (OSS) to
communications service providers worldwide. The company's Netrac
portfolio delivers an automated, proactive and customer-centric
approach to service assurance and network management.
Anchored by market-leading service assurance solutions -- Fault
Management (FaM) and Performance Management (PMM) -- that give
customers an end-to-end view of their network, TTI Telecom's Netrac
enables service providers to reduce operating costs, enhance
profitability and launch new, revenue-generating services more rapidly.
Netrac is compatible with multiple technologies and industry standards,
and is uniquely positioned to bridge legacy, next-generation,
convergent, and IMS Networks. TTI Telecom's customer base consists of
tier-one and tier-two service providers globally, including large
incumbents in the Americas, Europe and Asia-Pacific.
Forward looking statements in this release involve a number of risks
and uncertainties including, but not limited to, product demand,
pricing, market acceptance, changing economic conditions, risks in
product and technology development, the effect of the Company's
accounting policies as well as certain other risk factors which are
detailed in the Company's SEC filings.
TTI TEAM TELECOM INTERNATIONAL LTD.
STATEMENTS OF INCOME
---------------------------------------------------------------------------------------
(in thousands of U.S. dollars)
Year ended Three months ended
December 31, December 31,
------------------------ ------------------------
2008 2009 2008 2009
----------- ----------- ----------- -----------
Revenues
Product 29,101 22,741 5,593 5,737
Services 21,232 19,794 5,659 4,999
----------- ----------- ----------- -----------
Total revenues 50,333 42,535 11,252 10,736
----------- ----------- ----------- -----------
Cost of revenues:
Product 15,627 13,473 3,449 3,712
Services 7,627 6,141 1,836 1,487
----------- ----------- ----------- -----------
Total cost of revenues 23,254 19,614 5,285 5,199
----------- ----------- ----------- -----------
Gross profit 27,079 22,921 5,967 5,537
----------- ----------- ----------- -----------
Operating expenses:
Research and development 11,407 7,478 2,736 1,635
Sales and marketing 9,883 7,994 2,274 2,013
General and administrative 5,843 4,899 1,107 1,323
----------- ----------- ----------- -----------
Total operating expenses 27,133 20,371 6,117 4,971
----------- ----------- ----------- -----------
Operating income (loss) (54) 2,550 (150) 566
Financial income (loss), net (554) 522 (440) (606)
----------- ----------- ----------- -----------
Income (loss) before taxes on
income (608) 3,072 (590) (40)
Taxes on income 371 79 85 (55)
----------- ----------- ----------- -----------
Income from continuing
operations (979) 2,993 (675) 15
=========== =========== =========== ===========
Income (loss) from discontinued
operations (1,022) (314) (1,445) 0
=========== =========== =========== ===========
Net Income (2,001) 2,679 (2,120) 15
=========== =========== =========== ===========
Net income attributed to
preferred shares from
continuing and discontinued
operation 0 464 0 2
=========== =========== =========== ===========
Net income (loss) attributed to
ordinary shares from continuing
operation (979) 2,529 (675) 13
=========== =========== =========== ===========
Net loss attributed to ordinary
shares from discontinued
operation (1,022) (314) (1,445) 0
=========== =========== =========== ===========
Basic and diluted income (loss) per share
attributable to Ordinary shareholders
From continuing operations (0.06) 0.16 (0.04) 0.00
=========== =========== =========== ===========
From discontinued operations (0.06) (0.02) (0.09) 0.00
=========== =========== =========== ===========
Net income per share (0.12) 0.14 (0.13) 0.00
=========== =========== =========== ===========
Weighted average number of
shares used for computing net
income per share to ordinary
shareholders-Basic and Diluted 16,003,158 16,003,158 16,003,158 16,003,158
=========== =========== =========== ===========
TTI TEAM TELECOM INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEET
--------------------------------------------------
(in thousands of U.S dollars)
December December
31, 31,
2008 2009
-------- --------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 24,921 22,980
Short term deposits 0 7,887
Trade receivables 9,790 7,904
Unbilled receivables 3,093 1,630
Related parties 459 529
Other accounts receivable
and prepaid expenses 2,150 2,295
Current assets of
discontinued operations 958 0
-------- --------
Total current assets 41,371 43,225
-------- --------
LONG-TERM INVESTMENTS:
Investment in affiliate 165 165
Severance pay fund 3,836 4,229
-------- --------
Total long-term investments 4,001 4,394
-------- --------
PROPERTY AND EQUIPMENT
Cost 25,771 18,458
Less - accumulated
depreciation 18,572 12,594
-------- --------
Property and equipment, net 7,199 5,864
-------- --------
Total Assets 52,571 53,483
======== ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables 2,187 1,594
Related parties 420 194
Deferred revenues 3,648 3,368
Other accounts payable and
accrued expenses 6,040 6,603
Liabilities of discontinued
operations 844 0
-------- --------
Total current liabilities 13,139 11,759
-------- --------
ACCRUED SEVERANCE PAY 6,412 6,279
-------- --------
Long term liability 1,372 1,141
-------- --------
SHAREHOLDERS' EQUITY:
Share capital 2,595 2,595
Additional paid-in capital 75,251 75,278
Retained earnings
(Accumulated deficit) (46,198) (43,569)
-------- --------
Total liabilities and
shareholders' equity 31,648 34,304
-------- --------
52,571 53,483
======== ========
CONTACT: TTI Team Telecom International Ltd.
Rebecca (Rivi) Aspler, Director, Investor Relations
+972-3-926-9093
Mobile: +972-54-777-9093
Fax: +972-3-926-9574
rebecca.aspler@tti-telecom.com
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