TTI Telecom International Ltd. Reports Second Quarter Results
PETACH TIKVA, Israel--(BUSINESS WIRE)--Aug. 12, 1999--TTI Telecom
International Ltd. (NASDAQ/NM symbol: TTIL), a leading provider of
integrated, turnkey software solutions for telecom service providers,
today announced record unaudited results for the second quarter ended
June 30, 1999.
Revenues for the second quarter of 1999 reached $7.2 million, an
increase of 65% versus $4.4 million for the second quarter of last
year. Product sales increased 80% to $5.6 million compared to $3.1
million for the same period last year. Operating income rose 106% to $1.3 million compared to $612 thousand for the same quarter of 1998.
Net income for the quarter reached $1.4 million, or $0.13 per diluted
share, versus $655 thousand, or $0.07 per diluted share, last year.
Revenues for the six months ended June 30, 1999 reached $13.6
million, an increase of 62% versus $8.4 million for the same period last year. Product sales increased 70% to $10.5 million compared to $6.1 million for the same period last year. Operating income rose 101% to $2.4 million compared to $1.2 million for the same period of 1998.
Net income for the quarter reached $2.6 million, or $0.26 per diluted
share, versus $1.3 million, or $0.15 per diluted share, last year.
Commenting on the results, Mr. Meir Lipshes, Chief Executive
Officer, said, "This quarter marks another quarter of record revenues
for TTI Telecom, reflecting a $2 million order with Maltacom and
ongoing implementation of our two largest contracts according to
schedule. On-time delivery is critical to the success of these
projects and the principle criteria for references from these
customers in the future.
"We continue to execute on our product strategy to enrich our
product offering with a variety of OSS solutions integrated with our
network management system. This quarter, we introduced the Netcap
product line of inventory configuration and provisioning tools and are
continuing to develop a fraud detection solution."
Mr. Lipshes concluded, "To sell these OSS products, we are
targeting our existing customers first. Our objective, by expanding
our product line, is to create new tender opportunities and increase
the revenue potential per customer. With our expertise in network
management system technology, we believe we are well positioned to
succeed in this market."
About TTI Telecom
TTI Telecom International Ltd. develops, markets and supports
advanced, modular, integrated software products and services for
operations support systems ("OSS") and network management systems
("NMS") in the telecommunications industry. The Company's solutions,
based on its Netrac family of products, enable telecommunications
service providers to improve the quality of existing services,
streamline their operations in order to compete cost-effectively,
maximize the return on their investment in network infrastructure and
offer new services over complex networks. The Company's products
manage mission-critical functions, such as fault management,
performance management, configuration management and security
management. Its growing family of Netrac NMS/OSS application tools are
used by telecommunications companies worldwide and include leading
service providers such as Sweden's Tele2 AB, RSL-Com in the UK,
Germany's VIAG Interkom, SaskTel in Canada, and HK Telecom in Hong
Kong.
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 TELECOM INTERNATIONAL LTD.
STATEMENT OF INCOME
(in thousands of U.S. dollars except per share data)
3 Months Ended 6 Months Ended
6/30/99 6/30/98 6/30/99 6/30/98
---------- ---------- ---------- ----------
Unaudited
Revenues
Product sales $ 5,637 $ 3,125 $ 10,456 $ 6,145
Services and other 1,584 1,244 3,126 2,235
---------- ---------- ---------- ----------
Total revenues 7,221 4,369 13,582 8,380
---------- ---------- ---------- ----------
Cost of revenues
Product cost 2,392 1,348 4,450 2,690
Services and other 956 689 1,781 1,158
---------- ---------- ---------- ----------
Total cost of revenues 3,348 2,037 6,231 3,848
---------- ---------- ---------- ----------
Gross profit 3,873 2,332 7,351 4,532
Research & development
costs, net 606 485 1,146 948
Selling and marketing
expenses 1,301 767 2,470 1461
General and
administrative expenses 705 468 1,282 905
---------- ---------- ---------- ----------
Total Operating expenses 2,612 1,720 4,898 3,314
Operating income 1,261 612 2,453 1,218
Financial income, net 192 100 302 178
---------- ---------- ---------- ----------
Income before taxes
on income 1,453 712 2,755 1,396
Income taxes 100 57 194 97
---------- ---------- ---------- ----------
Net income $ 1,353 $ 655 $ 2,561 $ 1,299
========== ========== ========== ==========
Basic earnings per share $0.14 $0.08 $0.28 $0.16
========== ========== ========== ==========
Diluted earnings
per share $0.13 $0.07 $0.26 $0.15
========== ========== ========== ==========
Weighted average
No./shares outstanding:
Basic 9,380,749 8,159,996 9,035,845 8,152,269
========== ========== ========== ==========
Diluted 10,113,781 8,961,526 9,783,676 8,863,401
========== ========== ========== ==========
TTI TELECOM INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
June 30 December 31
1999 1998
----------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 11,667 $ 5,375
Short-term bank deposits 2,533 -
Trade receivables 7,054 6,995
Unbilled receivables 6,591 5,291
Other account receivable
and prepaid expenses 1,643 728
---------- ----------
Total current Assets 29,488 18,389
---------- ----------
SEVERANCE PAY FUND 1,256 1,010
FIXED ASSETS: ---------- ----------
Cost 7,162 5,810
Less - accumulated depreciation 2,370 1,765
---------- ----------
4,792 4,045
---------- ----------
---------- ----------
Total assets $ 35,536 $ 23,444
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank debt $44 $201
Trade payables 1,498 1,419
Related parties 547 433
Other accounts payable
and accrued expense 3,134 1,812
---------- ----------
Total current Liabilities 5,223 3,865
---------- ----------
ACCRUED SEVERANCE PAY 1,885 1,469
SHAREHOLDERS' EQUITY: ---------- ----------
Share Capital 1,496 1,348
Additional paid-in capital 17,515 9,906
Retained earnings 9,417 6,856
---------- ----------
Total shareholders' equity 28,428 18,110
---------- ----------
$ 35,536 $ 23,444
========== ==========
CONTACT:
TTI Telecom Ltd., Petach Tikva
Meir Lipshes, (972-3) 922-1262
Chief Executive Officer
Fax: (972-3) 922-1249
meirl@tti.co.il
or
Lippert/Heilshorn & Associates, Inc., New York
Jody Burfening/Sanjay Hurry, 212/838-3777
jody@lhai.com
KEYWORD: INTERNATIONAL AFRICA/MIDDLE EAST |
