(BSNS WIRE) CTIG Reports $1.1 Million Improvement in Net Income At Half
CTIG Reports $1.1 Million Improvement in Net Income At Half Year
Business Editors
VALLEY FORGE, Pa.--(BUSINESS WIRE)--Oct. 25, 1999--CTI Group
(Holdings) Inc. (OTC: CTIG) reported a 15% increase in revenues to
$3,965,721 for the six (6) months ended September 30, 1999 as compared
to $3,455,990 for the corresponding period in 1998.
The Company also reported a net income of $472,889 for the period
as compared to a net loss of ($638,450), an improvement of $1,111,339.
The net income per common share was $0.07 compared to a net loss of
($0.09) per share. The return to profitability was primarily achieved
through increased generation of revenues and operational efficiency.
Comparing the two periods further, the working capital deficit
was reduced by $1,158,093 - from ($1,830,899) in 1998 to ($672,806) in
1999. Current and long term debt was reduced by $1,364,625 - from
($1,464,625) in 1998 to ($100,000) in 1999, while cash balances on
hand improved by $443,684 - from $132,965 in 1998 to $576,649 in 1999.
The net income for the second quarter was $337,432 as compared to
$135,457 for the first quarter; the net income per common share being
$0.05 as compared to $0.02
Commenting on the results Mr. Johns, Chairman & CEO, stated "The
improvement in our second quarter net income over the first quarter
primarily reflects the full benefit of the savings being achieved in
our UK operations, due to the cost cutting efficiency measures
implemented at the commencement of our fiscal year. These savings
should continue to have a positive impact on our future operating
results assuming revenue performance is maintained at or above current
levels. The Company has carried forward Net Operating Losses (NOL's)
of approximately $2.2 million. The net income achieved will be offset
against these NOL's which are currently fully available to the Company
for tax purposes."
Over the past 12 months, CTIG has invested heavily in its product
development and has successfully launched a new communications
management platform that is highly flexible and incorporates the very
latest Internet and Ethernet technology.
This new platform will open-up many new vertical and geographical
markets to CTIG, as well as delivering the typical operational cost
savings associated with new Internet-based software applications.
These efforts will help facilitate the upgrade of our substantial
customer base of DOS accounts to the new Y2K Windows products.
The Company has now established its distribution sales channels
in the UK and is poised to replicate this in the USA. Additionally,
the Company's existing client base utilizing its Billing and Customer
Care (BACC) products are showing signs of generating an increased
volume of traffic for the Company's call processing.
Commenting on the prospects for the Company, Mr. Johns went on to
state, "Notwithstanding the potential for an "IBM Y2K" slowdown effect
in our third quarter revenue, we believe overall that the combination
of the above factors should lead us to anticipate a stronger growth in
profitable revenues during the second half year. Having stated this we
should caution, the Company is still unable to unlock the considerable
upside potential of its BACC products and services due to its working
capital constraints. We therefore continue to explore various
opportunities for the Company that will help remove these restrictions
in order to maximize shareholder value. We are presently exploring
three such opportunities any one of which, if successfully negotiated,
should have a material positive impact on the Company's future
prospects. Together with my Board of Directors and management team, I
look forward to meeting our registered shareholders at our next annual
stockholders meeting scheduled for November 3, 1999."
This release contains forward-looking statements that involve
risks and uncertainties. These statements may differ materially from
actual future events or results. Readers are referred to documents
filed by CTIG with the U.S. Securities and Exchange Commission.
--30--SF/ph*
CONTACT: CTI Group (Holdings) Inc., Valley Forge
Anthony P. Johns, Chairman & CEO
610/666-1700
Fax: 610-666-7707
Email: tjohns@ctigroup.com
KEYWORD: PENNSYLVANIA
INDUSTRY KEYWORD: EARNINGS TELECOMMUNICATIONS
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
*** end of story ***
|
