Tuesday August 14, 9:45 am Eastern Time
Press Release
SOURCE: CTI Group (Holdings) Inc.
CTI Group Reports Second Quarter Results
INDIANAPOLIS--(BUSINESS WIRE)--Aug. 14, 2001--CTI Group (Holdings) Inc. (OTC: CTIG - news) today announced increased revenues of $3.657 million in its second quarter ending June 30, 2001 as compared to $2.663 million for the same period last year.
The Company also reported a loss of $977K that included amortization of goodwill of $802K. Goodwill amortization relates to the recent merger of the Company that did not exist in last year's corresponding results.
For the six months ending June 30, 2001 the Company reported revenues of $20.360 million as compared to $12.789 million last year, and earnings of $5.113 million (representing .21 per share) vs. $4.559 million for the same period last year. The revenues and earnings reported for the 6 months ended June 30, 2001 and comparable period ended June 30, 2000 both included non-recurring items that occurred in each year's first quarter respectively. Therefore, these financial highlights should be read in conjunction with the Company's 10-QSB's and other documents filed by CTIG with the US Securities and Exchange Commission.
The Company's cash and cash equivalents were approximately $13.014 million as of June 30, 2001.
Commenting on the merged Company's first full quarter's results and the prospects going forward, Mr. Tony Johns, President and CEO, stated, ``We are delighted to have achieved this performance in our first full quarter given the challenging market conditions we faced immediately following consummation of our merger. During the quarter we acted swiftly in implementing a P.I.C. policy (Positioning by Integration and Consolidation). This resulted in an approximate 15% reduction in workforce, primarily from our Houston operation, as the Company began the process of integration and consolidation of its billing operations in Indianapolis. Although the full benefits of these cost reductions have not been realized in this current quarter's results, they should impact favorably on future reporting periods.''
``Our Houston operation is scheduled to be fully consolidated within Indianapolis by the end of our current quarter for further cost saving and business efficiencies. This effort is designed to leverage the resources acquired by our recent merger and should contribute to increasing sequential quarterly earnings for the balance of our fiscal year. In addition it is designed to enable the Company to position itself to launch a truly Convergent Billing and Customer Care, web enabled software product into the market during the fourth quarter.''
``The Company's existing Enterprise OSS (operating support system) and Billing Analysis products continue to provide a source of steady revenue growth for the Company. We are at an advanced stage of negotiations with several notable key distribution partners that, if successful, could provide us with further growth opportunities in this area of our operations. The significant product development effort and investment we are currently making into our new Convergent Billing product should present us with additional growth opportunities to achieve new levels of domestic and international market penetration in 2002 and beyond. These three products will be featured on our new web site that is scheduled to go live by month's end. ''
``The impact of the planned introduction of a major new product, the consolidation of our locations and the assimilation of the management teams of the three companies that comprise our new organization is being integrated into our business plan. When the timing and financial market conditions are more conducive we intend to present our vision and business model to the investment community to progress our stated objective of regaining a relisting of our common stock on the NASDAQ market.''
Cautionary Information Regarding Forward-Looking Statements
This report contains ``forward-looking'' statements. Examples of forward-looking statements include, but are not limited to: (a) projections of revenues, capital expenditures, growth, prospects, dividends, capital structure and other financial matters; (b) statements of plans and objectives of the Company or its management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about the Company and its business relating to the future; and (e) any statements using the words ``anticipate'', ``expected'', ``may'', ``project'', ``intend'' or similar expressions.
The Company's ability to predict projected results or the effect of events on Company's operating results is inherently uncertain. Forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those discussed in this document.
In addition to information provided elsewhere in this document, shareholders should consider the following: the risk that the Company will not be able to attract and retain customers to purchase its products, the risk that the Company will not be able to integrate its recently acquired businesses in a cost efficient manner; the risk that the Company will not be able to commercialize and market products; results of research and development; technological advances by third parties; competition; future capital needs of the Company; history of operating losses; dependence upon key personnel and general economic and business conditions.
Readers are referred to documents filed by CTIG with the U.S. Securities and Exchange Commission. The financial statements of the Company reflect the historical results of the predecessor entity Centillion Data Systems, Inc. and the results of operations subsequent to the Merger date of February 12, 2001 for the acquired companies of CTI Group (Holdings) Inc. and Celltech Information Systems, Inc.
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Contact:
CTI Group (Holdings) Inc.
Tony Johns, 317/262-4666
Fax. 317/262-4849
Email: tjohns@ctigroup.com |
