TTI Team Telecom International Ltd. Reports Fourth Quarter and Full Year 1997 Results
-- Record Operating and Net Margins; Order Momentum Growing --
PETACH TIKVA, Israel--(BUSINESS WIRE)--Feb. 26, 1998-- TTI Team Telecom International Ltd. (NASDAQ/NM symbol:TTILF - news) today announced
results for the fourth quarter and full year ended December 31, 1997.
Revenues for the fourth quarter of 1997 increased by 52% to $3.5 from $2.3 million, last year. Revenues are comprised of product sales, which increased 69% over
last year to $2.3 million, and services and other, which increased 26% to $1.2 million. Operating income was $595,000, an increase of 125% as compared with
$264,000 for the same quarter of 1996. Net income for the quarter increased by 174% to $691,000 or $0.08 per share (diluted), versus $252,000 or $0.03 per
share (diluted) last year. The number of shares used in computing diluted income per share for the quarter were 8,741,991 versus 7,395,446 for the fourth quarter of
1996.
Revenues for the full year 1997 increased by 56% to $12.2 million from $7.8 million in 1996. Operating income for the year was $1.8 million, an increase of 119%
from $812,000 last year. Net income increased by 217% to $2.2 million from $700,000, and earnings per share to $0.25 from $0.10 (diluted). The number of
shares used in computing diluted income per share for the full year of 1997 were 8,740,181 versus 6,894,081 for 1996.
Commenting on the results, Mr. Meir Lipshes, Chief Executive Officer said, ''At the beginning of 1997, we set challenging strategic goals for TTI. Our strong fourth
quarter and full-year results reflect success in achieving these goals, and the sales momentum which has been building throughout 1997. As the telecommunications
market continues its rapid evolution, telecom operators are looking for innovative and flexible network management systems to help them improve the quality and
quantity of services offered. Our integrated network monitoring, surveillance, and analysis systems make our customers more competitive in current markets.
''We have made substantial investments in sales and marketing throughout 1997, including the opening of two new US sales offices in Texas and Florida. As work
continues on the major contract we received in the third quarter from Teleraj in Brazil, we have also added a number of new prestigious customers to our roster.
''During the fourth quarter, EconoPhone, an international wireline long distance communications company, selected NETRAC to provide fault, performance, and
configuration network management for its growing switching and transmission network.
''We received an order worth more than $1 million from PT-1 Communications, one of the largest and fastest growing pre-paid card providers in the USA, to
implement a turnkey fault performance and configuration network management system. We also received an order from TELUS Mobility, a cellular, paging, and
private radio system subsidiary of Canada's TELUS Corporation, which will use NETRAC to facilitate the rapid deployment of new services.
''We are also making progress in expanding our penetration of global markets. We received orders from VIAG Interkom, an important new player in the recently
deregulated German telecommunications market, and from Tel-Energo, a dynamic new telecommunications operator in Poland.''
Mr. Lipshes concluded, ''Our growing revenues and substantial backlog attest to the industry's increasing recognition of the advantages available through the use of
our turnkey network management solutions. Our vital tools enable new telecom operators to offer state-of-the-art services and to improve the security and
cost-effectiveness of their networks. Looking ahead to 1998, we pledge to continue developing our excellent products, and to further expand our sales and
marketing efforts.''
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. 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. |
