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MIND CTI Reports Cash Flow From Operating Activities of $6.3 Million in 2010


February 16, 2011 - Yoqneam, Israel

MIND C.T.I. LTD. (NASDAQ: MNDO), a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as telecom expense management (call accounting) solutions, today announced results for the fourth quarter and year ended December 31, 2010.

Financial Highlights of Q4 2010

  • Revenues of close to $5 million, similar to the fourth quarter of 2009
  • Operating income was $1.8 million, compared with GAAP operating income of $1.2 million in the fourth quarter of 2009.
  • Net income of $1.9 million or $0.10 per share, compared with GAAP net income of $1.1 million or $0.06 per share in the fourth quarter of 2009
  • One new win and one new upgrade

Year 2010 Financial Highlights

  • Revenues of $19.9 million, a 13% growth over $17.6 million in 2009
  • Operating income was $5.0 million, or 25 % of revenue, including a non-cash impairment of goodwill and intangible assets of $993 thousand and equity-based compensation expense of $139 thousand, compared with operating income of $2.2 million in 2009.
  • Net income of $4.9 million, or $0.26 per share
  • Cash flow from operating activities was $6.3 million.
  • Cash position of $20.5 million as of December 31, 2010
  • Backlog as of December 31, 2010 includes approximately $12.2 million that is expected to be billed by 2011 year-end.
  • Four new wins and multiple upgrades

Monica Iancu, Chairperson and CEO, commented: "We are pleased with our overall execution, the year-to-year growth, our customer satisfaction and our on-time deliveries as well as our new wins. We plan to slightly increase our professional services teams as we support an enhanced customer base with larger projects. We believe that the reputation and experience we have built over more than a decade will help us continue to win new deals, of increased size and scope."

Revenue Distribution for Q4 2010
Sales in the Americas represented 45.5 % and sales in Europe represented 39.9 % of total revenue. Revenue from our customer care and billing software totaled $3.5 million, while revenue from our enterprise call accounting software was $1.5 million. Revenue from licenses was $1.8 million, or 35.1 % and $3.2 million, or 64.9 % from maintenance and additional services.

Revenue Distribution for Full Year 2010
Sales in the Americas represented 45.9 % and sales in Europe represented 39.2 % of total revenue. Revenue from our customer care and billing software totaled $15.7 million, while revenue from our enterprise call accounting software was $4.2 million. Revenue from licenses was $6.6 million, or 33.0 % and $13.3 million, or 67.0 % from maintenance and additional services, in line with our expectations.

Dividend Distribution
As previously announced, following the Board of Directors resolution, the Company sought and received the court approval formally required in order to enable a dividend distribution of up to $6 million, out of its current assets.

Based on the new policy and the amount approved by the court, while taking into consideration the strong cash flow in 2010 and the remaining cash after the distribution, the Board declared a cash dividend of $0.32 per share before withholding tax.

The record date for the dividend will be February 28, 2011 and the payment date will be March 21, 2011. Tax will be withheld at a rate of 20 %.

Appointment of CFO
After serving as Interim CFO since August 2010, MIND appointed Mr. Aviram Cohen as permanent CFO. Aviram joined MIND as Controller in June 2006. Before joining us, he served as an auditor and accountant since 2002 at Ernst & Young, (Haifa, Israel). Aviram is a Certified Public Accountant and holds a B.A. degree in Accounting and Economics from Haifa University.

Conference Call Information
MIND will host a conference call on February 17, 2011 at 10:30 a.m., Eastern Time, to discuss the Company's fourth quarter 2010 results and other financial and business information. The call will be carried live on the Internet via www.earnings.com and the MIND website, www.mindcti.com. For those unable to listen to the live web cast, a replay will be available.

Full financial results can be found in the Investors section www.mindcti.com/investor/PressReleases.asp and in our Form 6-K as well.

About MIND
MIND CTI Ltd. is a leading provider of convergent end-to-end billing and customer care product based solutions for service providers as well as telecom expense management (call accounting) solutions. MIND provides a complete range of billing applications for any business model (license, managed service or complete outsourced billing service) for Wireless, Wireline, VoIP and Quad-play carriers in more than 40 countries around the world. A global company, with over twelve years of experience in providing solutions to carriers and enterprises, MIND operates from offices in the United States, UK, Romania and Israel.

Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company's business strategy are "forward-looking statements." These statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including the risks discussed in the Company's filings with the United States Securities Exchange Commission. The Company does not undertake to update any forward-looking information.

Follow MIND on Twitter: http://twitter.com/mindcti

For more information please contact:
Andrea Dray
MIND CTI Ltd.
Tel: +972-4-993-6666
Email Contact

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