MIND C.T.I., Ltd. Q2 2010 Earnings Call Transcript

Accordingly management believes that isolating the effects of such events enables management and investors to consistently analyze the critical components and the results of operations of the company's business and to have a meaningful comparison to prior periods.

Thank you Andrea and good day ladies and gentlemen. Thank you for your interest in MIND and for joining us today. In our call today I will summarize and discuss some aspects of our business.

The second quarter of 2010

Yesterday we reported our business results for the second quarter of 2010. Revenue for the second quarter was $4.9 million. Revenue from our customer care and billing solutions was $4.05 million and revenue from our enterprise Call Accounting Solutions was approximately $853,000.

All this in line with out business model. Operating income for the second quarter was 28% of revenue similar to last quarter well above our 20% value. Net income for the second quarter was $1.3 million, an EPS of $0.07 per share.

We are pleased that in these economic conditions we continue with our execution of positive cash flow and that during the quarter we succeeded to close additional business but unfortunately at the same time we lost one Europe customer which was under a managed service agreement with our UK acquired entity. The entity was acquired in 2007 and the UK based company provides billing and customer care software solutions in a service bill amount mainly to European carriers.

MIND enables the carrier to implement advanced rating schemes for the latest technology infrastructure being installed. The upgrade is with a philosophical career providing the full force of ISP services in voice over IP solutions primarily to corporate customers. The rating and billing of VOIP services has been handled by the MIND Systems since the launch in 2005 while other solutions were used for data services.

The same rate plan may be used for both prepaid

The same rate plan may be used for both prepaid and postpaid as rating and charging are done by the same engine. The full richness of postpaid features and capabilities is available in real time for prepaid services. MIND will support a signal from them, customer care interface will incorporate the benefit of an integral comprehensive point of sale solution with module focus here and inventory management and introduces a wide set of business intelligence and capabilities.

Why do you believe that at this point in time the market is not strong enough to enable growth? We continue to focus on our target. Satisfied customers, successful project implementations, winning new business and positive cash flow.

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