MIND C.T.I. LTD. reported Q1 2025 revenues of $5.0 million, with declines attributed to customer care and billing segments.
Quiver AI Summary
MIND C.T.I. LTD., a provider of billing and customer care solutions, announced its financial results for the first quarter of 2025, reporting revenues of $5.0 million, a decrease from $5.8 million in the same quarter of 2024. The company experienced a significant decline in operating income and net income, attributed to a downturn in its messaging segment and challenges in its customer care and billing software. Despite these challenges, MIND maintains a strong cash position of $14.9 million and positive cash flow, but anticipates further negative impacts on revenue and net income in 2025 due to ongoing investments in growth initiatives. The company also declared a dividend of $0.22 per share, totaling approximately $4.5 million, which will affect future cash positions. All proposed resolutions were approved during the company's Annual General Meeting held on May 6, 2025.
Potential Positives
- Despite a year-over-year revenue decrease, the company maintains a strong cash position of $14.9 million as of March 31, 2025, before the dividend distribution.
- The Board declared a gross dividend of $0.22 per share, totaling approximately $4.5 million, demonstrating a commitment to returning value to shareholders.
- The completion of the Aurenz acquisition during the quarter may enhance the company's product offerings and market position moving forward.
- The company reported ongoing positive cash flow from operating activities, which indicates operational stability despite challenges in other areas.
Potential Negatives
- Revenues decreased significantly from $5.8 million in Q1 2024 to $5.0 million in Q1 2025, indicating a troubling downward trend in sales.
- Operating income fell sharply from 22% of total revenues to only 7%, reflecting a decline in profitability.
- Management warned of multiple factors expected to negatively impact revenue and income for the entirety of 2025, suggesting potential ongoing financial difficulties for the company.
FAQ
What were MIND C.T.I.'s Q1 2025 revenue results?
MIND C.T.I. reported revenues of $5.0 million in Q1 2025, down from $5.8 million in Q1 2024.
What factors contributed to the revenue decline?
The decline was primarily due to decreased performance in the messaging segment and issues in customer care and billing.
What is the amount of the declared dividend for shareholders?
The Board declared a gross dividend of $0.22 per share, totaling approximately $4.5 million.
What are MIND C.T.I.'s plans for future growth?
The company plans to invest in growth initiatives, although significant returns are not expected within the year.
Where can I find MIND C.T.I.'s financial results?
The financial results are available in the Company News section of their website and in their Form 6-K.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$MNDO Hedge Fund Activity
We have seen 5 institutional investors add shares of $MNDO stock to their portfolio, and 8 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- NORTHERN TRUST CORP added 36,781 shares (+91.4%) to their portfolio in Q4 2024, for an estimated $72,642
- LSV ASSET MANAGEMENT removed 15,800 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $31,205
- CITADEL ADVISORS LLC removed 13,019 shares (-31.4%) from their portfolio in Q4 2024, for an estimated $25,712
- BNP PARIBAS FINANCIAL MARKETS removed 11,500 shares (-13.2%) from their portfolio in Q4 2024, for an estimated $22,712
- GLENORCHY CAPITAL LTD removed 8,627 shares (-3.3%) from their portfolio in Q4 2024, for an estimated $17,038
- WELLS FARGO & COMPANY/MN added 8,510 shares (+851000.0%) to their portfolio in Q4 2024, for an estimated $16,807
- UBS GROUP AG removed 3,892 shares (-35.6%) from their portfolio in Q4 2024, for an estimated $7,686
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Full Release
YOQNEAM, Israel, May 06, 2025 (GLOBE NEWSWIRE) -- MIND C.T.I. LTD. – (NasdaqGM: MNDO ), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers, unified communications (UC) analytics and call accounting solutions for enterprises as well as enterprise messaging solutions, today announced results for its first quarter ended March 31, 2025.
The following will summarize our major achievements in the first quarter of 2025, as well as our business. The financial results can be found in the Company News section of our website at http://www.mindcti.com/company/news/ and in our Form 6-K.
Financial Highlights
- Revenues were $5.0 million, compared with $5.8 million in the first quarter of 2024.
- Operating income was $0.4 million, or 7% of total revenues, compared with $1.2 million, or 22% of total revenues in the first quarter of 2024.
- Net income was $0.5 million, or $0.02 per share, compared with $1.3 million, or $0.07 per share in the first quarter of 2024.
- Cash flow from operating activities was $0.7 million, compared with $0.9 million in the first quarter of 2024.
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Cash position was $14.9 million as of March 31, 2025 (before the dividend distribution of $4.5 million in April 2025).
Ariel Glassner, MIND CTI’s Chief Executive Officer, commented: “The year-over-year revenue decrease was due to our messaging segment, which enjoyed a temporary positive impact of large customer campaigns in Q1 2024, and a decrease in our customer care and billing segment. The decline in operating income is mainly attributed to an allowance for credit loss of a specific customer and to costs related to the Aurenz acquisition, which was completed this quarter.
“As previously announced, multiple factors are expected to negatively impact our revenue and income from our customer care and billing software, which we already started to experience in Q1 2025. In addition, we plan to continue to invest in potential growth initiatives, which are not expected to bear fruit this year. Accordingly, we expect a significant negative impact on our 2025 revenues, net income and dividend distribution.
“We have a strong cash position and ongoing positive cash flow. We believe that our initiatives are the right steps to take in seeking to preserve our current business and grow in the future.”
Revenue Distribution
Revenues in Europe represented 61% (including the messaging segment revenues in Germany, which represented 35%), the Americas represented 33%, and the rest of the world represented 6% of total revenues.
Revenues from our customer care and billing software were $2.5 million, or 50% of total revenues, enterprise messaging and payment solutions were $1.7 million, or 35%, and enterprise call accounting software were $0.8 million (including the full quarter revenues of Aurenz), or 15% of total revenues.
Revenues from maintenance and additional services were $4.8 million, or 96% of total revenues, while licenses were $0.2 million, or 4% of total revenues.
Dividend Distribution
As previously announced, the Board declared on March 4, 2025 a gross dividend of $0.22 per share, with tax being withheld at a rate of 20%.
The dividend of approximately $4.5 million is presented in our balance sheet as of March 31, 2025, among other current liabilities. The distribution and the impact on our cash position occurred in Q2 2025.
AGM and Board of Directors Update
The Company held its Annual General Meeting of Shareholders on May 6, 2025, and all the proposed resolutions were approved.
About MIND
MIND CTI Ltd. is a leading provider of convergent end-to-end billing and customer care product-based solutions for service providers, unified communications analytics and call accounting solutions for enterprises as well as enterprise messaging solutions. MIND provides a complete range of billing applications for any business model (license, SaaS, managed service or complete outsourced billing service) for Wireless, Wireline, Cable, IP Services and Quad-play carriers. A global company, with over twenty-five years of experience in providing solutions to carriers and enterprises, MIND operates from offices in Israel, Romania, Germany and the United States.
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", expectations of the results of the Company’s business optimization initiative, integration of the company’s acquisitions and its projected outlook and results of operations. 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, but not limited to, economic conditions in our key markets, as well as the risks discussed in the Company's annual report and other filings with the United States Securities Exchange Commission. The Company does not undertake to update any forward-looking information.
For more information please contact:
Andrea Dray
MIND C.T.I. Ltd.
Tel: +972-4-993-6666
[email protected]