MIND C.T.I. LTD (MNDO) has reported an 18.72 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $0.88 million, or $0.05 a share in the quarter, compared with $1.08 million, or $0.06 a share for the same period last year. Revenue during the quarter went down marginally by 2.88 percent to $4.68 million from $4.82 million in the previous year period. Gross margin for the quarter expanded 823 basis points over the previous year period to 67.24 percent. Total expenses were 61.77 percent of quarterly revenues, down from 70.70 percent for the same period last year. This has led to an improvement of 893 basis points in operating margin to 38.23 percent.
Operating income for the quarter was $1.79 million, compared with $1.41 million in the previous year period.
Monica Iancu, MIND CTI's president and chief executive officer commented: "In 2016 we successfully implemented new technologies and new methodologies, won two new deals, one of them being significant and we obtained a very high number of follow-on orders. We effectively completed different phases in ongoing deployments. Nowadays, the telecom carriers compete mainly on price. Our customers encounter profitability challenges and continuously aim to reduce both operating and capital expenditures. We believe that our up-to-date, versatile, comprehensive product-based billing platform and agile delivery fit perfectly with multi-play service providers and address their challenge of reducing operational cost. During the last two years we invested significantly in the new version of MINDBill, which will be released this year and we intend to promote the sales of upgrades. We also intend to continue to invest in our cloud solutions and to execute on our long-term targets."
Operating cash flow declines
MIND C.T.I. LTDhas generated cash of $5.24 million from operating activities during the year, down 16.72 percent or $1.05 million, when compared with the last year. The company has spent $2.45 million cash to meet investing activities during the year as against cash inflow of $2.66 million in the last year.
The company has spent $5.11 million cash to carry out financing activities during the year as against cash outgo of $5.59 million in the last year period.
Cash and cash equivalents stood at $9.16 million as on Dec. 31, 2016, down 20.13 percent or $2.31 million from $11.48 million on Dec. 31, 2015.
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