Unassociated Document
 
 
FORM 6-K
 
 
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
 
Report of Foreign Private Issuer
 
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
 
For the month of March, 2010
Commission File Number: 000-31215
 
MIND C.T.I. LTD.
 
(Translation of registrant's name into English)
 
Industrial Park, Building 7, P.O.Box 144, Yoqneam 20692, Israel
 
(Address of principal executive offices)
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
 
Form 20-F   X    Form 40-F   _______
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): N/A
 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): N/A
 
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
 
Yes   _______    No   X
 
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A
 
 
 
INCORPORATION BY REFERENCE
 
This report on Form 6-K is hereby incorporated by reference into: (i) the Registrant's Registration Statement on Form S-8, Registration No. 333-117054; (ii) the Registrant's Registration Statement on Form S-8, Registration No. 333-100804; and (iii) the Registrant's Registration Statement on Form S-8, Registration No. 333-54632.
 
CONTENTS
 
This report on Form 6-K of the registrant consists of the following Exhibit, which is attached hereto and incorporated by reference herein:
 
1. 
Press Release: MIND CTI Reports Cash Flow from Operating Activities of $2 Million in Q4 2009, dated March 15, 2010
 
 
SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Date March 15, 2010
By Order of the Board of Directors,
/s/ Monica Eisinger
Title: Monica Eisinger
Chairperson of the Board of Directors, President and Chief Executive Officer
 
EXHIBIT INDEX
 
Exhibit Number                                           Description of Exhibit
 
 
 
Exhibit 1
 
MIND CTI Reports Cash Flow from Operating Activities of $2 Million in Q4 2009
($6.3 Million in Financial Year 2009)
* Net Income of $1.1 Million in Q4 2009
* Board Declares Cash Dividend


Yoqneam, Israel, March 15, 2010— MIND C.T.I. LTD. (NasdaqGM: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, 2009.
 
Financial Highlights of Q4 2009
 
· 
Revenues of $5.0 million, compared with $4.6 million in the fourth quarter of 2008.
· 
Non-GAAP operating income was $1.4 million, or 28% of revenue, excluding amortization of intangible assets of $87 thousand and equity-based compensation expense of $36 thousand.
· 
GAAP operating income was $1.2 million.
· 
GAAP net income of $1.1 million or $0.06 per share, compared with GAAP net loss of $3.2 million or $0.15 per share in the fourth quarter of 2008.

Year 2009 Operating Highlights
· 
Revenues of $17.6 million, compared with $19.5 million in 2008.
· 
Non-GAAP operating income was $2.7 million, or 15% of revenue, excluding amortization of intangible assets of $338 thousand and equity-based compensation expense of $143 thousand.
· 
GAAP operating income was $2.2 million, compared with operating loss of $2.3 million in 2008.
· 
GAAP net income of $19.8 million or $1.04 per share, including a one time financial income from a cash settlement in the amount of $18.5 million, compared with GAAP net loss of $6.4 million or $0.30 per share in 2008 including impairment of ARS in the amount of $4.2 million.
· 
Cash flow from operating activities was $6.3 million.
· 
Cash position as of December 31, 2009 of $18.2 million after a special dividend distribution of $0.80 per share in the amount of $14.8 million and a $1.2 million expenditure for the buyback of 1.1 million shares.
· 
The number of outstanding shares after completion of the buy-back plan is 18,428,918.
· 
Backlog as of December 31, 2009 includes approximately $12.0 million that is expected to be billed by year-end.

Monica Eisinger, Chairperson and CEO, commented: "We believe that the revenue decrease encountered in 2009 was mainly due to lowered spending in the global telecom markets starting the end of 2007, the impact on MIND being a lack of significant new wins and follow-on orders in 2008. We are pleased that in 2009 we were more successful in closing deals that will generate future revenue. Of course, we are also pleased with our outstanding execution on cash flow and hope to re-achieve in the near future the 20% non GAAP operating margin that has been our ongoing target in the past and has become our goal again as the economy is expected to improve.”

Revenue Distribution for Q4 2009
Sales in the Americas represented 53.5% and sales in Europe represented 37.5% of total revenue.
Revenue from our customer care and billing software totaled $4.43 million, while revenue from our enterprise call accounting software was $539 thousand. Revenue from licenses was $2.0 million, or 39.7% and $3.0 million, or 60.3% from maintenance and additional services.

Revenue Distribution for Full Year 2009
Sales in the Americas represented 43.9% and sales in Europe represented 47.3% of total revenue.
Revenue from our customer care and billing software totaled $15.1 million, while revenue from our enterprise call accounting software was $2.5 million. Revenue from licenses was $6.2 million, or 34.9% and $11.4 million, or 65.1% from maintenance and additional services, in line with our expectations.
 

Customer Wins
In 2009 we won and announced four new customers and two major upgrades.

· 
a follow-on order with an existing US regional mobile operator, for our first implementation of prepaid IN.

· 
a regional mobile operator in the US that offers postpaid and prepaid wireless, Internet, long distance and paging services.

· 
a new operator in Africa, launching a WiMAX network.

· 
a follow-on order with an existing Caribbean customer, for a complete end-to-end convergent prepaid and postpaid billing including among many modules the MIND Point of Sale, inventory management, and interconnect.. The agreement is for four years and includes migration from existing solutions, license, implementation services and maintenance support.

· 
a leading international communications provider offering mobile, broadband, domestic and international fixed line services, for their operation in one country in Central America. MIND will provide mediation, rating and billing for prepaid calling cards. The MINDBill solution will handle millions of prepaid calling cards supporting multiple services through its built-in balance manager.

· 
a new NextGen operator that plans to start offering voice and IP services in Eastern Europe.

Dividend Distribution
As previously announced, on December 30, 2009 the Board of Directors resolved that the Company should seek the court approval formally required in order to enable a distribution of a cash dividend in the amount of $0.20 per share, similar to previous years. Under Israeli law, a company with insufficient retained earnings is required to obtain approval from the court for such a distribution. Following the receipt of approval from the District Court of Haifa, on March 14, 2010 the Board declared a cash dividend of $0.20 per share before withholding tax.

The record date for the dividend will be March 25, 2010 and the payment date will be April 12, 2010. Tax will be withheld at a rate of 20%.

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.

For more information, visit MIND at: www.mindcti.com. The financial results can be found in the Investors section and in our Form 6-K as well.

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.

For more information please contact:
Andrea Dray
MIND CTI Ltd.
Tel: +972-4-993-6666
investor@mindcti.com

 
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
Three months
    
Year
  
   
ended
    
ended
  
   
December 31
    
December 31
  
   
2 0 0 9
    
2 0 0 8
    
2 0 0 9
    
2 0 0 8
  
   
U.S. $ in thousands
  
   
(except per share data)
  
                         
Revenues
   $ 4,969     $ 4,638     $ 17,574     $ 19,473  
Cost of revenues
     1,527       1,507       6,413       6,126  
Gross profit
     3,442       3,131       11,161       13,347  
                                 
Research and development expenses
     1,022       1,331       4,448       6,163  
Selling and marketing expenses
     586       698       2,220       3,320  
General and administrative expenses
     588       594       2,324       2,475  
Impairment of goodwill
     -       2,151       -       3,498  
Impairment of intangible asset
     -       -       -       185  
Operating income (loss)
     1,246       (1,643 )     2,169       (2,294 )
                                 
Financial income (expenses):
                                
Auction rate securities settlement
     -       -       18,500       -  
Impairment of auction rate securities
     (42 )     (1,307 )     (941 )     (4,172 )
Other financial income (expenses) - net
     1       (17 )     256       568  
Income (loss) before taxes on income
     1,205       (2,967 )     19,984       (5,898 )
                                 
Taxes on income
     60       233       197       525  
                                 
Net Income (loss)
   $ 1,145     $ (3,200 )   $ 19,787     $ (6,423 )
                                 
Earning (loss) per ordinary share:
                                
Basic and Diluted
   $ 0.06     $ (0.15 )   $ 1.04     $ (0.30 )
                                 
Weighted average number of ordinary shares used in computation of earnings per ordinary share -
                                
in thousands:
                                
                                 
Basic
     18,601       21,115       19,012       21,473  
                                 
Diluted
     18,601       21,115       19,012       21,473  

 
* Certain comparative figures have been reclassified to conform to the current year presentation.
 
 
MIND C.T.I. LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS

   
December 31,
    
December 31,
  
   
2 0 0 9
    
2 0 0 8
  
   
U.S. $ in thousands
  
A  s  s  e  t  s
            
CURRENT ASSETS:
            
Cash and cash equivalents
   $ 15,995     $ 9,722  
Short term bank deposits
     2,183       -  
Accounts receivable:
                
Trade
     1,246       3,462  
Other
     201       275  
Prepaid expenses
     91       36  
Deferred cost of revenues
     141       124  
Other current assets
     34       80  
Total current assets
     19,891       13,699  
                 
INVESTMENTS AND OTHER NON CURRENT ASSETS:
                
Severance pay fund
     1,208       657  
Long-term investment
     -       941  
Deferred cost of revenues
     125       467  
Deferred income tax
     -       69  
PROPERTY AND EQUIPMENT, net of accumulated depreciation
                
      and amortization
     1,043       1,287  
INTANGIBLE ASSETS, net of accumulated amortization
     655       917  
GOODWILL
     6,029       5,965  
Total assets
   $ 28,951     $ 24,002  
                 
Liabilities and shareholders’ equity
                
CURRENT LIABILITIES :
                
Accounts payable and accruals:
                
Trade
   $ 450     $ 466  
Other
     1,581       1,720  
Deferred revenues
     2,545       1,845  
Total current liabilities
     4,576       4,031  
LONG TERM LIABILITIES :
                
Deferred revenues
     216       239  
Employee rights upon retirement
     1,472       1,298  
Total liabilities
     6,264       5,568  
                 
SHAREHOLDERS’ EQUITY:
                
Share capital
     54       54  
Additional paid-in capital
     39,105       53,742  
Differences from translation of foreign currency financial statements
         of a subsidiary
     (1,052 )     (1,324 )
Treasury shares
     (2,800 )     (1,631 )
Accumulated deficit
     (12,620 )     (32,407 )
Total shareholders’ equity
     22,687       18,434  
Total liabilities and shareholders’ equity
   $ 28,951     $ 24,002  
 
 
* Certain comparative figures have been reclassified to conform to the current year presentation.
 
 
MIND C.T.I. LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS

   
Three months
    
Year
  
   
ended
    
ended
  
   
December 31
    
December 31
  
   
2 0 0 9
    
2 0 0 8
    
2 0 0 9
    
2 0 0 8
  
   
U.S. $ in thousands
  
Cash flows from operating activities:
                        
Net Income (loss)
   $ 1,145     $ (3,200 )   $ 19,787     $ (6,423 )
                                 
Adjustments to reconcile net income to net cash provided by operating activities:
                                
Auction rate securities settlement
                     (18,500 )        
Depreciation and amortization
     188       213       778       1,088  
Impairment of auction rate securities
     42       1,307       941       4,172  
Impairment of goodwill
             2,151               3,498  
Impairment of intangible asset
             -               185  
Deferred income taxes, net
     48       218       113       248  
Accrued severance pay
     (5 )     79       39       190  
Capital loss (gain) on sale of equipment - net
     2       (7 )     (10 )     (40 )
Employees share-based compensation expenses
     36       47       143       181  
                                 
Changes in operating asset and liability items:
                                
Decrease (increase) in accounts receivable:
                                
Trade
     1,365       (286 )      2,265       960  
Other
     23       250       (51 )     128  
                                 
Decrease (increase) in prepaid expenses and work in process
     (55 )     102       270       (463 )
Decrease in inventories
     2       8       2       8  
                                 
Increase in accounts payable and accruals:
                                
Trade
     (96 )     (45 )     (19 )     (262 )
Other
     (96 )     (376 )     (169 )     (553 )
                                 
Increase (decrease) in deferred revenues
     (578 )     390       677       1,195  
Net cash provided by operating activities
     2,021       851       6,266       4,112  
                                 
Cash flows from investing activities:
                                
Proceeds from cash settlement
                     18,500          
Purchase of property and equipment
     (128 )     (7 )     (367 )     (436 )
Severance pay funds
     (38 )     (146 )     (416 )     (213 )
Investment in short term bank deposits
     2,024               (2,183 )        
Proceeds from sale of property and equipment
     71       39       194       207  
Net cash provided by (used in) investing activities
     1,929       (114 )     15,728       (442 )
                                 
Cash flows from financing activities:
                                
Cost of acquisition of treasury shares
     (472 )     (1,631 )     (1,169 )     (1,631 )
Dividend paid
     (14,780 )     -       (14,780 )     (4,319 )
Net cash used in financing activities
     (15,252 )     (1,631 )     (15,949 )     (5,950 )
                                 
Translation adjustments on cash
                                
and Cash equivalents
     28       (282 )     228       (388 )
Increase (decrease) in cash and cash equivalents
     (11,274 )     (1,176 )     6,273       (2,668 )
                                 
Balance of cash and cash equivalents at beginning of period
     27,269       10,898       9,722       12,390  
Balance of cash and cash equivalents at end of period
   $ 15,995     $ 9,722     $ 15,995     $ 9,722  
 
 
* Certain comparative figures have been reclassified to conform to the current year presentation.