Mind CTI (MNDO) Profits Dip but Balance Sheet Solid

Stephen L Kanaval  |

MIND C.T.I. Ltd. (MNDO) declared a dividend on Thursday this week. Each stockholder of record will receive a dividend of 0.27 per share. Mind CTI is a 20-year software company specializing in software licenses and services. The company's software products can be broken down into billing and customer care and call accounting.

Mind’s accounting portfolio has big names like: Volvo, Caterpillar, BMW, Nestle, Coca-Cola, Intel, Nissan, and Renault. However, a slowdown in the telecom sector is affecting the company’s acquisition of new clients. Revenues were down 16% because of this, but CEO Monica Iancu seemed to feel positive about the company’s position for 2016. She said: “We are pleased as always with the follow-on orders that reconfirm our customer satisfaction. While the markets appear to be very active, necessitating extensive pre-sales effort, showing continuous demand for our products and services, many processes are extended or constantly delayed.As previously mentioned, consolidation in the telecom markets was not favorable to us in 2015 and we closed only one new deal. We hope that the ongoing negotiations with potential new customers will materialize into new wins in the near term. In 2016, we plan to continue the ongoing investment in technology along with focus on entering new markets while we expect to continue as always to execute on our profitability targets.”

The Company’s PhonEx One is an interesting new product that could improve those target as it rolls out. The system is a unified communication reporting tool that allows a company to monitor telecom communications and organize it into customizable reports. A company manager or administrator can access a dashboard (as seen below). The dashboard is interactive and can be easily modified.

These types of report are very useful and in-demand by telecom operators looking to improve efficiency:

This quality and advanced product shows strong potential for Mind CTI to score more sales. The company’s profits dipped, but their balance sheet is still solid, see below.

The company had improved profitability during a down year. This shows that the company is solid financially and a breakthrough in sales will mean a quick buoy in stock price.

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