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TTI Telecom Reports Fourth Quarter and Year-End 2009 Financial Results
Rosh Ha’ayin, Israel – February 24, 2010 - TTI Team Telecom International Ltd. (NASDAQ: TTIL), (‘the Company’), a global supplier of Operations Support Systems (OSS) to communications service providers, today announced results for the fourth quarter and full year ended December 31, 2009.
Total revenues for the fourth quarter were $10.7 million, compared with $10.3 million in the third quarter of 2009, and $11.3 million for the fourth quarter of 2008. Total operating expenses were $5.0 million, compared to $4.9 million in the third quarter of 2009 and $6.1 million in the fourth quarter of 2008.
Operating income for the quarter was $566,000 compared with $744,000 in the third quarter of 2009 and an operating loss of $150,000 for the fourth quarter of 2008. Net income was $15,000, or $0.00 per basic and diluted share, compared to $1.3 million, or $0.07 per basic and diluted share for the third quarter of 2009 and a net loss of $2.1 million, or $0.13 per basic and diluted share in the fourth quarter of 2008.
Total revenues for the twelve months ended December 31, 2009 were $42.5 million, compared to $50.3 million in 2008. Total operating expenses for 2009 were $20.4 million, compared to $27.1 million in 2008.
As part of the 2004 capital draft, the company issued warrants that were intended for purchasing ordinary company shares. As a result of the adoption of a new accounting standard on January 1st, 2009, these warrants are no longer eligible to be classified as equity. Therefore, the company is now required to present the fair value of the warrants as a liability and to record any changes in their fair value during the period as a financial expense or as income. During the course of 2009, the fair value of these warrants appreciated by approximately 600 thousand dollars that offset part of our financial income. Excluding this non-cash charge, our net income for 2009 was 3.3 million dollars.
Operating income for the period was $2.6 million compared with an operating loss of $54,000 in 2008. Net income was $2.7 million, or $0.14 per basic and diluted share, compared to a net loss of $2.0 million, or $0.12 per basic and diluted share for the year ended December 31, 2008.
As of December 31, 2009, the Company had approximately $30.9 million in cash, liquid investments, and short term deposits.
Commenting on the results, Meir Lipshes, Chairman and CEO of TTI Telecom, stated, “Looking at 2010, we rely on the overall anticipation of a gradual recovery in capital spending. We believe that there are many opportunities for sustainable growth. However, we do expect our customers to still remain cautious and we also expect them to continue seeking high value, low TCO, and fast ROI. We believe that our investments in the LTE domain, the awareness of customers changed decision making practices and the still effective cautious financial management of TTI’s operations will all bolster TTI in its goal to be a preferred choice for customers and hence TTI’s market position.”