TTI announced results for the fourth quarter and fiscal year ended December 31, 2005

February 15, 2006

3 Min Read

PETACH TIKVA, Israel -- TTI 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 fiscal year ended December 31, 2005.

Total revenues for the fourth quarter were $12.3 million, compared to $9.9 million for the fourth quarter of the prior year. Operating income for the quarter was $0.8 million compared to an operating loss of $6.4 million for the same quarter of 2004, and net income was $0.06 million, or $0.00 per diluted share, versus a net loss of $6.1 million, or $0.51 per diluted share, in the same quarter last year. Operating and net income for the quarter includes a charge of $0.18 million relating to the impairment of capitalized software. The Company ended the fourth quarter with approximately $36.6 million in cash and liquid investments, or approximately $2.34 per basic share.

Fourth Quarter FY2005 Highlights:

  • Secured $14m in new bookings, equating to a book-to-bill ratio greater than 1

  • Gross margins increased for the fourth consecutive quarter, to 58.2%

  • TTI Telecom shareholders re-elected Meir Lipshes to the position of Chairman of the Board of Directors, and Meir Dvir, Ilan Toker and Lior Bregman to new terms

  • New Executive Management Group members appointed: Ruben Markus, Chief Executive Officer, Michael Halperin, Executive Vice President, International Sales, Moshe Moran, Executive Vice President, Sales and Marketing, Americas and Avner Amram, Vice President, Marketing and Business Development

Total revenues for the fiscal year ended December 31, 2005 were $43.2 million versus $37.8 million for 2004. Operating loss for the year was $6.6 million, compared to an operating loss of $28.7 million reported for 2004, and net loss was $9.1 million, or $0.62 per diluted share, versus a net loss of $29.5 million, or $2.48 per diluted share, last year. Operating and net loss for the year and fiscal 2004 include a charge of $0.18 million and $3.6 million, respectively, relating to the impairment of capitalized software costs. Excluding these charges, for fiscal 2005, operating loss was $6.4 million and net loss was $8.9 million, or $0.61 per diluted shares. For fiscal 2004, operating loss was $25.1 million and net loss was $25.9 million, or $2.18 per diluted shares.

Commenting on the results, Ruben Markus, CEO of TTI Telecom, stated, “The fourth quarter was a strong end to a year in which the Company returned to growth and profitability. Three consecutive quarters of revenue growth, coupled with a realignment of our cost structure, culminated in profitability and positive cash flow for the second half of the year. Altogether, the actions taken in 2005 have resulted in a leaner and financially stronger organization, with greater management depth and an industry-leading product suite better positioned to respond to customer requirements and market needs.

“Looking ahead to 2006, our goal is to further leverage the growing demand for NGOSS applications in order to drive greater revenue growth and profitability,” concluded Markus. “As wireline and wireless providers migrate to and deploy next-generation and convergent networks, the resulting need for NGOSS applications is creating demand for solutions such as ours, as is evidenced by our healthy backlog. We expect to build out the sales, marketing and R&D organizations to capitalize on this demand, both within our installed customer base and new customers. With a product suite in demand by communications service providers and continued innovation supported by a world-class infrastructure and strong balance sheet, we have the foundation for continued success in 2006.”

TTI Team Telecom International Ltd. (Nasdaq: TTIL)

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