Small Cap Trading: MIND C.T.I [US]

Company Profile: MIND is a leading provider of convergent real-time end-to-end billing and customer care product based solutions as well as unified communication call accounting and analytics solutions for organizations and large multinational corporates. Founded in 1995 with a vision to provide comprehensive yet flexible, ready for deployment solutions to any telecommunication service. Today, with over 250 experienced engineers and professionals, MIND continues to provide product based solutions enabling even complex operators short time to market service launch. MIND delivers its applications in any business model (license, SaaS, managed service or complete outsourced service) to enable its customers to choose the best model that fits their needs.

Technical: Uptrend. Expects resistance at $2.60.

On an uptrend

Fundamentals:

At PE below 10x

Recent Developments:

Financial Highlights 

  • Revenues of $5.6 million, compared with $5.7 in the second quarter of 2019.
  • Operating income of $1.4 million, or 25% of total revenues, compared with $1.0 million, or 18% of total revenues in the second quarter of 2019.
  • Net income was $1.4 million, or $0.07 per share, compared with $1.0 million, or $0.05 per share in the second quarter of 2019.
  • Multiple follow-on orders, including two significant ones.
  • Cash flow from operating activities in the quarter of $1.3 million, compared with $1.1 million in the second quarter of 2019.

Six Month Financial Highlights 

  • Revenues of $11.6 million, compared with $10.2 million in the first six months of 2019, with the increase attributed to the acquisition of Message Mobile in March 2019 and of GTX in September 2019, which generated revenues of approximately $4.3 million during the first half of 2020, while in 2019 only Message Mobile contributed to the six months revenues with only Q2 revenues of $1.6 million.
  • Operating income of $2.7 million, or 23% of total revenues, compared with $2.5 million or 25 % of total revenues in the first six months of 2019.
  • Net income of $2.6 million, or $0.13 per share, compared with $2.5 million, or $0.13 per share in the first six months of 2019.
  • Cash flow from operating activities in the first six months of 2020 was $2.3 million, compared with $3.4 million in the first six months of 2019.

Monica Iancu, MIND CTI CEO, commented: “The decline in revenues in Q2 2020 was in line with our expectations as previously conveyed. The increase in net income reflects the measures applied in Q2 to reduce cost, such as the temporary part-time work that we enforced for two months in Q2, the low travel expenses as a result of travel limitations as well as the increase in financial income that fluctuates among quarters. We are excited with the latest upgrade of an existing significant customer. We continue to invest in new technologies and expanding our platform to better support digital transformations. While we cannot estimate the impact of COVID-19 for the long term, we expect this year’s dividend to be similar to the previous year’s one, subject to Board approval.”

Final thoughts: Short term trading, expects TP at $2.85-3.00, with CL at $1.95

Disclaimer: This post is not an endorsement or investment advice. Please refer to the general disclaimer of the blog

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