MIND C.T.I. Ltd. (MNDO) has reported a 22.86 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $1.12 million, or $0.06 a share in the quarter, compared with $1.45 million, or $0.08 a share for the same period last year.
Revenue during the quarter dropped 14.07 percent to $4.48 million from $5.21 million in the previous year period. Gross margin for the quarter expanded 183 basis points over the previous year period to 62.91 percent. Total expenses were 70.68 percent of quarterly revenues, up from 66.76 percent for the same period last year. That has resulted in a contraction of 392 basis points in operating margin to 29.32 percent.
Operating income for the quarter was $1.31 million, compared with $1.73 million in the previous year period.
Monica Iancu, MIND CTI chief executive officer, commented: "Focused on offering the best products and services at the lowest cost, in order to better serve our customers and build a competitive advantage, we implemented across the company, for the last two years, processes designed to improve our operating efficiency and productivity. With these processes in place we believe that the existing workforce is at the size we need in order to reach our goals. In parallel, we invested in developing the next versions of our platforms and we will continue to invest in expanding our offering. The new deal we closed at the beginning of the quarter and the multiple follow-on orders give us better visibility into 2017."
Operating cash flow falls marginally
Mind Cti has generated cash of $4.39 million from operating activities during the nine month period, down 3.71 percent or $0.17 million, when compared with the last year period.
The company has spent $1.89 million cash to meet investing activities during the nine month period as against cash inflow of $1.55 million in the last year period
The company has spent $5.13 million cash to carry out financing activities during the nine month period as against cash outgo of $5.60 million in the last year period.
Cash and cash equivalents stood at $8.85 million as on Sep. 30, 2016, up 2.76 percent or $0.24 million from $8.61 million on Sep. 30, 2015.
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