TTI Team Telecom International Ltd. (NASDAQ: TTIL), (“TTI Telecom”), a global supplier of Operations Support Systems (OSS) to communications service providers, today announced results for its fiscal second quarter ended June 30, 2006. Total revenues for the second quarter were $12.6 million, an increase of 24% as compared to $10.2 million for the second quarter of 2005. Operating income for the quarter was $0.2 million, compared with an operating loss of $2.3 million for the same quarter of 2005, and net income was $0.2 million, or $0.01 per diluted share, versus a net loss of $2.3 million, or $0.20 per diluted share, in the same quarter last year. TTI Telecom ended the quarter with approximately $36.5 million in cash and liquid investments.
Operating and net income under Generally Accepted Accounting Principles (“GAAP”) for the three and six months ended June 30, 2006 includes stock-based compensation expense of $135,000 and $250,000, respectively, related to the implementation of Statement of Financial Accounting Standard (SFAS) 123R which was adopted effective January 1, 2006.
Total revenues for the six months ended June 30, 2006 were $25.0 million, an increase of 30% as compared to $19.3 million in the same period last year. Operating income for the six months was $0.9 million compared to an operating loss of $7.4 million for the same period of 2005. Net income for the six months was $1.0 million, or $0.05 per diluted share, versus a net loss of $7.2 million, or $0.78 per diluted share, last year. Net loss per share for the six-month period of 2005 includes a deemed dividend associated with the Beneficial Conversion of Preferred Shares relating to the Company’s preferred offering completed on January 5, 2005.
“Our strong revenue performance in the quarter was combined with higher levels of investments made in order to capture network transformation opportunities within the tier 1 service provider community,” stated Ruben Markus, CEO of TTI Telecom. “We also have significantly expanded our addressable market with the addition of new systems integrator partners that we believe will extend our sales coverage and generate more opportunities.”
Continued Mr. Markus, “As service providers transform their networks to offer a variety of next generation mobile and IP services, they also seek to reduce operations costs, improve customer service quality and eliminate legacy systems. We are investing in technologies and products to support their plans and to capitalize on the growing demand for next generation OSS products. The recent string of major consolidations amongst OSS suppliers validates our view of a growing market for next generation solutions such as ours.
“Looking ahead, we intend to vigorously continue to execute on our business strategy and are strengthened in our conviction that there is a huge opportunity in the market place for us, an opportunity that we intend to pursue in conjunction with a growing number of partnerships,” concluded Mr. Markus. “We remain committed to enhancing the value of TTI Telecom and believe that the expansion of our indirect sales channels attests to this. At the same time, we believe the investments being made to support network transformation applications will yield greater levels of growth in the future. Supported by a strong balance sheet, an experienced management team, dedicated employees and world-class product offering, we believe that we can position TTI Telecom as a transformation enabler.”
2Q06 Earnings Conference Call Information
A conference call has been scheduled for today at 9:00am ET in which management will discuss the results of the quarter. The call can be accessed via live webcast through the Investor Relations portion of the TTI Telecom web site, www.tti-telecom.com. A telephone replay of the call will also be available starting one hour after the completion of the call until 5:00pm ET on August 24, 2006. To access the replay, please dial +1.888.286.8010 (International dialers can call +1.617.801.6888), participant code “51713896”. The webcast of the conference call will be archived on the TTI Telecom web site.
About TTI Telecom
TTI Team Telecom International Ltd. offers advanced, modular and integrated software products and services for Operations Support Systems (OSS) to communications service providers. TTI Telecom is uniquely positioned to bridge legacy and next-generation, convergent network and service infrastructures with its Netrac-based service assurance, fulfillment and revenue assurance solutions. With Netrac, service providers can reduce operating costs, enhance profitability and launch new, revenue-generating services more rapidly. Over 70 service providers worldwide have deployed TTI Telecom’s solutions, supported by offices globally. For additional information, please visit www.tti-telecom.com.