Financial Performance - Revenues for Q1 2024 were $5.8 million, a 5.5% increase from $5.5 million in Q1 2023[2] - Operating income was $1.2 million, representing 22% of total revenues, compared to $1.3 million or 24% in Q1 2023[2] - Net income remained stable at $1.3 million, or $0.07 per share, consistent with Q1 2023[2] - Cash flow from operating activities increased to $0.9 million from $0.6 million in Q1 2023[2] - The cash position was $17.4 million as of March 31, 2024, prior to a dividend distribution of $4.9 million in April 2024[2] Revenue Breakdown - Revenues from customer care and billing software were $2.9 million, accounting for 51% of total revenues[4] - Revenues in Europe represented 60% of total revenues, with Germany contributing 41% from the messaging segment[4] Dividend Information - A gross dividend of $0.24 per share was declared, totaling approximately $4.9 million[5] Strategic Investments - The messaging segment was positively impacted by larger customer campaigns, and new technologies were invested in to support 5G and IoT[3] - The company released the first version of its SIM OTA provisioning platform to enhance remote management capabilities for customers[3]

Market Competition and Challenges - The company operates in a highly competitive and fragmented market, facing challenges from larger competitors with greater resources and established customer relationships [21]. - Future competition is expected to intensify due to new product introductions and market entrants, potentially leading to pricing pressures and reduced revenue [23]. - The company has experienced significant fluctuations in revenues and operating results from quarter to quarter, making future revenue predictions difficult [25]. - The company is actively pursuing acquisitions to enhance its market position, which may divert resources and involve integration risks [28]. - There are potential risks associated with the integration of acquisitions, including retaining key personnel and maintaining corporate culture [33]. - A significant part of the company's revenues comes from existing customers, and losing one or more billing customers could lead to decreased revenues and profitability [65]. - The customer base for the company's billing and customer care products is characterized by small to medium-sized communication service providers, and if this market segment fails to grow, demand for its software could diminish substantially [64]. - The company expects challenges in maintaining revenue and profitability levels due to market consolidation and strong competition [142]. - The company anticipates continued negative impacts on revenues and profitability in 2024 due to market consolidation and competition [192]. Financial Performance and Revenue - Total revenues increased from $21.5 million in 2022 to $21.6 million in 2023, a growth of 0.3% [156]. - Revenues from the messaging segment rose from $7.7 million in 2022 to $8.0 million in 2023 [156]. - In 2023, 53% of total revenues were derived from billing and customer care software, 37% from enterprise messaging and payment solutions, and 10% from enterprise software [141]. - The cost of revenues increased to 49.7% of total revenues in 2023, compared to 46.6% in 2022 [155]. - Operating income decreased to 22.0% of total revenues in 2023 from 25.6% in 2022 [155]. - One customer accounted for approximately 12% of total revenues in 2023, indicating a reliance on a small number of customers [142]. - Revenues from enterprise products decreased from $2.3 million in 2022 to $2.1 million in 2023, with expectations of continued market decline [159]. - Total revenues in the Americas decreased from $8.5 million in 2022 to $7.9 million in 2023, primarily due to customer loss [161]. - Revenues in Europe increased from $11.3 million in 2022 to $11.6 million in 2023, with Europe accounting for 53.8% of total revenues in 2023 [162]. - Total cost of revenues increased by $0.7 million, or 7%, from 2022 to 2023, mainly due to increased messaging segment revenues and personnel expenses [163]. - Gross profit as a percentage of total revenues decreased from 53.4% in 2022 to 50.3% in 2023, attributed to lower margins in the messaging segment [164]. Compliance and Regulatory Risks - Compliance with evolving privacy and data protection laws, such as GDPR, is essential to avoid penalties that could adversely impact the business [40]. - The company faces challenges related to data localization laws, which may restrict market expansion and increase compliance costs [42]. - Non-compliance with privacy and data security laws could result in governmental investigations, fines, and loss of business [47]. - The company may face additional tax liabilities due to audits in various jurisdictions, which could materially affect its financial condition [51]. - The company is subject to ongoing costs and risks associated with being a public company, including compliance with U.S. federal securities laws, which may divert management resources [60]. Product Development and Innovation - The company emphasizes the need to continually enhance its products and services to retain existing customers and attract new ones [34]. - The company has enhanced its billing platform with optional modules, including e-commerce and self-service features, to improve customer service [102]. - The enterprise messaging platform allows businesses to communicate with clients via SMS and instant messaging, integrating with CRM systems for improved customer engagement [107]. - The global messaging market is growing, with A2P messaging being the most effective way for businesses to engage with consumers, indicating a strong market opportunity for the company's messaging services [112]. - The company plans to expand its presence in mobile messaging through acquisitions and by providing multi-channel messaging solutions, including SMS, WhatsApp, and RCS [115]. - The PhonEX ONE product is designed for telecom expense management and call accounting, providing real-time reporting and fraud detection capabilities [117]. Operational Risks and Costs - Security measures for the company's products and services are critical, as breaches could lead to loss of customer confidence and increased expenses [35]. - The use of open-source software may expose the company to intellectual property infringement claims, potentially disrupting operations and impacting revenues [56][57]. - The company relies heavily on network service providers for messaging services, which has reduced operational flexibility and control over service quality [73]. - Fees charged by network service providers can change frequently, impacting the company's pricing strategy and potentially leading to increased costs that may not be passed on to customers [75]. - The company may need to adjust its pricing model due to competitive pressures and changes in the mix of products sold, which could adversely affect financial performance [76]. - Errors or defects in messaging products could harm customer businesses and damage the company's reputation, potentially leading to loss of customers [77]. - System disruptions could lead to customer dissatisfaction and loss, adversely affecting the company's reputation and business [80]. - Changes in regulations or technology vendor rules may materially impact the company's ability to deliver services and grow [81]. Executive Compensation and Governance - The total direct remuneration paid to all directors and executive officers in 2023 was $1.5 million, including $0.08 million set aside for pension and retirement benefits [209]. - The company granted options to purchase 28,000 ordinary shares at an exercise price of $0.003 per share to executive officers, with all options expiring in 2028 [210]. - Monica Iancu, the President and CEO, received a total compensation of $533,853, which includes a salary of $240,000 and a bonus of $240,000 [210]. - Arie Abramovich, the CFO, received total compensation of $149,598, including a salary of $76,981 and a bonus of $4,337 [210]. - Gilad Parness, the Vice President of Sales, had total compensation of $176,598, with a salary of $105,025 and a bonus of $26,023 [210]. - Shoval Cohen Nissan, the Vice President of IT, received total compensation of $180,687, including a salary of $105,116 and a bonus of $26,023 [210]. - Oren Tanhum, the Vice President of Professional Services, had total compensation of $157,461, with a salary of $92,105 and a bonus of $22,770 [210]. - The company’s board of directors is divided into three classes, with terms expiring in 2024, 2025, and 2026 [213]. - The company opted out of certain provisions of the Companies Law regarding external directors, complying instead with SEC regulations and Nasdaq listing rules [214].

Revenue Performance - Q4 2023 revenues were $5.6 million, a 4.5% increase from $5.4 million in Q4 2022[6] - Full year 2023 revenues totaled $21.6 million, slightly up from $21.5 million in 2022[6] - Revenues from customer care and billing software were $2.9 million, accounting for 52% of total revenues in Q4 2023[8] - Revenues in Europe represented 62% of total revenues in Q4 2023, with Germany contributing 39% from the messaging segment[7] Income and Profitability - Operating income for Q4 2023 was $1.2 million, representing 21% of total revenue, down from 23% in Q4 2022[6] - Net income for Q4 2023 was $1.4 million, or $0.06 per share, compared to $1.3 million, or $0.06 per share in Q4 2022[6] - Net income for Q4 2023 was $1,434,000, an increase from $1,332,000 in Q4 2022, representing a growth of 7.7%[25] Cash Flow and Position - Cash flow from operating activities in Q4 2023 decreased to $0.7 million from $1.4 million in Q4 2022[6] - Operating cash flow for the year ended December 31, 2023, was $4,100,000, down from $4,558,000 in 2022, reflecting a decrease of 10%[25] - Cash position as of December 31, 2023, was approximately $16.6 million[6] - Cash and cash equivalents at the end of Q4 2023 stood at $2,958,000, a decrease from $5,265,000 at the end of Q4 2022[25] - The balance of cash and cash equivalents at the beginning of the period was $5,265,000, down from $4,182,000 at the beginning of the previous year[25] Investments and Dividends - The company reported a net cash used in investing activities of $1,541,000 for the year, compared to a net cash provided of $1,829,000 in the previous year[25] - The company paid dividends totaling $4,839,000 for the year, compared to $5,227,000 in the previous year, indicating a reduction of 7.4%[25] - A gross dividend of $0.24 per share was declared, with a record date of March 20, 2024[13] Expenses and Financial Adjustments - Depreciation and amortization expenses for the year were $196,000, slightly up from $193,000 in 2022[25] - The increase in accounts receivable for Q4 2023 was $412,000, compared to an increase of $103,000 in Q4 2022, indicating a significant rise in receivables[25] - Unrealized losses from marketable securities for the year amounted to $8,000, a decrease from a gain of $34,000 in the previous year[25] - The company experienced a decrease in deferred revenues of $476,000 for the year, compared to a decrease of $216,000 in the previous year[25] Strategic Initiatives - The company continues to pursue M&A opportunities and invest in new technologies to support 5G and cloud solutions[6]

Financial Performance - Q3 2023 revenues were $5.3 million, unchanged from Q3 2022[1] - Operating income for Q3 2023 was $1.2 million, down from $1.4 million in Q3 2022[1] - Net income for Q3 2023 was $1.3 million, or $0.06 per share, consistent with Q3 2022[1] - For the first nine months of 2023, revenues totaled $16.0 million, compared to $16.2 million in the same period of 2022[2] - Net income for the three months ended September 30, 2023, was $1,250 thousand, a decrease from $1,290 thousand in the same period last year[11] Cash Position - Cash position as of September 30, 2023, was $15.9 million[2] - Cash flow from operating activities in the first nine months of 2023 was $3.4 million, up from $3.1 million in the same period of 2022[2] - Net cash provided by operating activities for the nine months ended September 30, 2023, was $3,389 thousand, compared to $3,119 thousand for the same period in 2022[11] - The company reported a decrease in cash and cash equivalents of $3,549 thousand for the three months ended September 30, 2023, compared to a decrease of $1,260 thousand in the same period last year[11] - The balance of cash and cash equivalents at the end of the period was $2,576 thousand, down from $3,658 thousand at the end of the previous period[11] Assets and Equity - Total assets as of September 30, 2023, were $30.4 million, down from $31.7 million at the end of 2022[9] - Total shareholders' equity was $22.9 million as of September 30, 2023, compared to $23.8 million at the end of 2022[9] Revenue Sources - Customer care and billing software accounted for $2.9 million, or 55% of total Q3 2023 revenues[4] - Europe represented 49% of total revenues in Q3 2023, with Germany contributing 35% from the messaging segment[3] Expenses - Depreciation and amortization expenses for the nine months ended September 30, 2023, were $147 thousand, an increase from $132 thousand in the same period last year[11] - Employees share-based compensation expenses for the three months ended September 30, 2023, were $72 thousand, compared to $74 thousand in the same period last year[11] Cash Flows - Cash flows from investing activities showed a net outflow of $4,504 thousand for the three months ended September 30, 2023, compared to an outflow of $2,221 thousand in the same period last year[11] - The company experienced a decrease in accounts receivable of $2 thousand for the three months ended September 30, 2023, compared to an increase of $241 thousand in the same period last year[11] - The company reported a realized gain on the sale of marketable securities of $9 thousand for the nine months ended September 30, 2023[11] - The company paid dividends totaling $4,839 thousand in the nine months ended September 30, 2023[11]

Financial Performance - Revenues for Q2 2023 were $5.3 million, a slight increase from $5.2 million in Q2 2022, while revenues for the first six months of 2023 totaled $10.7 million, down from $10.9 million in the same period of 2022[8] - Operating income for Q2 2023 was $1.1 million, representing 20% of total revenues, compared to $1.3 million or 25% in Q2 2022; for the first six months, operating income was $2.4 million, or 22% of total revenues, down from $2.9 million or 27% in the same period of 2022[8] - Net income for Q2 2023 was $1.1 million, or $0.06 per share, compared to $1.2 million, or $0.06 per share in Q2 2022; net income for the first six months was $2.5 million, or $0.12 per share, down from $2.7 million, or $0.14 per share in the same period of 2022[8] Cash Flow and Position - Cash flow from operating activities in Q2 2023 was $1.9 million, an increase from $1.6 million in Q2 2022; for the first six months, cash flow was $2.4 million, compared to $2.1 million in the same period of 2022[8] - The cash position, including short-term deposits and marketable securities, was $15 million as of June 30, 2023, compared to $15.1 million as of June 30, 2022[9] - Total cash and cash equivalents at the end of Q2 2023 were $6,125,000, compared to $4,918,000 at the end of Q2 2022, reflecting a year-over-year increase of 24.5%[22] - The balance of cash and cash equivalents at the beginning of Q2 2023 was $6,835,000, compared to $5,403,000 at the beginning of Q2 2022, an increase of 26.4%[22] Revenue Sources - Europe accounted for 50% of total revenues in Q2 2023, with the messaging segment in Germany contributing 35%; the Americas represented 38%, and the rest of the world 12%[10] - Customer care and billing software generated $2.9 million, or 54% of total revenues in Q2 2023, while enterprise messaging and payment solutions accounted for $1.8 million, or 35%[10] Contracts and Investments - A new contract was secured after the quarter end to supply billing and customer care solutions to a telecommunications customer in Europe, with implementation revenues expected in the next three quarters[6] - The company continues to invest in its product suite and promote its e-commerce platform to existing and potential customers, indicating a modest increase in demand for billing solutions from telecom operators[7] Assets and Liabilities - Total assets as of June 30, 2023, were $29.49 million, down from $31.74 million as of December 31, 2022[20] - The company reported a decrease in accounts receivable by $383,000 in Q2 2023, compared to an increase of $326,000 in Q2 2022[22] - Deferred revenues increased by $795,000 in Q2 2023, compared to $993,000 in Q2 2022, indicating a decrease of 19.9%[22] - The company experienced a decrease in other current liabilities and accruals by $(628,000) in Q2 2023, compared to a decrease of $(154,000) in Q2 2022[22] Dividends and Marketable Securities - The company paid dividends of $4,839,000 in both Q2 2023 and Q2 2022, indicating no change year-over-year[22] - The unrealized loss from marketable securities was $(16,000) in Q2 2023, compared to a gain of $18,000 in Q2 2022[22] - Cash flows from investing activities totaled $2,269,000 in Q2 2023, down from $3,225,000 in Q2 2022, representing a decline of 29.6%[22]

MIND CTI Reports First Quarter 2023 Results Yoqneam, Israel, May 10, 2023 MIND C.T.I. LTD. – (NasdaqGM:MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product-based solutions for service providers, enterprise solutions for unified communications analytics and call accounting solutions as well as enterprise messaging solutions, today announced results for its first quarter ended March 31, 2023. The following will summarize our major achievements in the first quar ...

Competition and Market Dynamics - The company faces significant competition in a fragmented market, with competitors having greater resources and established customer relationships [22]. - Pricing pressures from competitors may lead to reduced revenue and margins, impacting overall financial performance [24]. - The company is actively pursuing acquisitions to enhance market position and product offerings, which may divert resources and involve integration risks [30]. - The customer base for the company's billing and customer care products is characterized by small to medium-sized communication service providers, and if this market segment fails to grow, demand for its software could diminish substantially [68]. - The messaging business depends on increasing customer usage of its products, and any loss of customers could materially affect financial results [71]. - The company must attract new messaging customers in a cost-effective manner, and failure to do so could adversely affect its financial condition [72]. - The decision to adopt the company's messaging products by enterprise customers may require approval from multiple stakeholders, leading to longer sales cycles and higher costs [74]. - The company expects trends in the telecommunications market to negatively impact revenues and profitability in 2023 due to increased competition and customer loss [197]. Financial Performance - Total revenue for 2022 was $21.55 million, a decrease of 18% from $26.33 million in 2021 [128]. - Service revenue accounted for $20.94 million in 2022, down from $24.78 million in 2021, representing a decline of approximately 15% [128]. - The Americas generated $8.54 million in revenue in 2022, a decrease of 9% from $9.42 million in 2021 [128]. - Europe contributed $11.38 million in revenue for 2022, down 22% from $14.70 million in 2021 [128]. - In 2022, total revenues decreased by 18.1% to $21.5 million from $26.3 million in 2021, primarily due to a decline in the messaging segment revenues from $12.0 million to $7.7 million [157]. - Revenues from billing and customer care solutions decreased from $12.1 million in 2021 to $11.5 million in 2022, attributed to the loss of a large customer and lower revenues from new customers [158]. - In 2022, 54% of total revenues were from billing and customer care software, 35% from enterprise messaging and payment solutions, and 11% from enterprise software [143]. - The Americas accounted for 39.6% of revenues in 2022, down from 35.8% in 2021, with revenues decreasing from $9.4 million to $8.5 million [161]. - Revenues in Europe decreased significantly from $14.7 million in 2021 to $11.3 million in 2022, with the percentage of total revenues dropping from 55.8% to 52.8% [162]. - The company expects challenges in maintaining revenue and profitability levels in the near term due to market decline and strong competition [144]. Operational Challenges - Fluctuations in quarterly revenues and operating results may occur, making it difficult to predict future performance accurately [27]. - Compliance with privacy and data protection regulations, such as GDPR, is critical, with potential fines impacting financial condition [43]. - The company may face increased costs and operational challenges due to evolving data localization laws in various jurisdictions [44]. - Cybersecurity incidents could undermine customer confidence and lead to financial liabilities, affecting business operations [39]. - Retaining qualified personnel is essential for implementing business strategies, with competition for talent impacting operational effectiveness [25]. - The company faces risks related to system disruptions and failures, which could result in customer dissatisfaction and harm its reputation [66]. - System disruptions could lead to customer dissatisfaction and loss, adversely affecting the company's reputation and business [83]. - Changes in regulations or technology vendor rules may block the company's ability to grow its services, materially affecting business operations [84]. Financial Management and Costs - A significant portion of the company's expenses, approximately 69%, is incurred in Euro or linked to the Euro, which could adversely affect dollar-measured results if the Euro depreciates [55]. - The company benefits from Israeli tax programs, but these benefits may be discontinued or reduced, potentially increasing income taxes [52][53]. - Total cost of revenues decreased by $2.4 million, or 19.3%, from 2021 to 2022, primarily due to a decline in the messaging segment [164]. - Gross profit as a percentage of total revenues increased from 52.7% in 2021 to 53.4% in 2022, attributed to the decrease in the lower-margin messaging segment [165]. - Total operating expenses decreased by $1.2 million, or 15.1%, from 2021 to 2022, with research and development expenses down by 13.6% [167]. - Research and development expenses were $3.4 million in 2022, representing 16.2% of total revenues, compared to $4.1 million or 15% in 2021 [193]. - Net cash provided by operating activities in 2022 was $4.6 million, a decrease of $2.3 million from $6.9 million in 2021 [183]. - As of December 31, 2022, the company had $5.2 million in cash and cash equivalents and $12.0 million in short-term bank deposits [180]. - Capital expenditures increased to $130 thousand in 2022 from $82 thousand in 2021, primarily for equipment upgrades [189]. Leadership and Governance - Monica Iancu has been the President and CEO since the company's inception, holding a B.Sc. in Computer Science and a Master's in Telecommunications [205]. - Arie Abramovich rejoined as CFO in December 2022, previously serving as Corporate Assistant Controller at Albaad Massuot Yitzhak Ltd. [206]. - Gilad Parness has been Vice President of Sales since June 2020, with a history at MIND dating back to 2004 [207]. - Oren Tanhum has served as Vice President of Professional Services since 2016, contributing to the development of all versions of the billing platform [208]. - Victor Balteanu has been VP Engineering since November 2020, with a career at MIND starting in 2002 [210]. - Marian Scurtu was promoted to VP Customer Success in January 2022, having delivered over 40 projects globally [211]. - Liviu Serea has been General Manager of the Romania office since January 2001, with a background in hardware assembly and distribution [212]. - Meir Nissensohn has served as Chairman of the Board since 2020, previously holding leadership roles at IBM Israel [213]. - Joseph Tenne has been a director since August 2014, with extensive experience in finance and directorships across multiple companies [214]. - Itay Barzilay has been a director since May 2020, previously serving as CFO of MIND and holding various finance leadership positions at Amdocs [215]. Shareholder and Market Considerations - The company's share price has experienced significant fluctuations, influenced by broader market and industry factors [85]. - The company may be characterized as a passive foreign investment company (PFIC), which could result in adverse tax consequences for U.S. shareholders [89]. - The company's articles of association include provisions that may limit shareholders' ability to initiate litigation and could discourage potential acquisition proposals [99]. - The company has distributed aggregate cash dividends of $5.54 per share since 2003, including a dividend of $0.24 per share declared in March 2023 [190].

Exhibit 99.1 MIND CTI Reports Fourth Quarter and Full Year 2022 Results *Board Declares Cash Dividend * MIND CTI to Host Annual Meeting of Shareholders Yoqneam, Israel, March 8, 2023 MIND C.T.I. LTD. – (NasdaqGM: MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers, unified communications analytics and call accounting solutions for enterprises as well as enterprise messaging solutions, today announced results for its four ...

Exhibit 99.1 MIND CTI Reports Third Quarter 2022 Results Yoqneam, Israel, November 8, 2022 MIND C.T.I. LTD. – (NasdaqGM: MNDO), a leading provider of convergent end-to-end prepaid/postpaid billing and customer care product based solutions for service providers, unified communications analytics and call accounting solutions for enterprises as well as enterprise messaging solutions, today announced results for its third quarter ended September 30, 2022. The following will summarize our major achievements in t ...

MIND Financial Presentation Q2/2022 2 Safe Harbor This presentation may contain statements that are forward looking. These statements are based on management's beliefs and assumptions and on information currently available to management. Forward- looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including the risks discussed in the Company's filings with the United States Securi ...