MIND C.T.I.(MNDO) - 2023 Q1 - Quarterly Report

Revenue Performance - Q4 2022 revenues were $5.4 million, a decrease of 10.2% from $6.0 million in Q4 2021, primarily due to the messaging segment[6] - Full year 2022 revenues totaled $21.5 million, down 18.5% from $26.3 million in 2021, with the messaging segment being the main contributor to the decline[6] - Revenues from customer care and billing software were $2.9 million, representing 54% of total revenues in Q4 2022[7] Income and Profitability - Operating income for Q4 2022 was $1.2 million, or 23% of total revenue, compared to $1.6 million, or 27% of revenue in Q4 2021[6] - Net income for Q4 2022 was $1.3 million, or $0.06 per share, down from $1.5 million, or $0.08 per share in Q4 2021[6] - Net income for Q4 2022 was $1,332,000, a decrease of 12.7% from $1,525,000 in Q4 2021[27] Cash Flow and Financial Position - Cash flow from operating activities in Q4 2022 was $1.4 million, a decrease from $2.5 million in Q4 2021[6] - Total net cash provided by operating activities for the year ended December 31, 2022, was $4,558,000, down 33.9% from $6,898,000 in 2021[27] - Cash and cash equivalents at the end of Q4 2022 increased to $5,265,000 from $4,182,000 at the end of Q4 2021, representing a 25.9% increase[27] - The cash position as of December 31, 2022, was approximately $17.5 million[6] Market Outlook and Strategic Initiatives - The company expects continued unfavorable trends in the telecom market, including lower prices and strong competition, which may lead to further revenue declines[4] - MIND CTI is pursuing M&A opportunities and investing in new technologies to support 5G and cloud solutions[5] Expenses and Other Financial Metrics - The company reported a depreciation and amortization expense of $61,000 for Q4 2022, up 29.8% from $47,000 in Q4 2021[27] - The unrealized loss from marketable securities for the year was $34,000, compared to a gain of $1,000 in 2021[27] - The company experienced a decrease in trade receivables of $103,000 in Q4 2022, contrasting with an increase of $420,000 in Q4 2021[27] - Net cash used in financing activities for the year was $5,227,000, consistent with the previous year's figure of $5,197,000[27] - The company reported a significant decrease in proceeds from the sale of marketable securities, totaling $11,000 in 2022 compared to $1,370,000 in 2021[27] - Cash flows from investing activities showed a net inflow of $65,000 in Q4 2022, a recovery from a net outflow of $4,800,000 in Q4 2021[27] - The balance of cash and cash equivalents at the beginning of Q4 2022 was $3,658,000, down from $6,520,000 at the beginning of Q4 2021[27] Dividend Declaration - A gross dividend of $0.24 per share was declared, with a record date of March 22, 2023, and a payment date of April 6, 2023[15]