MIND C.T.I.(MNDO) - 2023 Q3 - Quarterly Report

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]