CORRECTING and REPLACING TTI Telecom Reports Third Quarter 2003 Results.Business Editors/High-Tech Writers CORRECTION...by TTI Telecom TTI Telecom (NASDAQ: TTIL), founded in 1992, is a leading provider of next generation Operations Support Systems (OSS) to communications service providers worldwide. TTI Telecom’s Netrac-branded portfolio delivers an automated, proactive and customer-centric approach to service International Ltd. PETACH TIKVA, Israel--(BUSINESS WIRE)--Nov. 17, 2003 In BW5513 issued Nov. 17, 2003: Seventh graph, fourth sentence of release should read: To access the replay, please dial +1.888.286.8010 (International dialers can call +1.617.801.6888), participant code "6588486". (sted To access the replay, please dial +1.800.901.5241 (International dialers can call +1.617.786.2963), participant code "89434980".). The corrected release reads: TTI TELECOM REPORTS THIRD QUARTER 2003 RESULTS TTI Telecom International Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : TTIL TTIL Theater Tracked Item List ), a leading supplier of network management systems (NMS See NetWare Management System. ) and operations support systems Operations Support Systems (also called Operational Support Systems or OSS) are computer systems used by telecommunications service providers. The term OSS most frequently describes "network systems" dealing with the telecom network itself, supporting processes such (OSS Oss (ôs), city (1994 pop. 62,141), North Brabant prov., S Netherlands; chartered 1399. It is a significant industrial center. Manufactures include meat products, chemicals, pharmaceuticals, electrical equipment, and metalware. ) for telecom service providers, today announced unaudited results for its third fiscal quarter ended September September: see month. 30, 2003. Revenues for the third quarter of 2003 were $11.0 million, compared with $10.3 million for the third quarter of last year. Operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of the quarter was $13.4 million, versus an operating loss of $6.8 million in the year-ago quarter. Excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software and goodwill totaling $6.9 million, operating loss for the third quarter was $6.5 million. Net loss was $12.7 million, or a loss of $1.07 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, versus a net loss of $6.1 million, or $0.51 per diluted share, last year. Excluding the one-time charges described above, net loss for the quarter was $5.8 million and $0.48 per diluted share. The Company ended the quarter with approximately $36 million in cash and liquid investments and equivalent to $3.03 per fully diluted share. Revenues for the nine months ended September 30, 2003 were $33.9 million, compared to $47.7 million for the same period last year. Operating loss was $26.8 million compared to operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $1.9 million for the same period of 2002. Excluding the one-time charges, operating loss for the nine months was $19.9 million. Net loss for the nine months was $24.3 million, or $2.05 per diluted share, versus net income of $3.4 million, or $0.29 per diluted share, last year. Excluding the one-time charges, net loss was $17.4 million, or $1.46 per diluted share. "We executed across multiple fronts this quarter, adding new customers, leveraging our installed base for additional orders and generally enhancing our positioning to the service provider community through sales and marketing efforts," said Meir Lipshes, chief executive officer of TTI Telecom. "While the business environment remains soft and sales cycles long, demand for tightly-integrated, loosely coupled See loose coupling. OSS solutions like ours remains, as evidenced by the significant number of follow-on fol·low-on adj. Following as a related or consequent aspect or development: "Such contracts involve follow-on sales of maintenance services" Christian Science Monitor. orders and the addition of two new customers in the quarter. "At the same time, we are expanding our addressable Reachable. When something is addressable, it can be identified and manipulated independently of its surroundings. For example, screen pixels and RAM memory are addressable. Each of the screen's picture elements can be individually turned on and off, and each of the memory's bytes can be market with the development of new solutions aimed at the faster-growing next generation OSS and service fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. segments of the OSS market," continued Lipshes. "Service providers today are in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of deploying next-generation networks, and we believe that by leveraging our existing products, our installed customer base, and our OSS expertise and compliment Not to be confused with Complement. Compliment may be
Concluded Lipshes, "The telecom environment remains challenging, and while we pursue opportunities in our core markets, we are already positioning the Company to enter adjacent, faster-growing market segments that will be our growth engine for the future." Conference Call Information: A conference call has been scheduled for 9:00am ET today, November November: see month. 17, 2003, during which management will discuss the Company's performance for the quarter. The call can be accessed via live webcast through the Investor Relations Investor relations The process by which the corporation communicates with its investors. 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 November 24, 2003. To access the replay, please dial +1.888.286.8010 (International dialers can call +1.617.801.6888), participant code "6588486". The webcast of the conference call will be archived on the TTI Telecom web site. About TTI Telecom: TTI TTI Texas Transportation Institute TTI Thoracic Trauma Index TTI Transmission Time Interval TTI Travel Time Index TTI Travel Technology Initiative TTI Technology Transfer Initiative TTI Traffic and Traveller Information TTI Technology Transfer Institute Team Telecom International Ltd. offers advanced, modular and integrated software Separate software components or applications that have been combined into one package. See integrated software package. products and services for Operations Support Systems ("OSS") and Business Support Systems ("BSS See 802.11. BSS - Block Started by Symbol ") to telecom service providers. TTI Telecom is uniquely positioned to bridge legacy and next-generation, network and service infrastructures with its Netrac-based service assurance, fulfillment and revenue assurance solutions. With Netrac Netrac is a TTI Telecom Operations Support System (OSS) suite of products designed to meet communications service providers (CSPs) needs in areas of service assurance and fulfillment including fault and performance management, inventory, provisioning and service management. , service providers can reduce operating costs operating costs npl → gastos mpl operacionales , enhance profitability and launch new, revenue-generating services more rapidly. Over 60 service providers worldwide have deployed TTI Telecom's solutions, supported by offices globally. For additional information, please visit www.tti-telecom.com. Forward looking statements in this release involve a number of risks and uncertainties including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed in the Company's SEC filings.
TTI TELECOM INTERNATIONAL LTD.
STATEMENT OF INCOME
(in thousands of U.S. dollars except per share data)
Three months Nine months
ended September 30, ended September 30,
----------------------- ----------------------
2003 2002 2003 2002
----------- ----------- ----------------------
Revenues:
Product $7,732 $7,232 $24,763 $39,550
Services 3,301 3,019 9,137 8,103
----------- ----------- ----------------------
Total revenues 11,033 10,251 33,900 47,653
----------- ----------- ----------------------
Cost of revenues:
Product 6,815 7,485 22,182 19,073
Services 1,713 1,492 4,824 3,993
Impairment of
capitalized software
development costs 5,864 0 5,864 0
----------- ----------- ----------------------
Total cost of revenues 14,392 8,977 32,870 23,066
----------- ----------- ----------------------
Gross profit (loss): (3,359) 1,274 1,030 24,587
Operating expenses:
Research and
development, net 2,456 1,943 7,344 5,582
Sales and marketing,
net 4,871 4,333 14,536 11,966
General and
administrative 1,670 1,806 4,901 5,127
Impairment of
goodwill 1,052 0 1,052 0
----------------------- ----------------------
Total operating
expenses 10,049 8,082 27,833 22,675
Operating income (loss) (13,408) (6,808) (26,803) 1,912
Financial income, net 756 698 2,168 2,152
----------- ----------- ----------------------
Income before taxes on
income (12,652) (6,110) (24,635) 4,064
Taxes on income 14 (50) (352) 659
----------- ----------- ----------------------
Net income (loss) $(12,666) $(6,060) $(24,283) $3,405
=========== =========== ======================
Basic net earnings per
share $(1.07) $(0.51) $(2.05) $0.29
=========== =========== ======================
Diluted net earnings
per share $(1.07) $(0.51) $(2.05) $0.28
=========== =========== ======================
Number of shares used
in computing basic
----------- ----------- ----------------------
income (loss) per share 11,872,052 11,872,052 11,872,052 11,846,668
=========== =========== ======================
Number of shares used
in computing diluted
----------- ----------- ----------------------
income (loss) per share 11,872,052 11,872,052 11,872,052 12,004,017
=========== =========== ======================
TTI TELECOM INTERNATIONAL LTD.
CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
09/30/2003 12/31/2002
ASSETS
Current Assets:
Cash and cash equivalents $14,846 $33,972
Short term bank deposits 4,561 1,229
Marketable securities 15,827 12,889
Trade receivables 11,091 9,798
Unbilled receivables 9,181 10,457
Prepaid expenses and other accounts receivable 5,386 5,700
----------- ---------
Total current assets 60,892 74,045
----------- ---------
LONG TERM INVESTMENTS:
Long term deposits 752 0
Investment in affiliate 165 165
Severance pay fund 3,976 3,429
Long term pre-paid expenses 250 500
Long term receivables 2,833 2,855
----------- ---------
Total long-term investments 7,976 6,949
PROPERTY AND EQUIPMENT:
Cost 21,632 21,391
Less - accumulated depreciation 13,600 11,939
----------- ---------
Property and equipment, net 8,032 9,452
OTHER ASSETS: 4,933 14,019
Total assets $81,833 $104,465
=========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Trade payables $4,938 $3,458
Related parties 1,036 713
Deferred revenues 3,495 1,265
Other accounts payable and accrued expense 5,572 8,134
----------- ---------
Total current liabilities 15,041 13,570
----------- ---------
Accrued Severance Pay 5,102 4,627
----------- ---------
Shareholders' Equity:
Share capital 1,794 1,794
Additional paid-in capital 58,761 59,056
Retained earnings 1,135 25,418
----------- ---------
Total shareholders' equity 61,690 86,268
----------- ---------
----------- ---------
Total liabilities and shareholders' equity $81,833 $104,465
=========== =========
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