ROSH HA'AYIN, Israel, August 5 /PRNewswire-FirstCall/ -- ECtel Ltd.
(NASDAQ: ECTX), a leading global provider of Integrated Revenue Management
(TM) (IRM(TM)) solutions, today reported financial results for the second
quarter of 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010807/FLTU015LOGO )
Second Quarter Highlights
- Revenues up 34% year-over-year to $6.7 million;
- Gross margin improvement reaching 50%;
Revenues for the second quarter of 2008 totaled $6.7 million, a 34%
increase, compared to $5 million in the second quarter of 2007, and slightly
up from first quarter of 2008 revenues of $6.5 million.
Non-GAAP gross margin for the second quarter of 2008 was 50.4%, compared
to the 46% margin in the second quarter 2007. Non-GAAP gross margin in the
first quarter of 2008 was 44.2%.
Non-GAAP operating loss for the second quarter of 2008 reached $1.7
million, a 22% improvement compared to a non-GAAP operating loss of $2.1
million in the second quarter of 2007, and slightly improved on the non-GAAP
operating loss for the prior quarter of $1.8 million.
Non-GAAP net loss for the second quarter of 2008 totaled $1.4 million, or
$0.08 loss per share, a 22% improvement compared with a net loss of $1.8
million, or $0.11 loss per share, in the second quarter of 2007. Non-GAAP net
loss for the first quarter 2008 totaled $1.1 million, or $0.07 per share.
During the second quarter 2008, the Company's results were negatively
impacted by the continued weakening of the US dollar against the Israeli
shekel, which during the quarter devalued by 5.7% against the Israeli Shekel.
This directly contributed to an approximate $300 thousand decline in the net
income for the period. Results were also affected by the contribution of two
lower-margin, yet strategically important projects with major telecom groups
and potential for higher-margin follow-on business.
On a GAAP basis, gross margin for the second quarter 2008 totaled 50.2%,
compared to the 45.4% margin in the second quarter of 2007, and 43.8% margin
in the first quarter 2008. Operating loss for the second quarter of 2008
reached $2.0 million, compared to an operating loss of $2.3 million in the
second quarter of 2007 and an operating loss for the first quarter of 2008 of
$2 million. On a GAAP basis, net loss for the second quarter of 2008 totaled
$1.7 million or $0.10 loss per share, compared to $1.9 million or $0.12 per
share in the second quarter of 2007. Net loss for the first quarter 2008
totaled $1.3 million or $0.08 per share.
ECtel's non-GAAP net income differs from results reported under U.S.
GAAP. This is due to adjustments made for amortization of acquisition related
intangible assets, share-based compensation expenses, expenses related to a
one-time due-diligence process and the impact of the permanent impairment
charge related to certain securities in December 2007. The accompanying
tables provide a full reconciliation from GAAP to Non-GAAP results.
Cash, cash equivalents, and marketable bonds and securities as of June
30, 2008 were $22.8 million or $1.37 per share, compared to $28.5 million or
$1.71 per share as of March 31, 2008.
'The second quarter of 2008, was both a period of business development in
which we made a synergistic acquisition, acquiring the assets of Compwise, as
well as improved financial results- particularly in terms of revenue and
gross margins,' commented Itzik Weinstein, President and CEO of ECtel. 'At
the same time, we are reviewing ways to better manage our cost structure,
while improving efficiency and cutting costs particularly on the
manufacturing and procurement side, without sacrificing our growth potential,
with the aim to quickly reach the breakeven level.'
'During the quarter, we completed the acquisition of Compwise's assets,
an Israeli-based provider of business analytic solutions for telecom
operators. We see the acquisition as very much aligned with our long-term
growth strategy, which focuses on solid execution, innovation and M&A
activity. We continue to work on strengthening our foundations for future
growth and execution, while reducing costs, with the goal of enhancing our
position as a major player in the integrated revenue management and assurance
space,' concluded Mr. Weinstein.
Conference Call
ECtel management will host a teleconference later today at 10:00 am ET
(9:00am CT, 7:00am PT, and 5:00pm Israel time) to discuss its second quarter
results.
To participate in the call, please dial one of the following numbers and
request ECtel's second quarter 2008 Earnings Results Conference call:
From the United States: 1-888-668-9141
From Israel: 03-918 0688
From the United Kingdom: 0-800-404-8418
All other international callers +972-3-918-0688
A Webcast replay of the earnings call will be available after the call on
the Company's web site at: http://www.ectel.com
About Ectel Ltd.
ECtel (NASDAQ: ECTX) is a leading global provider of Integrated Revenue
Management(TM) (IRM(TM)) solutions for communications service providers. A
pioneering market leader for nearly 20 years, ECtel offers carrier-grade
solutions that enable wireline, wireless, converged and next generation
operators to fully manage their revenue and cost processes. ECtel serves
prominent Tier One operators, and has more than 100 implementations in over
50 countries worldwide. Established in 1990, ECtel maintains offices in the
Americas and Europe.
