CTI GROUP REPORTS A RETURN TO PROFITABILITY DURING 1ST QTR 2014
CTI Group (Holdings) Inc. (OTCQB:CTIG), a global provider of carrier-grade software solutions and services which empower organizations through communication analytics, reported results for the three months ended March 31, 2014. Revenues for the three months ended March 31, 2014 increased to $3,945,469 as compared to revenues for the three months ended March 31, 2013 of $3,885,326. The increase in revenues was primarily attributable to growth in revenues derived from our SmartRecord® product in our Call Accounting Management and Recording (“CAMRA”) segment due to an increase in demand for our recording software. The increase in CAMRA revenues were derived primarily from the operations in the United States which was partially off-set by a decrease in revenue recognized in the United Kingdom in our Electronic Invoice Management (“EIM”) segment due to a decrease in demand for professional services. The Company reported net income for the three months ended March 31, 2014 of $979,862, or $0.03 per share, as compared to a net loss of ($552,391), or ($0.02) per share, for the three months ended March 31, 2013. The net income for the three months ended March 31, 2014 was primarily attributable to a patent legal settlement with net proceeds of $1,344,749 recognized by the Company.
Commenting on the results, John Birbeck, CTI Group’s President and CEO, stated, “We are pleased with our first quarter profitable performance. Our CAMRA segment’s United States operations were able to recognize a 120% increase of revenue which was especially encouraging given the fact that we invoiced two large sales to Tier 1 service providers in the quarter which were not fully recognized by quarter-end. Those two sales are the primary reason for the $6.7 million increase in accounts receivable and corresponding $5.3 million increase in deferred (unrecognized) revenues. The combination of the patent legal settlement and cash collection in the second quarter, have contributed to the significant improvement in liquidity of the Company. Additionally, sales of our SmartRecord® software continue to grow rapidly with a 60% year-over-year increase in active users. We expect a further increase in the number of active users during 2014.”
The Company's CAMRA product offerings include hosted VoIP applications which are expected to help eliminate customer resistance to conversion to next-generation platforms, while creating new revenue opportunities for service providers through the delivery of compelling value added services. CTI Group's products include the award-winning SmartRecord®, which enables service providers to selectively intercept and record any communications on behalf of their hosted and managed service customers. Specifically engineered to seamlessly integrate with the service provider's evolving online eBusiness strategy, these business applications provide enterprise customers with customized access to their provider's eBusiness portal and their complex service invoices. The Proteus® suite of products is used by companies, institutions and government agencies to track communications activity and to control costs associated with operating communications networks. Proteus® performs functions of call accounting, cost allocation, client bill-back, analyses of trunk traffic and calling and usage patterns, toll fraud detection, directory services and integrates with SmartRecord® as well as with other private branch exchange peripheral products.
The EIM suite of products includes: Analysis, for complete on-line customer care of mobile, fixed line and data services; SplitBill® to enable users to automate business vs personal use; and Dynamic Reports, which is a "push" analysis, billing and advertising medium for mobile, data and fixed line, targeting the consumer and SMB markets.
About CTI Group - CTI Group (Holdings) Inc. is an international provider of electronic invoice processing and management, enterprise communications management software and services solutions, and carrier class voice over internet protocol (VoIP) management applications. CTI Group’s Analysis, SmartBill®, SmartRecord® and Proteus® product suites offer Carriers a full array of Cloud-based, real-time solutions for traffic analysis, post-billing call analysis, customer care and call recording. CTI Group’s products are used by some of the top service providers in North America and Europe, and play a trusted role in managing telephony costs at major corporations internationally. Headquartered in Indianapolis, CTI Group maintains overseas offices in London and Blackburn, UK. For more information, please visit CTI Group’s website at www.ctigroup.com.
Safe Harbor Statement -- This release may contain "forward-looking" statements. Examples of forward-looking statements include, but are not limited to: (a) projections of revenue, capital expenditures, growth, prospects, dividends, capital structure and other financial matters; (b) statements of plans and objectives of CTI Group or its management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about CTI Group and its business relating to the future; and (e) any statements using such words as “anticipate”, “believe”, “estimate”, “could”, “should”, “would”, “seek”, “plan”, “expect”, “may”, “predict”, “project”, “intend”, “potential”, “continue”, or similar expressions. CTI Group's ability to predict projected results or the effect of events on CTI Group's operating results is inherently uncertain. Forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those discussed in this document, including, but not limited to: economic conditions, risks associated with conducting business outside the United States, ability to obtain a loan facility or receive additional advances from beneficial owners, if needed, incurring additional losses, impact of accounting pronouncements, recording additional impairments, ability to maintain an effective system of controls over financial reporting and disclosure controls and procedures, effects of the recent U.S. recession and unstable global economy, ability to attract and retain customers to purchase its products, ability to develop or launch new software products, technological advances by third parties and competition and the risks described in CTI Group’s periodic reports filed with the U.S. Securities and Exchange Commission.
Finance Contact: CTI Group (Holdings) Inc.
Fred Hanuschek – 317.262.4666