MIND may elect to update these forward-looking statements at some point in the future however, the company specifically disclaims any obligation to do so. Yesterday, MIND reported the results of its third quarter 2010. The financials can be found in our Form 6K. On the call today from MIND is Ms. Monica Iancu, MIND’s CEO.I would now like to turn the call over to Monica. Monica, please go ahead. Monica Iancu Thank you Andrea. Good day ladies and gentlemen, thank you for your interest in MIND and for joining us today. In our call today, I will summarize our major achievements in the third quarter of 2010 and discuss our business. The financials can be found in our press release. Yesterday, we reported our business results for the third quarter of 2010. Revenue for the third quarter was $4.7 million. Revenue from our customer care and billing solutions was $3.9 million, and revenue from our enterprise call accounting solutions was approximately $0.8 million. The geographic revenue breakdown was roughly 39% from the Americas and 48% from Europe. The license revenue was $1 million or 22% of total revenue, maintenance represented $1.9 million or 40%, services were $1.8 million or 38%. During the third quarter of each year, we perform impairment test for the value of goodwill and other intangible assets. Following the test performed in Q3 2010, we recorded an impairment charge of $586,000 for goodwill and $407,000 for intangible assets related to the company we acquired in the UK in 2007. The balance sheet as of September 30 th, 2010 shows a remaining amount of $5.4 million for goodwill, related to the company we acquired in U.S. in 2005. The non-GAAP operating income, excluding the non-cash impairment of $993,000, amortization of intangible assets of $64,000 and equity-based compensation expense of $16,000 was $1.371 million or 29% of revenue. The non-GAAP net income was $1.429 million. The GAAP operating income for the third quarter was $298,000 and the net income was $356,000 and EPS of $0.02 per share.
Our balance sheet continued to be strong with total cash position of $19.6 million at the end of the quarter. Our backlog as of September 30 th, 2010 includes approximately $4 million, which is expected to be built by year-end compared to $4.2 million on the same date last year.We are pleased that in these economic conditions, we continue with our execution of positive cash flow, and that during the quarter, we succeeded to close additional business. In the third quarter, MIND secured one new customer as well as multiple follow-on orders. The new win is a multi-year agreement with a regional wireless carrier that is a member of the Sprint Rural Alliance. We will implement our MINDBill end-to-end convergent billing solution. This operator will utilize our convergent pay in advance and postpaid billing, rating, invoicing, roaming, customer care, web self-care, point of sale, inventory management, commissions, Web services, workflow engine, provisioning, mediation, and dashboard reporting, in order to support their wireless services. The follow-on orders were received from various customers including three wireless carriers as follows The first wireless carrier has been a MIND customer for five years and bought enhancement to rating capabilities. The second one is also a customer since 2005 and bought enhancement to customer care, point of sale, and rating capabilities. The third started its relationship with us in 2007 when they planned to start their operation. This Greenfield operator has stopped its activity in the past and is restarting it now with a slightly different business model that requires also enhancements for our order management. As previously announced, in our latest conference call, our Board of Directors reviewed lately the dividend policy. On October 25 th, 2010, we have decided to further enforce the expected annual distributions and update the policy slightly. Under the old dividend policy, we declared subject to specific Board approval and applicable law a dividend distribution once per year in the amount of our net income from the previous year. Read the rest of this transcript for free on seekingalpha.com