Monica IancuThank you, Andrea. Good day, ladies and gentlemen. Thank you for your interest in your MIND and for joining us today. In our call today, I will summarize our major achievements in the second quarter of 2011 and discuss our business. Revenues were $4.55 million compared with $4.9 million in the second quarter of 2010. Backlog as of June 30, 2011 includes $8.6 million that is expected to be billed by year-end, compared to $7.9 million on June 30, 2010. Similar to last quarter, the decreased revenue is mainly the result of delays in one project implementation by a customer for reasons that are not in our control. The increased backlog reflects this revenue slippage and we expect to see the implementation completed over the next two to three quarters. Operating income was $843,000 or 18.5% of revenue. The operating income was below our 20% target due to the decrease in revenue. As we mentioned many times in the past, we believe that we have the skills to maintain profitability even when revenues are shy of the ones we expect. We hope to return to over 20% operating income in the near-term. Net income was $967,000 or $0.05 per share. Cash flow from operating activities was $1.25 million. Our balance sheet continues to be strong with the total cash position of $17.5 million, including available for sale securities at the end of the quarter after completion of the yearly dividend distribution and related tax payments in March and April, 2011 respectively. As previously announced, the yearly dividend declared and distributed was approximately $6 million, out of which $4.7 million was paid to the shareholders in March 2011 and $1.3 million was paid in the second quarter to the Israeli tax authorities in April 2011. The revenue distribution is as follows. Sales in the Americas represented 51.4% and sales in Europe represented 34.6% of total revenue, the rest being divided between Israel, Africa and Asia-Pacific. We expect the Americas to continue to represent a very high percentage of our revenues.
Revenue from customer care and billing software totaled $3.64 million, while revenue from enterprise call accounting software was $907,000. We believe that our proven superior solutions for large and multinational corporations help us maintain and hopefully increase the revenues from this market segment and we are content with the diversification in our revenue stream.This quarter, MIND announced the release of its MINDBill Online Store module. MIND helps operators contract consumers and increase subscriber retention by supplying sophisticated but easy to navigate each store that enable subscription, selection of device accessories, rate plans, contractors and payment methods. Online stores represent the most cost effective methods to get a wide reach, attractive to carriers as they can use the number of physical sale locations and agents, at the same time it is an appealing alternative for consumers as it becomes the most popular way to shop and allows them to save time. MINDBill Online Store is based on the MINDBill Point of Sale application and is rich in detailed information on the plans and the equipment that the carrier offers. Most important, it allows user interface adaptation and updates by the carriers’ team and integrates easily with the existing carriers’ website. MIND solution for online shopping and reaches the end-user shopping experience and supports the operator’s complete sales flow, including real-time inventory items, stock updates based on sales and order fulfillment. The first two implementations are expected to be deployed by year-end. In the second quarter of 2011, we secured one new customer and multiple follow-on orders. The new customer, a provider of wireline and wireless services in the US region has selected MIND to provide a complete prepaid billing solution platform with IN and CAMEL capabilities for IN prepaid, voice messaging, real-time, instant charging, and rating, session control, mediation and provisioning. Read the rest of this transcript for free on seekingalpha.com