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<SEC-DOCUMENT>0001119083-07-000004.txt : 20070510
<SEC-HEADER>0001119083-07-000004.hdr.sgml : 20070510
<ACCEPTANCE-DATETIME>20070510101218
ACCESSION NUMBER:		0001119083-07-000004
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070331
FILED AS OF DATE:		20070510
DATE AS OF CHANGE:		20070510

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MIND CTI LTD
		CENTRAL INDEX KEY:			0001119083
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-31215
		FILM NUMBER:		07835274

	BUSINESS ADDRESS:	
		STREET 1:		INDUSTRIAL PARK BUILDING 7
		CITY:			YOQNEAM ILIT ISRAEL
		STATE:			L3
		ZIP:			20692
		BUSINESS PHONE:		97249936666

	MAIL ADDRESS:	
		STREET 1:		PO BOX 144
		CITY:			YOQNEAM ILIT ISRAEL
		ZIP:			20692
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>mindcti2007-05.htm
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
	<TITLE> MIND CTI LTD (Form: 6-K, Received: 07/25/2002 09:11:35) </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">

<P>

<FONT SIZE=5>
	<STRONG><CENTER>FORM 6-K</CENTER></STRONG>
</font></p>
<P>
<FONT SIZE=5>
	<STRONG><CENTER>SECURITIES AND EXCHANGE COMMISSION</CENTER></STRONG>
</font></p>
<FONT SIZE=4>
	<CENTER><B>Washington, D.C. 20549</B></CENTER>
</font></p>
<p>
<STRONG><CENTER>Report of Foreign Private Issuer</CENTER></STRONG>
<P>

<CENTER><b>Pursuant to Rule 13a-16 or 15d-16 of</CENTER>
<CENTER>the Securities Exchange Act of 1934</b></CENTER>
<P>

<STRONG><CENTER>
  For the month of May, 2007
</CENTER>
</STRONG>
<P>
<STRONG><CENTER>
Commission File Number: 000-31215
</CENTER>
</STRONG>
<P>
<center>
	<FONT SIZE=5><STRONG>MIND C.T.I. LTD.</strong></font>
</center>
</p>
<CENTER>
(Translation of Registrant's Name into English)
</CENTER>
<P>

<CENTER><STRONG>
	Industrial Park, Building 7, P.O.Box 144, Yoqneam, 20692, Israel </STRONG>
</CENTER>
<CENTER>
	(Address of Principal Executive Offices)
</CENTER>
<P>

<CENTER>
	Indicate by check mark whether the registrant files or will file annual
</CENTER>
<CENTER>
	reports under cover Form 20-F or Form 40-F:
</CENTER>
<P>

<CENTER>Form 20-F [X] Form 40-F [ ]</CENTER>
<P>
<CENTER>
	Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): N/A
</CENTER>
<P>
<CENTER>
	Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): N/A
</CENTER>
<P>

<CENTER>
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
	<BR>
	Yes [ ] No  [X]
</CENTER>
<P>

<center>
	If &quot;Yes&quot; is marked, indicate below the file number assigned to the registrant
	in connection with Rule 12g3-2(b): 82-N/A.
</center>
<p>
<p>
<STRONG><CENTER>INCORPORATION BY REFERENCE</CENTER></STRONG>
<P>
<CENTER>
The financial statements included in the press release attached as Exhibit 1 to this Report on Form 6-K are hereby incorporated by reference into: (i) the Registrant's Registration Statement on Form S-8, Registration No. 333-117054; (ii) the Registrant's Registration Statement on Form S-8, Registration No. 333-100804; and (iii) the Registrant's Registration Statement on Form S-8, Registration No. 333-54632.
</CENTER>
<P>
<p>
<STRONG><CENTER>CONTENTS</CENTER></STRONG>
<P>
<CENTER>This report on Form 6-K of the registant consists of the following document, which is attached hereto and incorporated by reference herein:
<BR>1. Press Release: MIND CTI Reports EPS of 5 Cents for the First Quarter of 2007. Dated May 9, 2007.
</CENTER>
<P>
<P>
<STRONG><CENTER>SIGNATURES</CENTER></STRONG>
<P>

<CENTER>
	Pursuant to the requirements of the Securities Exchange Act 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
</CENTER>

<p>Date: May 10, 2007
<p>
<table width="100%" cellpadding="0" cellspacing="0">
	<tr>
	<td valign="bottom" width="50%"></td>
	<td>MIND C.T.I. LTD. <BR><BR></td></tr><tr><td></td><td>
	By: /s/ Monica Eisinger<br>
	Name: Monica Eisinger<br>
	===================<br>
     	Title: Chairperson of the Board of
	Directors, President and Chief Executive Officer
	</td>
	</tr>
</table>
<P ALIGN="CENTER"><STRONG>EXHIBIT INDEX</STRONG></P>
<table cellpadding="2">
	<tr><td width="150">Exhibit Number</td><td>Description of Exhibit</td></tr>
	<tr><td align="right" valign="top">1.</td><td>Press Release: MIND CTI Reports EPS of 5 Cents for the First Quarter of 2007. Dated May 9, 2007.
</td>
	</tr>
</table>
<P>

<HR width=75% color=#999999 noshade size=2>
<!-- -------------------------------------------------------------------------- -->
<P>
<center>
Exhibit 1<br>
  <h2>MIND CTI Reports EPS of 5 Cents for the First Quarter of 2007</h2>
</center>

<strong>Key Highlights</strong>
<UL>
	<LI>The company distributed $0.20 per share in annual dividends.
	<li>Cash position remains strong with over $34 million.
	<li>New implementation at a Scandinavian IP carrier.
	<li>Multiple follow-on orders from mobile operators and IP carriers.
	<li>First quarter 2007 revenues were $4.81 million.
	<li>Non-GAAP operating income was $848 thousand, or 18% of revenue.
	<li>Non-GAAP net income was $1.33 million or $0.06 per share.
	<li>Full year 2007 guidance: non-GAAP EPS is expected to be approximately 20 cents.
</LI>
</UL>

<b>Yoqneam, Israel, May 9, 2007</b> - MIND CTI Ltd. (NasdaqNM:MNDO), a leading provider of convergent end-to-end billing and customer care product based solutions for tier 2 and tier 3 carriers worldwide, today announced results for the first quarter 2007.<BR><BR>

Monica Eisinger, Chairperson and CEO, commented: "In the first quarter of 2007 we once again proved our unique model of execution on profitability, in an environment that is almost universally weakened by delayed decisions. During the quarter we continued to enhance our suite of products that generate new wins and follow-on orders from existing customers. We focus on delivering high quality solutions and on expanding our relationship with our customers as they grow their business or transform their businesses to address convergence. While the sales cycles are long and the timing of required deliveries is difficult to predict, we see demand for our products and services that we expect to provide us with growth opportunities for years to come." <BR><BR>

<b>Financial Highlights of Q1 2007</b>
<ul>
	<li>Revenues of $4.81 million, compared with $5.25 million in the first quarter of 2006.
	<li>Operating income, excluding amortization of intangible assets of $116 thousand and equity-based compensation expense of $64 thousand, was $848 thousand, or 18% of revenue.
	<li>GAAP operating income was $668 thousand, or 14% of revenue, a 16% increase over the first quarter of 2006.
	<li>Net income, excluding amortization of intangible assets of $116 thousand and equity-based compensation expense of $64 thousand, was $1.33 million or $0.06 per share.
	<li>GAAP net income was $1.15 million, or $0.05 per share, a 76% increase over the first quarter of 2006.
	<li>Cash flow from operating activities in Q1 2007 was $855 thousand.</li>
</ul>

<b>Revenue Distribution for Q1 2007</b><br>
Sales in Europe represented 43% and sales in the Americas represented 41% of total revenue.
Revenue from our customer care and billing software totaled $4.05 million, while revenue from our enterprise call management software was $755 thousand. The revenue breakdown from our business lines of products was $1.91 million, or 40% from licenses, $1.69 million, or 35% from maintenance and $1.21 million, or 25% from services.<br><br>

<b>Conference Call Information</b><br>
MIND will host a conference call on May 10, at 8:30 a.m., Eastern Standard Time, to discuss the Company's first quarter 2007 results and other financial and business information. The call will be carried live on the Internet via www.fulldisclosure.com and the MIND website, www.mindcti.com. For those unable to listen to the live web cast, a replay will be available.<br><br>


<b>About MIND</b>
MIND CTI Ltd. is a leading provider of convergent prepaid and postpaid end-to-end billing and customer care solutions for IP networks, Mobile, Wireline and Quad-play carriers worldwide. Since 1997 MIND has been a pioneer in enabling the VoIP technology for emerging and incumbent service providers. In August 2005 MIND acquired Sentori, Inc., a US based provider of customer care and billing solutions to wireless carriers and mobile virtual network operators (MVNOs). Sentori, Inc. brings over ten years of wireless experience and eight years of a wireless operational solution to carriers. A global company, MIND operates from offices in Europe, Israel and the United States. MIND employs 300 IT professionals and serves customers in more than 40 countries around the world. For financial information, reports and presentations, please visit the Investor Relations site: http://www.mindcti.com/ir<br><br>

<small>Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: All statements other than historical facts included in the foregoing press release regarding the Company's business strategy are "forward-looking statements." These statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements are not guarantees of future performance, and actual results may materially differ. The forward-looking statements involve risks, uncertainties, and assumptions, including the risks discussed in the Company's filings with the United States Securities Exchange Commission.  The Company does not undertake to update any forward-looking information.</small><br>
</p>

<p>
	<b>For more information please contact:</b><br>
	Andrea Dray<br>
	MIND CTI Ltd.<br>
	Tel: +972-4-993-6666<br>
	investor@mindcti.com<br>

</p>

<center>(tables to follow)</center>
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<p>
<hr width="100%">

<a name="table"></a>
<a href="#top"><font size="1"><b>Back to top</b></font></a>

<center><h2>		MIND C.T.I LTD	</h2></center>
<center><h3>		CONDENSED CONSOLIDATED BALANCE SHEETS	</h3></center>
<table cellpadding="0" cellspacing="0" border="0" width="100%">
<tr>	<td>		</td><td align="center" colspan="2"><font size="2"><b>	March 31	</b></font></td>		<td align="center"><font size="2"><b>	December 31
<tr>	<td>		</td><td align="center" colspan="2"><font size="2"><b>	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</b></font></td>		<td align="center"><font size="2"><b>
<tr>	<td>		</td><td align="center"><font size="2"><b>	2007	</b></font></td><td align="center"><font size="2"><b>	2006	</b></font></td><td align="center"><font size="2"><b>	2006
<tr>	<td>		</td><td align="center"><font size="2"><b>	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</b></font></td><td align="center"><font size="2"><b>	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</b></font></td><td align="right"><font size="2"><b>	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr>	<td>		</td><td align="center" colspan="2"><font size="2"><b>	(Unaudited)	</td>		<td align="center"><font size="2"><b>	(Audited)
<tr>	<td>		</td><td align="center" colspan="2"><font size="2"><b>	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td>		<td align="right"><font size="2"><b>	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr>	<td>		</td><td align="center" colspan="3"><font size="2"><b>	U.S. $ in thousands	</td>		<td align="right">
<tr>	<td>		</td><td align="center" colspan="3"><font size="2"><b>	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td>		<td align="right">
<tr>	<td align="middle"><font size="2"><b>	A  s  s  e  t  s	</b></font></td><td>		</td><td>	   	</td><td>
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	CURRENT ASSETS:	</b></font></td><td align="right">		</td><td align="right">	   	</td><td align="right">
<tr>	<td style="padding-left:20px"><font size="2">	Cash and cash equivalents	</font></td><td align="right"><font size="2">	$24,808 	</font></td><td align="right"><font size="2">	$6,905 	</font></td><td align="right"><font size="2">	$27,571
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	Accounts receivable:	</font></td><td align="right">		</font></td><td align="right">	   	</td><td align="right">
<tr>	<td style="padding-left:40px"><font size="2">	Trade	</font></td><td align="right"><font size="2">	5,819	</font></td><td align="right"><font size="2">	5,191	</font></td><td align="right"><font size="2">	5,385
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:40px"><font size="2">	Other	</font></td><td align="right"><font size="2">	531	</font></td><td align="right"><font size="2">	1,034	</font></td><td align="right"><font size="2">	231
<tr>	<td style="padding-left:20px"><font size="2">	Deferred income taxes	</font></td><td align="right"><font size="2">	158	</font></td><td align="right"><font size="2">		</font></td><td align="right"><font size="2">	154
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	Inventories	</font></td><td align="right"><font size="2">	35	</font></td><td align="right"><font size="2">	30	</font></td><td align="right"><font size="2">	35
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:60px"><font size="2">	T o t a l  current assets	</font></td><td align="right"><font size="2">	31,351	</font></td><td align="right"><font size="2">	13,160	</font></td><td align="right"><font size="2">	33,376
<tr>	<td><font size="2"><b>	INVESTMENTS AND OTHER NON CURRENT ASSETS:	</b></font></td><td align="right"><font size="2">		</font></td><td align="right"><font size="2">		</font></td><td align="right"><font size="2">
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	Marketable debentures	</font></td><td align="right"><font size="2">	10,000	</font></td><td align="right"><font size="2">		</font></td><td align="right"><font size="2">	10,000
<tr>	<td style="padding-left:20px"><font size="2">	Long term bank deposits	</font></td><td align="right"><font size="2">		</font></td><td align="right"><font size="2">	30,000	</font></td><td align="right"><font size="2">
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	Other	</font></td><td align="right"><font size="2">	989	</font></td><td align="right"><font size="2">	730	</font></td><td align="right"><font size="2">	1,003
<tr>	<td><font size="2"><b>	PROPERTY AND EQUIPMENT</b>, net of accumulated depreciation	</font></td><td align="right"><font size="2">	1,547	</font></td><td align="right"><font size="2">	1,950	</font></td><td align="right"><font size="2">	1,558
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	INTANGIBLE ASSETS</b>, net of accumulated amortization	</font></td><td align="right"><font size="2">	772	</font></td><td align="right"><font size="2">	1,330	</font></td><td align="right"><font size="2">	888
<tr>	<td><font size="2"><b>	GOODWILL	</b></font></td><td align="right"><font size="2">	6,966	</font></td><td align="right"><font size="2">	6,966	</font></td><td align="right"><font size="2">	6,966
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr>	<td style="padding-left:60px"><font size="2">	T o t a l  assets	</font></td><td align="right"><font size="2">	$51,625 	</font></td><td align="right"><font size="2">	$54,136 	</font></td><td align="right"><font size="2">	$53,791
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr BGCOLOR="#CCEEFF">	<td align="middle"><font size="2"><b>	Liabilities and shareholders' equity	</b></font></td><td>		</td><td align="right">	   	</td><td align="right">
<tr>	<td><font size="2"><b>	CURRENT LIABILITIES:	</b></font></td><td align="right">		</font></td><td align="right">	   	</td><td align="right">
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	Accounts payable and accruals:	</font></td><td align="right">		</font></td><td align="right">	   	</td><td align="right">
<tr>	<td style="padding-left:40px"><font size="2">	Trade	</font></td><td align="right"><font size="2">	$503 	</font></td><td align="right"><font size="2">	$789 	</font></td><td align="right"><font size="2">	$464
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:40px"><font size="2">	Other	</font></td><td align="right"><font size="2">	2,640	</font></td><td align="right"><font size="2">	2,151	</font></td><td align="right"><font size="2">	2,509
<tr>	<td style="padding-left:20px"><font size="2">	Deferred revenues 	</font></td><td align="right"><font size="2">	1,906	</font></td><td align="right"><font size="2">	1,899	</font></td><td align="right"><font size="2">	1,236
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	Advances from customers	</font></td><td align="right"><font size="2">	241	</font></td><td align="right"><font size="2">	575	</font></td><td align="right"><font size="2">	241
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr>	<td style="padding-left:60px"><font size="2">	T o t a l  current liabilities	</font></td><td align="right"><font size="2">	5,290	</font></td><td align="right"><font size="2">	5,414	</font></td><td align="right"><font size="2">	4,450
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	EMPLOYEE RIGHTS UPON RETIREMENT	</b></font></td><td align="right"><font size="2">	1,498	</font></td><td align="right"><font size="2">	1,404	</font></td><td align="right"><font size="2">	1,482
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:60px"><font size="2">	T o t a l  liabilities	</font></td><td align="right"><font size="2">	6,788	</font></td><td align="right"><font size="2">	6,818	</font></td><td align="right"><font size="2">	5,932
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	SHAREHOLDERS' EQUITY:	</b></font></td><td align="right">		</td><td align="right"><font size="2">	   	</td><td align="right">
<tr>	<td style="padding-left:20px"><font size="2">	Share capital	</font></td><td align="right"><font size="2">	54	</font></td><td align="right"><font size="2">	53	</font></td><td align="right"><font size="2">	54
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	     Additional paid-in capital	</font></td><td align="right"><font size="2">	59,628	</font></td><td align="right"><font size="2">	59,510	</font></td><td align="right"><font size="2">	59,547
<tr>	<td style="padding-left:20px"><font size="2">	    Capital surplus	</font></td><td align="right"><font size="2">	389	</font></td><td align="right"><font size="2">	77	</font></td><td align="right"><font size="2">	325
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	Accumulated deficit	</font></td><td align="right"><font size="2">	(15,234)	</font></td><td align="right"><font size="2">	(12,322)	</font></td><td align="right"><font size="2">	(12,067)
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr>	<td style="padding-left:60px"><font size="2">	T o t a l  shareholders' equity 	</font></td><td align="right"><font size="2">	44,837	</font></td><td align="right"><font size="2">	47,318	</font></td><td align="right"><font size="2">	47,859
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr>	<td style="padding-left:60px"><font size="2">	T o t a l  liabilities and shareholders' equity	</font></td><td align="right"><font size="2">	$51,625 	</font></td><td align="right"><font size="2">	$54,136 	</font></td><td align="right"><font size="2">	$53,791
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>
</table>



<p><center><font size="2">I</font></center>
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<a name="table2"></a>
<a href="#top"><font size="1"><b>Back to top</b></font></a>

<center><h2>		MIND C.T.I LTD	</h2></center>
<center><h3>		CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	</h3></center>
<table cellpadding="0" cellspacing="0" border="0" width="100%">
<tr>	<td>		</td><td align="center" colspan="2"><font size="2"><b>	Three months ended March 31			</b></font></td><td align="center"><font size="2"><b>	Year ended December 31	</b></font></td></tr>
<tr>	<td>		</td><td align="center" colspan="3">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>					</td></tr>
<tr>	<td><font size="2"><b>		</b></font></td><td align="center"><font size="2"><b>	2007	</b></font></td><td align="center"><font size="2"><b>	2006	</b></font></td><td align="center"><font size="2"><b>	2006	</b></font></td></tr>
<tr>	<td>		</td><td align="right" >	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td>		</td><td align="center" colspan="2"><font size="2"><b>	(Unaudited)			</td><td align="center"><font size="2"><b>	(Audited)	</b></td></tr>
<tr>	<td><font size="2"><b>		</td><td align="center" colspan="2">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>			</td><td align="center">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td>		</td><td align="center" colspan="3"><font size="2"><b>	U.S. $ in thousands (except per share data)					</td></tr>
<tr>	<td>		</td><td align="center" colspan="3">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>					</td></tr>
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	REVENUES	</font></td><td align="right"><font size="2">	$4,807 	</font></td><td align="right"><font size="2">	$5,252	</font></td><td align="right"><font size="2">	$20,060	</font></td></tr>
<tr>	<td><font size="2"><b>	COST OF REVENUES	</font></td><td align="right"><font size="2">	1,345	</font></td><td align="right"><font size="2">	1,598	</font></td><td align="right"><font size="2">	5,675	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td><font size="2"><b>	GROSS PROFIT	</b></font></td><td align="right"><font size="2">	3,462	</font></td><td align="right"><font size="2">	3,654	</font></td><td align="right"><font size="2">	14,385	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	RESEARCH AND DEVELOPMENT EXPENSES 	</b></font></td><td align="right"><font size="2">	1,416	</font></td><td align="right"><font size="2">	1,738	</font></td><td align="right"><font size="2">	6,118	</font></td></tr>
<tr>	<td><font size="2"><b>	SELLING AND MARKETING EXPENSES	</b></font></td><td align="right"><font size="2">	935	</font></td><td align="right"><font size="2">	982	</font></td><td align="right"><font size="2">	3,628	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	GENERAL AND ADMINISTRATIVE EXPENSES	</b></font></td><td align="right"><font size="2">	443	</font></td><td align="right"><font size="2">	359	</font></td><td align="right"><font size="2">	2,135	</font></td></tr>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	OPERATING INCOME 	</font></td><td align="right"><font size="2">	668	</font></td><td align="right"><font size="2">	575	</font></td><td align="right"><font size="2">	2,504	</font></td></tr>
<tr>	<td><font size="2"><b>	FINANCIAL INCOME (EXPENSES) - net	</font></td><td align="right"><font size="2">	504	</font></td><td align="right"><font size="2">	125	</font></td><td align="right"><font size="2">	* (222)	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td><font size="2"><b>	INCOME BEFORE TAXES ON INCOME	</font></td><td align="right"><font size="2">	1,172	</font></td><td align="right"><font size="2">	700	</font></td><td align="right"><font size="2">	2,282	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	TAXES ON INCOME	</font></td><td align="right"><font size="2">	21	</font></td><td align="right"><font size="2">	46	</font></td><td align="right"><font size="2">	1,373	</font></td></tr>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	NET INCOME 	</font></td><td align="right"><font size="2">	$1,151 	</font></td><td align="right"><font size="2">	$654	</font></td><td align="right"><font size="2">	$909	</font></td></tr>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td><font size="2"><b>	EARNING PER ORDINARY SHARE:				   			</td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	Basic and diluted	</font></td><td align="right"><font size="2">	$0.05 	</font></td><td align="right"><font size="2">	$0.03	</font></td><td align="right"><font size="2">	$0.04	</font></td></tr>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td><font size="2"><b>	WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES USED IN COMPUTATION OF EARNINGS PER ORDINARY SHARE - IN THOUSANDS: 				   			</td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	Basic	</font></td><td align="right"><font size="2">	21,566	</font></td><td align="right"><font size="2">	21,439	</font></td><td align="right"><font size="2">	21,515	</font></td></tr>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td style="padding-left:20px"><font size="2">	Diluted	</font></td><td align="right"><font size="2">	21,577	</font></td><td align="right"><font size="2">	21,511	</font></td><td align="right"><font size="2">	21,546	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
</table>
<table>

<tr BGCOLOR="#CCEEFF">	<tr><td valign="top"><b>	*	</b></td><td><b>	Financial expenses for the year ended December 31, 2006 include a loss from a premature withdrawal of long-term deposits in the amount of $1,330,000.	</b></td></tr>				</td></tr>
</table>


<p><center><font size="2">II</font></center>
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	<center><h2>	MIND C.T.I LTD	</h2></center>
	<center><h3>	CONSOLIDATED STATEMENTS OF CASH FLOWS	</h3></center>
<table cellpadding="0" cellspacing="0" border="0" width="100%">
<tr>	<td>		</td><td align="center" colspan="2"><font size="2"><b>	Three months ended  March 31			</b></font></td><td align="center"><font size="2"><b>	Year ended December 31	</b></font></td></tr>
<tr>	<td>		</td><td align="center" colspan="2">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>			</td><td align="center">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td>		</td><td align="center"><font size="2"><b>	2007	</font></td><td align="center"><font size="2"><b>	2006	</font></td><td align="center"><font size="2"><b>	2006	</font></td></tr>
<tr>	<td>		</td><td align="center">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="center">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td>		</td><td align="center" colspan="2"><font size="2"><b>	(Unaudited)			</td><td align="center"><font size="2"><b>	(Audited)	</b></td></tr>
<tr>	<td><font size="2"><b>		</td><td align="center" colspan="2">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>			</td><td align="center">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td>		</td><td align="center" colspan="3"><font size="2"><b>	U.S. $ in thousands					</td></tr>
<tr>	<td>		</td><td align="center" colspan="3">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>					</td></tr>
<tr BGCOLOR="#CCEEFF">	<td colspan="5"><font size="2"><b>	CASH FLOWS FROM OPERATING ACTIVITIES:							</td></tr>
<tr>	<td style="padding-left:20px"><font size="2">	Net income	</font></td><td align="right" valign="bottom"><font size="2">	$1,151 	</font></td><td align="right" valign="bottom"><font size="2">	$654 	</font></td><td align="right" valign="bottom"><font size="2">	$909 	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	Adjustments to reconcile net income to net cash provided by (used in) operating activities:	</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">		</td></tr>
<tr>	<td style="padding-left:40px"><font size="2">	Depreciation and amortization	</font></td><td align="right" valign="bottom"><font size="2">	245 	</font></td><td align="right" valign="bottom"><font size="2">	486 	</font></td><td align="right" valign="bottom"><font size="2">	1,391 	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:40px"><font size="2">	Deffered income taxes, net	</font></td><td align="right" valign="bottom"><font size="2">	2 	</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">	(293)	</font></td></tr>
<tr>	<td style="padding-left:40px"><font size="2">	Accrued severance pay 	</font></td><td align="right" valign="bottom"><font size="2">	16 	</font></td><td align="right" valign="bottom"><font size="2">	102 	</font></td><td align="right" valign="bottom"><font size="2">	176 	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:40px"><font size="2">	Capital loss (gain) on sale of property and equipment - net	</font></td><td align="right" valign="bottom"><font size="2">	7 	</font></td><td align="right" valign="bottom"><font size="2">	(4)	</font></td><td align="right" valign="bottom"><font size="2">	(3)	</font></td></tr>
<tr>	<td style="padding-left:40px"><font size="2">	Employees share based compensation expenses	</font></td><td align="right" valign="bottom"><font size="2">	64 	</font></td><td align="right" valign="bottom"><font size="2">	77 	</font></td><td align="right" valign="bottom"><font size="2">	325 	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:40px" colspan="5"><font size="2">	Changes in operating asset and liability items:							</td></tr>
<tr>	<td style="padding-left:60px"><font size="2">	            Decrease (increase) in accounts receivable:							</td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:80px"><font size="2">	 Trade	</font></td><td align="right" valign="bottom"><font size="2">	(434)	</font></td><td align="right" valign="bottom"><font size="2">	(1,802)	</font></td><td align="right" valign="bottom"><font size="2">	(1,996)	</font></td></tr>
<tr>	<td style="padding-left:80px"><font size="2">	             Interest accrued on marketable debentures	</font></td><td align="right" valign="bottom"><font size="2">	(135)	</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">	(37)	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:80px"><font size="2">	  Other	</font></td><td align="right" valign="bottom"><font size="2">	(165)	</font></td><td align="right" valign="bottom"><font size="2">	(244)	</font></td><td align="right" valign="bottom"><font size="2">	537 	</font></td></tr>
<tr>	<td style="padding-left:60px"><font size="2">	             Increase in inventories	</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">	(5)	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:60px"  colspan="5"><font size="2">	             Increase (decrease) in accounts payable and accruals:							</td></tr>
<tr>	<td style="padding-left:80px"><font size="2">	Trade	</font></td><td align="right" valign="bottom"><font size="2">	39 	</font></td><td align="right" valign="bottom"><font size="2">	103 	</font></td><td align="right" valign="bottom"><font size="2">	(222)	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:80px"><font size="2">	Other	</font></td><td align="right" valign="bottom"><font size="2">	(605)	</font></td><td align="right" valign="bottom"><font size="2">	4 	</font></td><td align="right" valign="bottom"><font size="2">	768 	</font></td></tr>
<tr>	<td style="padding-left:60px"><font size="2">	            Increase (decrease) in deferred revenues	</font></td><td align="right" valign="bottom"><font size="2">	670 	</font></td><td align="right" valign="bottom"><font size="2">	255 	</font></td><td align="right" valign="bottom"><font size="2">	(408)	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:60px"><font size="2">	         Decrease in advances from customers, net	</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">	(215)	</font></td><td align="right" valign="bottom"><font size="2">	(549)	</td></tr>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	       Net cash provided by (used in) operating activities	</font></td><td align="right" valign="bottom"><font size="2">	855 	</font></td><td align="right" valign="bottom"><font size="2">	(584)	</font></td><td align="right" valign="bottom"><font size="2">	593 	</font></td></tr>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td><font size="2" colspan="5"><b>	CASH FLOWS FROM INVESTING ACTIVITIES:	</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">		</td></tr>
<tr>	<td style="padding-left:20px"><font size="2">	Purchase of property and equipment	</font></td><td align="right" valign="bottom"><font size="2">	(135)	</font></td><td align="right" valign="bottom"><font size="2">	(174)	</font></td><td align="right" valign="bottom"><font size="2">	(379)	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	      Amounts funded in respect of accrued severance pay 	</font></td><td align="right" valign="bottom"><font size="2">	8 	</font></td><td align="right" valign="bottom"><font size="2">	3 	</font></td><td align="right" valign="bottom"><font size="2">	(119)	</font></td></tr>
<tr>	<td style="padding-left:20px"><font size="2">	      Acquisition of marketable debentures held-to-maturity	</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">	(10,000)	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	      Withdrawal of long-term bank deposits	</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">	30,000 	</font></td></tr>
<tr>	<td style="padding-left:20px"><font size="2">	      Proceeds from sale of property and equipment	</font></td><td align="right" valign="bottom"><font size="2">	10 	</font></td><td align="right" valign="bottom"><font size="2">	29 	</font></td><td align="right" valign="bottom"><font size="2">	162 	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td style="padding-left:20px"><font size="2">	    Net cash  provided by (used in) investing activities	</font></td><td align="right" valign="bottom"><font size="2">	(117)	</font></td><td align="right" valign="bottom"><font size="2">	(142)	</font></td><td align="right" valign="bottom"><font size="2">	19,664 	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td><font size="2"><b>	CASH FLOWS FROM FINANCING ACTIVITIES:	</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">		</font></td><td align="right" valign="bottom"><font size="2">		</td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	      Employee stock options exercised and paid	</font></td><td align="right" valign="bottom"><font size="2">	81 	</font></td><td align="right" valign="bottom"><font size="2">	60 	</font></td><td align="right" valign="bottom"><font size="2">	149 	</font></td></tr>
<tr>	<td style="padding-left:20px"><font size="2">	      Dividend paid	</font></td><td align="right" valign="bottom"><font size="2">	(3,582)	</font></td><td align="right" valign="bottom"><font size="2">	(2,603)	</font></td><td align="right" valign="bottom"><font size="2">	(3,009)	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td style="padding-left:20px"><font size="2">	      Net cash used in financing activities	</font></td><td align="right" valign="bottom"><font size="2">	(3,501)	</font></td><td align="right" valign="bottom"><font size="2">	(2,543)	</font></td><td align="right" valign="bottom"><font size="2">	(2,860)	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td><font size="2"><b>	INCREASE (DECREASE) IN CASH AND  CASH EQUIVALENTS	</font></td><td align="right" valign="bottom"><font size="2">	(2,763)	</font></td><td align="right" valign="bottom"><font size="2">	(3,269)	</font></td><td align="right" valign="bottom"><font size="2">	17,397 	</font></td></tr>
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	BALANCE OF CASH AND CASH  EQUIVALENTS AT BEGINNING OF YEAR	</font></td><td align="right" valign="bottom"><font size="2">	27,571 	</font></td><td align="right" valign="bottom"><font size="2">	10,174 	</font></td><td align="right" valign="bottom"><font size="2">	10,174 	</font></td></tr>
<tr>	<td>		</font></td><td align="right" valign="bottom"><font size="2">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</font></td><td align="right" valign="bottom"><font size="2">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</font></td><td align="right" valign="bottom"><font size="2">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td><font size="2"><b>	BALANCE OF CASH AND CASH EQUIVALENTS AT END OF PERIOD	</font></td><td align="right" valign="bottom"><font size="2">	$24,808 	</font></td><td align="right" valign="bottom"><font size="2">	$6,905 	</font></td><td align="right" valign="bottom"><font size="2">	$27,571 	</font></td></tr>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr>	<td><font size="2"><b>	SUPPLEMENTAL DISCLOSURE OF CASH FLOW AND NON CASH ACTIVITIES	</td><td align="right">		</td><td align="right">		</td><td align="right">		</td></tr>
<tr BGCOLOR="#CCEEFF">	<td style="padding-left:20px"><font size="2">	   Cash paid during the year for income tax	</font></td><td align="right" valign="bottom"><font size="2">	$841 	</font></td><td align="right" valign="bottom"><font size="2">	$11 	</font></td><td align="right" valign="bottom"><font size="2">	$39 	</font></td></tr>
<tr>	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
<tr BGCOLOR="#CCEEFF">	<td>		</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td><td align="right">	<div style="WIDTH: 90%; COLOR: black; LINE-HEIGHT: 1px; BORDER-BOTTOM: black 1px solid"></div>	</td></tr>
</table>





<p><center><font size="2">III</font></center>
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