Andrea Dray – IR Monica Iancu – CEO

Good day and welcome to MIND’s Quarter Two 2011 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Andrea Dray. Please go ahead.

Thank you, Nolig [ph]. Good morning, everyone, and welcome to MIND’s conference call. Before we begin, I would like to point out that this call includes information that constitutes forward-looking statements. Although we believe that expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include but are not limited to the effects of general economic conditions and such other risks as discussed in our earnings release and at greater length in the company’s filings with the SEC. 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. Today, MIND reported the results of its second quarter 2011. The financials can be found in our Form 6-K and on our website. On the call today from MIND is Mrs. Monica Iancu, MIND’s CEO. I would now like to turn the call over to Monica. Monica, please go ahead.

Thank 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.…