MTSL MER Telemanagement Solutions Ltd

RA'ANANA, Israel, November 9 /PRNewswire-FirstCall/ -- MTS - Mer Telemanagement Solutions Ltd. (NASDAQ:MTSL), a global provider of business support systems (BSS) (for comprehensive telecommunication management and customer care & billing (CC&B) solutions), today announced its financial results for the third quarter of 2006, ended September 30, 2006. Revenues for the third quarter were $2.7 million, compared with revenues of $3.0 million in the third quarter of 2005. Revenues for the nine month period ended September 30, 2006 were $8.2 million, compared with revenues of $8.6 million for the 2005 nine month period. Net loss for the third quarter was $644,000 or $0.11 diluted per share, compared with a net loss of $698,000 or $0.13 diluted per share, in the third quarter of 2005. Net loss for the nine month period ended September 30, 2006 was $1.6 million, or $0.27 diluted per share, a decline of 60% compared with a net loss of $3.9 million or $0.79 diluted per share, for the 2005 nine month period. MTS ended the third quarter with an accumulated backlog of orders of approximately $1.2 million. The backlog represents orders booked but not yet recognized as revenue as of September 30, 2006. "We believe in our growth strategy and are looking to see better results from our mature CC&B and Interconnect solutions while developing the Invoice management solutions as an additional growth engine for the coming years" said Eytan Bar, President & CEO of MTS. Conference Call Information MTS will conduct a teleconference to discuss the third quarter results on Thursday, November 9 at 11:00 a.m Eastern Time/6:00 p.m Israel time. To access the conference call, please dial +1-877-210-6102 (U.S.), +1-785-830-1916 (international), at least 10 minutes prior to commencement of the call. Reference the MTS conference call or conference ID #MULTIVU A replay of the call will be available from November 9 through 11:59 p.m. EST on November 16. To access the replay, please dial +1-800-839-5324. About MTS Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider of innovative solutions for comprehensive telecommunications expense management (TEM) used by enterprises, and for business support systems (BSS) used by information and telecommunication service providers. Since 1984, MTS Telecommunications' expense management solutions have been used by thousands of enterprises and organizations to ensure that their telecommunication services are acquired, provisioned, and invoiced correctly. In addition, the MTS's Application Suite has provided customers with a unified view of telecommunication usage, proactive budget control, personal call management, employee cost awareness and more. MTS's solutions for Information and Telecommunication Service Providers are used worldwide by wireless and wireline service providers for interconnect billing, partner revenue management and for charging and invoicing their customers. MTS has pre-configured solutions to support emerging carriers of focused solutions (e.g. IPTV, VoIP, MVNO) to rapidly install a full-featured and scaleable solution. MTS's unique technology reduces integration risks and lessens revenue leakage by using the very same system to manage retail and wholesale business as well as supporting multiple business units. Total cost of ownership (TCO) is reduced by providing web-based customer self-care and provisioning. Headquartered in Israel, MTS markets its solutions through wholly owned subsidiaries in the United States, Hong Kong, The Netherlands, and Brazil, as well as through OEM partnerships with Siemens, Phillips, NEC and other vendors. MTS shares are traded on the NASDAQ Capital Market (symbol MTSL). For more information please visit the MTS web site: http://www.mtsint.com/. Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of the Company and its competitors, risk of operations in Israel, government regulations, dependence on third parties to manufacture products, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission. CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands September 30, December 31, 2006 2005 2005 Unaudited Audited ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,557 $ 3,712 $ 3,191 Marketable securities 153 118 132 Trade receivables, net 2,361 1,620 1,895 Unbilled receivables 220 268 104 Other accounts receivable and prepaid 390 expenses 692 491 Inventories 137 161 181 Total current assets 5,120 6,269 5,994 LONG- TERM INVESTMENTS: Investment in an affiliate 1,572 1,738 1,615 Long-term loans, net of current maturities - 9 3 Severance pay fund 620 480 478 Other investments 365 387 347 Total long-term investments 2,557 2,614 2,443 PROPERTY AND EQUIPMENT, NET 461 573 571 OTHER ASSETS: Goodwill 4,069 3,626 3,700 Other intangible assets, net 1,781 1,081 993 Deferred income taxes 115 73 115 Total other assets 5,965 4,780 4,808 Total assets $ 14,103 $ 14,236 $ 13,816 CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (except share and per share data) September 30, December 31, 2006 2005 2005 Unaudited Audited LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities on bank loan $ 167 $ - $ - Trade payables 620 688 735 Accrued expenses and other liabilities 2,439 2,396 2,306 Deferred revenues 1,082 968 888 Total current liabilities 4,308 4,052 3,929 LONG-TERM LIABILITIES: Long term bank loan 833 - - Accrued severance pay 906 685 713 Total long-term liabilities 1,739 685 713 SHAREHOLDERS' EQUITY: Share capital - Ordinary shares of NIS 0.01 par value - Authorized: 12,000,000 shares at September 30, 2006 and 2005 and December 31, 2006; Issued: 5,784,645, 5,734,304 and 5,744,304 shares at September 30, 2006 and 2005 and December 31,2005, respectively; Outstanding: 5,773,845, 5,723,504 and 5,733,504 shares at September 30, 2006 and 2005 and December 31, 2005 17 17 17 Additional paid-in capital 16,072 15,917 15,966 Treasury shares (10,800 Ordinary shares) (29) (29) (29) Deferred stock compensation - (159) (142) Accumulated other comprehensive income (loss) 136 (19) (75) Accumulated deficit (8,140) (6,228) (6,563) Total shareholders' equity 8,056 9,499 9,174 Total liabilities and shareholders' equity $ 14,103 $ 14,236 $ 13,816 CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands (except share and per share data) Nine months ended Three months ended Year ended September 30, September 30, December 31, 2006 2005 2006 2005 2005 Unaudited Audited Revenues $ 8,170 $ 8,551 $ 2,652 $ 3,013 $ 11,563 Cost of revenues (*)2,641 2,954 (**)813 1,061 3,802 Gross profit 5,529 5,597 1,839 1,952 7,761 Operating expenses: Research and development, net (*)2,873 3,442 (**)915 1,118 4,395 Selling and marketing (*)2,397 3,881 (**)814 984 4,797 General and administrative(*)1,954 2,310 (**)746 588 2,830 Total operating expenses 7,224 9,633 2,475 2,690 12,022 Operating loss (1,695) (4,036) (636) (738) (4,261) Financial income (expenses), net (49) 96 (60) (8) 53 Loss before taxes on income (1,744) (3,940) (696) (746) (4,208) Taxes on income 3 - - - 10 Loss before equity in earnings of affiliate (1,747) (3,940) (696) (746) (4,218) Equity in earnings of affiliate 170 59 52 48 2 Net loss $ (1,577) $ (3,881) $ (644) $ (698) $ (4,216) Basic and diluted net loss per Ordinary share $ (0.27) $ (0.79) $ (0.11) $ (0.13) $ (0.83) Weighted average number of Ordinary shares used in computing basic and diluted net loss per share 5,758,850 4,885,710 5,765,289 5,306,565 5,092,117 (*) Including stock-based employee compensation in the amounts of $ 20, $ 82, $ 14 and $ 59 in cost of revenues, research and development, selling and marketing and general and administrative, respectively. (**) Including stock-based employee compensation in the amounts of $5, $22, $4 and $13 in cost of revenues, research and development, selling and marketing and general and administrative, respectively. Contacts: Company: Shlomi Hagai Corporate COO & CFO Tel: +972-9-762-1733 Email: Ronit Weiner Communications Managing Director Tel: +972-54-666-4737 Email: DATASOURCE: MTS-MER Telemanagement Solutions Ltd. CONTACT: Contacts: Company: Shlomi Hagai, Corporate COO & CFO, Tel: +972-9-762-1733, Email: ; Ronit Weiner, Communications Managing Director, Tel: +972-54-666-4737, Email:

Copyright