RA'ANANA, Israel, March 18, 2010 /PRNewswire-FirstCall/ -- MTS -
Mer Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a
global provider of business support systems (BSS) for comprehensive
telecommunication management, telecommunications expense management
(TEM) solutions and customer care & billing (CC&B)
solutions, today announced its financial results for the fourth
quarter and the year ended December 31,
2009.
Revenues for the fourth quarter of 2009 were $2.7 million, compared with revenues of
$1.9 million in the fourth quarter of
2008. Revenues for the twelve month period ended December 31, 2009 were $11.4 million, compared with revenues of
$8.8 million in the 2008 twelve month
period.
Net loss for the fourth quarter of 2009 was $168,000 or ($0.04)
per diluted share, compared with a net loss of $921,000 or ($0.28)
per diluted share in the fourth quarter of 2008. Net loss for the
twelve month period ended December 31,
2009 was $877,000 or
($0.20) per diluted share, compared
with a net loss of $960,000 or
($0.30) per diluted share for the
2008 twelve month period.
As of March 2, 2010, a one-for-two
reverse stock split of our issued and outstanding ordinary shares
went into effect following the approval of our shareholders at an
extraordinary general meeting. All numbers of our ordinary shares
and earnings per share set forth have been adjusted to reflect the
reverse stock split.
The results for the three and twelve month periods ended
December 31, 2009 include the
operations of the AnchorPoint business that was acquired in
December 2008. The results for the
twelve months period ended December 31,
2008 include a capital gain of approximately $382,000 from the sale of our ownership interest
in cVidya Networks Inc.
"Although we are disappointed with our operating loss, MTS was
able to generate positive cash flow of $558,000 during 2009. The gap between our
operating loss and positive cash flow is mainly due to the delay we
face in revenue recognition due to the product implementation
processes in connection with our sales," said Lior Salansky, President of MTS. "During 2009,
MTS implemented a cost reduction plan to improve operating results.
In addition to achieving operational efficiencies, we managed to
grow our new orders bookings during the second half of 2009 by 30%
compared to the first half of the year."
"We believe that the significant backlog with which we started
in January 2010, together with the
potential change in market conditions and our increased sales and
marketing efforts during 2010 will assist us to overcome the
unstable economic environment," concluded Mr. Salansky.
On March 16, 2010 the Company
received a notice from The NASDAQ Stock Market stating that the
minimum bid price of the Company's ordinary shares has been at
$1.00 or greater for 10 consecutive
business days and that the Company has regained compliance with
NASDAQ Marketplace Listing Rule 5550(a)(2).
About MTS
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's 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.
AnchorPoint's TEM solutions, which MTS acquired in December 2008, enable enterprises to gain
visibility and control of strategic assets that drive key business
processes and crucial competitive advantage. AnchorPoint's
software, consulting and managed services solutions, including
integrated Invoice, Asset, and Usage Management and Business
Analytics tools, provide professionals at every level of the
organization with rapid access to concise, actionable data.
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, WiMAX, MVNO) to rapidly install a full-featured and
scalable solution.
Headquartered in Israel, MTS
markets its solutions through wholly owned subsidiaries in
the United States and Hong Kong, 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
December 31,
2008 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,009 $ 2,173
Marketable securities 196 227
Trade receivables (net of allowance for doubtful
accounts of $ 731 and $ 436 at December 31, 2008
and 2009, respectively) 1,223 771
Unbilled receivables 133 10
Other accounts receivable and prepaid expenses 318 376
Inventories 112 39
Total current assets 3,991 3,896
LONG-TERM ASSETS:
Severance pay fund 682 767
Other investments 5 31
Deferred income taxes 40 35
Total long-term assets 727 833
PROPERTY AND EQUIPMENT, NET 227 175
OTHER ASSETS:
Goodwill 3,479 3,479
Other intangible assets, net 2,198 1,807
Total other assets 5,677 5,286
Total assets $ 10,622 $ 9,890
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
December 31,
2008 2009
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short term bank credit and current maturities on
bank loan $ 45 $ -
Trade payables 712 432
Accrued expenses and other liabilities 2,638 2,531
Deferred revenues 2,323 2,741
Total current liabilities 5,718 5,704
LONG-TERM LIABILITIES -
Accrued severance pay 1,105 1,071
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Share capital -
Ordinary shares of NIS 0.01 par value - Authorized:
12,000,000 shares at December 31, 2008 and 2009;
Issued: 4,464,376 shares at December 31, 2008 and
2009; Outstanding: 4,458,976 shares at December 31,
2008 and 2009 26 26
Additional paid-in capital 19,410 19,564
Treasury shares (5,400 Ordinary shares at December
31, 2008 and 2009) (29) (29)
Accumulated other comprehensive income (loss) (16) 23
Accumulated deficit (15,592) (16,469)
Total shareholders' equity 3,799 3,115
Total liabilities and shareholders' equity $ 10,622 $ 9,890
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)
Year ended Three months ended
December 31, December 31,
2008 2009 2008 2009
Revenues:
Product sales $ 5,127 $ 5,534 $ 1,419 $ 1,520
Services 3,624 5,900 459 1,211
Total revenues 8,751 11,434 1,878 2,731
Cost of revenues:
Product sales 1,487 1,863 627 470
Services 834 1,914 161 365
Total cost of revenues 2,321 3,777 788 835
Gross profit 6,430 7,657 1,090 1,896
Operating expenses:
Research and development,
net of grants from the OCS 2,688 1,888 574 320
Selling and marketing 1,927 2,914 581 728
General and administrative 3,065 3,618 823 928
Total operating expenses 7,680 8,420 1,978 1,976
Operating loss (1,250) (763) (888) (80)
Financial income (expenses),
net - (31) 59 (5)
Capital gain (loss) on sale
investment 398 (63) 16 (63)
Loss before taxes on income (852) (857) (813) (148)
Tax on income (benefit), net 108 (20) 108 20
Net loss $ (960) $ (877) $ (921) $ (168)
Net loss per share:
Basic and diluted net loss
per Ordinary share $ (0.30) $ (0.20) $ (0.28) $ (0.04)
Weighted average number of
Ordinary shares used in
computing basic and diluted
net loss per share 3,264,918 4,458,976 3,371,667 4,458,976
Contacts:
Company:
Alon Mualem
CFO
Tel: +972-9-7777-540
Email: Alon.Mualem@mtsint.com
SOURCE MTS-MER Telemanagement Solutions Ltd