RA'ANANA, Israel, August 12, 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 second
quarter of 2010.
Revenues for the second quarter of 2010 were $3.1 million, compared with $2.9 million in revenues during the same quarter
last year and revenues of $2.9
million in the first quarter of 2010. The Company's
operating profit was $42,000 in the
second quarter of 2010 compared to an operating loss of
$394,000 for the second quarter of
2009. Net income for the second quarter was $47,000 or $0.01
per diluted share, compared with a net loss of $414,000 or $(0.09)
per diluted share in the second quarter of 2009. Revenues for the
six month period ended June 30, 2010
were $5.7 million, compared with
$4.8 million for the comparable
period in 2009. Net income for the six months ended June 30, 2009 was $45,000 or $0.01
per diluted share, compared with a net loss of $678,000 or ($0.15)
per diluted share in the comparable period in 2009.
All numbers relating to our ordinary shares and earnings per
share have been adjusted to reflect the reverse stock split that
became effective on March 2,
2010.
"Our second quarter results were in line with our expectations
for improved operating results. They reflect the focus we placed on
improving our implementation processes while closely monitoring our
overall costs," said Eytan Bar, CEO
of MTS.
"The Company continues to see market opportunities as we
leverage our solutions and our strategy to grow our Telecom Expense
Management business through partners. In addition, the Company's
MVNE activity has grown. Our billing software is being provided to
Mobile Virtual Network Operator's (MVNO) as a licensed software
offering internationally, and as a managed service in the U.S."
concluded Mr. Bar.
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.
AnchorPoint TEM solutions enable enterprises to gain visibility
and control of strategic assets that drive key business processes
and crucial competitive advantage. The 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
scaleable solution.
Headquartered in Israel, MTS
markets its solutions through wholly owned subsidiaries in
the United States, Hong Kong and The
Netherlands 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
June 30, December 31,
2010 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,853 $ 2,173
Restricted marketable securities 110 227
Trade receivables, net 842 771
Unbilled receivables 10 10
Other accounts receivable and prepaid expenses 296 376
Inventories 29 39
Total current assets 3,140 3,596
LONG-TERM ASSETS:
Severance pay fund 715 767
Other investments 30 31
Deferred income taxes 35 35
Total long-term assets 780 833
PROPERTY AND EQUIPMENT, NET 154 175
OTHER ASSETS:
Goodwill 3,479 3,479
Other intangible assets, net 1,603 1,807
Total other assets 5,082 5,286
Total assets $ 9,156 $ 9,890
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
June 30, December 31,
2010 2009
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 494 $ 432
Accrued expenses and other liabilities 2,221 2,531
Deferred revenues 2,318 2,741
Total current liabilities 5,033 5,704
LONG-TERM LIABILITIES -
Accrued severance pay 968 1,071
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Share capital 13 13
Additional paid-in capital 19,629 19,577
Treasury shares (29) (29)
Accumulated other comprehensive income (34) 23
Accumulated deficit (16,424) (16,469)
Total shareholders' equity 3,155 3,115
Total liabilities and shareholders' equity $ 9,156 $ 9,890
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)
Six months ended Three months ended
June 30, June 30,
2010 2009 2010 2009
Revenues:
Product sales $ 2,387 $ 2,741 $ 1,270 $ 1,442
Services 3,546 2,977 1,785 1,484
Total revenues 5,933 5,718 3,055 2,926
Cost of revenues:
Product sales 930 1,005 526 531
Services 1,674 1,003 830 538
Total cost of revenues 2,604 2,008 1,356 1,069
Gross profit 3,329 3,710 1,699 1,857
Operating expenses:
Research and
development, net of
grants from the OCS 671 1,047 346 527
Selling and marketing 886 1,517 449 740
General and
administrative 1,697 1,862 862 984
Total operating expenses 3,254 4,426 1,657 2,251
Operating profit (loss) 75 (716) 42 (394)
Financial income
(expenses), net (18) 38 15 (20)
Capital gain on sale of
investment - - - -
Income (loss) before
taxes on income 57 (678) 57 (414)
Tax on income, net 12 - 10 -
Net income (loss) $ 45 $ (678) $ 47 $ (414)
Net Income (loss) per
share:
Basic and diluted net
income (loss) per
Ordinary share $ 0.01 $ (0.15) $ 0.01 $ (0.09)
Weighted average number
of Ordinary shares used
in computing basic and
diluted net loss per
share 4,458,975 4,458,975 4,458,975 4,458,975
Contacts:
Company:
Alon Mualem
CFO
Tel: +972-9-7777-540
Email: Alon.Mualem@mtsint.com
SOURCE MTS-MER Telemanagement Solutions Ltd