RA'ANANA, Israel, March 22, 2012 /PRNewswire/ --
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, 2011.
Revenues for the year ended December 31,
2011 were $12.0 million,
compared with revenues of $11.6
million in 2010. Revenues for the fourth quarter of 2011
were $3.2 million, compared with
revenues of $3.0 million in the
fourth quarter of 2010.
Net income for year ended December 31,
2011 was $387,000, or
$0.09 per diluted share, compared
with net income of $176,000, or
$0.04 per diluted share for 2010. Net
income for year ended December 31,
2011 was negatively affected by legal expenses and
settlement costs of approximately $640,000 relating to an alleged patent
infringement claim. No additional litigation expenses associated
with this claim are expected to be incurred in 2012.
Net loss for the fourth quarter of 2011 was $201,000, or $0.05
per diluted share, compared with, net income of $117,000 or $0.03
per diluted share in the fourth quarter of 2010. Net loss for the
fourth quarter of 2011 was mainly the result of a lump sum payment
made in connection with a settlement relating to an alleged patent
infringement as well as a loss relating to our discontinued
operations in Brazil.
As of December 31, 2011, we had
cash and marketable securities of $3.4
million as compared to $2.3
million as at December 31,
2010. During the year ended December
31, 2011 we had positive operating cash flow of $1.1 million, as compared to a $71,000 used by operating activity during the
year ended December 31, 2010.
"MTS has made sustained changes in its operations by reducing
operating expenses and we are seeking new business opportunities.
The results of this process are reflected in the Company's improved
cash position and financial results," said Eytan Bar, CEO of MTS.
"The Company continues to develop Telecom Expense Management
opportunities through partners and existing customers. In addition,
the Company's Billing and Mobile Virtual Network Operator's (MVNO)
activity has grown both as a licensed offering and as a managed
service. We are looking forward to improve both our top and bottom
line performance," 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, 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 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
December 31, December 31,
2011 2010
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 3,269 $ 2,124
Restricted cash 45 -
Restricted marketable securities 127 147
Trade receivables, net 854 1,251
Other accounts receivable and prepaid expenses 88 174
Inventories 5 17
Total current assets 4,388 3,713
LONG-TERM ASSETS:
Severance pay fund 619 798
Other investments 6 4
Deferred income taxes 31 33
Total long-term assets 656 835
PROPERTY AND EQUIPMENT, NET 161 165
OTHER ASSETS:
Goodwill 3,479 3,479
Other intangible assets, net 1,050 1,415
Total other assets 4,529 4,894
Total assets $ 9,734 $ 9,607
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (exceptshare and per share
data)
December 31, December 31,
2011 2010
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 326 $ 305
Accrued expenses and other liabilities 2,354 2,085
Deferred revenues 2,025 2,452
Liabilities of discontinued operations 435 351
Total current liabilities 5,140 5,193
LONG-TERM LIABILITIES -
Accrued severance pay 762 1,051
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Share capital 13 13
Additional paid-in capital 19,773 19,676
Treasury shares (29) (29)
Accumulated other comprehensive income (19) (4)
Accumulated deficit (15,906) (16,293)
Total shareholders' equity 3,832 3,363
Total liabilities and shareholders' equity $ 9,734 $ 9,607
CONSOLIDATED STATEMENTS OF
OPERATIONS
U.S. dollars in thousands (except
share and per share data)
Year ended Three months ended
December 31, December 31,
2011 2010 2011 2010
Revenues:
Product sales $ 3,828 $ 4,409 $ 895 $ 1,126
Services 8,175 7,230 2,264 1,890
Total revenues 12,003 11,639 3,159 3,016
Cost of revenues:
Product sales 1,105 1,508 269 312
Services 2,836 2,693 854 559
Total cost of revenues 3,941 4,201 1,123 871
Gross profit 8,062 7,438 2,036 2,145
Operating expenses:
Research and development,
net of grants from the OCS 1,909 1,547 464 447
Selling and marketing 1,905 2,584 440 707
General and administrative 3,847 3,016 1170 747
Total operating expenses 7,661 7,147 2,074 1,901
Operating profit (loss) 401 291 (38) 244
Financial income (expenses), net 2 - (77) (25)
Capital gain on sale
of investment in affiliate 78 - - -
Income (loss) before
taxes on income 481 291 (115) 219
Tax on income 10 47 2 (34)
Net income (loss) from
continuing operations $ 471 $ 244 $ (117) $ 185
Net loss from discontinued
operations (84) (68) (84) (68)
Net income (loss) $ 387 $ 176 $ (201) $ 117
Basic and diluted net income
(loss) per Ordinary share $ 0.09 $ 0.04 $ (0.05) $ 0.03
Weighted average number of
Ordinary shares used in
computing basic and diluted
net loss per share 4,459,057 4,459,057 4,459,057 4,459,057
Contacts:
Company:
Alon Mualem
CFO
Tel: +972-9-7777-540
Email: Alon.Mualem@mtsint.com
SOURCE MTS-MER Telemanagement Solutions Ltd