RA'ANANA, Israel, Nov. 7, 2013 /PRNewswire/ -- MTS – Mer
Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a
global provider of Mobile Virtual Network Enabler (MVNE), Mobile
Money and telecommunications expense management (TEM) solutions and
services, today announced its financial results for the third
quarter of 2013.
Revenues for the third quarter of 2013 were $3.0 million, compared with $3.4 million in revenues during the same quarter
last year and revenues of $3.1
million in the second quarter of 2013. The Company's
operating profit was $391,000 in the
third quarter of 2013 compared to an operating profit of
$697,000 for the third quarter of
2012 and $377,000 in the second
quarter of 2013. Net income for the third quarter was $274,000 or $0.06
per diluted share, compared with net income of $245,000 or $0.05
per diluted share in the third quarter of 2012 and $309,000 or $0.07
per diluted share in the second quarter of 2013.
Revenues for the nine month period ended September 30, 2013 were $9.4 million, compared with $9.6 million for the comparable period in 2012.
Net income for the nine months ended September 30, 2013 was $927,000 or $0.20
per diluted share, compared with net income of $1,015,000 or $0.22
per diluted share in the comparable period in 2012.
As of September 30, 2013, we had
cash and marketable securities of $5.8
million as compared to $4.3
million as at December 31,
2012. During the nine month period ended September 30, 2013 we had operating cash flow of
$1.4 million, as compared to
$1.3 million during the nine month
period ended September 30, 2012.
"As previously announced, during 2013 we signed up four new MVNO
customers in the U.S. for our MVNE managed services model and two
Mobile Money customers in Africa.
The contracts with the MVNO and Mobile Money customers provide for
revenues based on volume ("pay as you grow" model), with a minimum
monthly revenues over a contract period. We expect that some of
these signed up contracts will become operational by the end of
this year. None of the contracts, on a standalone basis, provides
for material minimum deliverables" said Eytan Bar, CEO of MTS.
"We are continuing to see opportunities in the TEM, MVNE and
Mobile Money markets, both directly and through partners, and are
working diligently to convert these opportunities into new
contracts. In parallel, we are closely monitoring our operating
expenses and are making the necessary adjustments to our staffing
and expenses." concluded Mr. Bar.
About MTS
Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider
of Telecom Expense Management (TEM) and Mobile Virtual Network
Enablers (MVNE) and Mobile Money services and solutions used by
mobile service providers.
The MTS TEM Suite solution enables enterprises to gain
visibility and control of strategic fixed and mobile telecom
assets, services and IT security policies that drive key business
processes and crucial competitive advantage. The MTS cloud,
consulting and managed services solutions -- including integrated
management of invoices, assets, wireless, optimization, usage,
mobile device management (MDM), procurement, help desk and bill
payment ,along with dashboards and reporting tools -- provide
professionals at every level of the organization with rapid access
to concise, actionable data.
MTS's solutions for 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 provides MVNE service to allow
quick launch of new MVNO initiatives in a pay as you grow and
revenue share models. In addition, 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, Hong Kong and distribution channels. MTS
shares are traded on the NASDAQ Capital Market (symbol MTSL). For
more information please visit the MTS web site: 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.
Contacts:
Company:
Alon
Mualem
CFO
Tel:
+972-9-7777-540
Email: Alon.Mualem@mtsint.com
CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
5,674
|
|
$
4,190
|
Restricted
cash
|
|
146
|
|
38
|
Restricted marketable
securities
|
|
154
|
|
139
|
Trade receivables,
net
|
|
738
|
|
1,066
|
Deferred income
tax
|
|
77
|
|
371
|
Other accounts
receivable and prepaid expenses
|
|
223
|
|
175
|
|
|
|
|
|
Total current
assets
|
|
7,012
|
|
5,979
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
Severance pay
fund
|
|
745
|
|
658
|
Other
investments
|
|
-
|
|
4
|
|
|
|
|
|
Total long-term
assets
|
|
745
|
|
662
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
199
|
|
245
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
Goodwill
|
|
3,479
|
|
3,479
|
Other intangible
assets, net
|
|
614
|
|
759
|
|
|
|
|
|
Total other
assets
|
|
4,093
|
|
4,238
|
|
|
|
|
|
Total
assets
|
|
$
12,049
|
|
$
11,124
|
CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2013
|
|
2012
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
|
$
214
|
|
$
279
|
Accrued expenses and
other liabilities
|
|
2,095
|
|
2,393
|
Deferred
revenues
|
|
1,763
|
|
1,648
|
Liabilities of
discontinued operations
|
|
435
|
|
435
|
|
|
|
|
|
Total current
liabilities
|
|
4,507
|
|
4,755
|
|
|
|
|
|
LONG-TERM LIABILITIES
-
|
|
|
|
|
Accrued severance
pay
|
|
864
|
|
800
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Share
capital
|
|
13
|
|
13
|
Additional paid-in
capital
|
|
20,278
|
|
20,120
|
Treasury
shares
|
|
(29)
|
|
(29)
|
Accumulated other
comprehensive income
|
|
29
|
|
5
|
Accumulated
deficit
|
|
(13,613)
|
|
(14,540)
|
|
|
|
|
|
Total shareholders'
equity
|
|
6,678
|
|
5,569
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
12,049
|
|
$
11,124
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
|
|
|
|
Nine months
ended
September
30,
|
|
Three months
ended
September
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues:
|
|
|
|
|
|
|
|
|
Services
|
|
$
7,846
|
|
$
7,026
|
|
$
2,520
|
|
$
2,515
|
Product
sales
|
|
1,511
|
|
2,622
|
|
440
|
|
870
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
9,357
|
|
9,648
|
|
2,960
|
|
3,385
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Services
|
|
2,628
|
|
2,458
|
|
799
|
|
846
|
Product
sales
|
|
599
|
|
887
|
|
172
|
|
269
|
|
|
|
|
|
|
|
|
|
Total cost of
revenues
|
|
3,227
|
|
3,345
|
|
971
|
|
1,115
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
6,130
|
|
6,303
|
|
1,989
|
|
2,270
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development, net of grants from the OCS
|
|
1,019
|
|
1,003
|
|
351
|
|
299
|
Selling and
marketing
|
|
1,576
|
|
1,600
|
|
448
|
|
557
|
General and
administrative
|
|
2,347
|
|
2,206
|
|
799
|
|
717
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
4,942
|
|
4,809
|
|
1,598
|
|
1,573
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,188
|
|
1,494
|
|
391
|
|
697
|
Financial income
(expenses), net
|
|
68
|
|
(20)
|
|
31
|
|
1
|
|
|
|
|
|
|
|
|
|
Income before taxes on
income
|
|
1,256
|
|
1,474
|
|
422
|
|
698
|
Tax on income,
net
|
|
329
|
|
459
|
|
148
|
|
453
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
927
|
|
$
1,015
|
|
$
274
|
|
$
245
|
|
|
|
|
|
|
|
|
|
Net Income per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per
Ordinary share
|
|
$
0.20
|
|
$
0.23
|
|
$
0.06
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
Dilute net income per
Ordinary share
|
|
$
0.20
|
|
$
0.22
|
|
$
0.06
|
|
$
0.05
|
Weighted average
number of Ordinary shares used in
computing basic net income per share
|
|
4,657,507
|
|
4,462,807
|
|
4,665,557
|
|
4,470,306
|
Weighted average
number of Ordinary shares used in
computing and diluted net income per
share
|
|
4,718,788
|
|
4,525,694
|
|
4,679,174
|
|
4,533,193
|
|
|
|
|
|
|
|
|
|
SOURCE MTS - Mer Telemanagement Solutions Ltd.