RA'ANANA, Israel, May 15, 2014 /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 first
quarter of 2014.
Revenues for the first quarter of 2014 were $1.8 million, compared with $3.3 million in revenues during the same quarter
last year. The Company's operating (loss) was $313,000 in the first quarter of 2014, compared
to operating profit of $420,000 in
the first quarter of 2013. Net loss in the first quarter was
$315,000, or $(0.07) per diluted share, compared to net income
of $344,000, or $0.07 per diluted share, in the first quarter of
2013. The principal factor that adversely affected the quarter's
results was the termination of revenues from the agreement with
Simple Mobile that ended on December 31,
2013.
As of March 31, 2014, MTS had cash
and marketable securities of $6.3
million, as compared to $6.5
million as of December 31,
2013.
The Company announced today that its Board of Directors has
agreed with Eytan Bar that he will
step down as Chief Executive Officer. The Board has named
Alon Mualem, the Company's Chief
Financial Officer, to fill the role of Chief Executive Officer on
an interim basis. The board will promptly begin to search for a
permanent successor. "We would like to thank Eytan for his ten year
career with MTS and his contribution to our company," said Mr.
Chaim Mer, the Company's Chairman of
the Board.
About MTS
Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider
of innovative products and services for Telecom Expense Management
(TEM), Enterprise Mobility Management (EMM), Mobile Virtual Network
Operators and Enablers (MVNO/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, 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 services to allow
the 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 and Hong Kong and through 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:
Alon Mualem
CFO
Tel: +972-9-7777-540
Email: Alon.Mualem@mtsint.com
|
CONSOLIDATED
BALANCE SHEETS
|
|
U.S. dollars in
thousands
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
6,182
|
|
$
6,369
|
|
Restricted
cash
|
|
236
|
|
63
|
|
Restricted marketable
securities
|
|
157
|
|
153
|
|
Trade receivables,
net
|
|
622
|
|
943
|
|
Other accounts
receivable and prepaid expenses
|
|
167
|
|
147
|
|
|
|
|
|
|
Total current
assets
|
|
7,364
|
|
7,675
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
Severance pay
fund
|
|
706
|
|
725
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND
EQUIPMENT, NET
|
|
162
|
|
183
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
Goodwill
|
|
3,479
|
|
3,479
|
|
Other intangible
assets, net
|
|
522
|
|
567
|
|
|
|
|
|
|
Total other
assets
|
|
4,001
|
|
4,046
|
|
|
|
|
|
|
Total
assets
|
|
$
12,233
|
|
$
12,629
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
|
$
219
|
|
$
254
|
|
Accrued expenses and
other liabilities
|
|
2,073
|
|
2,200
|
|
Deferred
revenues
|
|
1,862
|
|
1,766
|
|
Liabilities of
discontinued operations
|
|
362
|
|
362
|
|
|
|
|
|
|
Total current
liabilities
|
|
4,516
|
|
4,582
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Accrued severance
pay
|
|
827
|
|
857
|
|
Deferred tax
liability
|
|
29
|
|
29
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
856
|
|
886
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Share
capital
|
|
13
|
|
13
|
|
Additional paid-in
capital
|
|
20,334
|
|
20,317
|
|
Treasury
shares
|
|
(29)
|
|
(29)
|
|
Accumulated other
comprehensive loss
|
|
(8)
|
|
(6)
|
|
Accumulated
deficit
|
|
(13,449)
|
|
(13,134)
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
6,861
|
|
7,161
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
12,233
|
|
$
12,629
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
Three months
ended
March
31,
|
|
|
2014
|
|
2013
|
|
Revenues:
|
|
|
|
|
|
Services
|
|
$
1,460
|
|
$
2,702
|
|
Product
sales
|
|
338
|
|
595
|
|
|
|
|
|
|
Total
revenues
|
|
1,798
|
|
3,297
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
Services
|
|
619
|
|
908
|
|
Product
sales
|
|
175
|
|
243
|
|
|
|
|
|
|
Total cost of
revenues
|
|
794
|
|
1,151
|
|
|
|
|
|
|
Gross
profit
|
|
1,004
|
|
2,146
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development
|
|
355
|
|
344
|
|
Selling and
marketing
|
|
478
|
|
588
|
|
General and
administrative
|
|
484
|
|
794
|
|
|
|
|
|
|
Total operating
expenses
|
|
1,317
|
|
1,726
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(313)
|
|
420
|
|
Financial income,
net
|
|
4
|
|
19
|
|
Other income (loss),
net
|
|
(1)
|
|
-
|
|
|
|
|
|
|
Income (loss) before
taxes on income
|
|
(310)
|
|
439
|
|
Taxes on income,
net
|
|
5
|
|
95
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
(315)
|
|
$
344
|
|
|
|
|
|
|
Net income (loss) per
Ordinary share:
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income (loss) per Ordinary share
|
|
$
(0.07)
|
|
$
0.07
|
|
|
|
|
|
|
Weighted average
number of Ordinary shares used in computing basic net income (loss)
per share
|
|
4,665,557
|
|
4,639,899
|
|
Weighted average
number of Ordinary shares used in computing diluted net income
(loss) per share
|
|
4,684,146
|
|
4,784,153
|
|
|
|
|
|
SOURCE Mer Telemanagement Solutions Ltd.