RA'ANANA, Israel and RIVER EDGE,
N.J., Aug. 6, 2015
/PRNewswire/ -- MTS – Mer Telemanagement Solutions Ltd.
(Nasdaq Capital Market: MTSL), a provider of video advertising
solutions for online and mobile platforms, telecommunications
expense management, and mobility management and enablement, today
announced its financial results for the second quarter of 2015.
As previously announced, the closing of the acquisition of
Vexigo Ltd. occurred on April 1, 2015
and its results were consolidated in the financial results of MTS
as of such date. Vexigo specializes in video advertising solutions
for online and mobile platforms, engaging multiple ad formats and
interactive ad units with a cutting-edge, in-house optimization
platform providing precise targeting in a safe environment for both
advertisers and website owners.
Revenues for the second quarter of 2015 were $4.8 million, compared with $1.7 million in the same quarter last year and
$1.8 million in the first quarter of
2015. Operating loss for the second quarter of 2015 was
$170,000, compared with $291,000 in the second quarter of 2014 and
$299,000 in the first quarter of
2015. Net loss for the second quarter of 2015 was $248,000 or ($0.03)
per diluted share, compared with a net loss of $302,000 or ($0.06)
per diluted share in the second quarter of 2014 and a net loss of
$227,000 or ($0.05) per diluted share in the first quarter of
2015. On a non-GAAP basis, excluding non-recurring M&A expenses
related to the Vexigo acquisition, net income for the second
quarter was $141,000 or $0.02 per diluted share, compared with a net loss
of $302,000 or ($0.06) per diluted share in the second quarter
of 2014.
Revenues for the six months ended June
30, 2014 were $6.6 million,
compared with $3.5 million for the
comparable period in 2014. Net loss for the six months ended
June 30, 2015 was $475,000 or ($0.08)
per diluted share, compared with a net loss of $617,000 or ($0.13)
per diluted share in the comparable period in 2014. On a non-GAAP
basis, excluding non-recurring M&A expenses related to the
Vexigo acquisition, the net loss for the six months ended
June 30, 2015 was $51,000 or ($0.01)
per diluted share.
According to the rules of business combination accounting, the
total purchase price for the acquisition was allocated to the
assets acquired and liabilities assumed. As a result, the Company's
consolidated intangible assets were significantly affected, as well
as shareholders equity and the accounting for other payments due to
Vexigo's former shareholders. These amounts were recorded based on
a preliminary Purchase Price Allocation (PPA).
"In the second quarter we successfully integrated Vexigo as a
division of MTS. We are continuing to develop our video advertising
solutions for online and mobile platforms through our wholly-owned
subsidiary, Vexigo Ltd. In addition, we are continuing to
strengthen our telecom expense management (TEM) business unit
through the shift of TEM customers to the cloud with multi-year
service contracts." said Lior
Salansky, CEO of MTS. "Vexigo results reflect the shift from
online video advertising to mobile video advertising as a result of
worldwide growth in mobile content use. The Vexigo line of
business, which diversifies our existing portfolio, was responsible
for our company returning to profitability during the second
quarter of 2015 on a non-GAAP basis. In order to fund our current
operations and to execute our business plan, we are currently
seeking additional financing and are investigating available
alternatives," concluded Mr. Salansky.
About MTS
Mer Telemanagement Solutions Ltd. (MTS) is a provider of video
advertising solutions for online and mobile platforms through
Vexigo as well as a provider of innovative products and services
for telecom expense management (TEM), enterprise mobility
management (EMM), mobile virtual network operators and enablers
(MVNO/MVNE), billing mobile money services and solutions and an
IOT/M2M enablement platform used by mobile service providers.
Vexigo (www.vexigo.com) is a global provider of online video
advertising software and services delivering compelling results
through a propriety in-house technology and an easy-to-use and very
effective publishing platform specifically designed for content
publishers.
Headquartered in Israel, MTS
markets its solutions through wholly owned subsidiaries in
Israel, the United States and Hong Kong and through distribution channels..
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
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 3,170
|
|
$ 4,864
|
Restricted
cash
|
|
262
|
|
648
|
Restricted marketable
securities
|
|
132
|
|
136
|
Trade receivables,
net
|
|
4,370
|
|
579
|
Other accounts
receivable and prepaid expenses
|
|
487
|
|
75
|
|
|
|
|
|
Total current
assets
|
|
8,421
|
|
6,302
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
Severance pay
fund
|
|
666
|
|
604
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET
|
|
175
|
|
118
|
|
|
|
|
|
|
|
|
|
|
OTHER INTANGIBLE ASSETS
AND GOODWILL
|
|
19,298
|
|
3,868
|
|
|
|
|
|
Total assets
|
|
$
28,560
|
|
$
10,892
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade
payables
|
|
$1,818
|
|
$254
|
Accrued expenses and
other liabilities
|
|
5,896
|
|
2,252
|
Deferred
revenues
|
|
2,044
|
|
1,706
|
Deferred tax
|
|
138
|
|
-
|
Liabilities of
discontinued operations
|
|
240
|
|
282
|
|
|
|
|
|
Total current
liabilities
|
|
10,136
|
|
4,494
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
Accrued severance
pay
|
|
790
|
|
712
|
Other
liabilities
|
|
6,784
|
|
-
|
Deferred tax
liability
|
|
547
|
|
54
|
|
|
|
|
|
Total long-term
liabilities
|
|
8,121
|
|
766
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Share
capital
|
|
22
|
|
13
|
Additional paid-in
capital
|
|
25,530
|
|
20,400
|
Treasury
shares
|
|
(29)
|
|
(29)
|
Accumulated other
comprehensive loss
|
|
(1)
|
|
(8)
|
Accumulated
deficit
|
|
(15,219)
|
|
(14,744)
|
|
|
|
|
|
Total shareholders'
equity
|
|
10,303
|
|
5,632
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$28,560
|
|
$10,892
|
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,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
|
|
|
|
|
Services
|
|
$ 2,682
|
|
$ 2,848
|
|
$ 1,334
|
|
$ 1,388
|
Product
sales
|
|
880
|
|
679
|
|
395
|
|
341
|
Video Advertising
(1)
|
|
3,088
|
|
-
|
|
3,088
|
|
-
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
6,650
|
|
3,527
|
|
4,817
|
|
1,729
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
|
Services
|
|
1,200
|
|
1,205
|
|
706
|
|
586
|
Product
sales
|
|
259
|
|
312
|
|
144
|
|
137
|
Video Advertising
(1)
|
|
1,896
|
|
-
|
|
1,896
|
|
-
|
|
|
|
|
|
|
|
|
|
Total cost of
revenues
|
|
3,355
|
|
1,517
|
|
2,746
|
|
723
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
3,295
|
|
2,010
|
|
2,071
|
|
1,006
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
|
764
|
|
650
|
|
482
|
|
295
|
Selling and
marketing
|
|
1,064
|
|
943
|
|
503
|
|
465
|
General and
administrative
|
|
1,936
|
|
1,021
|
|
1,256
|
|
537
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
3,764
|
|
2,614
|
|
2,241
|
|
1,297
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(469)
|
|
(604)
|
|
(170)
|
|
(291)
|
Financial income
(expenses), net
|
|
51
|
|
(6)
|
|
28
|
|
(9)
|
|
|
|
|
|
|
|
|
|
Loss before taxes on
income
|
|
(418)
|
|
(610)
|
|
(142)
|
|
(300)
|
Tax on income,
net
|
|
99
|
|
7
|
|
99
|
|
2
|
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
(517)
|
|
(617)
|
|
(241)
|
|
(302)
|
Net income (loss)
from discontinued operations
|
|
42
|
|
-
|
|
(7)
|
|
-
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$ (475)
|
|
$ (617)
|
|
$ (248)
|
|
$ (302)
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per Ordinary share
|
|
$ (0.08)
|
|
$ (0.13)
|
|
$ (0.03)
|
|
$ (0.06)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of Ordinary shares used in computing basic and diluted net
loss per share
|
|
6,300,720
|
|
4,669,108
|
|
7,929,658
|
|
4,672,635
|
|
|
(1) A portion of
Video Advertising revenues and their associated cost of revenues
for the three and six month periods ended June 30, 2015 are
presented on a net basis, based on current arrangement with certain
publishers. If such revenues and cost of revenues were presented on
a gross basis this would increase both Video Advertising revenues
and cost of revenues by $305, with no change to gross
profit.
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
Six months
ended
June
30,
|
|
Three months
ended
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
GAAP Net
loss
|
|
(475)
|
|
(617)
|
|
(248)
|
|
(302)
|
M&A expenses
related to the acquisition of Vexigo Ltd
|
|
424
|
|
-
|
|
389
|
|
-
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net
income (loss)
|
|
$ (51)
|
|
$
(617)
|
|
$
141
|
|
$
(302)
|
|
|
|
|
|
|
|
|
|
Net Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net loss
per Ordinary share
|
|
$
(0.08)
|
|
$
(0.13)
|
|
$
(0.03)
|
|
$
(0.06)
|
Non-GAAP diluted net
income (loss) per Ordinary share
|
|
$
(0.01)
|
|
$
(0.13)
|
|
$
0.02
|
|
$ (0.06)
|
Weighted average
number of Ordinary shares used in
computing Non-GAAP
diluted net income (loss) per share
|
|
6,300,720
|
|
4,669,108
|
|
8,013,350
|
|
4,672,635
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mts-announces-second-quarter-2015-financial-results-300124781.html
SOURCE MTS - Mer Telemanagement Solutions Ltd.