RA'ANANA, Israel and
RIVER EDGE, New Jersey,
May 10, 2016 /PRNewswire/
-- Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital
Market: MTSL), a global provider of software solutions for
online video advertising, telecommunications expense management and
billing solutions, today announced its financial results for the
first quarter of 2016.
MTS's revenues for the first quarter of 2016 totaled
$3.3 million compared with
$1.8 million for the first quarter of
2015. On a GAAP basis, the Company recorded a net loss for the
quarter of $(224,000), or
$(0.03) per diluted share, compared
with a net loss of $(227,000), or
$(0.05) per diluted share, for the
first quarter of 2015.
On a non-GAAP basis (as described and reconciled below), the
Company posted net income of $32,000,
or $0.00 per diluted share, compared
with a net loss of $(131,000), or
$(0.03) per diluted share, for the
first quarter of 2015.
Commenting on the results, Mr. Lior
Salansky, CEO of MTS, said, "During the first quarter, we
continued moving forward with our plan to establish Vexigo as a
leading company in the Video Advertising space. Our current focus
is to build out Vexigo's technological product lines. We are
pleased to report increased activity around Vexigo's Visualizr, our
mobile content aggregation and monetization solution. The
Visualizr enhances mobile tools such as launcher apps. This enables
publishers to promote and monetize their content as personalized
magazines that are optimized for mobile, wearable and other
devices."
"The telecommunications side of our business continues to be
stable as we have added several new TEM and cloud customers with
long-term contracts. We are working to further enhance the
division's visibility and predictability by continuing to move our
U.S.-based clients to the cloud with multi-year service contracts,"
said Mr. Salansky.
As previously announced, during the first quarter, Vexigo's
former shareholders, who are now shareholders of MTS, agreed to
extend the schedule of outstanding payments due them in order to
improve the Company's working capital. On May 16, 2016, the shareholders of the Company
will vote on a proposed $700,000
equity private placement to the former Vexigo shareholders and to
certain directors and officers of the Company. In the event the
proposal is approved and the private placement is consummated, the
Company will accelerate the payment of $500,000 to the former Vexigo Shareholders and
they have agreed to immediately invest the net amount (after tax
deductions in accordance with all applicable law) of that payment
in the private placement. The aggregate investment amount of the
Former Vexigo Shareholders is estimated to be approximately
$400,000 in the event that the
Private Placement is consummated.
In accordance with standard industry accounting policies, the
Company accounts for a portion of the Video Advertising revenues
and cost of revenues derived from third-party arrangements on a net
basis. If these revenues had been presented on a gross basis, Video
Advertising revenues and cost of revenues would have increased by
approximately $2.0 million in the
first quarter of 2016, while gross profit would have remained
unchanged.
Non-GAAP Financial Measures
This release includes net income, basic and diluted earnings per
share calculated on a non-GAAP basis. These non-GAAP measures
exclude the following items:
- M&A expenses related to the Vexigo acquisition
- Amortization of intangible assets, net of tax effects
- Stock-based compensation expenses
MTS's management believes that the presentation of non-GAAP
measures provides useful information to investors and management
regarding financial and business trends that relate to the
Company's operating results and cash generation capabilities. These
non-GAAP financial measures are not in accordance with, or an
alternative for, generally accepted accounting principles and
differ from non-GAAP financial measures used by other companies. In
addition, these non-GAAP financial measures are not based on any
comprehensive set of accounting rules or principles. To achieve an
accurate overall picture of the Company's results of operations,
MTS advises the reader to consider the non-GAAP financial measures
in conjunction with their corresponding GAAP measures.
About MTS
Mer Telemanagement Solutions Ltd. (MTS) provides video
advertising solutions for online and mobile platforms and TEM and
Billing solutions and services.
MTS's Vexigo (www.vexigo.com) subsidiary develops highly
sophisticated video advertising solutions for online and mobile
platforms, and uses them to offer advertising optimization services
to advertisers and website owners.
MTS's telecommunications business provides innovative products
and services for enterprises in the areas of telecom expense
management (TEM), enterprise mobility management (EMM), mobile
virtual network operators/enablers (MVNO/MVNE) and IOT/M2M
enablement for mobile service providers.
Headquartered in Israel, MTS
markets its solutions through wholly-owned subsidiaries in
Israel, the U.S and Hong Kong, as well as 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.
CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 3,692
|
|
$ 3,444
|
Restricted
cash
|
|
284
|
|
231
|
Restricted marketable
securities
|
|
139
|
|
134
|
Trade receivables,
net
|
|
3,801
|
|
4,485
|
Deferred tax
asset
|
|
43
|
|
40
|
Other accounts
receivable and prepaid expenses
|
|
204
|
|
103
|
|
|
|
|
|
Total current
assets
|
|
8,163
|
|
8,437
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
Severance pay
fund
|
|
703
|
|
668
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET
|
|
182
|
|
160
|
|
|
|
|
|
|
|
|
|
|
OTHER INTANGIBLE ASSETS
AND GOODWILL
|
|
12,612
|
|
12,759
|
|
|
|
|
|
Total assets
|
|
$
21,660
|
|
$
22,024
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
|
|
$
|
2,808
|
|
$
|
$ 3,297
|
Accrued expenses and
other liabilities (*)
|
|
|
3,560
|
|
3,505
|
Deferred
revenues
|
|
|
2,442
|
|
1,826
|
Deferred
tax
|
|
|
142
|
|
142
|
Liabilities of
discontinued operations
|
|
|
105
|
|
105
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
9,057
|
|
8,875
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
|
Accrued severance
pay
|
|
|
870
|
|
798
|
Liabilities related
to Vexigo acquisition
|
|
|
5,211
|
|
5,624
|
Deferred tax
liability
|
|
|
547
|
|
578
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
|
6,628
|
|
7,000
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
|
Share
capital
|
|
|
22
|
|
21
|
Additional paid-in
capital
|
|
|
25,695
|
|
25,648
|
Treasury
shares
|
|
|
(29)
|
|
(29)
|
Accumulated other
comprehensive loss
|
|
|
(6)
|
|
(8)
|
Accumulated
deficit
|
|
|
(19,707)
|
|
(19,483)
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
|
5,975
|
|
6,149
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
|
$
|
21,660
|
|
$
|
22,024
|
(*) As of March 31, 2016,
including $1.2 million of amounts
owed to Vexigo's former shareholders as part of Vexigo
acquisition.
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
|
|
|
|
|
Three months
ended
March
31,
|
|
|
|
|
2016
|
|
2015
|
|
Revenues:
|
|
|
|
|
|
|
Telecom
Services
|
|
|
$ 1,431
|
|
$
1,348
|
|
Telecom Product
sales
|
|
|
203
|
|
485
|
|
Video
Advertising(1)
|
|
|
1,710
|
|
-
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
|
3,344
|
|
1,833
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
Telecom
Services
|
|
|
701
|
|
494
|
|
Telecom Product
sales
|
|
|
144
|
|
115
|
|
Video Advertising
(1)
|
|
|
780
|
|
-
|
|
|
|
|
|
|
|
|
Total cost of
revenues
|
|
|
1,625
|
|
609
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
1,719
|
|
1,224
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research and
development
|
|
|
519
|
|
282
|
|
Selling and
marketing
|
|
|
577
|
|
561
|
|
General and
administrative
|
|
|
840
|
|
680
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
1,936
|
|
1,523
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
|
(217)
|
|
(299)
|
|
Financial income,
net
|
|
|
34
|
|
23
|
|
|
|
|
|
|
|
|
Loss before taxes on
income
|
|
|
(183)
|
|
(276)
|
|
Income tax expense,
net
|
|
|
41
|
|
-
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
|
(224)
|
|
(276)
|
|
Net income from
discontinued operations
|
|
|
-
|
|
49
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
(224)
|
|
$
(227)
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per Ordinary share
|
|
|
$
(0.03)
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
Weighted average number
of Ordinary shares used in computing basic and diluted net loss per
share
|
|
|
8,043,380
|
|
4,672,664
|
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
March
31,
|
|
|
|
|
2016
|
|
2015
|
|
|
GAAP Net
loss
|
|
(224)
|
|
(227)
|
|
|
M&A expenses
related to the acquisition of Vexigo Ltd
|
|
-
|
|
35
|
|
|
Stock-based
compensation expenses
|
|
47
|
|
19
|
|
|
Intangible assets
amortization, net of tax effects
|
|
209
|
|
42
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net
income ( loss )
|
|
$
|
32
|
|
$
|
(131)
|
|
|
|
|
|
|
|
|
|
Net Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net loss
per Ordinary share
|
|
$
|
(0.03)
|
|
$
|
(0.05)
|
|
|
Non-GAAP diluted net
income (loss) per Ordinary share
|
|
$
|
0.00
|
|
$
|
(0.03)
|
|
|
Weighted average
number of Ordinary shares used in
computing Non-GAAP
diluted net income (loss) per share
|
|
8,043,380
|
|
4,672,664
|
|
|
|
|
|
|
|
|
|
|
Contacts:
Company:
Alon Mualem
CFO
Tel: +972-9-7777-540
Email: Alon.Mualem@mtsint.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mts-announces-first-quarter-2016-financial-results-300265802.html
SOURCE Mer Telemanagement Solutions Ltd. (MTS)