RA'ANANA, Israel, February 7 /PRNewswire-FirstCall/ -- Mer
Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a
global provider of business support systems (BSS) for comprehensive
telecommunication management and customer care & billing
(CC&B) solutions, today announced its financial results for the
fourth quarter of 2006 and the year ended December 31, 2006.
Revenues for the fourth quarter of 2006 were $2.9 million, compared
with revenues of $3.0 million in the fourth quarter of 2005.
Revenues for the twelve month period ended December 31, 2006 were
$11.0 million, compared with revenues of $11.6 million for the 2005
twelve month period. Operating income for the fourth quarter of
2006 was $17,000 compared with a loss of $225,000 in the fourth
quarter of 2005. Operating loss for the twelve month period ended
December 31, 2006 decrease 61% to $1.7 million, compared with a
loss of $4.3 million for the 2005 twelve month period. Net profit
for the fourth quarter was $50,000 or $0.01 per diluted share,
compared with a net loss of $335,000 or ($0.06) per diluted share
in the fourth quarter of 2005. Net loss for the twelve month period
ended December 31, 2006 decline by 64% to $1.5 million, or ($0.27)
per diluted share, compared with a net loss of $4.2 million or
($0.83) per diluted share for the 2005 twelve month period. MTS
ended the fourth quarter with an accumulated backlog of orders of
approximately $1.3 million. The backlog represents orders booked
but not yet recognized as revenue as of December 31, 2006. Mr.
Eytan Bar, President and CEO of MTS said "In the last few years MTS
invested in its growth strategy plan which relies on our telecom
expense management (TEM) and billing solutions. In 2006, we
successfully established new partnerships with NEC to provide our
TEM solution and with an additional major network vendor to provide
our IPTV and convergent billing solutions. In the last two years we
successfully implemented our new billing and interconnect solutions
worldwide and we started to gain market recognition which exposes
us to new market opportunities and increases our chances of closing
new contracts. We started implementations of our TEM solution for
several customers in the US and Europe in 2006 and we are about to
complete them during 2007. In 2006, we expanded our presence in the
US telemanagement market by acquiring TelSoft Solutions, a
California based telemanagement solutions company. We believe that
their large customer installed base in the US is a key to our
success with our new TEM offerings. "We see the market
opportunities and are ready to leverage our solutions. We are
looking forward to improve both our top and bottom line
performance," concluded Mr. Bar. Conference Call Information MTS
will conduct a teleconference to discuss the fourth quarter results
on Wednesday, February 7 at 11:00 a.m Eastern Time/6:00 p.m Israel
time. To access the conference call, please dial +1-800-896-8445
(U.S.), +1-785-830-1916 (international), at least 10 minutes prior
to commencement of the call. Reference the MTS conference call or
conference ID #MULTIVU A replay of the call will be available from
February 7 through 11:59 p.m. EST on February 14. To access the
replay, please dial +1-800-753-5575. About MTS Mer Telemanagement
Solutions Ltd. (MTS) is a global provider of business support
systems for comprehensive telecommunication management and customer
care & billing solutions. MTS' business support system is a
full-featured customized solution for telecommunications
management, Interconnect and customer care & billing. Its
telecommunications expense management solution is used by
corporations and organizations to improve the efficiency and
performance of all telecommunication and information technology
operations, and to significantly reduce associated costs. Its
service providers and carriers solutions are used to support
sophisticated billing, web-based self-provisioning, partners
management and interconnect billing. Headquartered in Israel, MTS
markets through wholly owned subsidiaries in the United States,
Hong Kong, Holland, and Brazil, and 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. Contacts: Company: Shlomi Hagai Corporate
COO & CFO Tel: +972-9-762-1733 Email: CONSOLIDATED BALANCE
SHEETS U.S. dollars in thousands December 31, 2005 2006 ASSETS
CURRENT ASSETS: Cash and cash equivalents $ 3,191 $ 1,474 Short
term bank deposits - 100 Marketable securities 132 159 Trade
receivables (net of allowance for doubtful accounts of $ 402 and $
505 at December 31, 2005 and 2006, respectively) 1,895 2,876
Unbilled receivables 104 214 Other accounts receivable and prepaid
expenses 491 763 Inventories 181 138 Total current assets 5,994
5,724 LONG-TERM ASSETS: Investments in an affiliate 1,615 1,598
Long-term loans, net of current maturities 3 - Severance pay fund
478 673 Other investments 347 366 Total long-term assets 2,443
2,637 PROPERTY AND EQUIPMENT, NET 571 439 OTHER ASSETS: Goodwill
3,700 4,119 Other intangible assets, net 993 1,639 Deferred income
taxes 115 166 Total other assets 4,808 5,924 Total assets $ 13,816
$ 14,724 CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands
(except share and per share data) December 31, 2005 2006
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short
term bank credit $ - $ 4 Current maturities on bank loan - 417
Trade payables 735 510 Accrued expenses and other liabilities 2,306
2,458 Deferred revenues 888 1,545 Total current liabilities 3,929
4,934 LONG-TERM LIABILITIES: Long term bank loan - 583 Accrued
severance pay 713 946 Total long-term liabilities 713 1,529
SHAREHOLDERS' EQUITY: Share capital - Ordinary shares of NIS 0.01
par value - Authorized: 12,000,000 shares at December 31, 2005 and
2006; Issued: 5,744,304 and 5,784,645 shares at December 31, 2005
and 2006, respectively; Outstanding: 5,733,504 and 5,773,645 shares
at December 31, 2005 and 2006, respectively 17 17 Additional
paid-in capital 15,966 16,109 Treasury shares (10,800 Ordinary
shares at December 31, 2005 and 2006) (29) (29) Deferred stock
compensation (142) - Accumulated other comprehensive income (loss)
(75) 254 Accumulated deficit (6,563) (8,090) Total shareholders'
equity 9,174 8,261 Total liabilities and shareholders' equity $
13,816 $ 14,724 CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars
in thousands (except share and per share data) Year ended Three
months ended December 31, December 31, 2005 2006 2005 2006 Revenues
$ 11,563 $ 11,039 $ 3,012 $ 2,869 Cost of revenues 3,802 (*)3,355
848 (**)714 Gross profit 7,761 7,684 2,164 2,155 Operating
expenses: Research and development, net 4,395 (*)3,633 953 (**)760
Selling and marketing 4,797 (*)3,078 916 (**)681 General and
administrative 2,830 (*)2,651 520 (**)697 Total operating expenses
12,022 9,362 2,389 2,138 Operating income (loss) (4,261) (1,678)
(225) 17 Financial income (expenses), net 53 (54) (43) (5) Income
(loss) before taxes on income (4,208) (1,732) (268) 12 Taxes on
income (10) 46 (10) 49 Loss before equity in earnings of affiliate
(4,218) (1,686) (278) 61 Equity in earnings (losses) of affiliate 2
159 (57) (11) Net income (loss) $ (4,216) $ (1,527) $ (335) $ 50
Net earnings (loss) per share: Basic and diluted net earnings
(loss) per Ordinary share $ (0.83) $ (0.27) $ (0.06) $ 0.01
Weighted average number of Ordinary shares used in computing basic
net earnings (loss) per share 5,092,117 5,762,311 5,724,504
5,773,845 Weighted average number of Ordinary shares used in
computing diluted net earnings (loss) per share 5,092,117 5,762,311
5,724,504 5,800,192 (*) Including stock-based employee compensation
in the amounts of $ 21, $ 101, $ 17 and $ 71 in cost of revenues,
research and development, selling and marketing and general and
administrative, respectively. (**) Including stock-based employee
compensation in the amounts of $1, $19, $3 and $12 in cost of
revenues, research and development, selling and marketing and
general and administrative, respectively. DATASOURCE: MTS-MER
Telemanagement Solutions Ltd CONTACT: Contact: Company - Shlomi
Hagai, Corporate COO & CFO, Tel: +972-9-762-1733, Email:
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