RA'ANANA, Israel, August 8 /PRNewswire-FirstCall/ -- MTS - 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
second quarter of 2007. Revenues for the second quarter of 2007
were $2.5 million, compared with revenues of $2.7 million in the
second quarter of 2006. Operating loss for the second quarter of
2007 was $2.7 million compared with an operating loss of $471,000
in the second quarter of 2006. The increase was due to a $2.3
million impairment of goodwill and other intangible assets in
accordance with FAS 142 -"Goodwill and other Intangible Assets"
with respect to the Company's investment in Teleknowledge Ltd.. Net
loss for the second quarter was $2.8 million or ($0.49) per diluted
share, compared with a net loss of $448,000 or ($0.08) per diluted
share in the second quarter of 2006. MTS ended the second quarter
with approximately $1.6 million in cash and cash equivalents,
including marketable securities. The company is continuing to
monitor its cash expenditures and is seeking to improve its working
capital by year end. Additionally, MTS ended the quarter with an
accumulated backlog of orders exceeding $1.0 million. The backlog
represents orders booked but not yet recognized as revenue
(excluding deferred maintenance revenues) as of June 30, 2007. Mr.
Eytan Bar, President and CEO of MTS said, "Our acquisition of
Telsoft in 2006 is paying off. Telsoft showed very good results
this quarter, and has exceeded its target expectations as it sold
its traditional Telsoft Call Accounting products as well as the new
MTS offerings and solutions to its customer base." "In the area of
Telecommunications Expense Management (TEM), we concluded a
successful showing of our solution at the TEM show in San Francisco
with very good responses and interest in our solution. We will
follow-up on these leads which were indeed most promising." "During
the second quarter of 2007, we also consolidated our two offices on
the West Coast, and our operations extend from our offices on both
coasts. We will continue to leverage our solutions and explore new
market opportunities," concluded Mr. Bar. Conference Call
Information MTS will conduct a teleconference to discuss the second
quarter results on Wednesday, August 8 at 11:00 a.m Eastern
Time/6:00 p.m Israel time. To access the conference call, please
dial +1-800-860-2442 (U.S.), +1-412-858-4600 (international), at
least 10 minutes prior to commencement of the call. Reference the
MTS conference call or conference ID #408733. A replay of the call
will be available from August 8 through 11:59 p.m. EST on August
15. To access the replay, please dial +1-877-344-7529. 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. Financials Tables Follow CONSOLIDATED
BALANCE SHEETS U.S. dollars in thousands December June 30, 31, 2006
2006 2007 Audited Unaudited ASSETS CURRENT ASSETS: Cash and cash
equivalents $ 1,474 $ 1,635 $ 1,432 Short-term bank deposits 100 -
- Marketable securities 159 142 160 Trade receivables, net 2,484
2,280 1,955 Unbilled receivables 51 448 59 Other accounts
receivable and prepaid expenses 763 690 630 Inventories 138 152 138
Total current assets 5,169 5,347 4,374 LONG- TERM INVESTMENTS:
Investment in an affiliate 1,598 1,777 1,468 Severance pay fund 673
607 726 Other investments 366 365 369 Deferred income taxes 112 115
105 Total long-term investments 2,749 2,864 2,668 PROPERTY AND
EQUIPMENT, NET 439 500 332 OTHER ASSETS: Goodwill 4,058 3,877 2,635
Other intangible assets, net 1,639 817 933 Total other assets 5,697
4,694 3,568 Total assets $ 14,054 $ 13,405 $ 10,942 CONSOLIDATED
BALANCE SHEETS U.S. dollars in thousands (except share and per
share data) December 31, June 30, 2006 2006 2007 Audited Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short
term bank credit and current maturities of bank loan $ 421 $ - $
920 Trade payables 510 605 531 Accrued expenses and other
liabilities 2,507 2,395 2,770 Deferred revenues 1,545 891 1,253
Total current liabilities 4,983 3,891 5,474 LONG-TERM LIABILITIES:
Long-term bank loan 583 - 83 Long-term loan from related party - -
134 Accrued severance pay 946 876 1,002 Total long-term liabilities
1,529 876 1,219 SHAREHOLDERS' EQUITY: Share capital - Ordinary
shares of NIS 0.01 par value - Authorized: 12,000,000 shares at
December 31, 2006 and June 30, 2006 and 2007; Issued: 5,784,645,
5,774,645 and 5,784,645 shares at December 31, 2006 and June 30,
2006 and 2007, respectively; Outstanding: 5,773,845, 5,763,845 and
5,773,845 shares at December 31, 2006 and June 30, 2006 and 2007,
respectively 17 17 17 Additional paid-in capital 16,109 16,016
16,163 Treasury shares (10,800 Ordinary shares) (29) (29) (29)
Accumulated other comprehensive income 254 130 294 Accumulated
deficit (8,809) (7,496) (12,196) Total shareholders' equity 7,542
8,638 4,249 Total liabilities and shareholders' equity $ 14,054 $
13,405 $ 10,942 INTERIM CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS U.S. dollars in thousands (except share and per share
data) Year ended Three months ended Six months ended December 31,
June 30, June 30, 2006 2006 2007 2006 2007 Audited Unaudited
Revenues $ 10,484 $ 2,704 $ 2,505 $ 5,518 $ 4,951 Cost of revenues
(X) 3,355 (XX) 894 (XX) 753 (X) 1,828 (X) 1,381 Gross profit 7,129
1,810 1,752 3,690 3,570 Operating expenses: Research and
development, net (X) 3,633 (XX) 898 (XX) 562 (X) 1,958 (X) 1,448
Selling and marketing (X) 3,078 (XX) 753 (XX) 803 (X) 1,583 (X)
1,639 General and administrative (X) 2,651 (XX) 630 (XX) 821 (X)
1,208 (X) 1,519 Impairment of goodwill and other intangible assets
- - 2,312 - 2,312 Total operating expenses 9,362 2,281 4,498 4,749
6,918 Operating loss (2,233) (471) (2,746) (1,059) (3,348)
Financial income (expenses), net (54) (26) 2 11 (13) Loss before
taxes on income (2,287) (497) (2,744) (1,048) (3,361) Taxes on
income 118 - - 3 - Loss before equity in earnings of affiliate
(2,405) (497) (2,744) (1,051) (3,361) Equity in earnings of
affiliate 159 49 (58) 118 (26) Net loss $ (2,246) $ (448) $ (2,802)
$ (933) $ (3,387) Net loss per share: Basic and diluted net loss
per Ordinary share $ (0.39) $ (0.08) $ (0.49) $ (0.16) $ (0.59)
Weighted average number of Ordinary shares used in computing basic
and diluted net loss per share 5,762,311 5,763,845 5,773,845
5,754,186 5,773,845 (X) Including stock-based employee compensation
in the amounts of $ 8, $ 21, $ 7 and $ 18 (December 31, 2006 - $
21, $ 101, $ 17 and $ 71 and six months ended June 30, 2006 - $ 15,
$ 60, $ 10 and $ 46) in cost of revenues, research and development,
selling and marketing and general and administrative, respectively.
(XX) Including stock-based employee compensation in the amounts of
$ 4, $ 14, $ 4 and $ 8 (three months ended June 30, 2006 - $ 5, $
45, $ (3) and $ 21 in cost of revenues, research and development,
selling and marketing and general and administrative, respectively.
Contacts: Company: Shlomi Hagai Corporate COO & CFO Tel:
+972-9-762-1733 Email: DATASOURCE: MTS-MER Telemanagement Solutions
Ltd CONTACT: Contacts: Company: Shlomi Hagai, Corporate COO &
CFO, Tel: +972-9-762-1733, Email:
Copyright