RA'ANANA, Israel, March 4 /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
fourth quarter of 2007 and the year ended December 31, 2007.
Revenues for the fourth quarter of 2007 were $2.2 million, compared
with revenues of $2.3 million in the fourth quarter of 2006.
Revenues for the twelve month period ended December 31, 2007 were
$9.3 million, compared with revenues of $10.5 million for the 2006
twelve month period. Net loss for the fourth quarter was $760,000
or ($0.13) per diluted share, compared with a net loss of $669,000
or ($0.12) per diluted share in the fourth quarter of 2006. Net
loss for the twelve month period ended December 31, 2007 increased
to $5.8 million or ($1.01) per diluted share, compared with a net
loss of $2.2 million or ($0.39) per diluted share for the 2006
twelve month period. This increased net loss for the twelve month
period ended December 31, 2007 is mainly attributable to a $2.3
million impairment charge relating to the goodwill arising from the
acquisition of Teleknowledge in 2004, an equity loss of $197,000
from the sale of our ownership interest in Jusan S.A., an affiliate
in which the Company held a 50% interest, an increase in our bad
debts allowance and a one time sales tax assessment in our U.S.
subsidiary. Mr. Eytan Bar, MTS CEO commented "Although we are
disappointed with our revenue decline in 2007, we believe that we
are on the right track as our increased sales activity generated
$2.9 million of new orders during the fourth quarter of 2007. We
are working to translate our pipeline of orders into revenues and
improved cash flow." "On the operational side, we are continuing to
improve our implementation processes while closely monitoring and
reducing our overall costs" continued Mr. Bar. "The sale of our
ownership interest in Jusan S.A. during the fourth quarter and
cVidya Networks Inc. in the first quarter of 2008 is the second
step of our restructuring plan and efforts to improve the Company's
cash position and working capital. Together with the $750,000
investment of Mr. Lior Salansky, the Company has strengthened its
main financial indicators and is now able to focus on its search
for new opportunities and in expanding its core business." "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. About MTS Mer Telemanagement
Solutions Ltd. (MTS) is a worldwide provider of innovative
solutions for comprehensive telecommunications expense management
(TEM) used by enterprises, and for business support systems (BSS)
used by information and telecommunication service providers. Since
1984, MTS Telecommunications' expense management solutions have
been used by thousands of enterprises and organizations to ensure
that their telecommunication services are acquired, provisioned,
and invoiced correctly. In addition, the MTS's Application Suite
has provided customers with a unified view of telecommunication
usage, proactive budget control, personal call management, employee
cost awareness and more. MTS's solutions for Information and
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 has pre-configured solutions to support emerging carriers of
focused solutions (e.g. IPTV, VoIP, MVNO) to rapidly install a
full-featured and scaleable solution. MTS's unique technology
reduces integration risks and lessens revenue leakage by using the
very same system to manage retail and wholesale business as well as
supporting multiple business units. Total cost of ownership (TCO)
is reduced by providing web-based customer self-care and
provisioning. Headquartered in Israel, MTS markets its solutions
through wholly owned subsidiaries in the United States, Hong Kong,
The Netherlands, and Brazil, as well as 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. CONSOLIDATED BALANCE SHEETS U.S. dollars
in thousands December 31, 2006 2007 ASSETS CURRENT ASSETS: Cash and
cash equivalents $ 1,474 $ 1,437 Short term bank deposits 100 -
Marketable securities 159 169 Trade receivables (net of allowance
for doubtful accounts of $ 505 and $ 882 at December 31, 2006 and
2007, respectively) 2,484 1,172 Unbilled receivables 51 129 Other
accounts receivable and prepaid expenses 763 544 Investment in
other companies - 221 Inventories 138 66 Total current assets 5,169
3,738 LONG-TERM ASSETS: Investments in an affiliate 1,598 -
Severance pay fund 673 730 Other investments 366 3 Deferred income
taxes 112 153 Total long-term assets 2,749 886 PROPERTY AND
EQUIPMENT, NET 439 283 OTHER ASSETS: Goodwill 4,058 2,796 Other
intangible assets, net 1,639 805 Total other assets 5,697 3,601
Total assets $ 14,054 $ 8,508 CONSOLIDATED BALANCE SHEETS U.S.
dollars in thousands (except share and per share data) December 31,
2006 2007 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES:
Short term bank credit and current maturities on bank loan $ 421 $
606 Trade payables 510 447 Accrued expenses and other liabilities
2,507 3,339 Deferred revenues 1,545 1,390 Total current liabilities
4,983 5,782 LONG-TERM LIABILITIES: Long term bank loan 583 -
Accrued severance pay 946 1,157 Total long-term liabilities 1,529
1,157 COMMITMENTS AND CONTINGENT LIABILITIES SHAREHOLDERS' EQUITY:
Share capital - Ordinary shares of NIS 0.01 par value - Authorized:
12,000,000 shares at December 31, 2006 and 2007; Issued: 5,784,645
shares at December 31, 2006 and 2007; Outstanding: 5,773,845 shares
at December 31, 2006 and 2007 17 17 Additional paid-in capital
16,109 16,201 Treasury shares (10,800 Ordinary shares at December
31, 2006 and 2007) (29) (29) Accumulated other comprehensive income
254 12 Accumulated deficit (8,809) (14,632) Total shareholders'
equity 7,542 1,569 Total liabilities and shareholders' equity $
14,054 $ 8,508 CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars
in thousands (except share and per share data) Year ended Three
months ended December 31, December 31, 2006 2007 2006 2007
Revenues: Product sales $ 7,518 $ 5,760 $ 1,493 $ 1,297 Services
2,966 3,578 821 903 Total revenues 10,484 9,338 2,314 2,200 Cost of
revenues: Product sales 2,631 1,872 549 398 Services 724 864 165
167 Total cost of revenues 3,355 2,736 714 565 Gross profit 7,129
6,602 1,600 1,635 Operating expenses: Research and development, net
of grants from the OCS 3,633 2,640 760 547 Selling and marketing
3,078 3,481 681 831 General and administrative 2,651 3,695 697 983
Impairment of goodwill and other intangible assets 2,312 Total
operating expenses 9,362 12,128 2,138 2,361 Operating loss (2,233)
(5,526) (538) (726) Financial income (expenses), net (54) (105) (5)
(74) Capital loss on sale of long-term investment (63) (63) Loss
before taxes on income (2,287) (5,694) (543) (863) Tax on income
(benefit), net 118 (68) 115 (68) Loss before equity in earnings
(loss) of affiliate (2,405) (5,626) (658) (795) Equity in earnings
(loss) of affiliate 159 (197) (11) 35 Net loss $ (2,246) $ (5,823)
$ (669) $ (760) Net loss per share: Basic and diluted net loss per
Ordinary share $ (0.39) $ (1.01) $ (0.12) $ (0.13) Weighted average
number of Ordinary shares used in computing basic and diluted net
loss per share 5,762,311 5,773,845 5,773,845 5,773,845 Contacts:
Company: Alon Mualem CFO Tel: +972-9-762-1733 Email: DATASOURCE:
MTS-MER Telemanagement Solutions Ltd CONTACT: Contacts: Company:
Alon Mualem, CFO, Tel: +972-9-762-1733, Email:
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