RA'ANANA, Israel, August 12 /PRNewswire-FirstCall/ -- MTS - Mer
Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a
global provider of business support systems (BSS) for comprehensive
telecommunication management, telecommunications expense management
(TEM) solutions and customer care & billing (CC&B)
solutions, today announced its financial results for the three and
six month periods ended June 30, 2009. Revenues for the second
quarter of 2009 were $2.9 million, compared with $2.4 million for
the same quarter last year. The Company's operating loss was
$394,000 in the second quarter of 2009 compared to an operating
loss of $113,000 for the second quarter of 2008. Net loss for the
second quarter was $414,000 or $0.05 per diluted share, compared
with a net loss of $156,000 or $0.02 per diluted share in the
second quarter of 2008. Revenues for the six month period ended
June 30, 2009 were $5.7 million, compared with $4.8 million for the
comparable period in 2008. Net loss for the six months ended June
30, 2009 was $678,000 or $0.08 per diluted share, compared with a
net profit of $183,000 or $0.03 per diluted share in the comparable
period in 2008. The results for the three and six month periods
ended June 30, 2009 include the operations of the AnchorPoint
business that was acquired in December 2008. The results for the
six month periods ended June 30, 2008 include a capital gain of
approximately $382,000 from the sale of our ownership interest in
cVidya Networks Inc. The Company ended the second quarter with
approximately $1.8 million in cash and cash equivalents, including
marketable securities. "This quarter's results were negatively
affected by the unstable market and economic environment as well as
the impact of the integration of the AnchorPoint operations and the
resulting higher amortization of intangible assets." said Mr. Lior
Salansky, MTS President. "We are committed to closely monitoring
our operating expenses and reducing our overall costs in order to
overcome the unstable economic environment" concluded Mr. Salansky.
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. AnchorPoint TEM solutions that MTS acquired on December
2008 enable enterprises to gain visibility and control of strategic
assets that drive key business processes and crucial competitive
advantage. The AnchorPoint's software, consulting and managed
services solutions - including integrated Invoice, Asset, and Usage
Management and Business Analytics tools -- provide professionals at
every level of the organization with rapid access to concise,
actionable data. 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, WiMAX, MVNO) to rapidly install
a full-featured and scaleable solution. 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 June 30, December 31, 2009
2008 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,585 $
2,009 Restricted Marketable securities 198 196 Trade receivables,
net 1,490 1,223 Unbilled receivables 20 133 Other accounts
receivable and prepaid expenses 448 318 Inventories 82 112 Total
current assets 3,823 3,991 LONG-TERM ASSETS: Severance pay fund 778
682 Other investments 33 5 Deferred income taxes 40 40 Total
long-term assets 851 727 PROPERTY AND EQUIPMENT, NET 256 227 OTHER
ASSETS: Goodwill 3,479 3,479 Other intangible assets, net 2,006
2,198 Total other assets 5,485 5,677 Total assets $ 10,415 $ 10,622
CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (except share
and per share data) June 30, December 31, 2009 2008 LIABILITIES AND
SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short term bank credit $
45 $ 45 Trade payables 432 712 Accrued expenses and other
liabilities 2,895 2,638 Deferred revenues 2,697 2,323 Total current
liabilities 6,069 5,718 LONG-TERM LIABILITIES - Accrued severance
pay 1,162 1,105 COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY: Share capital 26 26 Additional paid-in
capital 19,456 19,410 Treasury shares (29) (29) Accumulated other
comprehensive income 1 (16) Accumulated deficit (16,270) (15,592)
Total shareholders' equity 3,184 3,799 Total liabilities and
shareholders' equity $ 10,415 $ 10,622 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, 2009
2008 2009 2008 Revenues: Product sales $ 2,741 $ 2,918 $ 1,442 $
1,391 Services 2,977 1,905 1,484 1,024 Total revenues 5,718 4,823
2,926 2,415 Cost of revenues: Product sales 1,005 723 531 327
Services 1,003 333 538 203 Total cost of revenues 2,008 1,056 1,069
530 Gross profit 3,710 3,767 1,857 1,885 Operating expenses:
Research and development, net of grants from the OCS 1,047 1,412
527 688 Selling and marketing 1,517 1,016 740 482 General and
administrative 1,862 1,477 984 828 Total operating expenses 4,426
3,905 2,251 1,998 Operating loss (716) (138) (394) (113) Financial
income (expenses), net 38 (61) (20) (43) Capital gain on sale of
investment - 382 - - Income (loss) before taxes on income (678) 183
(414) (156) Tax on income, net - - - - Net income (loss) $ (678) $
183 $ (414) $ (156) Net Income (loss) per share: Basic and diluted
net income (loss) per Ordinary share $ (0.08) $ 0.03 $ (0.05) $
(0.02) Weighted average number of Ordinary shares used in computing
basic and diluted net loss per share 8,917,950 6,350,768 8,917,950
6,523,845 Contacts: Company: Alon Mualem CFO Tel: +972-9-7777-540
Email: DATASOURCE: MTS-MER Telemanagement Solutions Ltd CONTACT:
Contacts: Company: Alon Mualem, CFO, Tel: +972-9-7777-540, Email:
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