MTS Announces Half Year 2019 Financial Results
RA'ANANA, Israel and POWDER SPRINGS, Georgia, Sept. 12, 2019 /PRNewswire/ -- Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM) and call accounting, today released its financial results for the six months ended June 30, 2019.
The Company recorded revenues of $2.6 million for the six months ended June 30, 2019, compared with $2.9 million for the six months ended June 30, 2018. The Company incurred a net loss of $220,000, or $0.04 per diluted share, for the six months ended June 30, 2019 compared with a net loss of $1 million, or $0.34 per diluted share, for the comparable period in 2018.
Commenting on the results, Mr. Roy Hess, Chief Executive Officer of MTS, said, "Our results in 2019 reflect our efforts to improve our operating margins in light of the business pressures that we face. The telecommunications side of our business continues to be stable as we have maintained a high level of customer satisfaction.
We recently entered the field of Omnichannel Contact Center Software. In June 2019, we introduced Omnis - Contact Center Software with "Out-Of-The-Box" multi-channel capabilities and open channel architecture. This product enables users to connect whenever and however they choose through voice, emails, chat, social media and more. Managing real-time, multi-channel interaction is simple with the Omnis Unified Interface, allowing employees to handle different interactions under one Omnichannel Desktop with real-time visibility into customer information, customer journey and previous interactions. We expect to see first revenues from this new product during the second half of 2019 and consider Omnis - Contact Center Software as our main growth engine. In addition, we continue to explore opportunities for a potential business combination".
About MTS
Mer Telemanagement Solutions Ltd. (MTS) is focused on innovative products and services for enterprises in the area of telecom expense management (TEM) and call accounting. 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, the Company's ability to achieve profitable operations, its ability to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements, 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, general economic conditions and other risk factors detailed in the Company's annual report and other filings with the United States Securities and Exchange Commission.
CONSOLIDATED BALANCE SHEETS | ||||
U.S. dollars in thousands | ||||
June 30, | December 31, | |||
2019 | 2018 | |||
Unaudited | Audited | |||
ASSETS | ||||
CURRENT ASSETS: | ||||
Cash and cash equivalents | $ 1,563 | $ 1,150 | ||
Restricted cash | 1,008 | 1,380 | ||
Trade receivables, net | 640 | 604 | ||
Other accounts receivable and prepaid expenses | 243 | 101 | ||
Assets of discontinued operations | 111 | 187 | ||
Total current assets | 3,565 | 3,422 | ||
SEVERANCE PAY FUND | 602 | 541 | ||
PROPERTY AND EQUIPMENT, NET | 58 | 60 | ||
OTHER ASSETS: | ||||
Other intangible assets, net | 11 | 21 | ||
Goodwill | 3,479 | 3,479 | ||
Total other assets | 3,490 | 3,500 | ||
Total assets | $ 7,715 | $ 7,523 | ||
CONSOLIDATED BALANCE SHEETS | ||||
U.S. dollars in thousands (except share and per share data) | ||||
June 30, | December 31, | |||
2019 | 2018 | |||
Unaudited | Audited | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
CURRENT LIABILITIES: | ||||
Trade payables | $ 167 | $ 164 | ||
Deferred revenues | 1,092 | 1,053 | ||
Accrued expenses and other liabilities | 2,122 | 2,394 | ||
Liabilities of discontinued operations | 550 | 606 | ||
Total current liabilities | 3,931 | 4,217 | ||
LONG-TERM LIABILITIES | ||||
Accrued severance pay | 782 | 722 | ||
Deferred tax liability | 181 | 181 | ||
Total long-term liabilities | 963 | 903 | ||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||
SHAREHOLDERS' EQUITY: | ||||
Share capital - | ||||
Ordinary Shares | 27 | 27 | ||
Preferred Shares | 15 | 10 | ||
Additional paid-in capital | 30,440 | 29,807 | ||
Treasury shares | (29) | (29) | ||
Accumulated deficit | (27,632) | (27,412) | ||
Total shareholders' equity | 2,821 | 2,403 | ||
Total liabilities and shareholders' equity | $ 7,715 | $ 7,523 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||
U.S. dollars in thousands (except share and per share data) | ||||||||||||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Services | $ 2,179 | $ 2,341 | ||||||||||||||||||||||||
Product sales | 421 | 535 | ||||||||||||||||||||||||
Total revenues | 2,600 | 2,876 | ||||||||||||||||||||||||
Cost of revenues: | ||||||||||||||||||||||||||
Services | 785 | 935 | ||||||||||||||||||||||||
Product sales | 196 | 213 | ||||||||||||||||||||||||
Total cost of revenues | 981 | 1,148 | ||||||||||||||||||||||||
Gross profit | 1,619 | 1,728 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Research and development | 268 | 505 | ||||||||||||||||||||||||
Selling and marketing | 553 | 857 | ||||||||||||||||||||||||
General and administrative | 978 | 1,224 | ||||||||||||||||||||||||
Total operating expenses | 1,799 | 2,586 | ||||||||||||||||||||||||
Operating loss | (180) | (858) | ||||||||||||||||||||||||
Financial income (expense), net | (25) | 8 | ||||||||||||||||||||||||
Loss before taxes on income | (205) | (850) | ||||||||||||||||||||||||
Taxes on income (tax benefit) | 1 | (5) | ||||||||||||||||||||||||
Loss from continuing operations | (206) | (845) | ||||||||||||||||||||||||
Loss from discontinued operations | (14) | (204) | ||||||||||||||||||||||||
Net loss | $ (220) | $ (1,049) | ||||||||||||||||||||||||
Net loss per share: | ||||||||||||||||||||||||||
Basic and diluted net loss per share from continuing operations | $ (0.04) | $ (0.27) | ||||||||||||||||||||||||
Basic and diluted net loss per share from discontinued operations | (0.00) | (0.07) | ||||||||||||||||||||||||
Basic and diluted net loss per share | $ (0.04) | $ (0.34) | ||||||||||||||||||||||||
Weighted average number of shares used in computing basic and diluted net loss per share | 4,698,440 | 3,120,833 | ||||||||||||||||||||||||
Contact:
Ofira Bar, CFO
Tel: +972-9-7777-540
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SOURCE Mer Telemanagement Solutions Ltd. (MTS)
