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
3,565 3,422
Total current assets
---
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
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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
963 903
Total long-term liabilities
---
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
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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)
