MTS Announces Third Quarter 2019 Financial Results
RA'ANANA, Israel, Dec. 26, 2019 /PRNewswire/ -- Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM), call accounting and contact center software, today released its financial results for the three and nine months ended September 30, 2019.
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The Company recorded revenues of $1.2 million for the three months ended September 30, 2019 compared with $1.4 million for the three months ended September 30, 2018. The Company incurred a net loss of $(14,000) for the three months ended September 30, 2019, or $(0.00) per diluted share compared with a net loss of $(227,000), or $(0.07) per diluted share, for the comparable period in 2018. On a non-GAAP basis (as described and reconciled below), the Company posted net income of $189,000, or $0.04 per diluted share, for the three months ended September 30, 2019 compared with a net loss of $(58,000), or $(0.02) per diluted share, for the comparable period in 2018.
The Company recorded revenues of $3.8 million for the nine months ended September 30, 2019, compared with $4.3 million for the nine months ended September 30, 2018. The Company incurred a net loss of $(234,000), or $(0.05) per diluted share, for the nine months ended September 30, 2019 compared with a net loss of $(1.3) million, or $(0.4) per diluted share, for the comparable period in 2018. On a non-GAAP basis (as described and reconciled below), the Company posted net income of $19,000, or $0.00 per diluted share, for the nine months ended September 30, 2019 compared with a net loss of $(852,000), or $(0.26) per diluted share, for the comparable period in 2018.
As of September 30, 2019, the Company had cash and cash equivalents of approximately $1.7 million, compared with $1.2 million as of December 31, 2018.
Commenting on the results, Mr. Roy Hess, Chief Executive Officer of MTS, said, "Our results in 2019 reflect the substantial reduction of our ongoing operating expenses attributed to the declining operation and the successful execution of our efforts to improve our operating margins in light of the business pressures that we face. We recently entered the field of omnichannel contact center software. In June 2019, we introduced Omnis - Contact Center Software with "Out-Of-The-Box" capabilities and open channel architecture. In this quarter we started to see initial revenues from this new product, which we consider to be our main growth engine in the coming years. As previously reported, we are also continuing our efforts to find an M&A opportunity.
About MTS
Mer Telemanagement Solutions Ltd. (MTS) is focused on innovative products and services for enterprises in the area of telecom expense management (TEM), call accounting and contact center software. 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
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U.S. dollars in thousands
September 30, December 31,
2019 2018
Unaudited
Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,683 $1,150
Restricted cash 770 1,380
Trade receivables, net 360 604
Other accounts receivable and
prepaid expenses 204 101
Assets of discontinued
operations 149 187
3,166 3,422
Total current assets
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SEVERANCE PAY FUND 631 541
PROPERTY AND EQUIPMENT, NET 73 60
OTHER ASSETS:
Other intangible assets, net 6 21
Goodwill 3,225 3,479
Total other assets 3,231 3,500
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Total assets $7,101 $7,523
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CONSOLIDATED BALANCE SHEETS
---
U.S. dollars in thousands (except share and per
share data) September 30, December 31,
2019 2018
Unaudited Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $115 $164
Deferred revenues 1,042 1,053
Accrued expenses and other liabilities 1,604 2,394
Liabilities of discontinued operations 554 606
Total current liabilities 3,315 4,217
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LONG-TERM LIABILITIES
Accrued severance pay 813 722
Deferred tax liability 140 181
953 903
Total long-term liabilities
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COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Share capital -
Ordinary Shares 29 27
Preferred Shares 15 10
Additional paid-in capital 30,464 29,807
Treasury shares (29) (29)
Accumulated deficit (27,646) (27,412)
Total shareholders' equity 2,833 2,403
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Total liabilities and shareholders' equity $7,101 $7,523
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CONSOLIDATED STATEMENTS OF OPERATIONS
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U.S. dollars in thousands (except share and per share data)
Nine months ended Three months ended
September 30, September 30,
--- ---
2019 2018 2019 2018
Revenues:
Services $3,194 $3,613 $1,015 $1,272
Product sales 646 695 225 160
Total revenues 3,840 4,308 1,240 1,432
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Cost of revenues:
Services 1,150 1,299 365 364
Product sales 288 325 92 112
Total cost of revenues 1,438 1,624 457 476
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Gross profit 2,402 2,684 783 956
Operating expenses:
Research and development 408 672 140 167
Selling and marketing 564 1,195 11 338
General and administrative 1,679 1,755 701 531
Total operating expenses 2,651 3,622 852 1,036
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Operating loss -249 -938 -69 -80
Financial income (expenses), net -27 1 -2 -7
Loss before taxes on income -276 -937 -71 -87
Tax benefit -38 -3 -39 -2
Loss from continuing operations -238 -934 -32 -85
Income (loss) from discontinued
operations 4 -346 18 -142
Net loss $(234) $(1,280) $(14) $(227)
Net loss per share:
Basic and diluted net loss per share
from continuing operations $(0.05) $(0.29) $(0.00) $(0.03)
Basic and diluted net loss per share
from discontinued operations 0 -0.11 0 -0.04
Basic and diluted net loss per share $(0.05) $(0.40) $(0.00) $(0.07)
Weighted average number of shares
used in computing basic and diluted
net loss per share 4,863,489 3,179,963 5,181,402 3,294,323
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
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U.S. dollars in thousands (except share and per share data)
Three months ended
Nine months ended September 30,
September 30,
2019 2018 2019 2018
GAAP net loss from continuing
operations (238) (934) (32) (85)
Stock-based compensation
expenses 39 67 13 22
Intangible assets amortization 15 15 5 5
Goodwill impairment, net of
tax effect 203 203
Non-GAAP net income (loss) $19 $(852) $189 $(58)
Net loss per share:
GAAP basic and diluted net
loss per share from
continuing operations $(0.05) $(0.29) $(0.00) $(0.03)
Non-GAAP basic and diluted
net income (loss) per share
from continuing operations $0.00 $0.04 $(0.02)
$(0.26)
Weighted average number of
shares used in computing Non-
GAAP basic net income (loss)
per share 4,863,489 3,179,963 5,181,402 3,294,323
Weighted average number of
shares used in computing Non-
GAAP diluted net income
(loss) per share 4,925,436 3,179,963 5,367,245 3,294,323
Contact:
Ofira Bar, CFO
Tel: +972-9-7777-540
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SOURCE Mer Telemanagement Solutions Ltd. (MTS)
