MTS Announces first quarter 2020 Financial Results
RA'ANANA, Israel and POWDER SPRINGS, Georgia, Aug. 20, 2020 /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 months ended March 31, 2020.
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The Company recorded revenues of $1.15 million for the three months ended March 31, 2020, compared with $1.3 million for the three months ended March 31, 2019. The Company incurred a net loss of $20,000, or $0.01 per diluted share, for the three months ended March 31, 2020 compared with a net loss of $128,000, or $0.03 per diluted share, for the comparable period in 2019. In the three months ended March 31, 2020, the Company had net loss from continuing operations of $32,000 compared to net loss from continuing operations of $130,000 in the comparable period in 2019.
On June 23, 2020, the Company's institutional investor exercised its greenshoe option in part and purchased 622,807 convertible preferred shares in consideration of $710,000, providing the Company with additional working capital.
Commenting on the results, Mr. Roy Hess, Chief Executive Officer of MTS, said, "Our results in 2020 reflect the efficiency plan we implemented during 2019 in order to adjust our operating expenses attributable to the declining sales and to improve our operating margins. 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. At the end of 2019 and during 2020, we started to see initial revenues from this new product. As previously reported, we are also continuing our efforts to find a suitable M&A candidate for our company which will enhance shareholder value."
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
Forward Looking Statements
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 effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries in which we operate on our operations, the demand for our products and our customers' economic condition, 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.
Contact:
Ofira Bar, CFO
Tel: +972-9-7777-540
CONSOLIDATED BALANCE SHEETS
---
U.S. dollars in thousands
March 31, December 31,
2020 2019
Unaudited
Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,642 $1,732
Restricted cash 635 1,464
Trade receivables, net 483 499
Other accounts receivable and
prepaid expenses 240 236
Assets of discontinued operations 170 172
3,170 4,103
Total current assets
---
SEVERANCE PAY FUND 330 653
PROPERTY AND EQUIPMENT, NET 55 62
GOODWILL 3,225 3,225
Total assets $6,780 $8,043
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CONSOLIDATED BALANCE SHEETS
---
U.S. dollars in thousands (except share and per share data)
March 31, December 31,
2020 2019
Unaudited
Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $118 $149
Deferred revenues 1,075 962
Accrued expenses and other liabilities 1,443 2,317
Liabilities of discontinued operations 485 516
Total current liabilities 3,121 3,944
---
LONG-TERM LIABILITIES
Accrued severance pay 403 831
Deferred tax liability 163 163
566 994
Total long-term liabilities
---
SHAREHOLDERS' EQUITY:
Share capital -
Ordinary Shares 27 30
Preferred Shares 19 16
Additional paid-in capital 30,643 30,635
Treasury shares (29) (29)
Accumulated deficit (27,567) (27,547)
Total shareholders' equity 3,093 3,105
---
Total liabilities and shareholders' equity $6,780 $8,043
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CONSOLIDATED STATEMENTS OF OPERATIONS
---
U.S. dollars in thousands (except share and per share data)
Three months ended
March 31,
2020 2019
---
Unaudited
Revenues:
Services $924 $1,059
Product
sales 231 224
---
Total
revenues 1,155 1,283
--- ---
Cost of revenues:
Services 372 392
Product
sales 93 98
---
Total cost
of revenues 465 490
--- ---
Gross profit 690 793
---
Operating expenses:
Research and
development 133
Selling and
marketing 265 286
General and
administrative 455 494
---
Total
operating
expenses 720 913
--- ---
Operating
loss (30) (120)
Financial
income
(expense),
net (2) (10)
---
Loss before
taxes on
income (32) (130)
---
Income from
discontinued
operations 12 2
---
Net loss $(20) $(128)
Net loss per share:
Basic and
diluted net
loss per
share from
continuing
operations $(0.01) $(0.03)
Basic and
diluted net
profit per
share from
discontinued
operations 0.00 0.00
---
Basic and
diluted net
loss per
share $(0.01) $(0.03)
Weighted
average
number of
shares used
in
computing 5,621,180 4,719,761
basic and diluted net
loss per share
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SOURCE Mer Telemanagement Solutions Ltd. (MTS)
