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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.

MER Telemanagement Solutions Ltd Logo (PRNewsfoto/Mer Telemanagement Solutions Lt)

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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