SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
                                                                 
          
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
For the month of December 2019
 
MER TELEMANAGEMENT SOLUTIONS LTD.
(Name of Registrant)
 
15 Hatidhar Street, Ra'anana 43665, Israel
 (Address of Principal Executive Office)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F ☒         Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
 
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes ☐       No ☒

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- __________
 
This Form 6-K is being incorporated by reference into the Registrant’s Form S-8 Registration Statements File Nos. 333-123321 and 333-180369.


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
MER TELEMANAGEMENT SOLUTIONS LTD.
(Registrant)
 
By:  /s/ Roy Hess
             Roy Hess
             Chief Executive Officer

 
MTS Announces Third Quarter 2019 Financial Results

Ra’anana, Israel / Powder Springs, Georgia, USA - December 26, 2019 - 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.

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.

Contact:
 
Ofira Bar, CFO

Tel: +972-9-7777-540


CONSOLIDATED BALANCE SHEETS
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
 
                 
Total current assets
   
3,166
     
3,422
 
                 
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
 
                 
Total assets
 
$
7,101
   
$
7,523
 


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
 
                 
LONG-TERM LIABILITIES
               
Accrued severance pay
   
813
     
722
 
Deferred tax liability
   
140
     
181
 
                 
 Total long-term liabilities
   
953
     
903
 
                 
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
 
                 
Total liabilities and shareholders' equity
 
$
7,101
   
$
7,523
 


CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)

   
Nine months ended
September 30,
   
Three months ended
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
 
                                 
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
 
                                 
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
 
                                 
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
   
(0.00
)
   
(0.11
)
   
(0.00
)
   
(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
U.S. dollars in thousands (except share and per share data)

   
Nine months ended
September 30,
   
Three months ended
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
   
$
(0.26
)
 
$
0.04
   
$
(0.02
)
                                 
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
 

 
 

 
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