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.
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
|
U.S. dollars in
thousands
|
|
|
September
30,
2019
Unaudited
|
|
December
31,
2018
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,
2019
|
|
December 31,
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
|
|
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
|
|
|
|
|
|
|
|
|
|
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
|
|
-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
|
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
|
|
|
|
|
|
|
|
|
|
Contact:
Ofira Bar, CFO
Tel: +972-9-7777-540
View original
content:http://www.prnewswire.com/news-releases/mts-announces-third-quarter-2019-financial-results-300979434.html
SOURCE Mer Telemanagement Solutions Ltd. (MTS)