MTS Announces First Quarter 2014 Financial Results
Eytan Bar Leaves the Company to Pursue New Business Opportunities
RA'ANANA, Israel, May 15, 2014 /PRNewswire/ -- MTS – Mer Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a global provider of Mobile Virtual Network Enabler (MVNE), Mobile Money and telecommunications expense management (TEM) solutions and services, today announced its financial results for the first quarter of 2014.
Revenues for the first quarter of 2014 were $1.8 million, compared with $3.3 million in revenues during the same quarter last year. The Company's operating (loss) was $313,000 in the first quarter of 2014, compared to operating profit of $420,000 in the first quarter of 2013. Net loss in the first quarter was $315,000, or $(0.07) per diluted share, compared to net income of $344,000, or $0.07 per diluted share, in the first quarter of 2013. The principal factor that adversely affected the quarter's results was the termination of revenues from the agreement with Simple Mobile that ended on December 31, 2013.
As of March 31, 2014, MTS had cash and marketable securities of $6.3 million, as compared to $6.5 million as of December 31, 2013.
The Company announced today that its Board of Directors has agreed with Eytan Bar that he will step down as Chief Executive Officer. The Board has named Alon Mualem, the Company's Chief Financial Officer, to fill the role of Chief Executive Officer on an interim basis. The board will promptly begin to search for a permanent successor. "We would like to thank Eytan for his ten year career with MTS and his contribution to our company," said Mr. Chaim Mer, the Company's Chairman of the Board.
About MTS
Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider of innovative products and services for Telecom Expense Management (TEM), Enterprise Mobility Management (EMM), Mobile Virtual Network Operators and Enablers (MVNO/MVNE) and Mobile Money services and solutions used by mobile service providers.
The MTS TEM Suite solution enables enterprises to gain visibility and control of strategic fixed and mobile telecom assets, services and IT security policies that drive key business processes and crucial competitive advantage. The MTS cloud, consulting and managed services solutions — including integrated management of invoices, assets, wireless, optimization, usage, mobile device management, procurement, help desk and bill payment, along with dashboards and reporting tools — provide professionals at every level of the organization with rapid access to concise, actionable data.
MTS's solutions for telecommunication service providers are used worldwide by wireless and wireline service providers for interconnect billing, partner revenue management and for charging and invoicing their customers. MTS provides MVNE services to allow the quick launch of new MVNO initiatives in a pay as you grow and revenue share models. In addition, MTS has pre-configured solutions to support emerging carriers of focused solutions (e.g. IPTV, VoIP, WiMAX, MVNO) to rapidly install a full-featured and scalable solution.
Headquartered in Israel, MTS markets its solutions through wholly owned subsidiaries in the United States and Hong Kong and through distribution channels. MTS shares are traded on the NASDAQ Capital Market (symbol MTSL). 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, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, 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, government regulations, dependence on third parties to manufacture products, general economic conditions and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission.
Contacts:
Alon Mualem
CFO
Tel: +972-9-7777-540
Email: [email protected]
| CONSOLIDATED BALANCE SHEETS |
|||||
| U.S. dollars in thousands |
|||||
| March 31, |
December 31, |
||||
| 2014 |
2013 |
||||
| ASSETS |
|||||
| CURRENT ASSETS: |
|||||
| Cash and cash equivalents |
$ 6,182 |
$ 6,369 |
|||
| Restricted cash |
236 |
63 |
|||
| Restricted marketable securities |
157 |
153 |
|||
| Trade receivables, net |
622 |
943 |
|||
| Other accounts receivable and prepaid expenses |
167 |
147 |
|||
| Total current assets |
7,364 |
7,675 |
|||
| LONG-TERM ASSETS: |
|||||
| Severance pay fund |
706 |
725 |
|||
| PROPERTY AND EQUIPMENT, NET |
162 |
183 |
|||
| OTHER ASSETS: |
|||||
| Goodwill |
3,479 |
3,479 |
|||
| Other intangible assets, net |
522 |
567 |
|||
| Total other assets |
4,001 |
4,046 |
|||
| Total assets |
$ 12,233 |
$ 12,629 |
|||
| CONSOLIDATED BALANCE SHEETS |
||||||||||
| U.S. dollars in thousands (except share and per share data) |
||||||||||
| March 31, |
December 31, |
|||||||||
| 2014 |
2013 |
|||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||
| CURRENT LIABILITIES: |
||||||||||
| Trade payables |
$ 219 |
$ 254 |
||||||||
| Accrued expenses and other liabilities |
2,073 |
2,200 |
||||||||
| Deferred revenues |
1,862 |
1,766 |
||||||||
| Liabilities of discontinued operations |
362 |
362 |
||||||||
| Total current liabilities |
4,516 |
4,582 |
||||||||
| LONG-TERM LIABILITIES |
||||||||||
| Accrued severance pay |
827 |
857 |
||||||||
| Deferred tax liability |
29 |
29 |
||||||||
| Total long-term liabilities |
856 |
886 |
||||||||
| COMMITMENTS AND CONTINGENT LIABILITIES |
||||||||||
| SHAREHOLDERS' EQUITY: |
||||||||||
| Share capital |
13 |
13 |
||||||||
| Additional paid-in capital |
20,334 |
20,317 |
||||||||
| Treasury shares |
(29) |
(29) |
||||||||
| Accumulated other comprehensive loss |
(8) |
(6) |
||||||||
| Accumulated deficit |
(13,449) |
(13,134) |
||||||||
| Total shareholders' equity |
6,861 |
7,161 |
||||||||
| Total liabilities and shareholders' equity |
$ 12,233 |
$ 12,629 |
||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS |
||||
| U.S. dollars in thousands (except share and per share data) |
||||
| Three months ended March 31, |
||||
| 2014 |
2013 |
|||
| Revenues: |
||||
| Services |
$ 1,460 |
$ 2,702 |
||
| Product sales |
338 |
595 |
||
| Total revenues |
1,798 |
3,297 |
||
| Cost of revenues: |
||||
| Services |
619 |
908 |
||
| Product sales |
175 |
243 |
||
| Total cost of revenues |
794 |
1,151 |
||
| Gross profit |
1,004 |
2,146 |
||
| Operating expenses: |
||||
| Research and development |
355 |
344 |
||
| Selling and marketing |
478 |
588 |
||
| General and administrative |
484 |
794 |
||
| Total operating expenses |
1,317 |
1,726 |
||
| Operating income (loss) |
(313) |
420 |
||
| Financial income, net |
4 |
19 |
||
| Other income (loss), net |
(1) |
- |
||
| Income (loss) before taxes on income |
(310) |
439 |
||
| Taxes on income, net |
5 |
95 |
||
| Net income (loss) |
$ (315) |
$ 344 |
||
| Net income (loss) per Ordinary share: |
||||
| Basic and diluted net income (loss) per Ordinary share |
$ (0.07) |
$ 0.07 |
||
| Weighted average number of Ordinary shares used in computing basic net income (loss) per share |
4,665,557 |
4,639,899 |
||
| Weighted average number of Ordinary shares used in computing diluted net income (loss) per share |
4,684,146 |
4,784,153 |
||
SOURCE Mer Telemanagement Solutions Ltd.
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