August 20, 2020

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…

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.

MTS Logo

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

 

Total current assets


3,170


4,103






SEVERANCE PAY FUND


330


653






PROPERTY AND EQUIPMENT, NET


55


62






GOODWILL


3,225


3,225






Total assets


$       6,780


$         8,043






 

 

 

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

 

Total long-term liabilities


566


994






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






 

 

 

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

basic and diluted net loss per share 

5,621,180


4,719,761






 

 

SOURCE Mer Telemanagement Solutions Ltd. (MTS)