RA'ANANA, Israel, November 12 /PRNewswire-FirstCall/ -- MTS - Mer Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a global provider of business support systems (BSS) for comprehensive telecommunication management and customer care & billing (CC&B) solutions, today announced its financial results for the three and nine month periods ended September 30, 2008.
Revenues for the third quarter of 2008 were $2.1 million, compared with $2.2 million for the same quarter last year. The Company's operating loss declined to $224,000 in the third quarter of 2008 compared to an operating loss of $1.5 million for the third quarter of 2007. Revenues for the nine month period ended September 30, 2008 were $6.9 million, compared with $7.1 million for the comparable period in 2007.
Net loss for the third quarter was $222,000 or ($0.03) per diluted share, compared with a net loss of $1.7 million or ($0.29) per diluted share in the third quarter of 2007. This decrease was mainly attributable to the Company's focus on reducing its operating expenses. Net loss for the nine months ended September 30, 2008 quarter was $39,000 or ($0.01) per diluted share, compared with a net loss of $5.1 million or ($0.88) per diluted share in the comparable period in 2007.
The Company ended the third quarter with approximately $1.6 million in cash and cash equivalents, including marketable securities. During the third quarter of 2008 the company had a positive operating cash flow of $268,000 compared to a negative operating cash flow of $291,000 in the third quarter of 2007.
"MTS made a significant change in the last 12 months by implementing its restructuring plan, focusing mainly on reducing the Company's operating expenses and selling its non-core assets for which significant synergies or added values no longer exist. The results of this process are reflected in the financial statements of the Company" said Eytan Bar, CEO of MTS. "Even though the economic environment has entered a period of slowdown and the fluctuations in the exchange rate between the US dollar and other major currencies has negatively affected our profit and loss statement, we were able to decrease our operating expenses significantly and achieve improved financial results."
"We are committed to closely monitoring our operating expenses and reducing our overall costs as well as achieving revenue growth," continued Mr. Bar. "The Company has strengthened its main financial indicators and we intend to focus on our search for new opportunities and on expanding our core business," concluded Mr. Bar.
About MTS
Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider of innovative solutions for comprehensive telecommunications expense management (TEM) used by enterprises, and for business support systems (BSS) used by information and telecommunication service providers. Since 1984, MTS Telecommunications' expense management solutions have been used by thousands of enterprises and organizations to ensure that their telecommunication services are acquired, provisioned, and invoiced correctly. In addition, the MTS's Application Suite has provided customers with a unified view of telecommunication usage, proactive budget control, personal call management, employee cost awareness and more.
MTS's solutions for Information and 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 has pre-configured solutions to support emerging carriers of focused solutions (e.g. IPTV, VoIP, MVNO) to rapidly install a full-featured and scaleable solution. MTS's unique technology reduces integration risks and lessens revenue leakage by using the very same system to manage retail and wholesale business as well as supporting multiple business units. Total cost of ownership is reduced by providing web-based customer self-care and provisioning.
Headquartered in Israel, MTS markets its solutions through wholly owned subsidiaries in the United States, Hong Kong, The Netherlands, and Brazil, as well as through OEM partnerships with Siemens, Phillips, NEC and other vendors. MTS shares are traded on the NASDAQ Capital Market (symbol MTSL). For more information please visit the MTS web site: www.mtsint.com.
Forward-Looking and Cautionary 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, 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.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
September December
30, 2008 31, 2007
Unaudited Audited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,441 $ 1,437
Marketable securities 205 169
Trade receivables (net of allowance for bad debt
of $ 716 and 882 as of September 30, 2008 and
December 31, 2007, respectively) 1,016 1,172
Unbilled receivables - 129
Other accounts receivable and prepaid expenses 284 544
Other investments - 221
Inventories 80 66
Total current assets 3,026 3,738
LONG- TERM ASSETS:
Severance pay fund 764 730
Other accounts receivables 41 3
Deferred income taxes 123 123
Total long-term assets 928 856
PROPERTY AND EQUIPMENT, NET 201 283
OTHER ASSETS:
Goodwill 2,796 2,796
Other intangible assets, net 660 805
Total other assets 3,456 3,601
Total assets $ 7,611 $ 8,478
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
September December
30, 2008 31, 2007
Unaudited Audited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short term bank credit and current maturities of
bank loan $ 24 $ 606
Trade payables 337 447
Other liabilities and accrued expenses 2,142 3,309
Deferred revenues 1,405 1,390
Total current liabilities 3,908 5,752
LONG-TERM LIABILITIES - accrued severance pay 1,175 1,157
SHAREHOLDERS' EQUITY:
Share capital -
Ordinary shares of NIS 0.01 par value -
Authorized: 12,000,000 shares at September 30,
2008 and December 31, 2007; Issued: 6,754,136 at
September 30, 2008 and 5,784,645 at December 31,
2007; Outstanding: 6,743,336 at September 30,
2008 and 5,773,845 at December 31, 2007. 20 17
Additional paid-in capital 17,214 16,201
Treasury shares (10,800 Ordinary shares) (29) (29)
Accumulated other comprehensive income (6) 12
Accumulated deficit (14,671) (14,632)
Total shareholders' equity 2,528 1,569
Total liabilities and shareholders' equity $ 7,611 $ 8,478
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,
2008 2007 2008 2007
Unaudited Unaudited
Revenues:
Products sales $ 4,097 $ 4,463 $ 1,179 $ 1,393
Services 2,776 2,675 871 794
Total revenues 6,873 7,138 2,050 2,187
Cost of revenues:
Products sales 959 1,474 236 618
Services 574 697 241 172
Total cost of revenues 1,533 2,171 477 790
Gross profit 5,340 4,967 1,573 1,397
Operating expenses:
Research and development 2,114 2,093 702 645
Selling and marketing 1,346 2,650 330 1,011
General and administrative 2,242 2,712 765 1,193
Impairment of goodwill and
other intangible assets - 2,312 - -
Total operating expenses 5,702 9,767 1,797 2,849
Operating loss (362) (4,800) (224) (1,452)
Financial income
(expenses), net (59) (31) 2 (18)
Capital gain on sale of
other investment 382 - - -
Income (loss) before taxes
on income (39) (4,831) (222) (1,470)
Taxes on income - - - -
Income (loss) before equity
in earnings of affiliate (39) (4,831) (222) (1,470)
Equity in earnings (loss)
of affiliate - (232) - (206)
Net income (loss) $ (39) $ (5,063) $ (222) $ (1,676)
Net income (loss) per
share:
Basic and diluted net
income (loss) per Ordinary
share $ (0.01) $ (0.88) $ (0.03) $ (0.29)
Weighted average number of
Ordinary shares used in
computing basic and diluted
net income (loss) per share 6,408,881 5,773,845 6,523,845 5,773,845
Contacts:
Company:
Alon Mualem
CFO
Tel: +972-9-762-1733
Email: Alon.Mualem@mtsint.com
SOURCE MTS-MER Telemanagement Solutions Ltd
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