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
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SOURCE Mer Telemanagement Solutions Ltd. (MTS)
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