SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMC NEWS

TMCNET eNEWSLETTER SIGNUP

MTS Announces First Quarter 2017 Financial Results
[May 11, 2017]

MTS Announces First Quarter 2017 Financial Results


RA'ANANA, Israel and RIVER EDGE, New Jersey, May 11, 2017 /PRNewswire/ -- Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market: MTSL), a global provider of software solutions for online digital advertising, telecommunications expense management and billing solutions, today announced its financial results for the first quarter of 2017.

MTS Logo

MTS's revenues for the first quarter of 2017 totaled $2.4 million compared with $3.3 million for the first quarter of 2016. On a GAAP basis, the Company recorded a net loss for the quarter of $(899,000), or $(0.10) per diluted share, compared with a net loss of $(224,000), or $(0.03) per diluted share, for the first quarter of 2016.

On a non-GAAP basis (as described and reconciled below), the Company recorded a net loss of $(507,000), or $(0.06) per diluted share, compared with net income of $32,000, or $0.00 per diluted share, for the first quarter of 2016.

Telecom revenues increased to $1.8 million in the first quarter of 2017 from $1.6 million in the first quarter of 2016. During the first quarter of 2017, Vexigo recorded revenues of $575,000 compared to $1.7 million in the first quarter of 2016.

Commenting on the results, Mr. Haim Mer, Chairman of the Board of MTS, said, "We continue to execute our plan to return to profitability during the latter part of 2017, as we announced last quarter. We began implementing this strategy in the first quarter of 2017 and expect to complete the process by the end of the second quarter. We have taken further steps to reduce operational expenses in our Vexigo division, to enable Vexigo to concentrate on its core digital advertising business.  As a result of these actions, we believe that our ongoing operating expenses will decline substantially in the second quarter."

"The telecommunications side of our business continues to be stable.  We have signed two new TEM customers to long-term contracts.  In addition, as we announced earlier this month, we released a new version of our innovative eXsight Uni?ed Communications and Collaboration (UC&C) Management Solution, which enables our clients to increase efficiencies and reduce costs," said Mr. Mer.

As previously announced, the Company has received NASDAQ Staff Determination letters indicating that the Company is not in compliance with NASDAQ's minimum shareholders' equity and share price continued listing requirements. The Company plans to submit a plan next week to regain compliance and is currently evaluating its various options to secure such compliance.

Non-GAAP Financial Measures: This release includes non-GAAP net loss and basic and diluted net loss per share. These non-GAAP measures exclude the following items:

  • Amortization of purchased intangible assets (net of tax effect)
  • Stock based compensation expenses
  • Reorganization costs

MTS's management believes that the presentation of non-GAAP measures provides useful information to investors and management regarding financial and business trends relating to the Company's results of operations as well as the net amount of cash generated by its business operations. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. MTS believes that non-GAAP financial measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures.

About MTS

Mer Telemanagement Solutions Ltd. (MTS) provides digital advertising solutions for online and mobile platforms and call accounting and TEM solutions and services.

MTS's Vexigo (www.vexigo.com) subsidiary provides digital advertising solutions for online and mobile platforms, and leverages them to offer advertising optimization services to advertisers and website owners.

MTS's telecommunications business provides innovative products and services to enterprises for their call accounting and for management of their telecom expenses (TEM).

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, 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: alon.mualem@mtsint.com

 

 

 



CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands




March 31,


December 31,



2017


2016



Unaudited


Audited

ASSETS










CURRENT ASSETS:





Cash and cash equivalents


$       2,334


$       1,508

Restricted cash


213


504

Restricted marketable securities


148


136

Trade receivables, net


1,828


5,305

Other accounts receivable and prepaid expenses


453


343






Total current assets


4,976


7,796






LONG-TERM ASSETS:





Severance pay fund


743


752











PROPERTY AND EQUIPMENT, NET


179


198











OTHER ASSETS:





Goodwill


3,479


3,479

Other intangible assets, net


57


63






Total other assets


3,536


3,542






Total assets


$           9,434


$            12,288









 

 

 

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands (except share and per share data)




March 31,


December 31,



2017


2016



Unaudited


Audited

         LIABILITIES AND SHAREHOLDERS' EQUITY





CURRENT LIABILITIES:





    Trade payables


$           1,928


$          4,086

    Deferred revenues


2,051


1,374

    Accrued expenses and other liabilities


2,000


2,554

    Liabilities related to Vexigo acquisition


1,216


1,202

    Liabilities of discontinued operations


132


132






Total current liabilities


7,327


9,348






LONG-TERM LIABILITIES





    Accrued severance pay


950


914

    Deferred tax liability


166


166






Total long-term liabilities


1,116


1,080






COMMITMENTS AND CONTINGENT LIABILITIES










SHAREHOLDERS' EQUITY:





Share capital


24


23

Additional paid-in capital


26,584



26,569

Treasury shares


(29)


(29)

Accumulated other comprehensive loss


15


1

Accumulated deficit


(25,603)


(24,704)






Total shareholders' equity


991


1,860






Total liabilities and shareholders' equity


$              9,434


$               12,288








 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands (except share and per share data)




Three months ended
March 31,



2017


2016

Revenues:





Telecom Services


$          1,361


$          1,431

Telecom Product sales


476


203

Video Advertising


575


1,710






Total revenues


2,412


3,344






Cost of revenues:





Telecom Services


465


701

Telecom Product sales


95


144

Video Advertising


624


780






Total cost of revenues


1,184


1,625






Gross profit


1,228


1,719






Operating expenses:





Research and development


757


519

Selling and marketing


525


577

General and administrative


924


840






Total operating expenses


2,206


1,936






Operating loss


(978)


(217)

Financial income, net


79


34






Loss before taxes on income


(899)


(183)

Income tax expense, net


-


41






Net loss


$            (899)


$            (224)

Net loss per share:










Basic and diluted loss per Ordinary share


$          (0.10)


$          (0.03)






Weighted average number of Ordinary shares used in
computing basic and diluted net loss per share


8,702,239


8,043,380

 

 

 

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except share and per share data)




Three months ended
March 31,



2017


2016

GAAP Net loss


(899)


(224)

Stock-based compensation expenses


15


47

Intangible assets amortization, net of tax effects


6


209

Reorganization costs


371


-






Non-GAAP Net income  ( loss )


$        (507)


$                32






Net Loss per share:










GAAP diluted net loss per Ordinary share


$         (0.10)


$          (0.03)

 

Weighted average number of Ordinary shares used in

computing Non-GAAP diluted net income (loss) per share


8,702,239


8,043,380







 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mts-announces-first-quarter-2017-financial-results-300455947.html

SOURCE Mer Telemanagement Solutions Ltd.


[ Back To TMCnet.com's Homepage ]






Technology Marketing Corporation

35 Nutmeg Drive Suite 340, Trumbull, Connecticut 06611 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2017 Technology Marketing Corporation. All rights reserved | Privacy Policy