2014

MTS Announces First Quarter 2013 Financial Results MTS Reports Operating Profit of $420,000; Operating Activities Generate $1.0 Million in Cash Flow in the First Quarter

The Company's Audit Committee and Board of Directors Approved an Update to the Compensation Terms of Mr. Yaakov Goldman that are Equal to the Amounts Paid to the Company's Outside Directors

RA'ANANA, Israel, May 9, 2013 /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 2013.

Revenues for the first quarter of 2013 were $3.3 million, compared with $3.0 million in revenues during the same quarter last year. The Company's operating profit was $420,000 in the first quarter of 2013, compared to operating profit of $280,000 in the first quarter of 2012. Net income in the first quarter was $344,000, or $0.07 per diluted share, compared to net income of $310,000, or $0.07 per diluted share, in the first quarter of 2012. As of March 31, 2013, MTS had cash and marketable securities of $5.4 million as compared to $4.3 million as of December 31, 2012.

"Our first quarter results were in line with our expectations. The Company is continuing to develop its Mobile Virtual Network Enabler (MVNE) activity and to promote both this activity and the Company's Telecom Expense Management products through partners, new customer acquisitions and expanding our existing customer base. In parallel, we are closely monitoring our operating expenses and we will make the necessary adjustments based on the business needs and changes we see," said Eytan Bar, CEO of MTS.

The Company further announced today that in meetings held during May 2013, the Company's audit committee and board of directors approved a resolution that the compensation terms of Mr. Yaakov Goldman, a director and member of the audit committee, be equal to the compensation terms of the Company's outside directors, as defined under Israeli law.

Pursuant to the approval of the audit committee and board of directors, effective May 8, 2013, Mr. Goldman will be entitled to receive an annual fee, payable quarterly, of NIS 30,500 (currently approximately $8,500) and a per meeting attendance fee of NIS 1,700 (currently approximately $470). He previously received an annual fee of $16,800 and a per meeting fee of $400.  The Company's audit committee and board of directors determined that the payment of the aforementioned sums to Mr. Goldman complies with the requirement set forth in Regulation 1A(2) of the Israeli Companies Regulations (Relief for Transactions with Interested Parties), 2000 (the "Relief Regulations") as they do not exceed the maximum amounts applicable to the compensation of the Company's outside directors pursuant to the terms of the Israeli Companies Regulations (Rules regarding Compensation and Expense Reimbursement of Outside Directors), 2000.

In accordance with Regulation 1C of the Relief Regulations, if one or more shareholders holding at least one percent of the Company's issued share capital or voting rights notifies the Company in writing of their objection to the provision of this relief no later than fourteen days from publication of this press release, the relief based on Regulation 1A(2) will not apply and the change in the terms of Mr. Goldman's compensation will be subject to approval by the Company's shareholders as required by the Israeli Companies Law, 1999.  

About MTS

Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider of Telecom Expense Management (TEM) and 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 (MDM), 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 service to allow 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, Hong Kong and 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:
Company:  
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,



2013


2012

ASSETS










CURRENT ASSETS:





Cash and cash equivalents


$       5,261


$       4,190

Restricted cash


440


38

Restricted marketable securities


141


139

Trade receivables, net


886


1,066

Deferred income tax


286


371

Other accounts receivable and prepaid expenses


194


175






Total current assets


7,208


5,979






LONG-TERM ASSETS:





Severance pay fund


704


658

Other investments


4


4






Total long-term assets


708


662






PROPERTY AND EQUIPMENT, NET


232


245






OTHER ASSETS:





Goodwill


3,479


3,479

Other intangible assets, net


709


759






Total other assets


4,188


4,238






Total assets


$         12,336


$            11,124







 

CONSOLIDATED BALANCE SHEETS

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








March 31,


December 31,



2013


2012

LIABILITIES AND SHAREHOLDERS' EQUITY










CURRENT LIABILITIES:





Trade payables


$            287


$             279

Accrued expenses and other liabilities


2,633


2,393

Deferred revenues


2,104


1,648

Liabilities of discontinued operations


435


435






Total current liabilities


5,459


4,755






LONG-TERM LIABILITIES





Accrued severance pay


852


800






COMMITMENTS AND CONTINGENT LIABILITIES










SHAREHOLDERS' EQUITY:





Share capital


13


13

Additional paid-in capital


20,224


20,120

Treasury shares


(29)


(29)

Accumulated other comprehensive  loss


13


5

Accumulated deficit


(14,196)


(14,540)






Total shareholders' equity


6,025


5,569






Total liabilities and shareholders' equity


$           12,336


$               11,124








 

CONSOLIDATED STATEMENTS OF OPERATIONS

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






Three months ended

March 31,



2013


2012

Revenues:





Product sales


$           595


$           833

Services


2,702


2,151






Total revenues


3,297


2,984






Cost of revenues:





Product sales


243


268

Services


908


817






Total cost of revenues


1,151


1,085






Gross profit


2,146


1,899






Operating expenses:





Research and development, net of grants from the OCS


344


374

Selling and marketing


588


524

General and administrative


794


721






Total operating expenses


1,726


1,619






Operating income


420


280

Financial income, net


19


32

Other income, net


-


-






Income before taxes on income


439


312

Taxes on income, net


95


2






Net income 


$             344


$             310






Net income per Ordinary share:










Basic and diluted net income per Ordinary share


$           0.07


$           0.07






Weighted average number of Ordinary shares used in computing basic net
  income per share


4,639,899


4,459,057

Weighted average number of Ordinary shares used in computing diluted
  net income per share


4,784,153


4,466,034






SOURCE MTS - Mer Telemanagment



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