MTS Announces 2019 Fourth Quarter Financial Results

RA'ANANA, Israel and POWDER SPRINGS, Georgia, March 24, 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 and twelve months ended December 31, 2019.

The Company recorded revenues of $1.4 million for the three months ended December 31, 2019, compared with $1.6 million for the three months ended December 31, 2018. The Company recorded net income of $99,000 for the three months ended December 31, 2019, or $0.02 per diluted share, compared with net income of $110,000, or $0.03 per diluted share, for the comparable period in 2018. In the three months ended December 31, 2019, the Company had net income from continuing operations of $46,000 compared to net income from continuing operations of $48,000 in the comparable period in 2018. The Company recognized net income from discontinued operations of $53,000 in the three months ended December 31, 2019, compared to net income from discontinued operations of $62,000 in the comparable period in 2018.

The Company recorded revenues of $5.2 million for the year ended December 31, 2019, compared with $5.9 million for the comparable period in 2018. The Company incurred a net loss of $(135,000), or $(0.03) per diluted share, for the year ended December 31, 2019, compared with a net loss of $(1.2) million, or ($0.34) per diluted share, in the comparable period in 2018. Net loss from continuing operations was $(192,000) for the year ended December 31, 2019, compared with a net loss from continuing operations of $(886,000) in the comparable period in 2018. On a non-GAAP basis (as described and reconciled below), the Company had net income from continuing operations of $79,000, or $0.02 per diluted share, for the year ended December 31, 2019, compared with a net loss from continuing operations of $(776,000), or $(0.23) per diluted share, for the comparable period in 2018.

During 2018, an institutional investor invested $1.5 million in a newly created class of convertible preferred shares and $0.2 million in ordinary shares of the Company, at a price per preferred share and ordinary share of $1.14. The preferred shares are convertible into ordinary shares on a one to one basis.

As previously published, the share purchase agreement with the institutional investor includes a greenshoe option, exercisable until April 30, 2020, for future investment of up to $1.5 million in the Company's preferred shares at a price per preferred share of $1.14. During 2019, the institutional investor partially exercised its greenshoe option and purchased 692,983 convertible preferred shares in consideration for $790,000.

Commenting on the results, Mr. Roy Hess, Chief Executive Officer of MTS, said, "Our results in 2019 reflect the efficiency plan we implemented during 2019 in order to adjust our expenses to our new line of business and to improve our operation 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. During the end of 2019 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  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.   

Contacts:   
Ofira Bar                                                                      
CFO                                         
Tel: +972-9-7777-540                                                  
Email: [email protected]

SOURCE Mer Telemanagement Solutions Ltd. (MTS)