MTS Announces Full Year and Fourth Quarter 2010 Financial Results
MTS Reports Operating Profit of $244,000 in Fourth Quarter 2010 and $291,000 for the Full Year
RA'ANANA, Israel, March 31, 2011 /PRNewswire-FirstCall/ -- MTS - Mer Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a global provider of business support systems (BSS) for comprehensive telecommunication management, telecommunications expense management (TEM) solutions and customer care & billing (CC&B) solutions, today announced its financial results for the fourth quarter and the year ended December 31, 2010.
Revenues for the fourth quarter of 2010 were $3.0 million, compared with revenues of $2.7 million in the fourth quarter of 2009. Revenues for the twelve month period ended December 31, 2010 were $11.6 million, compared with revenues of $11.4 million in the 2009 twelve month period.
Net income for the fourth quarter of 2010 was $117,000 or $0.03 per diluted share, compared with a net loss of $168,000 or ($0.04) per diluted share in the fourth quarter of 2009. Net income for the twelve month period ended December 31, 2010 was $176,000 or $0.04 per diluted share, compared with a net loss of $877,000 or ($0.20) per diluted share for the 2009 twelve month period.
As of March 2, 2010, a one-for-two reverse stock split of our issued and outstanding ordinary shares went into effect following the approval of shareholders at an extraordinary general meeting. All numbers for our ordinary shares and earnings per share have been adjusted to reflect the reverse stock split.
"We are pleased to report that MTS has made sustained changes in its operations by reducing operating expenses and seeking new business opportunities. The results of this process are reflected in the Company's improved financial results and indicators" said Eytan Bar, CEO of MTS.
"We are committed to closely monitoring our operating expenses and reducing our overall costs as well as achieving revenue growth. The Company continues to develop Telecom Expense Management opportunities through partners and existing customers. In addition, the Company's Billing and Mobile Virtual Network Operator's (MVNO) activity has grown both as a licensed offering and as a managed service. We see market opportunities and are ready to leverage our solutions. We are looking forward to improve both our top and bottom line performance," 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.
AnchorPoint TEM solutions enable enterprises to gain visibility and control of strategic assets that drive key business processes and crucial competitive advantage. The AnchorPoint's software, consulting and managed services solutions -- including integrated Invoice, Asset, and Usage Management and Business Analytics tools -- provide professionals at every level of the organization with rapid access to concise, actionable data.
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, WiMAX, MVNO) to rapidly install a full-featured and scaleable solution.
Headquartered in Israel, MTS markets its solutions through wholly owned subsidiaries in the United States, Hong Kong and The Netherlands 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.
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
December 31, December 31,
2010 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,124 $ 2,173
Restricted marketable securities 147 227
Trade receivables, net 1,251 781
Other accounts receivable and prepaid expenses 174 376
Inventories 17 39
Total current assets 3,713 3,596
LONG-TERM ASSETS:
Severance pay fund 798 767
Other investments 4 31
Deferred income taxes 33 35
Total long-term assets 835 833
PROPERTY AND EQUIPMENT, NET 165 175
OTHER ASSETS:
Goodwill 3,479 3,479
Other intangible assets, net 1,415 1,807
Total other assets 4,894 5,286
Total assets $ 9,607 $ 9,890
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
December 31, December 31,
2010 2009
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 305 $ 411
Accrued expenses and other liabilities 2,085 2,269
Deferred revenues 2,452 2,741
Liabilities of discontinued operations 351 283
Total current liabilities 5,193 5,704
LONG-TERM LIABILITIES -
Accrued severance pay 1,051 1,071
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Share capital 13 13
Additional paid-in capital 19,676 19,577
Treasury shares (29) (29)
Accumulated other comprehensive income (4) 23
Accumulated deficit (16,293) (16,469)
Total shareholders' equity 3,363 3,115
Total liabilities and shareholders'
equity $ 9,607 $ 9,890
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)
Year ended Three months ended
December 31, December 31,
2010 2009 2010 2009
Revenues:
Product sales $ 4,409 $ 5,449 $ 1,126 $ 1,435
Services 7,230 5,911 1,890 1,296
Total revenues 11,639 11,360 3,016 2,731
Cost of revenues:
Product sales 1,508 1,835 312 443
Services 2,693 1,942 559 392
Total cost of
revenues 4,201 3,777 871 835
Gross profit 7,438 7,583 2,145 1,896
Operating expenses:
Research and
development, net of
grants from the OCS 1,547 1,888 447 320
Selling and marketing 2,584 2,863 707 728
General and
administrative 3,016 3,618 747 928
Total operating
expenses 7,147 8,369 1,901 1,976
Operating profit
(loss) 291 (786) 244 (80)
Financial income
(expenses), net - (31) (25) (5)
Income (loss) before
taxes on income 291 (817) 219 (85)
Tax on income 47 (20) (34) 20
Net income (loss)
from continuing
operations $ 244 $ (837) $ 185 $ (105)
Net loss from
discontinued
operations (68) (40) (68) (63)
Net income (loss) $ 176 $ (877) $ 117 $ (168)
Basic and diluted net
income (loss) per
Ordinary share $ 0.04 $ (0.20) $ 0.03 $ (0.04)
Weighted average
number of Ordinary
shares used in
computing basic and
diluted net loss per
share 4,459,049 4,458,976 4,459,057 4,458,976
Contacts:
Company:
Alon Mualem
CFO
Tel: +972-9-7777-540
Email: [email protected]
SOURCE MTS-MER Telemanagement Solutions Ltd
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