MTS Announces Third Quarter 2010 Financial Results
RA'ANANA, Israel, November 11, 2010 /PRNewswire-FirstCall/ -- 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 third quarter of 2010.
Revenues for the third quarter of 2010 were $2.7 million, compared with $3.0 million in revenues during the same quarter last year. The Company's operating loss was $28,000 in the third quarter of 2010 compared to an operating profit of $33,000 for the third quarter of 2009. Net income for the third quarter was $14,000 or $0.00 per diluted share, compared with a net loss of $31,000 or $(0.01) per diluted share in the third quarter of 2009.
Revenues for the nine month period ended September 30, 2010 were $8.6 million, compared with $8.7 million for the comparable period in 2009. Net income for the nine months ended September 30, 2010 was $59,000 or $0.01 per diluted share, compared with a net loss of $709,000 or ($0.16) per diluted share in the comparable period in 2009.
All numbers relating to our ordinary shares and earnings per share have been adjusted to reflect the reverse stock split that became effective on March 2, 2010.
"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," said Eytan Bar, CEO of MTS.
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: http://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
September December
30, 31,
2010 2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,761 $ 2,173
Restricted marketable securities 136 227
Trade receivables, net 848 771
Unbilled receivables 42 10
Other accounts receivable and prepaid expenses 210 376
Inventories 29 39
Total current assets 3,026 3,596
LONG-TERM ASSETS:
Severance pay fund 767 767
Other investments 30 31
Deferred income taxes 35 35
Total long-term assets 832 833
PROPERTY AND EQUIPMENT, NET 136 175
OTHER ASSETS:
Goodwill 3,479 3,479
Other intangible assets, net 1,507 1,807
Total other assets 4,986 5,286
Total assets $ 8,980 $ 9,890
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
September December
30, 31,
2010 2009
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 297 $ 432
Accrued expenses and other liabilities 2,185 2,531
Deferred revenues 2,273 2,741
Total current liabilities 4,755 5,704
LONG-TERM LIABILITIES -
Accrued severance pay 1,036 1,071
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Share capital 13 13
Additional paid-in capital 19,652 19,577
Treasury shares (29) (29)
Accumulated other comprehensive income (37) 23
Accumulated deficit (16,410) (16,469)
Total shareholders' equity 3,189 3,115
Total liabilities and shareholders' equity $ 8,980 $ 9,890
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,
2010 2009 2010 2009
Revenues:
Product sales $ 3,283 $ 4,014 $ 897 $ 1,273
Services 5,340 4,689 1,793 1,712
Total revenues 8,623 8,703 2,690 2,985
Cost of revenues:
Product sales 1,196 1,392 369 387
Services 2,134 1,550 752 547
Total cost of
revenues* 3,330 2,942 1,121 934
Gross profit 5,293 5,761 1,569 2,051
Operating expenses:
Research and
development, net of
grants from the OCS 1,100 1,568 429 521
Selling and
marketing* 1,877 2,186 596 669
General and
administrative 2,269 2,690 572 828
Total operating
expenses 5,246 6,444 1,597 2,018
Operating profit
(loss) 47 (683) (28) 33
Financial income
(expenses), net 25 (26) 43 (64)
Capital gain on sale
of investment - - - -
Income (loss) before
taxes on income 72 (709) 15 (31)
Tax on income 13 - 1 -
Net income (loss) $ 59 $ (709) $ 14 $ (31)
Net Income (loss) per
share:
Basic and diluted net
income (loss) per
Ordinary share $ 0.01 $ (0.16) $ 0.00 $ (0.01)
Weighted average
number of Ordinary
shares used in
computing basic and
diluted net loss per
share 4,458,975 4,458,975 4,458,975 4,458,975
* Reclassified to conform with current period presentation.
Contact:
Alon Mualem
CFO
Tel: +972-9-7777-540
Email: [email protected]
SOURCE MTS-MER Telemanagement Solutions Ltd
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