MTS Announces Second Quarter 2013 Financial Results MTS Reports Operating Profit of $377,000 for the Second Quarter PR Newswire RA'ANANA, Israel, Aug. 15, 2013 RA'ANANA, Israel, Aug. 15, 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 second quarter of 2013. Revenues for the second quarter of 2013 were $3.1 million, compared with $3.3 million in revenues during the same quarter last year and revenues of $3.3 million in the first quarter of 2013. The Company's operating profit was $377,000 in the second quarter of 2013 compared to an operating profit of $517,000 for the second quarter of 2012 and $420,000 in the first quarter of 2013. Net income for the second quarter was $309,000 or $0.07 per diluted share, compared with net income of $460,000 or $0.10 per diluted share in the second quarter of 2012 and $344,000 or $0.07 per diluted share in the first quarter of 2013. Revenues for the six month period ended June 30, 2013 were $6.4 million, compared with $6.3 million for the comparable period in 2012. Net income for the six months ended June 30, 2013 was $653,000 or $0.14 per diluted share, compared with net income of $770,000 or $0.17 per diluted share in the comparable period in 2012. As of June 30, 2013, we had cash and marketable securities of $5.6 million as compared to $4.3 million as at December 31, 2012. During the six month period ended June 30, 2013 we had positive operating cash flow of $1.2 million, as compared to positive operating cash flow of $1.0 million during the six month period ended June 30, 2012. "We recently completed the second deployment of our Mobile Money solution for a customer in Africa and as previously announced we successfully signed up a new MVNO customer in the U.S. for our MVNE managed services model. The contract with the MVNO customer provides for minimum revenues of approximately $1.1 million over a three and half year period. We are seeing other opportunities in the TEM, MVNE and Mobile Money markets and are working diligently to convert these opportunities into new contracts," concluded Mr. Bar. 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 June 30, December 31, 2013 2012 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 5,491 $ 4,190 Restricted cash 399 38 Restricted marketable securities 146 139 Trade receivables, net 580 1,066 Deferred income tax 203 371 Other accounts receivable and prepaid 167 175 expenses Total current assets 6,986 5,979 LONG-TERM ASSETS: Severance pay fund 762 658 Other investments 4 4 Total long-term assets 766 662 PROPERTY AND EQUIPMENT, NET 216 245 OTHER ASSETS: Goodwill 3,479 3,479 Other intangible assets, net 662 759 Total other assets 4,141 4,238 Total assets $ 12,109 $ 11,124 CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (except share and per share data) June 30, December 31, 2013 2012 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 280 $ 279 Accrued expenses and other 2,301 2,393 liabilities Deferred revenues 1,847 1,648 Liabilities of discontinued 435 435 operations Total current liabilities 4,863 4,755 LONG-TERM LIABILITIES - Accrued severance pay 896 800 COMMITMENTS AND CONTINGENT LIABILITIES SHAREHOLDERS' EQUITY: Share capital 13 13 Additional paid-in capital 20,240 20,120 Treasury shares (29) (29) Accumulated other comprehensive 13 5 income Accumulated deficit (13,887) (14,540) Total shareholders' equity 6,350 5,569 Total liabilities and $ 12,109 $ 11,124 shareholders' equity CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands (except share and per share data) Six months ended Three months ended June 30, June 30, 2013 2012 2013 2012 Revenues: Product sales $ $ $ $ 1,071 1,753 476 921 Services 5,326 4,511 2,624 2,359 Total revenues 6,397 6,264 3,100 3,280 Cost of revenues: Product sales 426 618 184 351 Services 1,830 1,613 921 795 Total cost of revenues 2,256 2,231 1,105 1,146 Gross profit 4,141 4,033 1,995 2,134 Operating expenses: Research and development, net of 668 704 324 330 grants from the OCS Selling and marketing 1,128 1,043 540 519 General and 1,548 1,489 754 768 administrative Total operating expenses 3,344 3,236 1,618 1,617 Operating profit 797 797 377 517 Financial income 37 (21) 18 (53) (expenses), net Income before taxes on 834 776 395 464 income Tax on income, net 181 6 86 4 Net income $ $ $ $ 653 770 309 460 Net Income per share: Basic and diluted net $ $ $ $ income per Ordinary 0.14 0.17 0.07 0.10 share Weighted average number of Ordinary shares used in 4,652,979 4,459,057 4,665,557 4,459,057 computing basic net income per share Weighted average number of Ordinary shares used 4,738,092 4,459,057 4,691,529 4,459,057 in computing and diluted net income per share SOURCE MTS - Mer Telemanagement Solutions Ltd. Website: http://www.mtsint.com
MTS Announces Second Quarter 2013 Financial Results
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