MTS Announces Second Quarter 2013 Financial Results

             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
 
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