RA'ANANA, Israel and
RIVER EDGE, New Jersey,
May 11, 2017 /PRNewswire/ -- Mer
Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market:
MTSL), a global provider of software solutions for online
digital advertising, telecommunications expense management and
billing solutions, today announced its financial results for the
first quarter of 2017.
MTS's revenues for the first quarter of 2017 totaled
$2.4 million compared with
$3.3 million for the first quarter of
2016. On a GAAP basis, the Company recorded a net loss for the
quarter of $(899,000), or
$(0.10) per diluted share, compared
with a net loss of $(224,000), or
$(0.03) per diluted share, for the
first quarter of 2016.
On a non-GAAP basis (as described and reconciled below), the
Company recorded a net loss of $(507,000), or $(0.06) per diluted share, compared with net
income of $32,000, or $0.00 per diluted share, for the first quarter of
2016.
Telecom revenues increased to $1.8
million in the first quarter of 2017 from $1.6 million in the first quarter of 2016. During
the first quarter of 2017, Vexigo recorded revenues of $575,000 compared to $1.7
million in the first quarter of 2016.
Commenting on the results, Mr. Haim
Mer, Chairman of the Board of MTS, said, "We continue to
execute our plan to return to profitability during the latter part
of 2017, as we announced last quarter. We began implementing this
strategy in the first quarter of 2017 and expect to complete the
process by the end of the second quarter. We have taken further
steps to reduce operational expenses in our Vexigo division, to
enable Vexigo to concentrate on its core digital advertising
business. As a result of these actions, we believe that our
ongoing operating expenses will decline substantially in the second
quarter."
"The telecommunications side of our business continues to be
stable. We have signed two new TEM customers to long-term
contracts. In addition, as we announced earlier this month,
we released a new version of our innovative eXsight Unified
Communications and Collaboration (UC&C) Management Solution,
which enables our clients to increase efficiencies and reduce
costs," said Mr. Mer.
As previously announced, the Company has received NASDAQ Staff
Determination letters indicating that the Company is not in
compliance with NASDAQ's minimum shareholders' equity and share
price continued listing requirements. The Company plans to submit a
plan next week to regain compliance and is currently evaluating its
various options to secure such compliance.
Non-GAAP Financial Measures: This release includes
non-GAAP net loss and basic and diluted net loss per share. These
non-GAAP measures exclude the following items:
- Amortization of purchased intangible assets (net of tax
effect)
- Stock based compensation expenses
- Reorganization costs
MTS's management believes that the presentation of non-GAAP
measures provides useful information to investors and management
regarding financial and business trends relating to the Company's
results of operations as well as the net amount of cash generated
by its business operations. These non-GAAP financial measures are
not in accordance with, or an alternative for, generally accepted
accounting principles and may be different from non-GAAP financial
measures used by other companies. In addition, these non-GAAP
financial measures are not based on any comprehensive set of
accounting rules or principles. MTS believes that non-GAAP
financial measures should only be used to evaluate the Company's
results of operations in conjunction with the corresponding GAAP
measures.
About MTS
Mer Telemanagement Solutions Ltd. (MTS) provides digital
advertising solutions for online and mobile platforms and call
accounting and TEM solutions and services.
MTS's Vexigo (www.vexigo.com) subsidiary provides digital
advertising solutions for online and mobile platforms, and
leverages them to offer advertising optimization services to
advertisers and website owners.
MTS's telecommunications business provides innovative products
and services to enterprises for their call accounting and for
management of their telecom expenses (TEM).
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.
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:
Alon
Mualem
CFO
Tel: +972-9-7777-540
Email: alon.mualem@mtsint.com
CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
Unaudited
|
|
Audited
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,334
|
|
$
1,508
|
Restricted
cash
|
|
213
|
|
504
|
Restricted marketable
securities
|
|
148
|
|
136
|
Trade receivables,
net
|
|
1,828
|
|
5,305
|
Other accounts
receivable and prepaid expenses
|
|
453
|
|
343
|
|
|
|
|
|
Total current
assets
|
|
4,976
|
|
7,796
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
Severance pay
fund
|
|
743
|
|
752
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT,
NET
|
|
179
|
|
198
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
Goodwill
|
|
3,479
|
|
3,479
|
Other intangible
assets, net
|
|
57
|
|
63
|
|
|
|
|
|
Total other
assets
|
|
3,536
|
|
3,542
|
|
|
|
|
|
Total assets
|
|
$
9,434
|
|
$
12,288
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
|
Unaudited
|
|
Audited
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Trade payables
|
|
$
1,928
|
|
$
4,086
|
Deferred revenues
|
|
2,051
|
|
1,374
|
Accrued expenses and other liabilities
|
|
2,000
|
|
2,554
|
Liabilities related to Vexigo acquisition
|
|
1,216
|
|
1,202
|
Liabilities of discontinued operations
|
|
132
|
|
132
|
|
|
|
|
|
Total current
liabilities
|
|
7,327
|
|
9,348
|
|
|
|
|
|
LONG-TERM
LIABILITIES
|
|
|
|
|
Accrued severance pay
|
|
950
|
|
914
|
Deferred tax liability
|
|
166
|
|
166
|
|
|
|
|
|
Total long-term
liabilities
|
|
1,116
|
|
1,080
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENT LIABILITIES
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
|
Share
capital
|
|
24
|
|
23
|
Additional paid-in
capital
|
|
26,584
|
|
|
26,569
|
Treasury
shares
|
|
(29)
|
|
(29)
|
Accumulated other
comprehensive loss
|
|
15
|
|
1
|
Accumulated
deficit
|
|
(25,603)
|
|
(24,704)
|
|
|
|
|
|
Total shareholders'
equity
|
|
991
|
|
1,860
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
9,434
|
|
$
12,288
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
Three months
ended March
31,
|
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
Telecom
Services
|
|
$
1,361
|
|
$
1,431
|
Telecom Product
sales
|
|
476
|
|
203
|
Video
Advertising
|
|
575
|
|
1,710
|
|
|
|
|
|
Total
revenues
|
|
2,412
|
|
3,344
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
Telecom
Services
|
|
465
|
|
701
|
Telecom Product
sales
|
|
95
|
|
144
|
Video
Advertising
|
|
624
|
|
780
|
|
|
|
|
|
Total cost of
revenues
|
|
1,184
|
|
1,625
|
|
|
|
|
|
Gross profit
|
|
1,228
|
|
1,719
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
|
757
|
|
519
|
Selling and
marketing
|
|
525
|
|
577
|
General and
administrative
|
|
924
|
|
840
|
|
|
|
|
|
Total operating
expenses
|
|
2,206
|
|
1,936
|
|
|
|
|
|
Operating
loss
|
|
(978)
|
|
(217)
|
Financial income,
net
|
|
79
|
|
34
|
|
|
|
|
|
Loss before taxes on
income
|
|
(899)
|
|
(183)
|
Income tax expense,
net
|
|
-
|
|
41
|
|
|
|
|
|
Net loss
|
|
$
(899)
|
|
$
(224)
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per Ordinary share
|
|
$
(0.10)
|
|
$
(0.03)
|
|
|
|
|
|
Weighted average number
of Ordinary shares used in
computing basic and diluted net loss per share
|
|
8,702,239
|
|
8,043,380
|
RECONCILIATION OF
GAAP TO NON-GAAP RESULTS
|
U.S. dollars in
thousands (except share and per share data)
|
|
|
|
Three months
ended March
31,
|
|
|
2017
|
|
2016
|
GAAP Net
loss
|
|
(899)
|
|
(224)
|
Stock-based
compensation expenses
|
|
15
|
|
47
|
Intangible assets
amortization, net of tax effects
|
|
6
|
|
209
|
Reorganization
costs
|
|
371
|
|
-
|
|
|
|
|
|
Non-GAAP Net
income ( loss )
|
|
$
(507)
|
|
$
32
|
|
|
|
|
|
Net Loss per
share:
|
|
|
|
|
|
|
|
|
|
GAAP diluted net loss
per Ordinary share
|
|
$
(0.10)
|
|
$
(0.03)
|
Weighted average
number of Ordinary shares used in
computing Non-GAAP
diluted net income (loss) per share
|
|
8,702,239
|
|
8,043,380
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mts-announces-first-quarter-2017-financial-results-300455947.html
SOURCE Mer Telemanagement Solutions Ltd.