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MTS Announces Second Quarter 2013 Financial Results

MTS_Billing_Logos_new-ftSOURCE MTS – Mer Telemanagement Solutions Ltd. /PRNewswire
MTS Reports Operating Profit of $377,000 for the Second Quarter

RA’ANANA, Israel,  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 expenses 167 175
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 liabilities 2,301 2,393
Deferred revenues 1,847 1,648
Liabilities of discontinued operations 435 435
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 income 13 5
Accumulated deficit (13,887) (14,540)
Total shareholders’ equity 6,350 5,569
Total liabilities and shareholders’ equity $        12,109 $                11,124

Click to view table full screen
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)
Six months ended

June 30,

Three months ended

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 grants from the OCS 668 704 324 330
Selling and marketing 1,128 1,043 540 519
General and administrative 1,548 1,489 754 768
Total operating expenses 3,344 3,236 1,618 1,617
Operating profit 797 797 377 517
Financial income (expenses), net 37 (21) 18 (53)
Income before taxes on income 834 776 395 464
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 share $            0.14 $            0.17 $            0.07 $            0.10
Weighted average number of Ordinary shares used in
computing basic net income per share
4,652,979 4,459,057 4,665,557 4,459,057
 

Weighted average number of Ordinary shares used in
computing and diluted net income per share

4,738,092 4,459,057 4,691,529 4,459,057

 

 

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