Company News: Page (1) of 1 - 03/06/14

MTS Announces Full Year and Fourth Quarter 2013 Financial Results

 

March 06, 2014 --

RA'ANANA, Israel, March 6, 2014 /PRNewswire/ -- MTS Mer Telemanagement Solutions Ltd. (NASDAQ Capital Market: MTSL), a global provider of Telecommunications Expense Management (TEM) and Enterprise Mobility Management (EMM) solutions and Mobile Virtual Network Enabler (MVNE) services, today announced its financial results for the fourth quarter and the year ended December 31, 2013.

Revenues for the year ended December 31, 2013 were $12.5 million, compared with revenues of $13.1 million in 2012. Revenues for the fourth quarter of 2013 were $3.1 million, compared with revenues of $3.5 million in the fourth quarter of 2012.

The Company's operating profit was $1.7 million for the year ended December 31, 2013 compared with operating profit of $2.0 million for the same period last year. Net income for the year ended December 31, 2013 was $1.4 million or $0.30 per diluted share, compared with net income of $1.4 million or $0.30 per diluted share in 2012. Net income for the year ended December 31, 2012 was negatively affected by a non-recurring tax charge of approximately $1.05 million as a result of the Israeli court tax ruling with respect to the 1997 to 1999 period.


The Company's operating profit was $519,000 in the fourth quarter of 2013 compared to an operating profit of $548,000 for the fourth quarter of 2012. Net income for the fourth quarter was $479,000 or $0.10 per diluted share, compared with net income of $351,000 or $0.08 per diluted share in the fourth quarter of 2012. Net income for the fourth quarter of 2012 was negatively affected by the non-recurring tax charge of approximately $604,000 as a result of the Israeli court tax ruling with respect to the 1997 to 1999 period.

As previously announced, the Company's agreement with Simple Mobile, now part of TracFone, to provide hosted billing services for minimum monthly payments of $300,000 ended at December 31, 2013.

As of December 31, 2013, the Company had cash and cash equivalents of $6.4 million as compared to $4.2 million as at December 31, 2012. During the twelve month period ended December 31, 2013 the Company had operating cash flow of $2.1 million compared with operating cash flow of $807,000 during the twelve month period ended December 31, 2012.

"Our fourth quarter results were in line with our expectations. We are continuing to see opportunities in the TEM, MVNE and Mobile Money markets, both directly and through partners, and are working diligently to convert these opportunities into new contracts. In parallel, we are also exploring M&A transactions as part of our strategy to enhance our business and increase shareholder value," said Eytan Bar, CEO of MTS.

About MTS

Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider of innovative products and services for Telecom Expense Management (TEM), Enterprise Mobility Management (EMM), 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, 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 services to allow the 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 and Hong Kong and through 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







December 31,


December 31,



2013


2012

ASSETS










CURRENT ASSETS:





Cash and cash equivalents


$ 6,369


$ 4,190

Restricted cash


63


38

Restricted marketable securities


153


139

Trade receivables, net


943


1,066

Deferred income tax


-


371

Other accounts receivable and prepaid expenses


147


175






Total current assets


7,675


5,979






LONG-TERM ASSETS:





Severance pay fund


725


658

Other investments


-


4






Total long-term assets


725


662






PROPERTY AND EQUIPMENT, NET


183


245






OTHER ASSETS:





Goodwill


3,479


3,479

Other intangible assets, net


567


759






Total other assets


4,046


4,238






Total assets


$ 12,629


$ 11,124







CONSOLIDATED BALANCE SHEETS





U.S. dollars in thousands (except share and per share data)












December 31,


December 31,



2013


2012

LIABILITIES AND SHAREHOLDERS' EQUITY










CURRENT LIABILITIES:





Trade payables


$ 254


$ 279

Accrued expenses and other liabilities


2,200


2,393

Deferred revenues


1,766


1,648

Liabilities of discontinued operations


362


435






Total current liabilities


4,582


4,755






LONG-TERM LIABILITIES -





Accrued severance pay


857


800

Deferred tax liability


29


-

Total long-term assets


886


800






COMMITMENTS AND CONTINGENT LIABILITIES










SHAREHOLDERS' EQUITY:





Share capital


13


13

Additional paid-in capital


20,317


20,120

Treasury shares


(29)


(29)

Accumulated other comprehensive income


(6)


5

Accumulated deficit


(13,134)


(14,540)






Total shareholders' equity


7,161


5,569






Total liabilities and shareholders' equity


$ 12,629


$ 11,124







CONSOLIDATED STATEMENTS OF OPERATIONS




U.S. dollars in thousands (except share and per share data)













Year ended

December 31,


Three months ended

December 31,





2013


2012


2013


2012



Revenues:











Services


$ 10,396


$ 9,461


$ 2,550


$ 2,435



Product sales


2,076


3,665


565


1,043














Total revenues


12,472


13,126


3,115


3,478














Cost of revenues:











Services


3,254


3,340


626


882



Product sales


770


1,154


171


267














Total cost of revenues


4,024


4,494


797


1,149














Gross profit


8,448


8,632


2,318


2,329














Operating expenses:











Research and development,
net of grants from the OCS


1,389


1,329


370


326



Selling and marketing


2,164


2,457


588


857



General and administrative


3,188


2,804


841


598














Total operating expenses


6,741


6,590


1,799


1,781














Operating profit


1,707


2,042


519


548



Financial income (expenses), net


61


60


(7)


80

























Income before taxes on income


1,768


2,102


512


628



Tax on income


435


736


106


277














Net income from continuing operations


$ 1,333


$ 1,366


$ 406


$ 351



Net income from discontinued operations


73


-


73


-



Net income


$ 1,406


$ 1,366


$ 479


$ 351














Basic and diluted net income per Ordinary share


$ 0.30


$ 0.30


$ 0.10


$ 0.08

























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


4,659,230


4,478,677


4,665,557


4,539,323















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


4,720,966


4,531,384


4,701,968


4,669,887


SOURCE MTS - Mer Telemanagement

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