MTS Announces 2020 Second quarter Financial Results
Mer Telemanagement Solutions Ltd. (MTSL) reported Q2 2020 revenues of $948,000, down from $1,317,000 in Q2 2019. The net loss for the quarter amounted to $628,000, or $0.11 per diluted share, compared to a loss of $76,000 in the same period last year. For the six months ended June 30, 2020, revenue totaled $2.1 million, down from $2.6 million in 2019. The total net loss for this period reached $660,000, or $0.12 per diluted share. Despite these challenges, the CEO noted initial revenues from their new product, Omnis, and ongoing M&A efforts.
- Initial revenues being generated from the new Omnis Contact Center Software.
- Ongoing efforts to find a suitable M&A candidate to enhance shareholder value.
- Quarterly revenues decreased by 28% compared to Q2 2019.
- Net loss increased significantly due to $617,000 in one-time non-cash impairment charges.
- Six-month revenue decreased by 19% compared to the same period in 2019.
POWDER SPRINGS, Ga. and RA'ANANA, Israel, Nov. 18, 2020 /PRNewswire/ -- Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM), call accounting and contact centre software, today released its financial results for the three and six months ended June 30, 2020.
The Company recorded revenues of
The Company recorded revenues of
During 2018 an institutional investor invested,
Commenting on the results, Mr. Roy Hess, Chief Executive Officer of MTS, said, "Our results in 2020 reflect the efficiency plan we implemented during 2019 in order to adjust our operating expenses attributable to the declining sales and to improve our operating margins. Excluding the impact of the one-time non-cash impairment charges, our net loss for the quarter was
About MTS
Mer Telemanagement Solutions Ltd. (MTS) is focused on innovative products and services for enterprises in the area of telecom expense management (TEM), call accounting and contact center software. 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, the Company's ability to achieve profitable operations, its ability to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements, 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, general economic conditions and other risk factors detailed in the Company's annual report and other filings with the United States Securities and Exchange Commission.
Contacts:
Ofira Bar
CFO
Tel: +972-9-7777-540
Email: ofira.bar@mtsint.com
CONSOLIDATED BALANCE SHEETS | |||||||
U.S. dollars in thousands | |||||||
June 30, | December, 31 | ||||||
2020 | 2019 | ||||||
(Unaudited) | (Audited) | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ 2,210 | $ 1,732 | |||||
Restricted cash | 431 | 1,464 | |||||
Trade receivables | 414 | 499 | |||||
Other accounts receivable and prepaid expenses | 221 | 236 | |||||
Assets of discontinued operations | 178 | 172 | |||||
Total current assets | 3,454 | 4,103 | |||||
SEVERANCE PAY FUND | 350 | 653 | |||||
PROPERTY AND EQUIPMENT, NET | 49 | 62 | |||||
GOODWILL | 2,608 | 3,225 | |||||
Total assets | $ 6,461 | $ 8,043 | |||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
U.S. dollars in thousands (except share and per share data) | ||||||||||
June 30, | December 31, | |||||||||
2020 | 2019 | |||||||||
(Unaudited) | (Audited) | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
CURRENT LIABILITIES: | ||||||||||
Trade payables | $ 110 | $ 149 | ||||||||
Deferred revenues | 1,020 | 962 | ||||||||
Accrued expenses and other liabilities | 1,202 | 2,317 | ||||||||
Liabilities of discontinued operations | 488 | 516 | ||||||||
Total current liabilities | 2,820 | 3,944 | ||||||||
LONG-TERM LIABILITIES: | ||||||||||
Accrued severance pay | 417 | 831 | ||||||||
Deferred tax liability | 55 | 163 | ||||||||
Total long-term liabilities | 472 | 994 | ||||||||
COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||||
SHAREHOLDERS' EQUITY: | ||||||||||
Share capital - | ||||||||||
Ordinary shares | 37 | 30 | ||||||||
Preferred Shares | 15 | 16 | ||||||||
Additional paid-in capital | 31,354 | 30,635 | ||||||||
Treasury shares at cost | (29) | (29) | ||||||||
Accumulated deficit | (28,208) | (27,547) | ||||||||
Total shareholders' equity | 3,169 | 3,105 | ||||||||
Total liabilities and shareholders' equity | $ 6,461 | $ 8,043 | ||||||||
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, | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Unaudited | ||||||||
Revenues: | ||||||||
Services | $ 1,815 | $ 2,258 | $ 913 | $ 1,120 | ||||
Product sales | 288 | 342 | 35 | 197 | ||||
Total revenues | 2,103 | 2,600 | 948 | 1,317 | ||||
Cost of revenues: | ||||||||
Services | 693 | 785 | 321 | 393 | ||||
Product sales | 173 | 196 | 80 | 98 | ||||
Total cost of revenues | 866 | 981 | 401 | 491 | ||||
Gross profit | 1,237 | 1,619 | 547 | 826 | ||||
Operating expenses: | ||||||||
Research and development | - | 268 | - | 135 | ||||
Selling and marketing | 459 | 553 | 194 | 267 | ||||
General and administrative | 937 | 978 | 482 | 484 | ||||
Goodwill impairment | 617 | - | 617 | - | ||||
Total operating expenses | 2,013 | 1,799 | 1,293 | 886 | ||||
Operating loss | (776) | (180) | (746) | (60) | ||||
Financial income (expenses), net | 8 | (25) | 10 | (15) | ||||
Loss before taxes on income | (768) | (205) | (736) | (75) | ||||
Taxes on income (tax benefit), net | (108) | 1 | (108) | 1 | ||||
Net loss from continuing operations | (660) | (206) | (628) | (76) | ||||
Loss from discontinued operations | (1) | (14) | (13) | (16) | ||||
Net loss | $ (661) | $ (220) | $ (641) | $ (92) | ||||
Net loss per share: | ||||||||
Basic and diluted net loss per share from continuing | $ (0.12) | $ (0.04) | $ (0.11) | $ ( 0.02) | ||||
Basic and diluted net loss per share from discontinued | (0.00) | (0.00) | (0.00) | ( 0.00) | ||||
Basic and dilutednet loss per share | $ (0.12) | $ (0.04) | $ ( 0.11) | $ ( 0.02) | ||||
Weighted average number of shares used in computing | 5,645,400 | 4,698,440 | 5,669,621 | 4,783,115 | ||||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||
U.S. dollars in thousands (except share and per share data) | |||||||||
Six months ended | Three months ended | ||||||||
2020 | 2019 | 2020 | 2019 | ||||||
Unaudited | |||||||||
GAAP net loss from continuing operations | (660) | (206) | (628) | (76) | |||||
Stock-based compensation expenses | 14 | 13 | 7 | 6 | |||||
Intangible assets amortization, net of tax effects | - | 10 | - | 5 | |||||
Goodwill impairment, net of tax effect | 617 | - | 617 | - | |||||
Non-GAAP net loss | $ (29) | $ ( 183) | $ (4) | $ ( 65) | |||||
Net loss per share: | |||||||||
GAAP basic and diluted net loss per share | $ (0.12) | $ (0.04) | $ (0.11) | $ (0.02) | |||||
Non-GAAP basic and diluted net loss per share | $ (0.01) | $ (0.03) | $ (0.00) | $ (0.01) | |||||
Weighted average number of shares used in computing | 5,645,400 | 4,698,440 | 5,669,621 | 4,783,115 | |||||
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SOURCE Mer Telemanagement Solutions Ltd. (MTS)
FAQ
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