PR Newswire | Aug 20, 2020 06:34PM EDT

08/20 17:33 CDT

MTS Announces first quarter 2020 Financial Results RA'ANANA, Israel and POWDER SPRINGS, Georgia, Aug. 20, 2020

RA'ANANA, Israel and POWDER SPRINGS, Georgia, Aug. 20, 2020 /PRNewswire/ -- Mer Telemanagement Solutions Ltd. (MTS)(Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM), call accounting and contact center software, today released its financial results for the three months ended March 31, 2020.

The Company recorded revenues of $1.15 million for the three months ended March 31, 2020, compared with $1.3 million for the three months ended March 31, 2019. The Company incurred a net loss of $20,000, or $0.01 per diluted share, for the three months ended March 31, 2020 compared with a net loss of $128,000, or $0.03 per diluted share, for the comparable period in 2019. In the three months ended March 31, 2020, the Company had net loss from continuing operations of $32,000 compared to net loss from continuing operations of $130,000 in the comparable period in 2019.

On June 23, 2020, the Company's institutional investor exercised its greenshoe option in part and purchased 622,807 convertible preferred shares in consideration of $710,000, providing the Company with additional working capital.

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. We recently entered the field of omnichannel contact center software. In June 2019, we introduced Omnis - Contact Center Software with "Out-Of-The-Box" capabilities and open channel architecture. At the end of 2019 and during 2020, we started to see initial revenues from this new product. As previously reported, we are also continuing our efforts to find a suitable M&A candidate for our company which will enhance shareholder value."

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

Forward Looking Statements

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 effects of the spread of Coronavirus (COVID-19) and future measures taken by authorities in the countries in which we operate on our operations, the demand for our products and our customers' economic condition, 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.

Contact:Ofira Bar, CFO Tel: +972-9-7777-540

CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

March 31, December 31,

2020 2019

Unaudited Audited

ASSETS

CURRENT ASSETS:

Cash and cash equivalents $ 1,642 $ 1,732

Restricted cash 635 1,464

Trade receivables, net 483 499

Other accounts receivable and prepaid expenses 240 236

Assets of discontinued operations 170 172

3,170 4,103Total current assets

SEVERANCE PAY FUND 330 653

PROPERTY AND EQUIPMENT, NET 55 62

GOODWILL 3,225 3,225

Total assets $ 6,780 $ 8,043

CONSOLIDATED BALANCE SHEETS

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

March 31, December 31,

2020 2019

Unaudited Audited

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:

Trade payables $ 118 $ 149

Deferred revenues 1,075 962

Accrued expenses and other liabilities 1,443 2,317

Liabilities of discontinued operations 485 516

Total current liabilities 3,121 3,944

LONG-TERM LIABILITIES

Accrued severance pay 403 831

Deferred tax liability 163 163

566 994Total long-term liabilities

SHAREHOLDERS' EQUITY:

Share capital -

Ordinary Shares 27 30

Preferred Shares 19 16

Additional paid-in capital 30,643 30,635

Treasury shares (29) (29)

Accumulated deficit (27,567) (27,547)

Total shareholders' equity 3,093 3,105

Total liabilities and shareholders' $ 6,780 $ 8,043equity

CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three months ended March 31,

2020 2019

Unaudited

Revenues:

Services $ $ 924 1,059

Product sales 231 224

Total revenues 1,155 1,283

Cost of revenues:

Services 372 392

Product sales 93 98

Total cost of revenues 465 490

Gross profit 690 793

Operating expenses:

Research and development - 133

Selling and marketing 265 286

General and administrative 455 494

Total operating expenses 720 913

Operating loss (30) (120)

Financial income (expense), net (2) (10)

Loss before taxes on income (32) (130)

Income from discontinued operations 12 2

Net loss $ $ (20) (128)

Net loss per share:

Basic and diluted net loss per share from continuing $ $ operations (0.01) (0.03)

Basic and diluted net profit per share from discontinued 0.00 0.00operations

Basic and diluted net loss per share $ $ (0.01) (0.03)

Weighted average number of shares used in computing 5,621,180 4,719,761basic and diluted net loss per share

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SOURCE Mer Telemanagement Solutions Ltd. (MTS)