RA'ANANA, Israel, May 12, 2011 /PRNewswire-FirstCall/ -- MTS - MerTelemanagement Solutions Ltd., a globalprovider of business support systems for comprehensivetelecommunication management, telecommunications expense managementsolutions and customer care & billing solutions, today announced itsfinancial results for the first quarter of 2011.
Revenues for the first quarter of 2011 were $2.8 million, compared with$2.9 million in revenues while the same quarter last year. The Company'soperating profit was $4,000 in the first quarter of 2011 compared tooperating profit of $33,000 for the first quarter of 2010. Net income for thefirst quarter was $133,000 or $0.03 per diluted share, compared with a netloss of $2,000 or $(0.00) per diluted share in the first quarter of 2010. Thenet profit in the first quarter of 2011 is including to a capital gain ofapproximately $77,000 that resulted from the Company's sale of its ownershipinterest in Silverbyte Systems Ltd.
The Company as well announced the appointment of Josef Brikman as presidentof its US operations. A seasoned executive with over 20 years of experiencein the telecommunications and research industries, Mr. Brikman bringsextensive and diverse business knowledge. "We are pleased to welcome Josef tothe MTS team," said Eytan Bar, Chief Executive Officer.
Prior to joining the Company, Mr. Brikman served as President of MERSecurity Inc. where he expanded the company from a services company to aprovider of a full portfolio of security products and services. He alsopreviously held positions of CFO, COO and General Manager of the Companywhere he was a key player in the acquisition of MTS IntegraTRAK and thedevelopment and growth of the Company in Europe and the Pacific Rim. Mr.Brikman holds a B.Sc. in Engineering and a degree in Business Administration.
Mer Telemanagement Solutions Ltd. is a worldwide provider ofinnovative solutions for comprehensive telecommunications expense management(TEM) used by enterprises, and for business support systems used byinformation and telecommunication service providers.
Since 1984, MTS Telecommunications' expense management solutions havebeen used by thousands of enterprises and organizations to ensure that theirtelecommunication services are acquired, provisioned, and invoiced correctly.To boot, the MTS's Application Suite has provided clients with aunified view of telecommunication usage, proactive budget control, personalcall management, employee cost awareness and more.
AnchorPoint TEM solutions enable enterprises to gain visibility andcontrol of strategic assets that drive key business processes and crucialcompetitive advantage. The AnchorPoint's software, consulting and managedservices solutions -- including integrated Invoice, Asset, and UsageManagement and Business Analytics tools -- provide professionals at everylevel of the organization with rapid access to concise, actionable data.
MTS's solutions for Information and Telecommunication Service Providersare used worldwide by wireless and wireline service providers forinterconnect billing, partner revenue management and for charging andinvoicing their clients. MTS has pre-configured solutions to supportemerging carriers of focused solutions torapidly install a full-featured and scaleable solution.
CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands March 31, December 31, 2011 2010 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,518 $ 2,124 Restricted marketable securities 151 147 Trade receivables, net 708 1,251 Other accounts receivable and prepaid expenses 250 174 Inventories 11 17 Total current assets 3,638 3,713 LONG-TERM ASSETS: Severance pay fund 860 798 Other investments 6 4 Deferred income taxes 33 33 Total long-term assets 899 835 PROPERTY AND EQUIPMENT, NET 184 165 OTHER ASSETS: Goodwill 3,479 3,479 Other intangible assets, net 1,323 1,415 Total other assets 4,802 4,894 Total assets $ 9,523 $ 9,607 CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands March 31, December 31, 2011 2010 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Trade payables $ 278 $ 305 Accrued expenses and other liabilities 1,964 2,085 Deferred earnings 2,253 2,452 Liabilities of discontinued operations 351 351 Total current liabilities 4,846 5,193 LONG-TERM LIABILITIES - Accrued severance pay 1,133 1,051 COMMITMENTS AND CONTINGENT LIABILITIES SHAREHOLDERS' EQUITY: Share capital 13 13 Additional paid-in capital 19,716 19,676 Treasury shares Accumulated other comprehensive income 4 23 Accumulated deficit Total shareholders' equity 3,544 3,363 Total liabilities and shareholders' equity $ 9,523 $ 9,607 CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands Three months ended March 31, 2011 2010 Earnings: Product sales $ 1,013 $ 1,117 Services 1,784 1,761 Total earnings 2,797 2,878 Cost of revenues: Product sales 313 404 Services 601 648 Total cost of revenues 914 1,052 Gross profit 1,883 1,826 Operating expenses: Technology and development, net of grants from the OCS 475 325 Selling and marketing 508 633 General and administrative 896 835 Total operating expenses 1,879 1,793 Operating income 4 33 Financial income, net 59 Other income, net 77 - Income previously taxes on income 140 - Tax on income, net Net income $ 133 $ Net loss per share: Basic and diluted net income per Ordinary share $ 0.03 $ Weighted average number of Ordinary shares used in computing basic and diluted net loss per share 4,458,976 4,458,976 reclassified Contacts: Company: Alon Mualem CFO Tel: +972-9-7777-540 Email: Alon.Mualem@mtsint.com
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