Mer Telemanagement Solutions Lt (NASDAQ:MTSL)

Third quarter 2013 Financial Results

• Revenues for the third quarter of 2013 were $3.0 million, compared with $3.4 million in revenues during the same quarter last year and revenues of $3.1 million in the second quarter of 2013.
• Net income for the third quarter was $274,000 or $0.06 per diluted share, compared with net income of $245,000 or $0.05 per diluted share in the third quarter of 2012 and $309,000 or $0.07 per diluted share in the second quarter of 2013.

"As previously announced, during 2013 we signed up four new MVNO customers in the U.S. for our MVNE managed services model and two Mobile Money customers in Africa. The contracts with the MVNO and Mobile Money customers provide for revenues based on volume ("pay as you grow" model), with a minimum monthly revenues over a contract period. We expect that some of these signed up contracts will become operational by the end of this year. None of the contracts, on a standalone basis, provides for material minimum deliverables" said Eytan Bar, CEO of MTS.

"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 closely monitoring our operating expenses and are making the necessary adjustments to our staffing and expenses." concluded Mr. Bar.

RA'ANANA, Israel, October 15, 2013 /PRNewswire/ --

MTS - Mer Telemanagement Solutions Ltd. (NASDAQ Capital Market: MTSL), a global provider of Mobile Virtual Network Enabler (MVNE) services and Telecommunications Expense Management (TEM) solutions, today announced that it entered into a three year agreement with SBC Communications, LLC, a large U. S. based service provider of internet, cable TV, home phone and wireless services, to provide its cloud and managed services MVNE solution.

The MTS MVNE managed services and cloud solution provides established and new MVNOs like SBC Communications, the ideal service platform to enable a quick market penetration, flexible personalization, and rapid systems integration into any business operation.  This allows new MVNOs to focus their efforts on sales and marketing rather than back office technology and complex network integrations.  MVNOs can rapidly gain a competitive advantage in the marketplace with MTS's comprehensive, end-to-end MVNE managed service solution that is specifically designed to align with their business objectives and meet the needs of their target market; regardless of their size, service offerings or business ecosystem.

"SBC Communications has a unique offering in the market with our "Quad Play" portfolio of cable TV, internet, home phone and wireless services," said Danny Moore, President of the Operations Group at SBC Communications, LLC. "When it came time to select a new MVNE solution, we quickly realized that MTS was the right platform for us based on their existing relationship with our new MNO, their flexibility to handle our hybrid post-paid with a pre-paid reserve business model and their ability to support the billing and customer care functions of all our other services within a single platform."

MTS's market leading service platform and state-of-the-art BSS/OSS technology delivers an integrated solution that streamlines how a MVNO service operator manages and supports its customer base, sales distributors and network partners. The MTS MVNE service offering is designed to support adaptable business rules for all the key operational functions of a MVNO including; a full customer care and CRM module, web self-care, customer registration, service provisioning, product catalogue management, point of sale (POS) system, fully featured rating engine, credit limit alerting, flexible billing and invoicing engine, payment and collection processing, partner commission administration, network intelligence and advanced dashboards and analytics.

"We're very excited to be selected by SBC Communications as their new MVNO partner and look forward to providing them with our proven MVNE solution that will optimize business operations and provide them with a full suite of advanced features and services to help SBC Communications differentiate themselves in the market while also attracting and retaining subscribers," said Fabio Campagna, Director of Business Development - MVNE at MTS.

Second Quarter 2013 Results

• 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.
• 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.

"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.

First Quarter 2013 Results

• Revenues for the first quarter of 2013 were $3.3 million, compared with $3.0 million in revenues during the same quarter last year.
• Net income in the first quarter was $344,000, or $0.07 per diluted share, compared to net income of $310,000, or $0.07 per diluted share, in the first quarter of 2012

"Our first quarter results were in line with our expectations. The Company is continuing to develop its Mobile Virtual Network Enabler (MVNE) activity and to promote both this activity and the Company's Telecom Expense Management products through partners, new customer acquisitions and expanding our existing customer base. In parallel, we are closely monitoring our operating expenses and we will make the necessary adjustments based on the business needs and changes we see," said Eytan Bar, CEO of MTS.

The Company further announced today that in meetings held during May 2013, the Company's audit committee and board of directors approved a resolution that the compensation terms of Mr. Yaakov Goldman, a director and member of the audit committee, be equal to the compensation terms of the Company's outside directors, as defined under Israeli law.

Pursuant to the approval of the audit committee and board of directors, effective May 8, 2013, Mr. Goldman will be entitled to receive an annual fee, payable quarterly, of NIS 30,500 (currently approximately $8,500) and a per meeting attendance fee of NIS 1,700 (currently approximately $470). He previously received an annual fee of $16,800 and a per meeting fee of $400. The Company's audit committee and board of directors determined that the payment of the aforementioned sums to Mr. Goldman complies with the requirement set forth in Regulation 1A(2) of the Israeli Companies Regulations (Relief for Transactions with Interested Parties), 2000 (the "Relief Regulations") as they do not exceed the maximum amounts applicable to the compensation of the Company's outside directors pursuant to the terms of the Israeli Companies Regulations (Rules regarding Compensation and Expense Reimbursement of Outside Directors), 2000.

In accordance with Regulation 1C of the Relief Regulations, if one or more shareholders holding at least one percent of the Company's issued share capital or voting rights notifies the Company in writing of their objection to the provision of this relief no later than fourteen days from publication of this press release, the relief based on Regulation 1A(2) will not apply and the change in the terms of Mr. Goldman's compensation will be subject to approval by the Company's shareholders as required by the Israeli Companies Law, 1999.

Fourth Quarter 2012 Results

• Revenues for the fourth quarter of 2012 were $3.5 million, compared with revenues of $3.2 million in the fourth quarter of 2011.
• On a non-GAAP basis, excluding the non-recurring tax charge related to the court ruling, net income for the fourth quarter of 2012 was $955,000 or $0.20 per diluted share, compared with net loss of $201,000 or ($0.05) per diluted share in the fourth quarter of 2011.

As previously announced in October 2012, we entered into a one-year renewal of our agreement with Simple Mobile, now part of TracFone, to provide hosted billing services for minimum monthly payments of $300,000 during the year ending December 31, 2013. Recently, we were advised that TracFone intends to migrate the hosted billing services into their own platform. It is unlikely that we will receive significant revenues from TracFone in 2014.

"Our fourth quarter results showed continued improvements in our financial results and indicators as a result of the increase in our Mobile Virtual Network Enabler (MVNE) activity and the Telecom Expense Management opportunities through partners, new customer acquisitions and expanding customer base," said Eytan Bar , CEO of MTS.

"As we previously announced, we completed the first deployments of our Mobile Money solution for a customer in Africa and recently we were able to sign up a new MVNO customer in the U.S. for our MVNE managed services model with a minimum total value of approximately $500,000 over three 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.

Second Quarter 2012 Results (reported on 8/16/2012)

• Revenues for the second quarter of 2012 were $3.3 million, compared with $3.0 million in revenues during the same quarter last year and revenues of $3.0 million in the first quarter of 2012.
  
• Net income for the second quarter was $460,000 or $0.10 per diluted share, compared with net income of $229,000 or $0.05 per diluted share in the second quarter of 2011 and $310,000 or $0.07 per diluted share in the first quarter of 2012.