MER Telemanagement Solutions Lt (MTSL) research, news, and more from GeoInvesting

Company description

Thu, 23 Aug 2012 04:00:00 GMT

Mer Telemanagement Solutions Ltd., together with its subsidiaries, provides telecommunication expense management (TEM), call accounting, and billing solutions. Its TEM solutions assist enterprises and organizations in the allocation of costs, budget control, fraud detection, processing of payments, and spending forecasting. The company also offers converged billing solutions, including applications for charging and invoicing customers, interconnect billing, and partner revenue management through pre-pay and post-pay schemes for wireless providers, voice over Internet protocol, Internet protocol television, MVNO, and content service providers. In addition, it provides TEM Services, which comprise Map-to-Win, a strategic consulting approach for TEM solution, as well as consulting services, including invoice and inventory audit and recovery; contract negotiations and strategic sourcing; discovery and road mapping services; process diagnosis and solution design; wireless optimization; and creation and implementation of IT governance, risk, and compliance policies. Further, the company offers customer service and installation services. Its products provide telecommunication and information technology managers with tools to reduce communication costs, recover charges payable by third parties, and to detect and prevent abuse and misuse of telephone networks comprising fault telecommunication usage. The company markets its products through its original equipment manufacturer distribution channels, direct sales force, and distributors worldwide. Mer Telemanagement Solutions Ltd. was founded in 1995 and is headquartered in Raanana, Israel.

Research

Fri, 07 Aug 2015 15:01:45 GMT

Closed our position in $MTSL

As we stated in our e-mail yesterday, we were looking to close our MTSL position after the company’s earnings press release yesterday.

MTSL surpassed our initial price targets from our May 7, 2015 information arbitrage call. When MTSL was trading at $2.00, we stated that with the recent acquisition of Vexigo we felt shares could reach $2.70 based on applying a P/E multiple of 15 on the company’s fully taxed diluted EPS run rate for the next 12 months of $0.18. On June 2, 2015 we stated upside to our price target may exist if investors chose not to tax the run rate since MTSL has losses to carry forward and will likely not pay a full tax rate.

The stock did actually reach $3.20. We’ll continue to watch MTSL’s developments, but we currently no longer have a position.

Management’s commentary about exploring financing drove the stock down as much as 45% yesterday.

"In the second quarter we successfully integrated Vexigo as a division of MTS. We are continuing to develop our video advertising solutions for online and mobile platforms through our wholly-owned subsidiary, Vexigo Ltd. In addition, we are continuing to strengthen our telecom expense management (TEM) business unit through the shift of TEM customers to the cloud with multi-year service contracts." said Lior Salansky, CEO of MTS. "Vexigo results reflect the shift from online video advertising to mobile video advertising as a result of worldwide growth in mobile content use. The Vexigo line of business, which diversifies our existing portfolio, was responsible for our company returning to profitability during the second quarter of 2015 on a non-GAAP basis. In order to fund our current operations and to execute our business plan, we are currently seeking additional financing and are investigating available alternatives," concluded Mr. Salansky.

Research

Tue, 02 Jun 2015 04:00:00 GMT

Possible Upside to our MTSL Price Target

In our May 7, 2015 e-mail, when MTSL was trading at $2.00, we stated that with the recent acquisition of Vexigo we felt shares could reach $2.70 based on applying a P/E multiple of 15 on the company’s fully taxed diluted EPS run rate for the next 12 months of $0.18. Shares have since reached our initial price target. However, we believe it is possible that investors will apply valuation multiples based on actual EPS, since MTSL has years of losses to carry forward and will likely not pay a full tax rate. Therefore, we believe aggressive valuations could still lead to upside in shares.

Research

Thu, 07 May 2015 04:00:00 GMT

$MTSL Follow up:

This morning, we briefly covered $MTSL’s financial results for the first quarter of 2015. Financial results were not positive. The company lost money with flat revenue growth year-over-year. However, on April 1, 2015 the company completed the acquisition of Vexigo, a software company supporting video advertising over the internet and mobile devices. Vexigo’s financials were not included in Q1 results.

But we mentioned that MTSL did provide certain financial numbers of Vexigo for the first quarter of 2015.

Q1 2015 revenues was $4.2 million.
Q1 2015 operating income was $1.1 million.
Q1 2015 net income was $1.0 million.

Going on this information, the entity post-acquisition consolidated entity will be in a much better shape based on an initial analysis, on a consolidated basis, of both MTSL and Vexigo.

Regarding the bottom line of consolidated entity, we stated that the 2015 EPS run rate range will range from $0.12 to $0.37 (non-taxed). We conducted further analysis and determined that, had the company consolidated the financials of Vexigo, the fully taxed diluted EPS run rate for the next 12 months works out to be around $0.18. If we apply a P/E multiple of 15 on EPS of $0.18, then the target price of MTSL is $2.70 a share.

We need to keep in mind that this target price does not consider the fact that Vexigo appears to be posting accelerated growth in sales and earnings . For example, based on the disclosure from the acquisition agreement, the first 9 months 2014 revenue of Vexigo was $6.56 million, and the corresponding net income was $2.17 million. Extrapolating the nine months data gives us a 2014 annual revenue and net income assumptions of $8.75 million and $2.89 million , respectively. However, for the first quarter of 2015 Vexigo has already delivered quarterly revenue of $4.2 million with net income of $1.0 million.

Pump and Dump Watch

Mon, 13 Apr 2015 04:00:00 GMT

Disclosure: GeoInvesting is providing this information for your edification and in no way has any affiliation with any promoters and/or newsletters disseminating information on MTSL, nor is GeoInvesting being paid to post this information. At times, the GeoTeam may trade P&D's on a long or short basis, depending on how we feel the momentum of the stocks will be affected by the efforts of stock promoters and any ensuing dumps.

Research

Tue, 03 Feb 2015 05:00:00 GMT

Ex-GeoBargain on the Radar MTSL provides telecommunication expense management, call accounting, and billing solutions. Today MTSL announced the acquisition of Vexigo, a privately-held Israeli-based software company supporting video advertising over the internet and mobile devices. This acquisition will more than double MTSL’s current revenue run rate. We are currently analyzing the financials of the transaction and the dilutive impact from the newly issued shares MTSL will be issuing to Vexigo’s shareholders. Vexigo nine month results:

Revenues for the nine months period ended September 30, 2014 were $6.6 million, compared with $3.2 million during full year 2013.
Net income for the nine months ended September 30, 2014 was $2.2 million compared with a net loss of $119 thousand during full year 2013.
The acquisition introduces MTSL to new growth market
The acquisition will also hopefully diversify its highly concentrated customer base which was one of the biggest issues MTSL has faced in the past. MTSL had lost one of its largest customers nearly two years ago which sent the stock price into a tail spin.

We will further analyze the financials of the transaction and the dilutive impact from the newly issued shares MTSL will be issuing to Vexigo’s shareholders. At first glance the newly formed business would have EPS of roughly $0.17 for the nine months ended September 30, 2014 vs a loss of $0.22 MTSL reported for its nine months ended September 30, 2013.

Comments & Business Outlook

Thu, 07 Nov 2013 05:00:00 GMT

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.

Comments & Business Outlook

Tue, 15 Oct 2013 04:00:00 GMT

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.

Comments & Business Outlook

Thu, 15 Aug 2013 04:00:00 GMT

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.

Comments & Business Outlook

Thu, 09 May 2013 04:00:00 GMT

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.

Comments & Business Outlook

Tue, 19 Mar 2013 04:00:00 GMT

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.

Comments & Business Outlook

Mon, 15 Oct 2012 04:00:00 GMT

MTS - Mer Telemanagement Solutions Ltd. (NASDAQ Capital Market: MTSL), a global provider of MVNE services and telecommunications expense management (TEM) solutions, today announced the signing of a renewal agreement for its Mobile Virtual Network Enabler (MVNE) service with a large, U.S. based MVNO (Mobile Virtual Network Operator).

The MTS solution is a market leading MVNE service that provides new MVNOs with a quick time to market, flexible personalization, and rapid integration into their existing operations. This allows new MVNOs to focus their efforts on sales and marketing rather than back office technology and complex MNO integrations. MVNOs can rapidly gain a competitive advantage in the marketplace with MTS's MVNE cradle to grave solution that is specifically designed for MVNOs, regardless of their size, service offerings or localization requirements.

"We are proud to continue our MVNE service to one of the largest MVNOs in the U.S. and in parallel to support new MVNOs in establishing their businesses" said Eytan Bar, CEO of MTS. "This customer contract extension, which provides for minimum total revenues of $3.6 million through the end of 2013, is a result of our commitment to our customers to provide flexible and scalable solutions that can grow and adapt to their changing business requirements in a highly competitive marketplace."

Comments & Business Outlook

Mon, 10 Sep 2012 04:00:00 GMT

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.

"Our second quarter results represent continued improvements in our financial results and indicators as a result of our efforts to develop our Telecom Expense Management opportunities through partners, new customer acquisitions and expanding our existing customer base," said Eytan Bar, CEO of MTS.

"In addition, our company's Billing and Mobile Virtual Network Operator (MVNO) activity as a managed service has grown and we were able to sign an additional managed service agreement with a new MVNO in the U.S. and we see other opportunities in this market. We are looking forward to improving both our top and bottom line performance," concluded Mr. Bar.