Mer Telemanagement (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.

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.

GeoBargain Notes

Thu, 21 Mar 2013 04:00:00 GMT

On 1/22/2013 we added MTSL to the GeoBargain list @ $3.55

Catalyst: After years of reporting losses the company returned to the black in 2010 and 2011, reporting non-GAAP EPS of $0.04 and $0.21 respectively. Furthermore, the company had grown quarterly non-GAAP EPS for 11 straight quarters. Please see our original report here.

We are now removing MTSL from the GeoBargain List @ $2.86

Current road block: While the company could report as much as $0.80 in earnings for 2013, comments in the company’s 20-F filed mid day yesterday implies that 2013 revenue growth will only slightly increase from the 2012 level of $13.1 million. It seems that the company it is not comfortable baking in additional revenue from new customers that are needed to replace the anticipated loss in revenue from the loss of an MVNO customer, Simple Mobile that will occur in 2014. In order to replace Simple Mobile revenue ($3.6 million) the company will have to obtain a significant amount of customers; especially when considering the terms of a relationship with a new customer that typically calls for revenues of $500,000 that can span over a 3 year period. Although it is possible that a new customer can exceed these contracted values and that MTSL could land a larger customer, these are unknown outcomes we are not willing to bear at this time given statements made in the 2012 20F. We will continue to monitor MTSL for any new developments and will now place MTSL on our GeoBargain on the Radar list.

Peak performance: Reached a high of $5.49 on 3/15/2013 for a maximum potential return of 55%.

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.

Resolution of Legal Issues

Thu, 07 Mar 2013 05:00:00 GMT

RA'ANANA, Israel, March 7, 2013 /PRNewswire/ --

MTS - Mer Telemanagement Solutions Ltd. (NASDAQ Capital Market: MTSL), a global provider of MVNE, Mobile Money and telecommunications expense management (TEM) services and solutions, today announced that it received a tax assessment from the Israeli tax authorities relating to the Tel-Aviv District Court's decision with respect to the 1997 to 1999 tax years.

As a result of the assessment, MTS increased the provision in its financial statements for this tax ruling by approximately $600,000. Such provision is in addition the provision made in the third quarter of 2012 and will be included in the Company's fourth quarter financial statements. All but $240,000 of the liability was paid prior to year end.

The Company will announce its fourth quarter and year-end results on March 19, and believes that its fourth quarter results will be profitable despite the additional tax provision relating to the assessment.

Contract Awards

Thu, 21 Feb 2013 05:00:00 GMT

MTS - Mer Telemanagement Solutions Ltd. (Nasdaq Capital Market: MTSL), a global provider of MVNE, Mobile Money and TEM services, today announced the first deployments of its Mobile Money solution for a customer in Africa. MTS will provide the solution in a managed service/revenue share model with a minimum value of $460,000 over three year period.

The Mobile Money solution targets the cellular users who do not have bank accounts and extends the MTS's MVNE offering. This solution will also be offered as standalone product to financial service providers (FSPs) and mobile network operators (MNOs).

The solution provides financial services to s end users such as cash deposit, withdrawal, balance query, money transfers, goods purchases, remittances and bill payments, using their mobile phone.

"The launch of the Mobile Money solution opens a new opportunity for MTS in the FSP market and allows our MVNOs to differentiate and grow their business by adding financial services to their offerings." said Eytan Bar , MTS CEO.

The Mobile Money solution supports customer access through different technologies (STK, SMS, USSD, Smart Phones App and Web) and manages the customer lifecycle, agents and merchant accounts. In addition, the MFS solution supports the management of budget accounts that allow the allocation and dedication of funds to purchase certain goods.

Research

Wed, 23 Jan 2013 05:00:00 GMT

Alert sent to members on 1/22/2013

In our 8/23/2012 email we mentioned that we were adding MTSL to our 52 week high screen. In our 9/10/2012 email we mentioned that after performing more due diligence that we were coding MTSL a GeoBargain on the radar at $3.16. Today we have coded MTSL as a GeoBargain.

We became somewhat intrigued by MTSL when it announced its 2012 second quarter financial results on 8/16/2012:

Revenues for the second quarter of 2012 were $3.3 million, compared with $3.0 million during the same quarter last year and $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 $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.

Surprisingly, after years of reporting losses the company returned to the black in 2010 and 2011, reporting non-GAAP EPS of $0.04 and $0.21 respectively. Furthermore, the company has now grown quarterly non-GAAP EPS for 11 straight quarters. 2012 nine months non-GAAP EPS now stands at $0.32, nearly 3 times greater than last year’s comparable period.

Please be aware that there is a minor tax issue that may cause a short term pullback in the stock. We believe such a pullback in the stock, if it occurs, would present a buying opportunity as was the case when this tax issue came to surface in 2012. Please see the “Tax Issue” section in this report to learn more about the caveat.

Please see our report here.

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Comments & Business Outlook

Thu, 08 Nov 2012 05:00:00 GMT

Third Quarter 2012 Results

Revenues for the third quarter of 2012 were $3.4 million, compared with $3.0 million in revenues during the same quarter last year and revenues of $3.3 million in the second quarter of 2012.
On a non-GAAP basis, excluding the non-recurring tax charge related to a court ruling, net income for the third quarter of 2012 was $691,000 or $0.15 per diluted share, compared with net income of $226,000 or $0.05 per diluted share in the third quarter of 2011 and $460,000 or $0.10 per diluted share in the second quarter of 2012.

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

"As we previously announced, we extended our largest existing MVNO services contract, with minimum revenues of $3.6 million during 2013. In addition, following last quarter's announcement that we signed a new managed service agreement, we recently were able to successfully launch our MVNE service with this new MVNO in the US. The Company sees other opportunities in this market and we are working diligently to turn them into new contracts. We are looking forward to improving both our top and bottom line performance," 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.