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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2004
MER TELEMANAGEMENT SOLUTIONS LTD.
(Name of Registrant)
40 Aluf David Street, Ramat-Gan 52232 Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F __
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(1):__
Indicate by check mark if the registrant is submitting the Form
6-K in paper as permitted by Regulation S-T Rule 101(b)(7):__
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes ___ No X
If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82- ____________
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MER Telemangement Solutions Ltd.
6-K Items
1. Press Release re MTS Reports First Quarter 2004 Results dated May 11, 2004.
ITEM 1
Press Release Source: MTS - Mer Telemanagement Solutions Ltd.
MTS Reports First Quarter 2004 Results
Tuesday May 11, 8:31 am ET
- Company increases investment in sales, marketing and R&D in execution of
turnaround plan - RA'ANANA, Israel, May 11 /PRNewswire-FirstCall/ -- MTS - Mer
Telemanagement Solutions Ltd. (Nasdaq: MTSL - News), a global provider of
Operations Support Systems (OSS) for comprehensive Telecommunication Management
and Customer Care & Billing solutions, today reported its financial results for
the first quarter of 2004.
Revenues for the first quarter were $2.4 million, an increase of 5% compared
with $2.2 million for the first quarter of 2003. Revenues for the fourth quarter
of 2003 were $2.5 million. Net loss for the quarter was $197,000, or $(0.04) per
share, compared with net income of $14,000, or $0.00 per share, for the first
quarter of 2003. Net income for the fourth quarter of 2003 was $80,000, or $0.02
per share.
Commenting on the results, Mr. Eytan Bar, MTS's President and Chief Executive
Officer, said, "During the first quarter, we began executing a comprehensive
turnaround plan aimed at revenue growth and profitability. Our focus during the
first half of this year is to improve our sales and professional services
capabilities and to invest in our product offerings. To this end, we have
recently appointed Mr. Jeff Holden, a successful industry veteran, as Vice
President of Sales for North America, a strategic region for MTS. In addition,
to expand our business analysis and project implementation capabilities, we have
appointed Mr. Zvika Kupper, an experienced executive from the service provider
billing industry, as Vice President of Professional Services."
The Company's gross profit for the first quarter increased by 7% to $1.82
million from $1.7 million in the first quarter of 2003.
During the first quarter, the Company's investment in R&D was $534,000, an
increase of 21% compared with $441,000 for the first quarter of 2003 and a
decrease of 5% compared with $564,000 for the fourth quarter of 2003. In
parallel, the Company increased its investment in sales and marketing by 23% to
$1.1 million compared to the first quarter of 2003 and 13% compared to the
fourth quarter of 2003. Both increases reflect the steps being taken by
management as part of the Company's turnaround plan.
Operating loss for the quarter totaled $238,000 compared with $142,000 for the
first quarter 2003.
Yossi Brikman, Corporate COO & CFO, added, "We are pleased to have recorded
$145,000 in cash flow from operating activities for the quarter despite the net
loss. As of March 31, 2004, our cash and cash equivalents, including marketable
securities, reached $10.6 million compared with $10.3 million at the end of
2003."
Mr. Bar concluded, "Taken as a whole, we are satisfied with our accomplishments
during the first quarter. We are on track in the execution of our strategic plan
and confident as we look ahead."
The Company will conduct a teleconference to discuss the results today, Tuesday,
May 11th, at 11:00 AM Eastern Daylight Time (18:00 Israel Time). To participate
please dial 1-800-572-9813 from the US or Canada (toll free), 1-800-945-7877
from Israel (toll free), or +1-706-679-7713 from other locations approximately 5
minutes prior to the starting time.
A replay of the call will be available from 2:00pm EDT on Tuesday, May 11, 2004,
until 11:00pm EDT on Monday, February 18. To access the replay please dial
1-800-642-1687 from the US or Canada (toll free), 1-800-945-8731 from Israel
(toll free), or +1-706-645-9291 from other locations.
About MTS
Mer Telemanagement Solutions Ltd. is a global provider of operations support
systems (OSS) for comprehensive telecommunication management and customer care &
billing solutions. MTS' OSS is a full-featured customized solution for
telecommunications management and customer care & billing. Its
telecommunications enterprise resource planning (ERP) application suite is used
by corporations and organizations to improve the efficiency and performance of
all telecommunication and information technology (IT) operations, and to
significantly reduce associated costs. Its affordable customer care and billing
(CC&B) solutions are used by service providers and operators to support
sophisticated billing, web-based self-provisioning and other revenue-generating
applications.
Headquartered in Israel, MTS markets through wholly owned subsidiaries in the
U.S., Hong Kong, Holland, and Brazil, and through OEM partnerships with Siemens,
Phillips, and other PABX vendors. Its legacy call accounting solutions have been
installed by over 60,000 customers in 60 countries. MTS' shares are traded on
the NASDAQ stock exchange (symbol MTSL). For more information please visit the
MTS web site: www.mtsint.com
Certain matters discussed in this news release are forward-looking statements
that involve a number of risks and uncertainties including, but not limited to,
risks in product development plans and schedules, rapid technological change,
changes and delays in product approval and introduction, customer acceptance of
new products, 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, government regulations, dependence on third
parties to manufacture products, general economic conditions and other risk
factors detailed in the Company's filings with the United States Securities and
Exchange Commission.
Contacts:
Company: Investor Relations:
Yossi Brikman Rachel Levine
Corporate COO & CFO The Anne McBride Company, Inc.
MTS - MER Telemanagement Solutions, Ltd. Tel : 212-983-1702 ext. 207
Tel: +972-9-762-1733 E-mail: rlevine@annemcbride.com
Email: yossi.brikman@mtsint.com
MER TELEMANAGEMENT SOLUTIONS LTD.
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
March 31, December 31,
2004 2003 2003
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $8,896 $8,935 $8,684
Marketable securities 1,683 1,340 1,644
Trade receivables, net 1,340 1,211 1,391
Other accounts receivable
and prepaid expenses 503 563 566
Inventories 199 256 193
Total current assets 12,621 12,305 12,478
LONG-TERM INVESTMENTS:
Investment in an affiliate 1,722 1,519 1,859
Long-term loans, net of
current maturities 83 73 95
Severance pay fund 560 533 564
Other investments 368 375 368
Total long-term investments 2,733 2,500 2,886
PROPERTY AND EQUIPMENT, NET 456 593 482
OTHER ASSETS:
Goodwill 2,025 2,025 2,025
Other intangible assets, net 167 322 206
Deferred income taxes 105 162 105
Total other assets 2,297 2,509 2,336
Total assets $18,107 $17,907 $18,182
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share data)
March 31, December 31,
2004 2003 2003
Unaudited
LIABILITIES AND
SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of
long-term loans $6 $8 $8
Trade payables 502 449 393
Accrued expenses and other
liabilities 1,440 1,410 1,421
Deferred revenues 1,198 1,266 1,219
Total current liabilities 3,146 3,133 3,041
LONG-TERM LIABILITIES:
Long-term loans, net of
current maturities -- 6 --
Accrued severance pay 668 701 677
Total long-term liabilities 668 707 677
SHAREHOLDERS' EQUITY:
Share capital -
Ordinary shares of NIS 0.01 par
value - Authorized: 12,000,000
shares; Issued: 4,632,137 and
4,631,471 shares at March 31, 2004
and December 31,2003, respectively;
Outstanding: 4,625,137 and
4,624,471 shares at March 31,
2004 and December 31, 2003,
respectively 14 15 14
Additional paid-in capital 12,622 12,906 12,603
Treasury shares (20) (344) (20)
Accumulated other comprehensive
income (loss) 94 (217) 87
Retained earnings 1,583 1,707 1,780
Total shareholders' equity 14,293 14,067 14,464
Total liabilities and
shareholders' equity $18,107 $17,907 $18,182
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. Dollars in thousands (except share data)
Three months ended Year ended
March 31, December 31,
2004 2003 2003
Unaudited
Revenues from products
and services $2,359 $2,240 $9,230
Cost of revenues from
products and services 541 540 1,849
Gross profit 1,818 1,700 7,381
Operating expenses:
Research and development 534 441 1,825
Selling and marketing 1,125 918 3,916
General and administrative 397 483 1,830
Total operating expenses 2,056 1,842 7,571
Operating loss (238) (142) (190)
Financial income, net 27 17 124
Other income (expenses), net (32) -- 6
Loss before taxes on income (243) (125) (60)
Taxes on income -- -- 198
(243) (125) (258)
Equity in earnings of affiliate 46 139 345
Net income (loss) $(197) $14 $87
Net earnings (loss) per share:
Basic and diluted net earnings
(loss) per Ordinary share $(0.04) $-- $0.02
Weighted average number of
Ordinary shares used in
computing basic net earning
(loss) per share 4,624,804 4,647,793 4,617,099
Weighted average number of
Ordinary shares used in
computing diluted net
earning (loss) per share 4,624,804 4,647,793 4,628,249
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
MER TELEMANAGEMENT SOLUTIONS LTD.
(Registrant)
By: /s/Yossi Brikman
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Yossi Brikman
Chief Financial Officer
Date: May 11, 2004