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 2005
MER TELEMANAGEMENT SOLUTIONS LTD.
(Name of Registrant)
22 Zarhin Street, Ra'anana 43662, 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-__________
This Form 6-K is being incorporated by reference into the Registrant's Form S-8
Registration Statements File Nos. 333-12014 and 333-123321.
MER Telemangement Solutions Ltd.
6-K Items
1. Press Release re MTS First Quarter 2005 Revenues Increase 16%
Year-Over-Year dated May 5, 2005.
ITEM 1
Press Release Source: Mer Telemanagement Solutions Ltd.
MTS First Quarter 2005 Revenues Increase 16% Year-Over-Year
Thursday May 5, 8:30 am ET
- Revenues Grow 6% Sequentially -
RA'ANANA, Israel, May 5 /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
2005, ended March 31, 2005.
Revenues for the first quarter were $2.73 million, which represents a 16%
increase over the $2.36 million reported in the first quarter of 2004 and a 6%
increase sequentially. Net loss for the quarter was $2.03 million, or $(0.44)
per share, compared with the net loss of $197,000, or $(0.04) per share,
reported for the first quarter of 2004.
Eytan Bar, President and Chief Executive Officer commented, "MTS successfully
executed its growth strategy for the third straight quarter. In Q1, we
experienced sales growth in our products to the service provider and carrier
markets, and we also maintained momentum and growth in our new offerings to the
enterprise market. Moreover, we achieved this growth while effectively
integrating the Teleknowledge technology, employees, customers, channels and
installed base into MTS' systems and capabilities."
Gross profit for the first quarter increased slightly to $1.89 million, compared
with the $1.82 million reported in the first quarter of 2004.
Research and development expenses for the quarter were $1.34 million, compared
to $0.53 million reported in the first quarter of 2004 and $0.85 million
reported in the fourth quarter of 2004. The sharp increase in R&D expenses in
the quarter was primarily the result of costs associated with the integration of
the recently acquired TeleKnowledge R&D group, as well as to the Company's
continuing investment in product development.
Selling and marketing expenses for the quarter were $1.53 million, which
represents a 35% increase over the same period last year, but a 24% reduction
sequentially. This reduction is the result of MTS' commitment to bring spending
more in line with revenue generation and focusing on the growing areas.
MTS ended the quarter with approximately $3.3 million in cash and cash
equivalents, including marketable securities.
"The investments we made in R&D and sales and marketing over the last year are
now supporting our expansion initiatives into the enterprise market, as well as
enabling us to capitalize on opportunities in the service provider and carrier
markets," continued Mr. Bar. "We believe these investments further strengthen
the foundation MTS has laid for growth and market share gains and position us
well for the future. We remain committed to bringing spending more in line with
revenue generation, and therefore, continue to expect to meet our target of
break even by the end of this year."
Conference Call Information
MTS will conduct a teleconference to discuss the first quarter results on
Thursday, May 5, at 11:00 AM Eastern Time (18:00 Israel Time). To access the
call, please dial 1-8877-270-4109 from the US or Canada (toll free),
1-809-457-877 from Israel (toll free), or 1-706-679-0560 from other locations
approximately 5-10 minutes prior to the starting time. A replay of the call also
will be available from 2:00 PM ET on Thursday, May 5, 2005, until 11:59 PM ET on
Thursday, May 12. 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 and enter conference ID#5846956.
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 SmallCap Market (symbol MTSL). For more information please visit the
MTS web site: http://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.
CONTACT:
Company Investor Relations:
Shlomi Hagai Kathy Price
Corporate COO & CFO Managing Director
MTS - MER Telemanagement Solutions The Anne McBride Company, Inc.
Tel: +972-9762-1733 Tel: 212-983-1702 ext. 212
Email: Shlomi.Hagai@mtsint.com Email: kprice@annemcbride.com
MER TELEMANAGEMENT SOLUTIONS LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. Dollars in thousands
March 31, December 31,
2005 2004
Unaudited
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $2,581 $3,814
Marketable securities 695 1,057
Trade receivables, net 1,441 1,348
Other accounts receivable and prepaid expenses 453 391
Inventories 192 178
Total current assets 5,362 6,788
LONG- TERM INVESTMENTS:
Investment in an affiliate 1,987 2,119
Long-term loans, net of current maturities 36 45
Severance pay fund 604 535
Other investments 373 373
Total long-term investments 3,000 3,072
PROPERTY AND EQUIPMENT, NET 604 581
OTHER ASSETS:
Goodwill 3,446 3,415
Other intangible assets, net 1,268 1,394
Deferred income taxes 73 73
Total other assets 4,787 4,882
Total assets $13,753 $15,323
MER TELEMANAGEMENT SOLUTIONS LTD. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
U.S. Dollars in thousands (except share data)
March 31, December 31,
2005 2004
Unaudited
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 841 $ 719
Accrued expenses and other liabilities 2,237 2,042
Deferred revenues 1,309 1,254
Total current liabilities 4,387 4,015
LONG-TERM LIABILITIES:
Accrued severance pay 754 651
Total long-term liabilities 754 651
SHAREHOLDERS' EQUITY:
Share capital -
Ordinary shares of NIS 0.01 par value -
Authorized: 12,000,000 shares; Issued:
4,648,804 shares at March 31, 2005
and December 31,2004; Outstanding: 4,638,004
shares at March 31, 2005 and December 31, 2004 14 14
Additional paid-in capital 12,966 12,879
Treasury shares (29) (29)
Deferred stock compensation (191) (208)
Accumulated other comprehensive income 233 348
Accumulated deficit (4,381) (2,347)
Total shareholders' equity 8,612 10,657
Total liabilities and shareholders' equity $13,753 $15,323
MER TELEMANAGEMENT SOLUTIONS LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. Dollars in thousands (except share data)
Three months ended
March 31, March 31,
2005 2004
Unaudited
Revenues $2,726 $2,359
Cost of revenues 838 541
Gross profit 1,888 1,818
Operating expenses:
Research and development 1,343 534
Selling and marketing 1,527 1,125
General and administrative 1,045 397
Total operating expenses 3,915 2,056
Operating loss (2,027) (238)
Financial income, net 19 27
Other income (expenses), net 2 (32)
Loss before equity in earnings (losses)
of affiliate (2,006) (243)
Equity in earnings (losses) of affiliate (28) 46
Net loss $(2,034) $(197)
Net loss per share:
Basic and diluted net loss per Ordinary share $(0.44) $(0.04)
Weighted average number of Ordinary shares
used in computing basic and diluted
net loss per share 4,638,004 4,624,804
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/Eytan Bar
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Eytan Bar
President and
Chief Executive Officer
Date: May 10, 2005