6-K 1 zk1923477.htm 6-K


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 

       
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 September 2019
 
MER TELEMANAGEMENT SOLUTIONS LTD.
 (Name of Registrant)
 
15 Hatidhar Street, Ra'anana 43665, 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 ☒ 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 ☒
 
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. 333-123321 and 333-180369.



MTS Announces Half Year 2019 Financial Results

Ra’anana, Israel / Powder Springs, Georgia, USA - September 12, 2018 - Mer Telemanagement Solutions Ltd. (MTS) (Nasdaq Capital Market: MTSL), a global provider of telecommunications expense management (TEM) and call accounting, today released its financial results for the six months ended June 30, 2019.

The Company recorded revenues of $2.6 million for the six months ended June 30, 2019, compared with $2.9 million for the six months ended June 30, 2018. The Company incurred a net loss of $220,000, or $0.04 per diluted share, for the six months ended June 30, 2019 compared with a net loss of $1 million, or $0.34 per diluted share, for the comparable period in 2018.

Commenting on the results, Mr. Roy Hess, Chief Executive Officer of MTS, said, “Our results in 2019 reflect our efforts to improve our operating margins in light of the business pressures that we face. The telecommunications side of our business continues to be stable as we have maintained a high level of customer satisfaction.

We recently entered the field of Omnichannel Contact Center Software. In June 2019, we introduced Omnis - Contact Center Software with “Out-Of-The-Box” multi-channel capabilities and open channel architecture. This product enables users to connect whenever and however they choose through voice, emails, chat, social media and more. Managing real-time, multi-channel interaction is simple with the Omnis Unified Interface, allowing employees to handle different interactions under one Omnichannel Desktop with real-time visibility into customer information, customer journey and previous interactions. We expect to see first revenues from this new product during the second half of 2019 and consider Omnis - Contact Center Software as our main growth engine. In addition, we continue to explore opportunities for a potential business combination".

About MTS

Mer Telemanagement Solutions Ltd. (MTS) is focused on innovative products and services for enterprises in the area of telecom expense management (TEM) and call accounting. Headquartered in Israel, MTS markets its solutions through wholly-owned subsidiaries in Israel, the U.S and Hong Kong, as well as through distribution channels. 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, the Company’s ability to achieve  profitable operations, its ability  to continue to operate as a going concern, its ability to continue to meet NASDAQ continued listing requirements,  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,  general economic conditions and other risk factors detailed in the Company’s annual report and other filings with the United States Securities and Exchange Commission.

Contact:
 
Ofira Bar, CFO
Tel: +972-9-7777-540

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CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands

   
June 30,
   
December 31,
 
   
2019
   
2018
 
   
Unaudited
   
Audited
 
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
1,563
   
$
1,150
 
Restricted cash
   
1,008
     
1,380
 
Trade receivables, net
   
640
     
604
 
Other accounts receivable and prepaid expenses
   
243
     
101
 
Assets of discontinued operations
   
111
     
187
 
                 
 Total current assets
   
3,565
     
3,422
 
                 
SEVERANCE PAY FUND
   
602
     
541
 
                 
PROPERTY AND EQUIPMENT, NET
   
58
     
60
 
                 
OTHER ASSETS:
               
Other intangible assets, net
   
11
     
21
 
Goodwill
   
3,479
     
3,479
 
                 
Total other assets
   
3,490
     
3,500
 
                 
Total assets
 
$
7,715
   
$
7,523
 

3


CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)

   
June 30,
   
December 31,
 
   
2019
   
2018
 
   
Unaudited
   
Audited
 
LIABILITIES AND SHAREHOLDERS' EQUITY
           
             
CURRENT LIABILITIES:
           
Trade payables
 
$
167
   
$
164
 
Deferred revenues
   
1,092
     
1,053
 
Accrued expenses and other liabilities
   
2,122
     
2,394
 
Liabilities of discontinued operations
   
550
     
606
 
                 
Total current liabilities
   
3,931
     
4,217
 
                 
LONG-TERM LIABILITIES
               
Accrued severance pay
   
782
     
722
 
Deferred tax liability
   
181
     
181
 
                 
 Total long-term liabilities
   
963
     
903
 
                 
COMMITMENTS AND CONTINGENT LIABILITIES
               
                 
SHAREHOLDERS' EQUITY:
               
Share capital -
               
Ordinary Shares
   
27
     
27
 
Preferred Shares
   
15
     
10
 
Additional paid-in capital
   
30,440
     
29,807
 
Treasury shares
   
(29
)
   
(29
)
Accumulated deficit
   
(27,632
)
   
(27,412
)
                 
Total shareholders' equity
   
2,821
     
2,403
 
                 
Total liabilities and shareholders' equity
 
$
7,715
   
$
7,523
 

4


CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)

   
Six months ended
June 30,
 
   
2019
   
2018
 
   
Unaudited
 
Revenues:
           
Services
 
$
2,179
   
$
2,341
 
Product sales
   
421
     
535
 
                 
Total revenues
   
2,600
     
2,876
 
                 
Cost of revenues:
               
Services
   
785
     
935
 
Product sales
   
196
     
213
 
                 
Total cost of revenues
   
981
     
1,148
 
                 
Gross profit
   
1,619
     
1,728
 
                 
Operating expenses:
               
Research and development
   
268
     
505
 
Selling and marketing
   
553
     
857
 
General and administrative
   
978
     
1,224
 
                 
Total operating expenses
   
1,799
     
2,586
 
                 
Operating loss
   
(180
)
   
(858
)
                 
Financial income (expense), net
   
(25
)
   
8
 
                 
Loss before taxes on income
   
(205
)
   
(850
)
Taxes on income (tax benefit)
   
1
     
(5
)
                 
Loss from continuing operations
   
(206
)
   
(845
)
                 
Loss from discontinued operations
   
(14
)
   
(204
)
                 
Net loss
 
$
(220
)
 
$
(1,049
)
                 
Net loss per share:
               
Basic and diluted net loss per share from continuing operations
 
$
(0.04
)
 
$
(0.27
)
Basic and diluted net loss per share from discontinued operations
   
(0.00
)
   
(0.07
)
                 
Basic and diluted net loss per share
 
$
(0.04
)
 
$
(0.34
)
                 
Weighted average number of shares used in computing basic and diluted net loss per share
   
4,698,440
     
3,120,833
 

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SIGNATURE
 
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/ Roy Hess
 
   
Roy Hess
 
   
Chief Executive Officer
 
       
Date: September 12, 2019      
 

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