RA'ANANA, Israel, March 19, 2013 /PRNewswire/ --
MTS - MER Telemanagement Solutions Ltd. (NASDAQ Capital Market: MTSL), a global provider of Mobile Virtual Network Enabler (MVNE), Mobile Money and telecommunications expense management (TEM) solutions and services, today announced its financial results for the fourth quarter and the year ended December 31, 2012.
Revenues for the year ended December 31, 2012 were $13.1 million, compared with revenues of $12.0 million in 2011. Revenues for the fourth quarter of 2012 were $3.5 million, compared with revenues of $3.2 million in the fourth quarter of 2011.
The Company's operating profit was $2.0 million for the year ended December 31, 2012 compared with an operating profit of $401,000 for the same period last year. Net income for the year ended December 31, 2012 was $1.4 million or $0.30 per diluted share, compared with net income of $387,000 or $0.09 per diluted share in 2011. On a non-GAAP basis, excluding a non-recurring tax charge related to an Israeli court ruling related to the 1997 to 1999 tax years, net income for the year ended December 31, 2012 was $2.4 million or $0.54 per diluted share, compared with net income of $387,000 or $0.09 per diluted share in 2011. Net income for the year ended December 31, 2012 was negatively affected by a non-recurring tax charge of approximately $1.05 million as a result of the Israeli court tax ruling with respect to the 1997 to 1999 period. Net income for the year ended December 31, 2011 was negatively affected by legal expenses and settlement costs of approximately $640,000 relating to an alleged patent infringement claim.The Company's operating profit was $548,000 in the fourth quarter of 2012 compared to an operating loss of $38,000 for the fourth quarter of 2011. Net income for the fourth quarter, after the $604,000 non-recurring tax charge, was $351,000 or $0.08 per diluted share, compared with a net loss of $201,000 or ($0.05) per diluted share 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. About MTS Mer Telemanagement Solutions Ltd. (MTS) is a worldwide provider of Telecom Expense Management (TEM) and Mobile Virtual Network Operators and Enablers (MVNO/MVNE) and Mobile Money services and solutions used by mobile service providers.
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