MER Telemanagement Solutions Ltd. (NASDAQ: MTSL) provides solutions for telecommunications expense management (TEM), enterprise mobility management, and online and mobile video advertising worldwide.
On July 9th, 2018, MER Telemanagement Solutions Ltd. shares were trading at $1.11. On Monday, July 16, 2018, in intra-day trading, the shares were up over 200% with over 13 million shares traded. The stock skyrocketed as high as $6.09 despite any obvious catalyst. The company was one of the biggest gainers on the NASDAQ yesterday.
The global provider of telecommunications expense management (TEM) and enterprise mobility management (EMM) solutions, announced last month that it has submitted a plan to NASDAQ to regain compliance with NASDAQ Listing Rule 5550 (b)(1) requiring minimum stockholders’ equity of $2,500,000. The company plans to reduce personnel, along with an institutional investor putting in $1.5M in return for issuance of a new class of convertible preferred stock.
MTS’s eXsight Call Accounting allows IT managers, and other departmental personnel to simplify UC&C management without losing functionality or visibility. eXsight is a UC&C manager’s new best weapon in the ﬁght to keep all of their company’s communications, and internal and external collaboration, on track. For many companies, telecom expense represents approximately 25% – 35% of IT costs. It is important that companies have visibility into all aspects of those telecom costs.
Telecom Expense Management (TEM) includes integrated Invoice, Asset, and Usage Management and Business Analytics tools — provide professionals at every level of the organization with rapid access to concise, actionable data.
PMSi is a communication manager. It captures messages sent from one device to another and converts the format so that no special software modification is required. PMSi is an efficient, reliable, and cost-effective solution for interconnecting devices that communicate through messages. PMSi enables PMS to control PBX features or receive information from the PBX, which improves the efficiency of hotel operations and customer care.
Telecom Billing Audit Services provide hands-on invoice review and recovery. MTS consultants use telecom auditing techniques to review your telecom environment and identify immediate cost savings – in as few as 3 months! The telecom audit engagements are contingency-based, meaning no budget required or up-front fees to the customer.
MER Telemanagement Solutions Ltd. provides solutions for telecommunications expense management (TEM), enterprise mobility management, and online and mobile video advertising worldwide. The company operates in three segments: Enterprise, Service Providers, and Video Advertising. It offers TEM suite software platform that helps organizations to reduce operational expenses, enhance productivity, and optimize networks and services associated with communications networks and information technology (IT). The company also provides TEM services, such as Map-to-Wins, a strategic consulting approach for TEM solution; and consulting services, including invoice and inventory audit and recovery, contract negotiations and strategic sourcing, discovery and road mapping, process diagnosis and solution design, and wireless optimization services, as well as creation and implementation of IT governance, risk, and compliance policies. In addition, the company offers converged billing solutions that include applications for charging and invoicing customers, interconnect billing, and partner revenue management services for wireless providers, voice over Internet protocol, Internet protocol television, mobile virtual network operators, and content service providers. Further, it provides cloud and managed services; and digital video advertising solutions for large and small brand advertisers, advertising agencies, and other businesses. The company sells its solutions through original equipment manufacturers, distribution channels, and direct sales force. MER Telemanagement Solutions Ltd. was founded in 1995 and is headquartered in Ra’anana, Israel.
Full-year 2017 revenues totaled $8.6 million compared with $14.1 million for 2016. Net loss for the period was $(1.8) million, or $(0.59) per diluted share, compared with a net loss of $(5.2) million or ($1.85) per diluted share for 2016. On a non-GAAP basis (excluding stock-based compensation expenses, amortization of intangible assets, reorganization costs, goodwill and technology impairment charges, the impact of the US tax reform and a loss from discontinued operations), the Company recorded a net loss of $(1.6) million, or $(0.54) per diluted share in 2017, compared with a net loss of $(375,000), or $(0.13) per diluted share in 2016.
All numbers relating to the Company’s ordinary shares and earnings per share have been adjusted to reflect a 1-for-3 reverse stock split that became effective on September 6, 2017.
As of December 31, 2017, and December 31, 2016, the Company had cash and cash equivalents of approximately $1.3 and $ 1.5 million, respectively. The Company incurred losses for the year ended December 31, 2017, amounting to $(1.8) million and has an accumulated deficit of $26.5 million. In addition, the Company incurred negative cash flows from operations of $0.7 million for the year ended December 31, 2017.
Stock influences and risk factors
They have incurred operating losses in each of the past four years and may not regain profitability in the future. They may need additional funding. If they are unable to raise capital, they will be forced to reduce or eliminate certain operations;
They derive a significant portion of revenues from TEM call accounting solutions, whose revenues have declined in recent years;
They are subject to risks associated with rapid technological change and risks associated with new versions, offerings, products and industry standards;
The online advertising field is highly competitive and is increasingly dominated by large players, diminishing access and opportunities for smaller players like this company.
On Monday, July 16, 2018, MTSL shares were trading at $4.74 on share volume of 8 million. The current RSI (14) is 77.65
At $4.74 MTSL shares are trading above their 50 DMA and 200 DMA of $1.51 and $1.86 respectively. The current market cap is $15.47M.
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