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

2
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
  

5

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      
 

6