MER Telemanagement Solutions Ltd. (NASDAQ: MTSL) is trading on gains of more than 100% early on this morning. The gains come after the company announced its financial results for the first half of 2019, exciting investors. Here’s what’s going on:
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MTSL Stock Rockets On First Half Results
In a press release issued early this morning, MER Telemanagement Solutions provided its financial results for the first half of 2019, beating expectations and exciting the investing community.
In the release, the company said that for the six month period, it generated $2.6 million in revenue, down slightly from the $2.9 million reported in the first half of 2018. Net losses came to $220,000, working out to $0.04 per diluted share. In the same period last year, net losses were $1 million or $0.34 per share.
In a statement, Roy Hess, CEO at MTSL, had the following to offer:
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.
Why The News Is So Exciting
While revenue was down slightly on a year over year basis, the bottom line proved to beat expectations in a big way. At the end of the day, the company is working its way to profits, and that’s exciting for all involved.
However, the excitement goes beyond this. In the statement made by Mr. Hess, the company said that its new Omnichannel product will be hitting the tape. As a result, it expects that this new product will begin generating revenue in the second half.
The revenues here will likely offset the declines in revenue that we saw year over year in the first half. Moreover, MTSL is very close to making it to profit. Considering this, the new product revenues may ultimately result in earnings finding their way to the green, that is if margins continue to improve across the board and margins from the new product prove to be worthwhile. Nonetheless, there’s a lot to look forward to here.
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