TEL AVIV, Israel, Nov. 28, 2007 (PRIME NEWSWIRE) -- Top Image Systems, Ltd. (Nasdaq:TISA) (TASE:TISA), the leading innovator of data capture solutions, today announced its financial results for the third quarter, ended September 30, 2007. This follows the October 8, 2007 Company press release announcing the Company's initial third quarter 2007 results.
Third Quarter 2007 Results
Revenues for the third quarter exceeded the high end of the initial revenue range reaching $6.5 million, an increase of 24% from the third quarter of last year and an increase of 6% compared with the prior quarter. 45% of third quarter revenues were generated from products and 55% from services.
Operating loss for the third quarter totaled $1.8 million, compared with operating profit of $172 thousand for the third quarter of 2006 and an operating profit of $65 thousand for the prior quarter. As previously announced, the increased expenses in the quarter were primarily related to the assimilation of recently acquired CPL and Asiasoft into the Company.
Non-GAAP net loss for the third quarter totaled $1.7 million, compared to net income of $0.25 million in the third quarter of 2006. Non-GAAP basic and fully diluted net loss per share in the third quarter totaled $0.190 compared with net income per share of $0.019 in the third quarter of 2006.
Non-GAAP net income excludes stock option compensation and amortization of intangible acquired assets which amounted to $348 thousand and $75 thousand in the third quarter of 2007 and 2006, respectively. A reconciliation between net income on a GAAP basis and a Non-GAAP basis is included at the end of this press release.
On a GAAP basis, net loss for the third quarter totaled $2 million compared to net income of $0.18 million in the third quarter last year, and $0.01 million loss in the prior quarter. GAAP basic and fully diluted net loss per share in the third quarter totaled $0.229, compared to basic and fully diluted net earnings per share of $0.019 in the third quarter of 2006, and basic and fully diluted net loss per share of $0.011 in the prior quarter.
Dr. Ido Schechter, Top Image Systems' CEO, commented: "This has been a very interesting year for the Company with the acquisition of both UK-based CPL and China-based Asiasoft, expanding our global presence to target new markets. Completing two acquisitions, however, is a lengthy process and in the past months, we have invested a great deal of efforts in integrating Asiasoft into TIS and we are confident this process will be as successful as was the integration of CPL earlier this year. These two acquisitions enhance our product and solution offering while bringing TIS closer to becoming the Document Capture market leader."
Dr. Schechter concluded: "This quarter we reported revenues close to record levels; unfortunately, however, a number of recent projects previously expected to be recognized this quarter, were not finalized in time, and will be recognized in coming quarters.
"Admittedly, while being disappointed with our results of this quarter, we are encouraged by the substantial progress the Company has made over the past nine months in laying the strong foundations for a more successful 2008 in terms of both technology and skilled manpower."
Conference Call
The Company will be holding a conference call today, November 28, 2007, at 10am EST (7:00am Pacific Time, 3:00pm UK Time, 5:00pm Israel Time) to review the third quarter 2007 financial results and other corporate events.
Dr. Ido Schechter, CEO, and Arie Rand, CFO, will be on-line to discuss these results and take part in a question and answer session.
To participate, please call one of the following teleconferencing numbers at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
U.S. Dial-in Number: 1 888 281 1167
UK Dial-in Number: 0 800 917 5108
ISRAEL Dial-in Number: 03 918 0609
INTERNATIONAL Dial-in Number: +972 3 918 0609
For those unable to listen to the live call, a replay of the call will be available from the day after the call in the investor relations section of Top Image Systems' website at: www.topimagesystems.com
About Top Image Systems
Top Image Systems is a leading innovator of enterprise solutions for managing and validating content entering organizations from various sources. Whether originating from mobile, electronic, paper or other sources, TIS solutions deliver the content to applications that drive the organization. TIS's eFLOW Unified Content Platform is a common platform for the company's solutions. TIS markets its platform in more than 30 countries through a multi-tier network of distributors, system integrators, value-added resellers as well as strategic partners. Visit the company's website www.TopImageSystems.com for more information.
The Top Image Systems logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4212
Caution Concerning Forward-Looking Statements
Certain matters discussed in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, particularly statements regarding future operating or financial performance. Words such as "will," "expects," "anticipates," "estimates," "intends," "believes," "plans" and words and terms of similar substance in connection with any discussion of future operating or financial performance identify forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of TIS and its competitors, risk of operations in Israel, government regulation, dependence on third parties to manufacture products, quarterly fluctuations in sales of products in the Data Capture market (where in general the fourth quarter is the strongest and the first quarter is the weakest), TIS's ability to successfully integrate businesses it acquires, litigation (including litigation over intellectual property rights), general economic conditions and other risk factors detailed in the Company's most recent annual report on Form 20-F and other subsequent filings with the United States Securities and Exchange Commission. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
Top Image Systems Ltd.
Consolidated Balance Sheet as at
December 31, September 30,
2006 2007
------------ ------------
In thousands US$
Assets
Current assets:
Cash and cash equivalents 6,195 1,630
Deposit 3,000 3,118
Marketable securities 12,597 9,371
Trade receivables, net 7,642 8,681
Other current assets 1,120 2,344
------------ ------------
Total current assets 30,554 25,144
------------ ------------
Severance funds pay 717 824
------------ ------------
Property and equipment
Cost 2,531 3,472
Less / accumulated depreciation (1,943) (2,684)
------------ ------------
Net property and equipment 588 788
------------ ------------
Goodwill 465 8,538
Net intangible assets 1,835 2,835
Investment in affiliates 533
Other long-term assets, net 136 140
------------ ------------
------------ ------------
Total assets 34,295 38,802
============ ============
Liabilities and Shareholders' Equity
Current liabilities:
Short-term bank loans 339 1,883
Trade payables 397 1,733
Accrued liabilities and other payables 2,966 7,087
------------ ------------
Total current liabilities 3,702 10,703
------------ ------------
Long-term liabilities:
Convertible debenture 14,197 14,301
Liability for severance pay, net 1,016 1,157
------------ ------------
Total long-term liabilities 15,213 15,458
------------ ------------
Minority interest in consolidated
subsidiaries 104
Total liabilities 18,915 26,265
------------ ------------
Shareholders' equity
Share capital - Ordinary share of NIS
0.04 par value 98 98
Surplus capital 29,921 30,319
Comprehensive income -- 286
Accumulated deficit (14,639) (18,166)
------------ ------------
Total shareholders' equity 15,380 12,537
------------ ------------
------------ ------------
Total liabilities and shareholders'
equity 34,295 38,802
------------ ------------
Top Image Systems Ltd.
Statements of Operations for the
--------------------------------------------------------------------
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
In thousands US$, except per share data
Revenues
Product sales 2,932 2,814 8,100 8,689
Service revenues 3,555 2,433 8,550 6,032
---------- ---------- ---------- ----------
Total revenues 6,487 5,247 16,650 14,721
---------- ---------- ---------- ----------
Cost of revenues
Product costs 1,869 503 2,918 1,654
Service costs 2,109 1,508 5,499 3,952
---------- ---------- ---------- ----------
Total cost of
revenues 3,978 2,011 8,417 5,606
---------- ---------- ---------- ----------
Gross profit 2,509 3,236 8,233 9,115
---------- ---------- ---------- ----------
Expenses
---------- ---------- ---------- ----------
Research and
development costs 732 435 1,918 1,319
Selling and marketing 2,235 1,694 6,240 4,865
General and
administrative 1,370 935 3,300 2,511
---------- ---------- ---------- ----------
4,337 3,064 11,458 8,695
---------- ---------- ---------- ----------
Operating profit
(loss) (1,828) 172 (3,225) 420
---------- ---------- ---------- ----------
Financing income
(expenses), net (94) 15 (264) 241
---------- ---------- ---------- ----------
Income (loss) before
taxes on income (1,922) 187 (3,489) 661
---------- ---------- ---------- ----------
Taxes on Income (11) (12) (45) (20)
---------- ---------- ---------- ----------
Other income -- -- 110 --
---------- ---------- ---------- ----------
Minority's share in
profit of a
subsidiary (104) (104)
Net income (loss) for
the period (2,036) 175 (3,527) 641
========== ========== ========== ==========
Basic net income
(loss) per share (0.229) 0.020 (0.398) 0.073
========== ========== ========== ==========
Weighted average
number of shares
used in computation
of basic net income
(loss) per share 8,879,770 8,834,841 8,872,094 8,814,088
========== ========== ========== ==========
Diluted net income
(loss) per share (0.229) 0.019 (0.398) 0.071
========== ========== ========== ==========
Weighted average
number of shares used
in computation of
diluted net income
(loss) per share 8,879,770 8,987,807 8,872,094 8,991,430
========== ========== ========== ==========
A reconciliation of Non GAAP net income to GAAP net income is as
follows (in thousands):
Three months ended Nine months ended
September 30, September 30,
---------------------- ----------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Net Income (2,036) 175 (3,527) 641
Stock option
compensation expenses 158 0 378 0
Amortization of
acquired Intangible
Assets 190 75 298 225
---------- ---------- ---------- ----------
Non-GAAP Net Income
(loss) (1,688) 250 (2,851) 866