Company Expects $30m in Annual Revenues and 5-7 Percent
Operating Margin in 2008
Preliminary Fourth Quarter 2007 Results Show Revenues of $7 - 7.5 Million
and an Operating Loss, Including Restructuring and Option Acceleration
Charges, of $4.3 - 4.8 Million
TEL AVIV, Israel, Jan. 23, 2008 (PRIME NEWSWIRE) -- Top Image Systems (Nasdaq:TISA), announced today that it has recently completed a comprehensive restructuring plan aimed at repositioning the Company as a leader in the end-to-end automated document capture solution space, while laying the key foundations for future growth and profitability in 2008 and beyond.
The three pronged restructuring plan, initiated in the fourth quarter of 2007, includes implementing a new Company-wide corporate and business structure aimed at enhancing the Company's efficiency and competitive standing in the evolving global market, while reducing corporate and global headcount; identifying new growth drivers through synergies and joint development between the main business centers; and, enforcing a meticulous performance and expense regime by creating business centers in each of the main divisions worldwide, enhancing the commitment and responsibility of each division to meet and surpass their predefined goals.
The Company expects revenues in the fourth quarter to reach $7-7.5 million with an operating loss for the quarter, including expenses associated with the above mentioned restructuring plan, of $4.3-4.8 million.
Moving into 2008, the Company expects to leverage these strong foundations, as well as significant maintenance and order backlog, to show organic growth of 25% and to generate revenues of $30 million, while presenting 5-7% operating margin.
"2007 has been a challenging year for the Company, in terms of the evolving market environment, as well as the two major acquisitions we implemented throughout the year," said Dr. Ido Schechter, CEO of Top Image Systems. "We believe, however, that this all encompassing restructuring plan will enable us to rebuild our position as a leader in the document capture space, while putting in place the key foundations for growth and performance in 2008 and beyond. We believe that 2008 will be a year of driving business performance, through organic growth, exhausting the synergies between the different divisions of the group, while maintaining a tight rein on expenses."
The Company is expected to release its final fourth quarter and full year 2007 results at the beginning of March 2008.
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.
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995:
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.
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