TEL AVIV, Israel, March 3, 2010 (GLOBE NEWSWIRE) -- Top Image Systems, Ltd. (TIS) (Nasdaq:TISA) (TASE:TISA), the leading innovator of data capture solutions, today announced its financial results for the fourth quarter and year ended December 31, 2009.
Fourth Quarter Highlights
- Revenues of $5.9 million
- Non-GAAP operating income of $0.2 million
- Positive cash flow from operations of $0.4 million
- Strong performance in Europe and APAC
- Increased focus on selling solutions with a higher software component
- Continued strong and globally diversified sales pipeline
Fourth Quarter 2009 Results
Revenues for the fourth quarter of 2009 reached $5.9 million compared to $6.5 million in the fourth quarter of 2008. Revenues in the fourth quarter of 2008 included $1.1 million of hardware and third party sales, which were discontinued in 2009 in line with the Company's strategy to increase profitability and margins. Excluding the hardware and third party sales, revenues in the fourth quarter of 2009 would have increased by $0.5 million compared to the fourth quarter of 2008.
Non-GAAP operating income for the fourth quarter of 2009 reached $0.2 million compared to a non-GAAP operating loss of $1.0 million for the fourth quarter of 2008.
Non-GAAP net loss for the fourth quarter of 2009 totaled $0.2 million or $(0.03) per diluted share, compared to a non-GAAP net loss of $0.6 million in the fourth quarter of 2008, or $(0.06) per diluted share.
Net loss on a GAAP basis for the fourth quarter of 2009 totaled $1.5 million, or $(0.16) per diluted share compared to net income of $1.6 million in the fourth quarter of 2008, or $0.13 per diluted share.
Year Ended December 31, 2009 Results
Revenues for 2009 reached $23.5 million compared to $32.2 million in 2008. Excluding hardware and third party sales which totaled $7.5 million in 2008, sales in 2009 would have decreased by $1.2 million.
Non-GAAP operating income for 2009 reached $1.4 million compared to non-GAAP operating income of $0.8 million for 2008.
Non-GAAP net income for 2009 totaled $0.9 million or $0.08 per diluted share, compared to non-GAAP net income of $0.1 million in 2008, or $0.01 per diluted share.
Net loss on a GAAP basis for 2009 totaled $4.8 million, or $(0.51) per diluted share compared to net income of $0.6 million in 2008, or $0.07 per diluted share.
Management's comment
"This has been a turnaround year for TIS in terms of non-GAAP profitability and cash flow from operations. During the fourth quarter we maintained the non-GAAP operating profitability and cash flow from operations that we have demonstrated in the past year," commented Dr. Ido Schechter, CEO of TIS. "We have successfully navigated the current environment in order to maintain and build on our market leadership, utilizing our strategic accounts and growing pipeline. All this, while enhancing our long-term competitive positioning and priming our business for increased profitability in 2010," concluded Dr. Schechter.
Non-GAAP financial measures
The release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, non-GAAP operating income, non-GAAP net income and non-GAAP earnings (loss) per share. These non-GAAP measures exclude the following items:
- Amortization of intangible assets;
- Equity-based compensation expense
- Non-cash income/(expenses) relating to change in fair value of convertible debentures
- Write off of investment in affiliates
The presentation of these non-GAAP financial measures should be considered in addition to TIS' GAAP results provided in the attached financial statements for the fourth quarter and full year ending December 31, 2009 which include a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure, and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. TIS' management believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain charges, gains that may not be indicative of TIS' core business operating results. TIS believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing TIS' performance. These non-GAAP financial measures also facilitate comparisons to TIS' historical performance and its competitors' operating results. TIS' includes these non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. Non-GAAP measures are reconciled to comparable GAAP measures in the table entitled "Reconciliation of GAAP to Non-GAAP results".
Conference Call
The Company will be holding a conference call today, March 3, 2010, at 9:00am EST (6:00am Pacific Time, 4:00pm Israel Time) to review the fourth quarter and 2009 results.
Dr. Ido Schechter, CEO, 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: 1-888-668-9141
ISRAEL Dial-in Number: 03 9180664
INTERNATIONAL Dial-in Number: +972 3 9180664
The call will also be broadcast live, and can be accessed through a link on Top Image Systems' website at: www.topimagesystems.com.
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 40 countries through a multi-tier network of distributors, system integrators, value-added resellers as well as strategic partners. Visit the company's website http://www.TopImageSystems.com for more information.
The Top Image Systems logo is available at http://www.globenewswire.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 such as statements regarding trends, demand for our products, expected deliveries, transaction, expected revenues, operating results, earnings and profitability. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied in those forward looking statements. 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, 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 of | ||
|
December 31, 2009 |
December 31, 2008 |
|
| In thousands | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $2,866 | $5,777 |
| Restricted cash | 613 | 1,231 |
| Short term deposits | -- | 722 |
| Marketable securities | -- | 630 |
| Trade receivables, net | 6,081 | 6,469 |
| Other receivable and prepaid expenses | 707 | 1,081 |
| Total current assets | 10,267 | 15,910 |
| Long term assets: | ||
| Severance pay funds | 1,104 | 856 |
| Long-term deposits and long-term asset | 246 | 194 |
| Property and equipment, net | 509 | 672 |
| Investment in affiliates | 331 | 861 |
| Intangible assets, net | 104 | 336 |
| Goodwill | 5,937 | 5,813 |
| Total long-term assets | 8,231 | 8,732 |
| Total assets | $18,498 | $24,642 |
| Liabilities and Shareholders' Equity | ||
| Current liabilities: | ||
| Short-term bank loans | $109 | $3,342 |
| Current maturity of convertible debentures | 1,936 | 1,155 |
| Trade payables | 684 | 1,124 |
| Deferred revenues | 1,321 | 975 |
| Accrued expenses and other accounts payable | 2,358 | 3,284 |
| Total current liabilities | 6,408 | 9,880 |
| Long-term liabilities: | ||
| Convertible debentures | 5,362 | 3,464 |
| Accrued severance pay | 1,367 | 1,196 |
| Total long-term liabilities | 6,729 | 4,660 |
| Total liabilities | 13,137 | 14,540 |
| Shareholders' equity | 5,361 | 10,102 |
| Total liabilities and shareholders' equity | $18,498 | $24,642 |
| Top Image Systems Ltd. | ||||
| Statements of Operations for the | ||||
| Three months ended | Three months ended | Year ended | Year ended | |
| December 31, | December 31, | December 31, | December 31, | |
| 2009 | 2008 | 2009 | 2008 | |
| In thousands, except per share data | ||||
| Revenues | 5,898 | 6,542 | 23,534 | 32,222 |
| Cost of revenues | 2,007 | 3,227 | 9,258 | 15,075 |
| Gross profit | 3,891 | 3,315 | 14,276 | 17,147 |
| Expenses | ||||
| Research and development costs, net | 441 | 502 | 1,558 | 1,762 |
| Selling and marketing | 2,189 | 2,530 | 7,202 | 9,292 |
| General and administrative | 1,056 | 1,486 | 4,381 | 5,956 |
|
Impairment of goodwill and other intangible assets |
-- | 1,839 | -- | 1,839 |
| 3,686 | 6,357 | 13,141 | 18,849 | |
| Operating income (loss) | 205 | (3,042) | 1,135 | (1,702) |
| Financing income (expenses), net | (1,327) | 5,063 | (5,452) | 3,136 |
| Income (loss) before taxes on income | (1,122) | 2,021 | (4,317) | 1,434 |
| Taxes on Income | (89) | (36) | (91) | (74) |
| Other expenses, net | (325) | -- | (332) | -- |
| Income (loss) from discontinued operation | -- | (418) | 13 | (840) |
|
Equity in income (loss) of affiliates companies |
(1) | (17) | (40) | 84 |
| Net income (loss) for the period | (1,537) | 1,550 | (4,767) | 604 |
| Earnings per Share | ||||
| Basic | ||||
| Earnings (loss) from continuing operations | (0.16) | 0.22 | (0.51) | 0.16 |
| Loss from discontinued operation | -- | (0.05) | -- | (0.09) |
| Earnings (loss) per share - basic | (0.16) | 0.17 | (0.51) | 0.07 |
|
Weighted average number of shares used in computation of basic net income (loss) per share |
9,326 | 8,926 | 9,322 | 8,922 |
| Diluted | ||||
| Income (loss) from continuing operations | (0.16) | 0.17 | (0.51) | 0.16 |
| Loss from discontinued operations | -- | (0.04) | -- | (0.09) |
| Earnings (loss) per share - Diluted | (0.16) | 0.13 | (0.51) | 0.07 |
|
Weighted average number of shares used in computation of diluted net earnings (loss) per share |
9,326 | 11,568 | 9,322 | 8,936 |
|
Reconciliation of GAAP to Non-GAAP results: |
||||
| Three months ended | Three months ended | Year ended | Year ended | |
| December 31, | December 31, | December 31, | December 31, | |
| 2009 | 2008 | 2009 | 2008 | |
| In thousands, except per share data | ||||
| GAAP operating income (loss) | 205 | (3,042) | 1,135 | (1,702) |
| Employees ESOP related costs | 3 | 22 | 11 | 90 |
|
Amortization of intangible assets related to acquisition |
12 | 166 | 244 | 560 |
|
Impairment of goodwill and other intangible assets |
-- | 1,839 | -- | 1,839 |
| Non- GAAP operating income (loss) | 220 | (1,015) | 1,390 | 787 |
| Net income (loss) for the period | (1,537) | 1,550 | (4,767) | 604 |
| Employees ESOP related costs | 3 | 22 | 11 | 90 |
|
Amortization of intangible assets related to acquisition |
12 | 166 | 244 | 560 |
|
Impairment of goodwill and other intangible assets |
-- | 1,839 | -- | 1,839 |
| Write off of investment in affiliates | 306 | -- | 306 | -- |
| Change In Fair Value of Convertible Debentures | 975 | (4,604) | 5,070 | (3,471) |
| Change In Fair Value of Long Term Assets | -- | 457 | -- | 457 |
| Non-GAAP Net income (loss) | (241) | (570) | 864 | 79 |
|
Shares used in diluted earnings per share calculation |
9,326 | 8,926 | 11,550 | 8,936 |
| Non-GAAP diluted earnings per share | (0.03) | (0.06) | 0.08 | 0.01 |