Top Image Systems Reports Fourth Quarter and Year Ended
December 31, 2009 Financial Results
GlobeNewswire
2010-03-03
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 December
31, 31,
2009 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 Three
months months Year Year
ended ended ended ended
---------- -------- -------- --------
December December December December
31, 31, 31, 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 Three
months months Year Year
ended ended ended ended
---------- -------- -------- --------
December December December December
31, 31, 31, 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
CONTACT: Top Image Systems Ltd.
Dana Rubin, Director of Corporate Marketing and IR
+972 37679114
dana.rubin@topimagesystems.com
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