[May 18, 2005] Top Image Systems Reports Record First Quarter Revenues; Successful Implementation of the Company's Strategic Plan Tweet TEL AVIV, Israel --(Business Wire)-- May 18, 2005 -- Top Image Systems, Ltd. (Nasdaq:TISA), a leading innovator of Data Capture solutions, announced today the financial results for its first quarter, which ended March 31, 2005. Revenues for the first quarter of 2005 were a record $3.96 million, 67% more than the $2.36 million revenues for the first quarter of 2004, and 5% more than the $3.77 million revenues for the fourth quarter of 2004. TIS' net loss for the first quarter was $0.77 million, compared with a net income of $0.015 million in the first quarter of 2004, and a net loss of $0.25 million in the fourth quarter of 2004. The net loss per share in this quarter was $0.086 compared with a net income per share of $0.002 in the first quarter of 2004, and a net loss per share of $0.030 in the fourth quarter of 2004. First quarter highlights: -- Total revenues increased to $3.96 million, up 67% from $2.36 million in Q1/2004. -- Service revenues increased and now comprise approximately 40% of total company revenues. -- TIS introduced eFLOW Version 3.0, an end-to-end solution, utilizing a single platform. -- TIS introduced Smart, an innovative automatic solution for mail sorting and routing. -- Approximately $1 million of total revenues were generated by the newly established TIS Japan. The company completed the localization of eFLOW Version 3.0 in Japan, and fifteen existing Japanese customers have already decided to upgrade their current solution to eFLOW Version 3.0 -- 50% of Company revenues were generated by the expansion of eFLOW systems for existing large customers, including BKK, Deutsche Post, Swiss Post and the U.S. Social Security Administration (SSA). -- Several major new customers were acquired, including AIMS Logistics and Vengroff, Williams & Associates, Inc. (VWA) in the USA, SNT Deutschland AG, and the largest utility company in the Netherlands. -- Success for eFLOW in Singapore continues, with ten new customers and partners, including Singapore Airlines, Singapore Tax Department (IRAS) and Singapore General Hospital, choosing eFLOW as their data capture solution. -- TIS has successfully completed the registration of the resale of the ordinary shares issued as part of the previously announced private placement. "We are pleased with the record top-line financial results of our first quarter. The first quarter of any year is considered to be the weakest one. Still, this was the ninth consecutive quarter of increased revenues," commented Dr. Ido Schechter, Chief Executive Officer of Top Image Systems. "In accordance with our strategic plan, revenues were up quarter-by-quarter and year-by-year. Also matching the strategic plan, in order to allow a significant growth in the coming years, we have invested a great deal of resources in expanding our sales team and raising the level of sales and marketing activities," added Dr. Schechter. "These efforts have required incurring expenses, which were pre-planned and specified in our strategic plan. In addition, over $200K expenses are attributed to an international conference held for Company customers and strategic business partners. The conference was very successful as a total of 200 customers, partners, and prospects from various business segments in over 20 countries around the world attended the event, which is already baring fruit in business results." Further expenses are attributed to a one-time cash payment TIS was obligated to pay the investors that participated in the private placement of $8 million of ordinary shares last fall. Under the securities purchase agreement of the private placement, and due to a lengthy registration process of the shares, the company was obligated to make a payment of approximately $165K, in respect of liquidated damages. 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' 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. 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. 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 the Company 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), the Company's ability to successfully integrate TIS Japan, 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. -0- *T FINANCIAL TABLES FOLLOW Top Image Systems Ltd. Consolidated Balance Sheet as at ---------------------------------------------------------------------- March 31, December 31, ------------ ------------ 2005 2004 ------------ ------------ $ $ ------------ ------------ Assets Current assets: Cash and cash equivalents 9,208,343 10,136,141 Marketable securities 275,628 278,635 Trade receivables, net 5,992,843 5,541,006 Other current assets 795,897 566,258 ------------ ------------ Total current assets 16,272,711 16,522,040 ------------ ------------ Property and equipment Cost 2,261,294 2,194,509 Less / accumulated depreciation (1,629,034) (1,576,285) ------------ ------------ Net property and equipment 632,260 618,224 ------------ ------------ Goodwill 441,954 453,584 Net intangible assets 1,339,062 1,418,750 Other long-term assets, net 145,019 147,065 ------------ ------------ ------------ ------------ Total assets 18,831,006 19,159,663 ============ ============ Liabilities and Shareholders' Equity Current liabilities: Short-term bank loans 1,788,116 1,707,151 trade payables 651,200 404,522 Accrued liabilities and other payables 2,367,994 2,177,951 ------------ ------------ Total current liabilities 4,807,310 4,289,624 ------------ ------------ Long-term liabilities: Liability for severance pay, net 188,030 186,514 ------------ ------------ Total long-term liabilities 188,030 186,514 ------------ ------------ Total liabilities 4,995,340 4,476,138 ------------ ------------ Commitments, contingencies and liens Shareholders' equity Share capital - Ordinary share of NIS 0.04 par value 96,766 96,766 Surplus capital 29,501,981 29,578,981 Accumulated deficit (15,763,081) (14,992,222) ------------ ------------ Total shareholders' equity 13,835,666 14,683,525 ------------ ------------ ------------ ------------ Total liabilities and shareholders' equity 18,831,006 19,159,663 ============ ============ *T -0- *T Top Image Systems Ltd. Consolidated Statements of Operations for the ---------------------------------------------------------------------- Three months Three months ended ended Year ended ------------ ------------ ------------- March 31, March 31, December 31, ------------ ------------ ------------- 2005 2004 2004 ------------ ------------ ------------- $ $ $ ------------ ------------ ------------- Revenues Product sales 2,088,752 1,809,373 6,964,418 Service revenues 1,868,533 555,113 4,214,030 ------------ ------------ ------------- Total revenues 3,957,285 2,364,486 11,178,448 ------------ ------------ ------------- Cost of revenues Product costs 704,479 370,466 1,970,670 Service costs 959,840 250,325 1,501,429 ------------ ------------ ------------- Total cost of revenues 1,664,319 620,791 3,472,099 ------------ ------------ ------------- Gross profit 2,292,966 1,743,695 7,706,349 Expenses Research and development costs 368,723 196,822 929,432 Selling and marketing 1,358,291 1,063,504 4,546,695 General and administrative 883,144 476,670 2,588,014 Annual Marketing Conference expenses 211,048 - - Liquidated damages related to September PIPE 163,670 - - ------------ ------------ ------------- 2,984,876 1,736,996 8,064,141 ------------ ------------ ------------- Operating profit (loss) (691,910) 6,699 (357,792) Financing income (expenses), net (78,949) 8,307 179,400 ------------ ------------ ------------- Net income (loss) for the period (770,859) 15,006 (178,392) ============ ============ ============= Net income (loss) per share (0.086) 0.002 (0.030) ============ ============ ============= Weighted average number of shares which compute ------------ ------------ ------------- income (loss) per share 8,753,991 6,320,813 7,092,434 ============ ============ ============= *T [ Back To TMCnet.com's Homepage ]