Top Image Systems 2Q99 Revenues Up 29 Percent
TEL AVIV, Israel, Aug. 5 /PRNewswire/ -- Top Image Systems,
Ltd., (Nasdaq: TISA - news, TISAW - news) today announced financial results for the second quarter and six months ended June 30, 1999.
For the second quarter of 1999, revenues increased 29 percent to $2.3 million compared to the second quarter of 1998. Gross profit increased 35 percent to $1.8 million compared to the second quarter of 1998. Net income in the second quarter was $326,147 compared to $606,706 the
previous year and earnings per share were $0.08 compared to $0.16 in the same period of 1998.
The company announced that it has taken a one-time charge of $150,000 in the second quarter of 1999 for bad debts relating to a change in marketing strategy, which will allow TiS to aggressively pursue new distribution agreements in the U.S.
Izhak Nakar, TiS Chairman of the Board and CEO, commented, ''We are pleased to report that with the second quarter results, TiS has increased revenues for 14 consecutive quarters. We have significantly increased research and development expenses to 9.4 percent of revenues in 2Q99 in order to meet the demands of the market for new internet-based products and processing of e-forms. In conjunction with this strategic decision, the Company will continue to present 1999
research and development costs as a separate line item in our statement of operations, versus previous years.''
Revenues for the six months ended June 30, 1999 increased 38 percent to $4.1 million compared to the same period in 1998. Gross profit increased 46 percent to $3.2 million compared to last year. Net income for the first half was $411,493 compared to $523,631 in 1998 and earnings per share were $0.10 compared to $0.14 in the same period of 1998.
''We are continuing our plan to invest in sales and marketing in 1999, with an increase in sales and marketing expenses of 67 percent in 2Q99 compared to 2Q98,'' continued Mr. Nakar. ''We recently announced the opening of a head office for TiS America, Inc. in California, which will enable the Company to expand sales channels and sales activities in the United States and Canada. In Europe and the Far East we are expanding our distribution network with high-quality, proven, system integrators.''
During the second quarter TiS announced a major contract with the Swiss Post, which together with the Company's success with Deutsche Post Direkt, puts TiS in a strong position in the postal services vertical market. TiS is placing particular emphasis on business alliances with major international companies, as well. The recently announced alliance with Eastman Kodak is expected to result in new joint projects in several markets.
Mr. Nakar added, ''We are especially pleased with the sales success that we have achieved in the Japanese market, where despite the difficult economic conditions, we have significantly increased
revenues. Our Japanese customers are now purchasing larger, network-based solutions of TiS' AFPSPro instead of the entry-level, single station, stand-alone product.''
''In total, our success in second quarter and to date this year has set TiS on track to deliver revenue growth and increased market penetration in the coming periods,'' concluded Mr. Nakar. ''We are
planning to capitalize on our US expansion and strategic alliances to the fullest extent.''
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