Top Image Posts Revenue Gain for Third Quarter
Thursday November 11, 11:37 am Eastern Time
Company Press Release
Source: Top Image Systems, Ltd.
biz.yahoo.com
TEL AVIV, Israel, Nov. 11 /PRNewswire/ -- Top Image Systems, Ltd., (Nasdaq: TISA - news, TISAW - news), a leading innovator in digital information recognition and data capture software solutions, today announced a 13.8 percent third quarter revenue gain to $2.0 million compared with $1.8 million for the third quarter of 1998. For the first nine months, Top Image posted revenues of $6.2 million, up 29.0 percent from revenues of $4.8 million for the period last year.
Third quarter gross profit increased 18.0 percent to $1.6 from $1.3 million last year. Net income for the quarter dropped from a profit of $282,283 or $0.07 per share for 3Q98 to a loss of $362,091 or $0.09 per share for 3Q99. Third quarter operating income declined from $250,501 last year to a loss of $332,792.
Nine-month gross profit was $4.8 million against $3.5 million in 1998. Operating profit fell from $678,053 for the nine months last year to $77,737 for the 1999 period. Net income declined from $805,914 or $0.21 a share to $49,402 or $0.01 per share.
Izhak Nakar, TiS Chairman and CEO commented, ''During the third quarter our spending on selling and marketing rose 86.3 percent to $1.3 million from $718,859 last year. For the first nine months selling and marketing expenses increased 59.7 percent from $2.0 million to $3.1 million. Our results for third quarter and nine months reflect our strategy to expand our operations in high growth markets to make TiS the number one provider worldwide of digital recognition solutions via the Internet and automated forms processing. I am happy to note that we have met with some success in this endeavor and that third quarter results mark 15 consecutive quarters of revenue gains. Our investment in new offices in the United States and Germany will place TiS in a strong position to capture increased market share.''
''At the same time, we have substantially increased research and development expenses through the first nine months in order to meet the demands of the market for new Internet-based products,'' Mr. Nakar continued.
Significant operating developments during the first nine months include the opening of TiS' new Carlsbad, California, headquarters of TiS America. The subsidiary will expand sales channels and sales activities in the US and Canada.
In addition, Top Image signed a strategic cooperation agreement with the ComTeam Group of Germany, and named Peter Nowak as General Manager of TiS Germany. Mr. Nowak has a broad range of business experience. His principal job is to expand sales in the rapidly growing German market for digital information recognition and data collection.
''Looking forward to fourth quarter and the coming year, I am confident that our investments in marketing and research and development will pay off. We plan to move swiftly into new product arenas and apply our technical expertise to fresh markets. I see only positive developments ahead for the Company and we plan to continue our record of building shareholder value,'' Mr. Nakar concluded.
Top Image Systems, Ltd. (TiS) is a leading innovator of digital information recognition and data capture solutions for forms processing, e-form and Internet applications. The Company's dynamic platforms provide real time solutions for accurately capturing and processing data at high speeds, enabling enterprises to optimize e-form applications, as well as service the manual forms market. TiS markets its products in more than 25 countries through a multi-tier network of distributors, system integrators and value added resellers, as well as strategic partners. For more information on TiS, visit the Company's web site at topimagesystems.com.
Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties 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, general economic conditions and other risk factors detailed in the Company's United States Securities and Exchange Commission filings.
Contacts:
Izhak Nakar
Chairman of the Board and CEO Rachel Levine or Marilena Michaelidou
Top Image Systems, Ltd. The Anne McBride Co., Inc.
+972-3-648-7722 212-983-1702
E-mail:Izhak@tis.co.il E-mail: mcbrideco@aol.com
TOP IMAGE SYSTEMS
CONSOLIDATED STATEMENT OF OPERATIONS
1999 1998 1999 1998
Q3 Q3 Q1-Q3 Q1-Q3
Revenues:
Product sales 1,928,211 1,698,683 5,967,020 4,603,006
Service revenue 69,910 56,670 183,987 164,223
Total revenues 1,998,121 1,755,353 6,151,007 4,767,229
Cost of revenues:
Product cost 400,883 405,992 1,303,797 1,198,151
Service cost 17,210 10,216 46,762 27,244
Total cost of revenue 418,093 416,208 1,350,559 1,225,395
Gross Profit 1,580,028 1,339,145 4,800,448 3,541,834
Expenses:
R&D 209,214 540,110
Selling & Marketing 1,339,577 718,859 3,134,565 1,962,230
General and
Administrative 364,029 369,785 1,048,036 901,551
Operating profit (loss)(332,792) 250,501 77,737 678,053
Financing income
(expenses), net (25,865) 35,397 (14,491) 112,385
Other (expenses)
income, net (3,434) (3,615) (13,844) 15,476
Income (loss) before
taxes on income (362,091) 282,283 49,402 805,914
Taxes on Income 0 0 0 0
Income (loss) after
taxes on income (362,091) 282,283 49,402 805,914
Net Income (362,091) 282,283 49,402 805,914
EPS (0.09) 0.07 0.01 0.21
Weighted average
Number of Shares 3,912,625 3,818,325 3,912,625 3,818,325
TOP IMAGE SYSTEMS
CONSOLIDATED BALANCE SHEET
1999 1998
Q3 Q3
Assets:
Current Assets
Cash and cash equivalents 1,547,114 2,020,659
Marketable Securities 1,489,043 1,535,652
Trade receivable , net 3,820,331 3,317,706
Other receivables 368,433 219,442
Total current assets 7,224,921 7,093,459
Property and equipment
Cost 864,632 792,849
Less/accumulated depreciation (393,062) (317,006)
Net property and equipment 471,570 475,843
Other assets , net 4,340 2,140
Total assets 7,700,831 7,571,442
Liabilities and Shareholders' Equity
Current liabilities:
Short-term bank borrowings 74,686 130,021
Trade payables 204,136 91,187
Accrued liabilities and other payables 516,712 768,546
Total current liabilities: 795,534 989,754
Long- term liabilities:
Long- term loans (net of current maturities) 11,900 19,550
Liability for severance pay, net 166,559 105,502
Total long-term liabilities 178,459 125,052
Total Liabilities 973,993 1,114,806
Shareholders' equity:
Share capital - Ordinary shares of NIS
0.04 per value. Authorized:
December 31, 1998 and September 30, 1999
125,000,000 shares. Issued and
outstanding: 3,844,625 shares
at December 31, 1998 and
3,912,625 shares at September 30 ,1999 52,046 51,396
Surplus capital 7,562,670 7,342,520
Received on account of shares warrants 53,381 53,381
Accumulated deficit (941,259) (990,661)
Total Shareholders' equity 6,726,838 6,456,636
Total Liabilities and shareholders' equity 7,700,831 7,571,442
SOURCE: Top Image Systems, Ltd. |
