TiS Q1/99 Revenues Increase 51 Percent to 1.8 Million
biz.yahoo.com
Monday May 10, 8:31 am Eastern Time
Company Press Release
SOURCE: Top Image Systems, Ltd.
TEL AVIV, Israel, May 10 /PRNewswire/ -- TiS - Top Image Systems,
Ltd., (Nasdaq: TISA - news, TISAW - news) today reported first quarter
1999 revenues increased 51 percent to $1.8 million compared with $1.2
million for the first quarter of 1998.
Net income for the first quarter 1999 rose to $85,346, compared to a
loss of $83,075 in the first quarter of 1998. Earnings per share for
the quarter were $0.02 against a loss of $0.02 for the same period of
1998. Operating profit was $59,900 against a loss of $79,443 for the
first quarter of 1998. Gross profit increased 64 percent to $1.3
million or 75 percent of revenues, compared with $851,099 or 69
percent of revenues for the first quarter of 1998.
Izhak Nakar, TiS Chairman of the Board and CEO, said the first quarter
growth in sales (51%) and gross profit (64%) were consistent with
management expectations. ''The Company decided to invest in sales and
marketing expenses and raise general and administration expenses in
order to accelerate TiS' penetration into new markets, thus increasing
its market share, and in order to open additional offices worldwide''
he added.
''The Company has decided to present the R&D expenses in a separate
clause this year since TiS will be developing a new Internet-based
product, in which we will be substantially investing these coming
years,'' said Mr. Nakar.
Mr. Nakar commented: ''The first quarter of 1999 was the twelfth
consecutive quarter that we saw growth in sales. This year we are
eeaping the fruits of our investments in the development of new
distribution channels all over the world. Our successful projects in
the Deutsche Post have persuaded us to continue investing in this
market during the upcoming year reflecting TiS' commitment to
expanding its markets and sales base. Our growing investments in both
the German and US markets reflect the rise in our general and
administrative costs.''
''We are pleased to report such consistent positive growth trends in
sales and gross profit and are committed to continue working towards
building shareholder value,'' concluded Mr. Nakar.
TiS - Top Image Systems, Ltd., develops and markets form processing,
information recognition and data entry software, systems and
technologies. The Company's software minimizes the need for manual
data-entry by automatically reading and processing the information
contained in forms, increasing data capture accuracy and the rate of
information processing. TiS' award-winning AFPSPro software provides a
complete, cost-effective, reliable solution for mid to high-volume
production form processing. For more information on TiS, you can visit
the Company's Web Site at tis.co.il.
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.
Top Image Systems Ltd.
Consolidated Statements of Operations
Quarter ended March 31,
1999 1998
Revenues:
Product sales 1,818,901 1,190,069 53%
Service Revenue 37,870 41,817
Total Revenue 1,856,771 1,231,886 51%
Cost of revenues:
Product cost 445,001 373,976 19%
Service cost 14,342 6,811 111%
Total cost of revenue 459,343 380,787 21%
Gross Profit 1,397,428 851,099 64%
Expenses:
Research & development 115,787 --
Selling & Marketing 883,751 699,140 26%
general & administration 337,990 231,402 46%
Operating profit (loss)
before financing expenses 59,900 (79,443) --
Financing income (expenses) 25,542 (15,065) --
Other incomes (96) 11,433 --
Income (loss) before taxes
on income 85,346 (83,075) --
Taxes on Income -- --
Income (loss) after taxes
on income 85,346 (83,075) --
Income of an affiliated entity -- -- --
Net income (loss) 85,346 (83,075) --
Earning (loss) per share 0.02 (0.02) --
Share of common stock
outstanding 3,844,625 3,818,325 --
SOURCE: Top Image Systems, Ltd.
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