Top Image Systems Reports Financial Results for the First Quarter of 2010
Revenues of $5.3 Million, Non-GAAP Operating Margin of 8%
Tel Aviv, Israel – May 24, 2010 – Top Image Systems, Ltd. (TIS) (NASDAQ and TASE: TISA), the leading innovator of data capture solutions, today announced its financial results for the first quarter ended March 31, 2010.
First Quarter Highlights
- Revenues of $5.3 million
- Fifth consecutive quarter of operational profit
- Gross margin increased year-over-year from 59% to 62%
- Non-GAAP operating income increased to $0.45 million, up from $0.40 million in the first quarter of 2009
- Non-GAAP net income of $0.26 million, compared to $0.22 million in the first quarter of 2009
- Non-GAAP earnings per diluted share increased to $0.03, up from $0.02 in the first quarter of 2009
- Positive cash flow from operations of $0.20 million, compared to $0.40 million negative cash flow from operations in the first quarter of 2009
First Quarter 2010 Results
For the first quarter ended March 31, 2010, revenues were $5.3 million down 13% compared to revenues of $6.1 million in the first quarter of 2009. Revenues in the first quarter of 2009 included non-core activities, which were discontinued in 2010 in line with the Company’s strategy to increase profitability and margins.
Gross margin in the quarter grew to 62% compared to 59% in the first quarter of 2009.
Non-GAAP operating income for the first quarter of 2010 reached $0.45 million, up from non-GAAP operating income of $0.40 million in the first quarter of 2009.
Non-GAAP net income for the first quarter of 2010 totaled $0.26 million or $0.03 per diluted share, compared to non-GAAP net income of $0.22 million in the first quarter of 2009, or $0.02 per diluted share.
Net loss on a GAAP basis for the first quarter of 2010 totaled $1.1 million, or $(0.12) per diluted share compared to a net loss of $1.4 million in the first quarter of 2009, or $(0.15) per diluted share.
Positive cash flow from operations was $0.20 million in the first quarter of 2010 compared to $0.40 million negative cash flow from operations in the first quarter of 2009.
Management’s comment
Dr. Ido Schechter, CEO of TIS, commented: "As a result of our decision to focus on core activities and more profitable business opportunities, we saw a decrease in sales. However, this allowed us to increase our gross margin, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share and cash flow from operations. TIS achieved non-GAAP operating margin of 8% compared to 6.6% for the same period last year. For the remainder of 2010 we will continue to focus on large scale opportunities including large governmental and population census projects, as well as projects for banks and financial organizations that are looking to cut costs and improve customer service. We believe that with our strong pipeline and proved solutions, TIS is well positioned to maintain sustainable profitable growth."
Conference Call
The Company will be holding a conference call today, May 24, 2010, at 9:00am ET (6:00am Pacific Time, 4:00pm Israel Time) to review the first quarter 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 5 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
US Dial-in Number: 1-888-407-2553
ISRAEL Dial-in Number: 03 9180664
INTERNATIONAL Dial-in Number: +972 3 9180664
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
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