Top Image Updates Financial Outlook for Full Year 2012
Expects Solid Growth in 2013 Based on Upcoming Contract Announcements; Management to Announce Formal 2013 Guidance During Q4 Earnings Reporting
Tel Aviv – January 7, 2013 - Top Image Systems, Ltd. (NASDAQ: TISA), a leading Enterprise Content Management (ECM) intelligent content capture and delivery solutions provider, today announced updated expectations for the fiscal year ended December 31,2012.
Management expects revenues of between $30.9 million and $31.5 million, representing year-over-year growth of 8%-10%, and non-GAAP operating profit of between $4.0 million and $4.2 million, representing year-over-year growth of 10%-15%. This 8% deviation in revenues from the low end of previously announced guidance reflects:
- Delays in closing several major sales, previously expected to close in the fourth quarter, which are now expected to close during 2013;
- A more than $1.0 million EURO-Dollar exchange rate impact, without which the deviation would have been only 5%.
“Traditionally in our market, numerous sales are closed during the last few weeks of the calendar year," commented Dr. Ido Schechter, CEO of Top Image Systems. “However, we are witnessing that current economic conditions are causing a slowdown in decision-making and an extension of enterprise sales cycles that has delayed expected TIS sales closures in these last weeks. Our product offering remains strong and competitive and we believe that the challenging economic conditions facing enterprises will in the long run prove an opportunity for growth. The growing list of opportunities we have in the United States in mobile and non-mobile, as well as in our core international business, reinforce our confidence that we will experience significant top and bottom-line growth in 2013. We believe it is premature to issue formal estimates, but given the pipeline and pending deals we plan to announce, we expect a strong year, and will add clarity to that when we issue formal guidance simultaneous with the release of our full-year results.”
Concluded Dr. Schechter, “We believe that the cautious signs of economic recovery in the US, together with the intensified business activities we are executing with potential partners and a significantly increasing pipeline, all indicate that we will carry out our US expansion in 2013 as planned. Our ongoing dialogue with our customers ensures us that we continue to hold a strong position within our industry, and suggests optimism for our growth in 2013.”