Top Image Systems, Ltd. (NASDAQ:TISA), a global innovator of
intelligent content processing solutions, today announced its
financial results for the first quarter ended March 31, 2017.
First Quarter Highlights
- Quarterly revenues were $7.3 million compared to $7.0 million
in the fourth quarter of 2016 and $8.5 million in the same period
last year;
- Quarterly net loss was ($1.8) million, compared to a loss of
($3.8) million in the fourth quarter of 2016, and ($2.1) million in
the same period last year;
- Adjusted EBITDA* was a loss of ($0.9) million compared to a
loss of ($1.1) million in the fourth quarter of 2016, and breakeven
in the same period last year;
- Quarterly recurring revenues were $4.5 million, representing
61% of total revenue, compared to $4.6 million, representing 65% of
total revenues, in the fourth quarter of 2016 and compared to 60%
of revenues in the same period last year;
- Quarterly GAAP total expenses were $9.0 million, compared to
$10.2 million in the fourth quarter of 2016 and $10.4 million in
the same period last year;
- Previously announced project with top global bank managing more
than $1 trillion in assets successfully entered production;
- Previously announced large government forms processing project
in South America entered production;
- Selected as one of the Top Twenty Most Promising SAP
Application Providers for 2017 by CIOReview.
Brendan Reidy, CEO of Top Image Systems, commented, “The
transformation of our company continues and, though the process
will take time, we are achieving early results which creates the
foundation for a return to profitability and growth. We made
progress against our three key priorities: protecting our core
remittance and forms processing business; introducing continuous
efficiency improvements into our operations; and making prudent
investments in high-velocity cloud applications. We continue
to carry out successful forms processing and receivables automation
projects; to consolidate our operations and increase operating
efficiency and to invest in the development of our eFLOW AP on-site
and cloud-based solutions. I am confident that the end result will
be the transformation of our company into a nimble, high-growth,
cloud applications and services business to maximize shareholder
value.”
First Quarter Financial Results
Total revenues for the first quarter of 2017 were $7.3 million
compared to $7.0 million in the fourth quarter of 2016 and $8.5
million in the same period last year. Recurring (SaaS and
maintenance) revenues for the first quarter of 2017 were $4.5
million, compared to $4.6 million in the fourth quarter of 2016,
and compared to $5.0 million in the same period last year.
Gross profit for the first quarter of 2017 was $3.2 million
compared $2.7 million in the fourth quarter of 2016, and compared
to $4.2 million in the same period last year. Gross margin for the
first quarter of 2017 was 44%, compared to 39% in the fourth
quarter of 2016 and 50% for the same period last year.
GAAP net loss for the first quarter of 2017 was ($1.8) million
compared to ($3.8) million in the fourth quarter of 2016 and ($2.1)
million in the same period last year. First quarter 2017 GAAP loss
per share was ($0.10) compared to ($0.21) in the fourth
quarter of 2016 and ($0.12) in the same period last year.
First quarter 2017 Non-GAAP* loss per share was ($0.07),
compared to ($0.10) in the fourth quarter of 2016 and compared to
($0.02) in the same period last year.
Adjusted EBITDA* loss was ($0.9) million compared to ($1.1)
million in the fourth quarter of last year, and breakeven in the
same period last year.
Conference Call
The Company will host a conference call and webcast later today,
Thursday, May 18, 2017 at 10:00 am ET, during which the Company’s
management will present and discuss the financial results and be
available to answer questions from investors.
To join the conference call, please dial in to one of the
following teleconference phone lines using the numbers listed
below. Please begin placing your calls at least 5 minutes
before the conference call commences. If you are unable to
connect using the toll-free number, please try the U.S.
Toll/International dial-in number.
US Toll-Free Dial-in Number:
1-877-407-0784 US Toll/INTERNATIONAL Dial-in
Number: 1-201-689-8560 Israel Toll-Free
Dial-in Number:
1-809-406-247
The conference call is scheduled to begin at: 10:00 am
Eastern Time 7:00 am Pacific Time 5:00 pm Israel
Time
To join the live webcast, please click on the following link:
http://public.viavid.com/index.php?id=124470. For
those unable to attend the live call or webcast, from the following
day an audio recording of the call will be made available for
download from the Investors section of the Top Image Systems’
website www.topimagesystems.com; during the next three months the
recorded webcast can be viewed by clicking on the same link as for
the live
webcast: http://public.viavid.com/index.php?id=124470
* GAAP and Non-GAAP Financial Measures
This release includes GAAP and non-GAAP financial measures,
including, without limitation, Adjusted EBITDA (which eliminates
the impact of interest, taxes, amortization and depreciation
expenses, as well as non-cash stock-based compensation expenses and
other non-recurring items not part of regular business), Non-GAAP
Net Income (Loss) (which eliminates the impact of amortization
expenses as well as non-cash stock-based compensation expenses and
other non-recurring items not part of TIS’ ongoing business
operations) and Non-GAAP Income (Loss) per share. Non-GAAP measures
are reconciled to comparable GAAP measures in the tables below.
The presentation of these non-GAAP financial measures should be
considered in addition to TIS’ GAAP results provided in the
attached financial statements for the first quarter ended March 31,
2017 and the other periods presented, and is not intended to be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. The
tables below reconcile each non-GAAP financial measure to its most
directly comparable GAAP financial measure. TIS’ management
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding TIS’ performance by excluding
the impact of certain items that may not be indicative of TIS’ core
business operating results. TIS’ management believes that both
management and investors benefit from referring to these non-GAAP
financial measures in assessing TIS’ performance in addition to the
GAAP results. These non-GAAP financial measures also facilitate
comparisons to TIS’ historical performance and its competitors’
operating results. TIS includes these non-GAAP financial measures
because management believes they are useful to investors in
allowing for greater transparency with respect to supplemental
information used by management in its financial and operational
decision-making.
About Top Image Systems
Top Image Systems™ (TIS™) Ltd. is a global innovator of
on-premise and cloud-based applications that
optimize content-driven business processes such
as procure to pay operations, remittance processing,
integrated receivables, customer response management and
more. Whether originating from mobile, electronic, paper
or other sources, TIS solutions automatically capture, process and
deliver content across enterprise applications, transforming
information entering an organization into useful and accessible
electronic data, delivering it directly and efficiently to the
relevant business system or person for action with as little manual
handling as possible. TIS’ solutions are marketed in more
than 40 countries through a multi-tier network of distributors,
system integrators, value-added resellers and strategic partners.
Visit the company's website
at http://www.TopImageSystems.com for more
information.
Caution Concerning Forward-Looking
Statements
Certain matters discussed in this news release are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause our actual results to be materially
different from any future results expressed or implied in those
forward-looking statements. Words such as "will," "expects,"
"anticipates," "estimates," and words and terms of similar
substance in connection with any discussion of future operating or
financial performance identify forward-looking statements. These
statements are based on management's current expectations or
beliefs and are subject to a number of risks and uncertainties that
could cause actual results to differ materially including, but not
limited to, risks in product development, approval
and introduction plans and schedules, rapid technological
change, customer acceptance of new products, the impact of
competitive products and pricing, the lengthy sales cycle,
proprietary rights of TIS and its competitors, risk of operations
in Israel, government regulation, litigation, general economic
conditions and other risk factors detailed in the Company's most
recent annual report on Form 20-F and other subsequent filings with
the United States Securities and Exchange Commission. We are under
no obligation to, and expressly disclaim any obligation to, update
or alter our forward-looking statements, whether as a result of new
information, future events or otherwise.
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Top Image Systems Ltd. |
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Consolidated Balance Sheet as of |
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March 31, |
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December 31, |
|
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
In thousands |
|
Assets |
|
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
Cash and
Cash Equivalents |
$ |
7,798 |
|
$ |
7,636 |
|
Restricted Cash |
|
158 |
|
|
119 |
|
Trade
Receivables, net |
|
5,176 |
|
|
6,717 |
|
Other
Accounts Receivable and Prepaid Expenses |
|
1,061 |
|
|
829 |
|
|
|
|
|
|
Total
Current Assets |
|
14,193 |
|
|
15,301 |
|
|
|
|
|
|
Long-Term Assets: |
|
|
|
|
Severance Pay Funds |
|
1,044 |
|
|
1,029 |
|
Restricted Cash |
|
148 |
|
|
145 |
|
Long-term Deposits and Long-term Assets |
|
123 |
|
|
136 |
|
Property
and Equipment, net |
|
1,213 |
|
|
1,000 |
|
Intangible Assets, net |
|
3,235 |
|
|
3,623 |
|
Goodwill |
|
18,493 |
|
|
18,405 |
|
|
|
|
|
|
Total
Long-term Assets |
|
24,256 |
|
|
24,338 |
|
|
|
|
|
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Total Assets |
$ |
38,449 |
|
$ |
39,639 |
|
|
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Liabilities and Shareholders' Equity |
|
|
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|
|
|
|
|
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Current Liabilities: |
|
|
|
|
|
|
|
|
|
Short-term Bank Loans |
$ |
3,059 |
|
$ |
3,017 |
|
Trade
Payables |
|
1,141 |
|
|
1,237 |
|
Deferred
Revenues |
|
3,672 |
|
|
3,594 |
|
Accrued
Expenses and Other Accounts Payable |
|
3,765 |
|
|
3,195 |
|
|
|
|
|
|
Total
Current Liabilities |
|
11,637 |
|
|
11,278 |
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|
|
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|
Long-Term Liabilities: |
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|
|
|
|
|
|
|
Accrued
Severance Pay |
$ |
1,179 |
|
$ |
1,214 |
|
Non-current Deferred Revenues |
|
2,527 |
|
|
2,626 |
|
Other
Long-term Liabilities |
|
4,855 |
|
|
4,528 |
|
|
|
|
|
|
Total
Long-term Liabilities |
|
8,561 |
|
|
8,368 |
|
|
|
|
|
|
Total Liabilities |
$ |
20,198 |
|
$ |
19,646 |
|
|
|
|
|
|
Total
Parent Shareholders' Equity |
$ |
18,211 |
|
$ |
20,190 |
|
Non-controlling Interest |
|
40 |
|
|
38 |
|
Shareholders' Equity |
|
18,251 |
|
|
19,993 |
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
38,449 |
|
$ |
39,639 |
Top Image Systems Ltd. |
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Statement of Operations for the |
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Three months ended |
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Three months ended |
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March 31, |
|
March 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
In thousands, except per share
data |
|
|
|
|
|
|
License
Revenues |
|
1,686 |
|
|
|
1,756 |
|
|
Services
Revenues |
|
5,639 |
|
|
|
6,701 |
|
|
Revenues |
$7,325 |
|
|
$8,457 |
|
|
|
|
|
|
|
Cost of
License Revenues |
|
160 |
|
|
|
361 |
|
|
Cost of
Services Revenues |
|
3,963 |
|
|
|
3,889 |
|
|
Cost of Revenues |
|
4,123 |
|
|
|
4,250 |
|
|
|
|
|
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|
Gross
Profit |
|
3,202 |
|
|
|
4,207 |
|
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Expenses |
|
|
|
|
Research
& Development |
|
1,217 |
|
|
|
1,291 |
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Sales
& Marketing |
|
1,774 |
|
|
|
2,163 |
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General
& Administrative |
|
1,777 |
|
|
|
1,362 |
|
|
Amortization Costs |
|
153 |
|
|
|
127 |
|
|
Restructuring Charges |
|
- |
|
|
|
1,183 |
|
|
|
|
|
|
|
|
|
4,921 |
|
|
|
6,126 |
|
|
|
|
|
|
|
Operating (Loss)
Profit |
|
(1,719 |
) |
|
|
(1,919 |
) |
|
|
|
|
|
|
Financial Expenses, net |
|
46 |
|
|
|
(78 |
) |
|
|
|
|
|
|
Other
Income (loss), net |
|
2 |
|
|
|
5 |
|
|
|
|
|
|
|
(Loss) profit
Before Taxes on Income |
|
(1,671 |
) |
|
|
(1,992 |
) |
|
|
|
|
|
|
Tax
Expenses (income) |
|
96 |
|
|
|
123 |
|
|
Net (Loss) Profit |
|
(1,767 |
) |
|
|
(2,115 |
) |
|
Net
Income Attributable to Noncontrolling Interest |
|
(2 |
) |
|
|
(2 |
) |
|
|
|
|
|
|
Net (Loss) Profit |
($1,769 |
) |
|
($2,117 |
) |
|
Earnings per Share |
|
|
|
|
Basic (Loss) Earnings per
Share |
($0.10 |
) |
|
($0.12 |
) |
|
Weighted
Average Number of Shares Used in Computation of Basic Net (Loss)
Income per Share |
|
17,932 |
|
|
|
17,919 |
|
|
Diluted (Loss) Earnings
per Share |
($0.10 |
) |
|
($0.12 |
) |
|
Weighted
Average Number of Shares Used in Calculation of Diluted Net (Loss)
Earnings per Share |
|
17,932 |
|
|
|
17,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Three months ended |
|
|
March 31, |
|
March 31, |
|
|
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
In thousands, except per share
data |
|
|
|
|
|
|
Adjusted
EBITDA: |
|
|
|
|
Net
(Loss) Profit |
($1,769 |
) |
|
($2,117 |
) |
|
Interest |
|
144 |
|
|
|
15 |
|
|
Other
Financial Expenses |
|
(190 |
) |
|
|
63 |
|
|
Taxes |
|
96 |
|
|
|
123 |
|
|
Depreciation |
|
172 |
|
|
|
169 |
|
|
Amortization |
|
394 |
|
|
|
362 |
|
|
Stock-based Compensation Expenses |
|
204 |
|
|
|
225 |
|
|
Restructuring Charge |
|
- |
|
|
|
1,183 |
|
|
Debt
Reserve Adjustment |
|
3 |
|
|
|
- |
|
|
Total Adjusted EBITDA |
($946 |
) |
|
$23 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP
Results: |
|
|
|
|
|
|
|
|
|
Net (Loss) Profit |
($1,769 |
) |
|
($2,117 |
) |
|
Amortization |
|
394 |
|
|
|
362 |
|
|
Stock-based Compensation Expenses |
|
204 |
|
|
|
225 |
|
|
Debt
Reserve Adjustment |
|
3 |
|
|
|
- |
|
|
Restructuring Charge |
|
- |
|
|
|
1,183 |
|
|
|
|
|
|
|
Non-GAAP Net Profit |
($1,168 |
) |
|
($347 |
) |
|
|
|
|
|
|
Non-GAAP
Net income used for basic earnings per share |
($1,168 |
) |
|
($347 |
) |
|
Shares
Used in Basic Earnings per Share Calculation |
|
17,932 |
|
|
|
17,919 |
|
|
Non-GAAP Basic Earnings per Share |
($0.07 |
) |
|
($0.02 |
) |
|
Non-GAAP
Net Income Used for Diluted Earnings per Share |
($1,168 |
) |
|
($347 |
) |
|
Shares
Used in Diluted Earnings per Share Calculation |
|
17,932 |
|
|
|
17,919 |
|
|
|
|
|
|
|
Non-GAAP Diluted Earnings per Share |
($0.07 |
) |
|
($0.02 |
) |
|
|
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|
|
Company Contact:
Shelli Zargary
Director of Corporate Marketing
shelli.zargary@topimagesystems.com
(214) 256-4600
Investors:
James Carbonara
Regional Vice President, Hayden IR
james@haydenir.com
(646) 755-7412
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