Top Image Systems Reports Third Quarter 2017 Results
November 15 2017 - 9:00AM
Top Image Systems, Ltd. (NASDAQ:TISA), a global innovator of
intelligent content processing solutions, today announced its
financial results for the third quarter of 2017, ended on September
30, 2017.
Third Quarter Highlights:
- Quarterly revenues were $7.1 million, compared to $7.4 million
in the second quarter of 2017 and $7.7 million in the same period
in 2016;
- Quarterly operating loss was ($1.5) million, compared to ($1.3)
million in the second quarter of 2017 and ($0.6) million in the
same period in 2016;
- Adjusted EBITDA was a loss of ($0.71) million, compared to a
loss of ($0.47) million in the second quarter of 2017 and positive
Adjusted EBITDA of $0.23 million during the same period in
2016;
- Quarterly recurring revenues were $4.9 million, representing
70% of total revenue, compared to $4.8 million, representing 64% of
total revenues, in the second quarter of 2017 and $4.9 million,
representing 64% of total revenues in the same quarter of 2016;
- Quarterly GAAP total expenses were $8.5 million, compared to
$8.8 million in the second quarter of 2017 and $8.2 million in the
same period last year.
- In partnership with the SAP Business One organization and as
showcased at the SAP Biz.ONE Conference we announced the launch of
our cloud-based eFLOW AP solution, integrated with SAP Business
One, coupled with an aggressive marketing initiative to build the
pipeline and accelerate sales of our solution in fiscal
2018.
- One of the largest financial services group in Southeast Asia,
with over 500 branches, has selected Top Image Systems to implement
an automated Trade Finance document processing solution.
- Concluded a multi-year seven figure contract renewal of our
receivables automation solution with a large financial services
provider, which represents high-margin, recurring cloud-based
services revenue stream.
- Announced an Extended Support Program with 80% of our existing
customers having upgraded to the most current version of eFLOW.
This translates to continued high margin maintenance renewal
revenue streams, lower support costs and increased opportunities
for additional deployment revenues within our installed base of
customers.
- Negotiated a revolving credit line with a US-based bank on
substantially better terms than our previous facility. This will
give us access to additional financial resources to manage working
capital and to fund our growth.
Brendan Reidy, CEO of Top Image Systems, commented, “We continue
to make progress on our path to achieve a balance between
sustained profitability from our core capture business while we
transition to the higher velocity cloud applications software
market. While we are encouraged by the continued strengthening of
our pipeline, our third quarter top line revenue was lower than
anticipated due to deferral of two significant transactions which
we anticipate will be reflected in our fourth quarter revenues. We
are particularly encouraged by the traction we are seeing within
the banking sector. We completed a multi-year seven figure contract
renewal for our receivables automation solution, which is deployed
in a highly secure private cloud environment, generating high
margin and predictable recurring revenue streams. We also secured
the implementation of a Trade Finance solution by one of the
largest financial services group in Southeast Asia that re-enforces
our proposition for automating labor-intensive business
processes.”
Mr. Reidy added, “We are particularly pleased with the launch of
our cloud-based accounts payable solution, which will leverage the
SAP Business One ERP ecosystem for mid-size companies. Our teams
are working proactively with the SAP Business One organization to
develop co-marketing programs with the SAP Business One channel
organization to create the foundation for accelerated traction for
our cloud-based solution in fiscal 2018. Our tight integration with
SAP Business One as well as with SAP ECC on premise provides us
with a unique value proposition to target SAP customers with
flexible deployment options on premise and in the cloud.”
Third Quarter Financial Results
- Quarterly revenues were $7.1 million, compared to $7.4 million
in the second quarter of 2017 and $7.7 million in the same period
in 2016;
- Quarterly operating net loss was ($1.5) million, compared to
($1.3) million in the second quarter of 2017 and ($0.6) million in
the same period in 2016;
- Adjusted EBITDA was a loss of ($0.71) million, compared to a
loss of ($0.47) million in the second quarter of 2017 and positive
EBITDA of $0.23 million during the same period in 2016;
- Quarterly recurring revenues were $4.9 million, representing
70% of total revenue, compared to $4.8 million, representing 64% of
total revenues, in the second quarter of 2017 and $4.9 million,
representing 64% of total revenues in the same quarter of 2016;
- Quarterly GAAP total expenses were $8.5 million, compared to
$8.8 million in the second quarter of 2017 and $8.2 million in the
same period last year.
Conference Call
The Company will host a conference call and webcast later today,
at 10:00 a.m. 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: 7:00 a.m.
Pacific Time / 10:00 a.m. Eastern Time / 5:00 p.m. Israel Time To
join the live webcast, please click on the following link:
https://viavid.webcasts.com/starthere.jsp?ei=1169585&tp_key=4781f65227 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: https://viavid.webcasts.com/starthere.jsp?ei=1169585&tp_key=4781f65227
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:
https://viavid.webcasts.com/starthere.jsp?ei=1169585&tp_key=4781f65227
* 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 second quarter ended
September 30, 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.
TIS Investors Contact: James Carbonara Partner,
Hayden IR james@haydenir.com (646) 755-7412
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 https://www.topimagesystems.com/ for more information.
Top Image Systems 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. |
|
|
|
|
Consolidated Balance Sheet as of |
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
2017 |
|
2016 |
|
|
|
In thousands |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
Cash and
Cash Equivalents |
$ |
1,594 |
|
$ |
7,636 |
|
|
Restricted Cash |
|
175 |
|
|
119 |
|
|
Trade
Receivables, net |
|
5,450 |
|
|
6,717 |
|
|
Other
Accounts Receivable and Prepaid Expenses |
|
1,170 |
|
|
829 |
|
|
|
|
|
|
|
|
Total Current
Assets |
|
8,389 |
|
|
15,301 |
|
|
|
|
|
|
|
|
Long-Term
Assets: |
|
|
|
|
|
Severance Pay Funds |
|
1,112 |
|
|
1,029 |
|
|
Restricted Cash |
|
160 |
|
|
145 |
|
|
Long-term Deposits and Long-term Assets |
|
77 |
|
|
136 |
|
|
Property
and Equipment, net |
|
933 |
|
|
1,000 |
|
|
Intangible Assets, net |
|
2,506 |
|
|
3,623 |
|
|
Goodwill |
|
18,773 |
|
|
18,405 |
|
|
|
|
|
|
|
|
Total Long-term
Assets |
|
23,561 |
|
|
24,338 |
|
|
|
|
|
|
|
|
Total
Assets |
$ |
31,950 |
|
$ |
39,639 |
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Short-term Bank
Loans |
$ |
- |
|
$ |
3,017 |
|
|
Trade Payables |
|
1,543 |
|
|
1,237 |
|
|
Deferred Revenues |
|
2,939 |
|
|
3,594 |
|
|
Accrued Expenses and
Other Accounts Payable |
|
3,791 |
|
|
3,430 |
|
|
|
|
|
|
|
|
Total Current
Liabilities |
|
8,273 |
|
|
11,278 |
|
|
|
|
|
|
|
|
Long-Term
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Accrued Severance
Pay |
$ |
1,250 |
|
$ |
1,214 |
|
|
Non-current Deferred
Revenues |
|
2,059 |
|
|
2,626 |
|
|
Other Long-term
Liabilities |
|
4,756 |
|
|
4,528 |
|
|
|
|
|
|
|
|
Total Long-term
Liabilities |
|
8,065 |
|
|
8,368 |
|
|
|
|
|
|
|
|
Total
Liabilities |
$ |
16,338 |
|
$ |
19,646 |
|
|
|
|
|
|
|
|
Total Parent
Shareholders' Equity |
$ |
15,565 |
|
$ |
19,955 |
|
|
Non-controlling
Interest |
|
47 |
|
|
38 |
|
|
Shareholders'
Equity |
|
15,612 |
|
|
19,993 |
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity |
$ |
31,950 |
|
$ |
39,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Top Image Systems Ltd. |
|
|
|
|
|
|
|
|
Statement of Operations for the |
|
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|
|
|
|
|
|
|
|
Three months ended |
|
Three months ended |
|
Nine months ended |
|
Nine months ended |
|
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
In thousands, except per share
data |
|
|
|
|
|
|
|
|
|
|
|
|
License
Revenues |
|
653 |
|
|
|
1,266 |
|
|
|
3,624 |
|
|
|
4,741 |
|
|
|
Services
Revenues |
|
6,407 |
|
|
|
6,415 |
|
|
|
18,169 |
|
|
|
19,883 |
|
|
|
Revenues |
$7,060 |
|
|
$7,681 |
|
|
$21,793 |
|
|
$24,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
License Revenues |
|
135 |
|
|
|
383 |
|
|
|
419 |
|
|
|
1,276 |
|
|
|
Cost of
Services Revenues |
|
4,039 |
|
|
|
3,676 |
|
|
|
12,109 |
|
|
|
11,245 |
|
|
|
Cost of Revenues |
|
4,174 |
|
|
|
4,059 |
|
|
|
12,528 |
|
|
|
12,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
2,886 |
|
|
|
3,622 |
|
|
|
9,265 |
|
|
|
12,103 |
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
Research
& Development |
|
1,292 |
|
|
|
1,241 |
|
|
|
3,737 |
|
|
|
3,556 |
|
|
|
Sales
& Marketing |
|
1,391 |
|
|
|
1,650 |
|
|
|
4,659 |
|
|
|
5,746 |
|
|
|
General
& Administrative |
|
1,514 |
|
|
|
1,161 |
|
|
|
4,936 |
|
|
|
3,806 |
|
|
|
Amortization Costs |
|
154 |
|
|
|
124 |
|
|
|
460 |
|
|
|
378 |
|
|
|
Restructuring Charges |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,351 |
|
|
|
4,176 |
|
|
|
13,792 |
|
|
|
14,672 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (Loss)
Profit |
|
(1,465 |
) |
|
|
(554 |
) |
|
|
(4,527 |
) |
|
|
(2,569 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Financial Expenses, net |
|
49 |
|
|
|
(169 |
) |
|
|
(315 |
) |
|
|
(443 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income (loss), net |
|
1 |
|
|
|
- |
|
|
|
7 |
|
|
|
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit
Before Taxes on Income |
|
(1,415 |
) |
|
|
(723 |
) |
|
|
(4,835 |
) |
|
|
(3,006 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Tax
Expenses (income) |
|
98 |
|
|
|
(427 |
) |
|
|
244 |
|
|
|
(421 |
) |
|
|
Net (Loss) Profit |
|
(1,513 |
) |
|
|
(296 |
) |
|
|
(5,079 |
) |
|
|
(2,585 |
) |
|
|
Net
Income Attributable to Noncontrolling Interest |
|
(2 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(11 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Profit |
($1,515 |
) |
|
($299 |
) |
|
($5,088 |
) |
|
($2,596 |
) |
|
|
Earnings per Share |
|
|
|
|
|
|
|
|
|
Basic (Loss) Earnings per
Share |
($0.08 |
) |
|
($0.02 |
) |
|
($0.28 |
) |
|
($0.14 |
) |
|
|
Weighted
Average Number of Shares Used in Computation of Basic Net (Loss)
Income per Share |
|
18,010 |
|
|
|
17,932 |
|
|
|
17,958 |
|
|
|
17,923 |
|
|
|
Diluted (Loss) Earnings
per Share |
($0.08 |
) |
|
($0.02 |
) |
|
($0.28 |
) |
|
($0.14 |
) |
|
|
Weighted
Average Number of Shares Used in Calculation of Diluted Net (Loss)
Earnings per Share |
|
18,010 |
|
|
|
17,955 |
|
|
|
17,958 |
|
|
|
17,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Top Image Systems Ltd. |
|
|
|
|
|
|
|
|
Statement of Operations for the |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Three months ended |
|
Nine months ended |
|
Nine months ended |
|
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
|
In thousands, except per share
data |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
Net
(Loss) Profit |
($1,515 |
) |
|
($299 |
) |
|
($5,088 |
) |
|
($2,596 |
) |
|
|
Interest |
|
165 |
|
|
|
38 |
|
|
|
520 |
|
|
|
74 |
|
|
|
Other
Financial Expenses |
|
(214 |
) |
|
|
131 |
|
|
|
(205 |
) |
|
|
369 |
|
|
|
Taxes |
|
98 |
|
|
|
(427 |
) |
|
|
244 |
|
|
|
(421 |
) |
|
|
Depreciation |
|
179 |
|
|
|
167 |
|
|
|
526 |
|
|
|
510 |
|
|
|
Amortization |
|
348 |
|
|
|
359 |
|
|
|
1,135 |
|
|
|
1,082 |
|
|
|
Stock-based Compensation Expenses |
|
239 |
|
|
|
265 |
|
|
|
675 |
|
|
|
719 |
|
|
|
Restructuring Charge |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,186 |
|
|
|
Debt
Reserve Adjustment |
|
(16 |
) |
|
|
- |
|
|
|
55 |
|
|
|
- |
|
|
|
Total Adjusted EBITDA |
($717 |
) |
|
$234 |
|
|
($2,139 |
) |
|
$923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP to Non-GAAP
Results: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Profit |
($1,515 |
) |
|
($299 |
) |
|
($5,088 |
) |
|
($2,596 |
) |
|
|
Amortization |
|
348 |
|
|
|
359 |
|
|
|
1,135 |
|
|
|
1,082 |
|
|
|
Stock-based Compensation Expenses |
|
239 |
|
|
|
265 |
|
|
|
675 |
|
|
|
719 |
|
|
|
Debt
Reserve Adjustment |
|
(16 |
) |
|
|
- |
|
|
|
55 |
|
|
|
- |
|
|
|
Restructuring Charge |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Profit |
($945 |
) |
|
$325 |
|
|
($3,224 |
) |
|
$391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Net income used for basic earnings per share |
($945 |
) |
|
$325 |
|
|
($3,224 |
) |
|
$391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
Used in Basic Earnings per Share Calculation |
|
18,010 |
|
|
|
17,932 |
|
|
|
17,958 |
|
|
|
17,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Basic Earnings per Share |
($0.05 |
) |
|
$0.02 |
|
|
($0.18 |
) |
|
$0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Net Income Used for Diluted Earnings per Share |
($945 |
) |
|
$325 |
|
|
($3,224 |
) |
|
$391 |
|
|
|
Shares
Used in Diluted Earnings per Share Calculation |
|
18,010 |
|
|
|
17,955 |
|
|
|
17,958 |
|
|
|
17,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted Earnings per Share |
($0.05 |
) |
|
$0.02 |
|
|
($0.18 |
) |
|
$0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
Top Image Systems, Ltd. - Ordinary Shares (NASDAQ:TISA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Top Image Systems, Ltd. - Ordinary Shares (NASDAQ:TISA)
Historical Stock Chart
From Sep 2023 to Sep 2024