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Top Image Systems Reports Fourth Quarter and Year Ended December 31, 2009 Financial Results
Tel Aviv, Israel – March 3, 2010 – Top Image Systems, Ltd. (TIS) (NASDAQ: TISA, TASE: TISA), the leading innovator of data capture solutions, today announced its financial results for the fourth quarter and year ended December 31, 2009.
Fourth Quarter Highlights
- Revenues of $5.9 million
- Non-GAAP operating income of $0.2 million
- Positive cash flow from operations of $0.4 million
- Strong performance in Europe and APAC
- Increased focus on selling solutions with a higher software component
- Continued strong and globally diversified sales pipeline
Fourth Quarter 2009 Results
Revenues for the fourth quarter of 2009 reached $5.9 million compared to $6.5 million in the fourth quarter of 2008. Revenues in the fourth quarter of 2008 included $1.1 million of hardware and third party sales, which were discontinued in 2009 in line with the Company’s strategy to increase profitability and margins. Excluding the hardware and third party sales, revenues in the fourth quarter of 2009 would have increased by $0.5 million compared to the fourth quarter of 2008.
Non-GAAP operating income for the fourth quarter of 2009 reached $0.2 million compared to a non-GAAP operating loss of $1.0 million for the fourth quarter of 2008.
Non-GAAP net loss for the fourth quarter of 2009 totaled $0.2 million or $(0.03) per diluted share, compared to a non-GAAP net loss of $0.6 million in the fourth quarter of 2008, or $(0.06) per diluted share.
Net loss on a GAAP basis for the fourth quarter of 2009 totaled $1.5 million, or $(0.16) per diluted share compared to net income of $1.6 million in the fourth quarter of 2008, or $0.13 per diluted share.
Year Ended December 31, 2009 Results
Revenues for 2009 reached $23.5 million compared to $32.2 million in 2008. Excluding hardware and third party sales which totaled $7.5 million in 2008, sales in 2009 would have decreased by $1.2 million.
Non-GAAP operating income for 2009 reached $1.4 million compared to non-GAAP operating income of $0.8 million for 2008.
Non-GAAP net income for 2009 totaled $0.9 million or $0.08 per diluted share, compared to non-GAAP net income of $0.1 million in 2008, or $0.01 per diluted share.
Net loss on a GAAP basis for 2009 totaled $4.8 million, or $(0.51) per diluted share compared to net income of $0.6 million in 2008, or $0.07 per diluted share.
Management’s comment
"This has been a turnaround year for TIS in terms of non-GAAP profitability and cash flow from operations. During the fourth quarter we maintained the non-GAAP operating profitability and cash flow from operations that we have demonstrated in the past year." commented Dr. Ido Schechter, CEO of TIS. "We have successfully navigated the current environment in order to maintain and build on our market leadership, utilizing our strategic accounts and growing pipeline. All this, while enhancing our long-term competitive positioning and priming our business for increased profitability in 2010,” concluded Dr. Schechter.
Non-GAAP financial measures
The release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, non-GAAP operating income, non-GAAP net income and non-GAAP earnings (loss) per share. These non-GAAP measures exclude the following items:
- Amortization of intangible assets;
- Equity-based compensation expense
- Non-cash income/(expenses) relating to change in fair value of
convertible debentures
- Write off of investment in affiliates
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 fourth quarter and full year ending December 31, 2009 which include a reconciliation of each non-GAAP financial measure to its most directly comparable GAAP financial measure, and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. TIS’ management believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain charges, gains that may not be indicative of TIS' core business operating results. TIS believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing TIS' performance. 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. Non-GAAP measures are reconciled to comparable GAAP measures in the table entitled "Reconciliation of GAAP to Non-GAAP results".
Financial Tables on the side
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