Top Image Systems Reports Second Quarter 2017 Results
GlobeNewswire•August 16, 2017
TEL AVIV, Israel, and PLANO, Texas, Aug. 16, 2017 (GLOBE NEWSWIRE) -- Top Image Systems, Ltd. (TISA), a global innovator of intelligent content processing solutions, today announced its financial results for the second quarter of 2017, ended on June 30, 2017.
Second Quarter Highlights:
Quarterly revenues were $7.4 million, compared to $7.3 million in the first quarter of 2017 and $8.5 million in the same period in 2016;
Quarterly operating net loss was ($1.3) million, compared to ($1.7) million in the first quarter of 2017 and ($0.1) million in the same period in 2016;
Adjusted EBITDA was a loss of ($0.50) million, compared to a loss of ($0.90) million in the first quarter of 2017 and positive EBITDA of $0.7 million during the same period in 2016;
Quarterly recurring revenues were $4.8 million, representing 64% of total revenues, compared to $4.5 million, representing 61% of total revenues, in the first quarter of 2017 and $4.9 million, representing 57% of total revenues, in the same quarter of 2016; and
Quarterly GAAP total expenses were $8.7 million, compared to $9.0 million in the first quarter of 2017 and $8.6 million in the same period last year.
Announced and implemented additional measures to achieve cost reductions through consolidation and restructuring of the Executive Management Team:
Appointed Patti Barton as Acting CFO. Patti previously served as VP of Finance in the Company’s U.S. headquarters.
Appointed John McCaffrey to Vice President and General Manager of TIS Americas. John was previously at Virtustream as a member of the management team that sold to EMC for $1.2 billion. He served on the leadership team of Clarus Systems (sold to OPNET, now Riverbed) and Adjoined Consulting (sold to Kanbay, now Capgemini).
Hiring of Arvind Sharma who has joined us as Senior Vice President of Engineering and will be responsible for our global engineering efforts. Additionally, Arvind will serve as our Chief Information Security Officer. He has extensive experience in both cloud and on-premise software development.
Closed a multi-year, seven figure deal with one of the leading business process outsource service providers in EMEA providing call center, financial process automation and digital mailroom solutions leveraging eFLOW®.
eFLOW 5.2. upgrade program is generating incremental revenue growth within our installed base of eFLOW customers globally.
Continued progress with implementation of large-scale census and forms processing projects in Asia-Pacific and in South America.
eFLOW® AP is gaining traction in the Accounts Payable automation market in 2017. Business closed in the first half of 2017 included an agreement with a retail chain in North America through a strategic partner, an expanded license with a leading data management company in India, and transactions with a consumer goods manufacturer, a medical device manufacturer, a leading utilities provider in Germany, and a business process outsourcing partner in the UK.
eFLOW® AP 5.2 solution has achieved certified integration with SAP S/4HANA, the next-generation business suite built for the SAP HANA® platform, with on-premise and cloud deployment options.
Selected as one of the Top Twenty Most Promising SAP Application Providers for 2017 by CIOReview.
Brendan Reidy, CEO of Top Image Systems, commented, “We continue to demonstrate progress against our three key priorities designed to position the company for profitable growth through continuous efficiency improvements from our operations, protecting our core receivables automation and forms processing business, and by accelerating investments in the higher velocity cloud-based process automation solutions market segment. In the quarter, we have instituted additional measures to improve our operational efficiency to further strengthen our operations in the US. The consolidation included the appointment of Patti Barton in the United States as our Acting CFO, and the hiring of John McCaffrey as Vice President and General Manager of TIS Americas. These changes strengthen and instill disciplined growth into our U.S. operations including sales, services and marketing.”
Mr. Reidy added, “We continue on our pathway to accelerate revenues from our on-premise accounts payable solution launched in 2016. We are encouraged by the positive feedback received from our customers who have deployed our eFLOW AP for SAP solution. We are also on track to launch the beta of the eFLOW AP cloud solution, a key building block for us to accelerate recurring cloud revenue streams.”
Second Quarter Financial Results
Quarterly revenues were $7.4 million, compared to $7.3 million in the first quarter of 2017 and $8.5 million in the same period in 2016;
Quarterly recurring revenues were $4.8 million, representing 64% of total revenue, compared to $4.5 million, representing 61% of total revenues, in the first quarter of 2017 and $4.9 million, representing 57% of total revenues, in the same quarter of 2016;
Gross profit for the second quarter of 2017 was $3.2 million, the same as the first quarter of 2017 and $4.3 million in the same period in 2016;
Gross margin for the second quarter of 2017 was 43%, compared to 44% in the first quarter of 2017 and 50% million in the same period in 2016;
Second quarter operating net loss was ($1.3) million, compared to ($1.7) million in the first quarter of 2017 and ($.1) million in the same period in 2016;
Second quarter 2017 GAAP loss per share was ($0.10), consistent with the first quarter of 2017;
For the six months ended June 30, 2017, GAAP loss per share was ($.20) compared to ($.13) in the same period last year;
Second quarter 2017 Non-GAAP* loss per share was ($0.06), compared to ($0.07) in the first quarter of 2017;
For the six months ended June 30, 2017, Non-GAAP loss per share was ($.13), compared to 0 in the same period last year;
Adjusted EBITDA was a loss of ($ 0.5) million, compared to a loss of ($0.9) million in the first quarter of 2017.
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
