Top Image Systems Inc fka TISA

[midastouch017]

Top Image Systems Reports All-Time Record Quarterly Results

Thursday August 3, 6:00 am ET

Fifth Consecutive Quarter of Growing Profitability

TEL AVIV, ISRAEL--(MARKET WIRE)--Aug 3, 2006 -- Top Image Systems, Ltd. (NASDAQ:TISA - News), the leading innovator of data capture solutions, today announced its financial results for the second quarter of 2006.

Revenues for the second quarter of 2006 were $4.93 million, an increase of 22% from the $4.04 million revenues recorded for the second quarter of 2005, and a 9% increase from the $4.54 million revenues for the first quarter of 2006. 34% of second quarter revenues were generated from services and 66% from products.

Net income for the second quarter was $285 thousand, compared with a net income of $68 thousand in the second quarter of 2005, and net income of $181 thousand in the prior quarter. Net income per share in this quarter was $0.032 compared with net income per share of $0.007 in the second quarter of 2005, and net income per share of $0.021 in the first quarter of 2006.

Second quarter highlights:

-- Record quarterly revenues with 22% year over year growth.

-- Gross margin increased to 63% and net income margin reached 5.8%

-- 50% of the quarterly revenues generated from existing customers and
50% from new customers.

-- Success in APAC, Germany and the rest of Europe, which generated 16%,
19% and 24% of the company's quarterly revenues, respectively.

-- High levels of activity in France, the third-largest market in Europe.

-- Partnerships with major players including Xerox and IBM bore fruit and
generated 34% of the company's quarterly revenues.

-- Growing success for TIS's solution for automatic mail sorting and
routing, with four new projects in Europe.

-- 5 new customers implemented eFLOW Ability, TIS module for invoice
processing integrated with SAP, in Europe and Australia.
"We are delighted to announce record second-quarter 2006 results, which beat our expectations. Revenues, operating profits and net income are all up with strong organic year-over-year growth," commented Dr. Ido Schechter, Chief Executive Officer of Top Image Systems.

Dr. Schechter continued, "Over the past few months, we won several major tenders with Xerox, Atos Origin and IBM. These recent successes have validated our strategy to invest in strong partnerships with the major players in the Business Process Outsourcing market. We are seeing significant synergies from the combination of our partners' strong presence in the market and vast experience in providing a wide array of products and services, along with our advanced technological state-of-the-art input information solutions. Together we are able to provide end-users with the ultimate solution for complex and large data collection projects."

"Our overall performance over the first six months of 2006 makes us increasingly confident in our ability to maintain our growth and improve our profitability throughout the year," concluded Dr. Schechter.

Conference Call

TIS management will host a conference call today, August 3, 2006, at 08:30am EST (5:30am Pacific Time, 1:30pm UK Time, 3:30pm Israel Time) to review the second quarter of 2006 financial results and other corporate events. Dr. Ido Schechter, CEO, and Arie Rand, CFO, will be on-line to discuss these results and take part in a question and answer session.

The call can be accessed by dialing:

US Dial-in Number: 1 866 744 5399
UK Dial-in Number: 0 800 917 5108
ISRAEL Dial-in Number: 03 918 0600
INTERNATIONAL Dial-in Number: [phone]
Participants are asked to call the number approximately 10 minutes before the conference call begins.

For those unable to listen to the live call, a replay of the call will be available for three months from the day after the call in the investor relations section of Top Image Systems' website, at: www.topimagesystems.com

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