Top Image Systems Inc fka TISA

[midastouch017]

I like to see it full spread,

Top Image Systems Revenues Up by 50% in Year 2005

Thursday February 23, 7:05 am ET

Sequential Quarterly Growth of 15% in Revenues and 50% in Net Profit

TEL AVIV, ISRAEL--(MARKET WIRE)--Feb 23, 2006 -- Top Image Systems, Ltd. (NasdaqSC:TISA - News), the leading innovator of data capture solutions, announced today the financial results for its fourth quarter and full year 2005.

Revenues for the fourth quarter of 2005 were a record $4.71 million, an increase of 25% from the $3.76 million revenues for the fourth quarter of 2004, and a 15% increase from the $4.11 million revenues for the third quarter of 2005. TIS' operating profit in the fourth quarter was $202 thousand, compared with an operating loss of $426 thousand in the fourth quarter of 2004, and operating profit of $87 thousand in the third quarter of 2005.

Net income for the fourth quarter was $152 thousand, compared with a net loss of $250 thousand in the fourth quarter of 2004, and net income of $101 thousand in the third quarter of 2005. Net income per share in this quarter was $0.017 compared with net loss per share of $0.030 in the fourth quarter of 2004, and net income per share of $0.012 in the third quarter of 2005.

Revenues for the year ended December 31, 2005 were $16.82 million, a 50% increase from the $11.18 million revenues for year 2004. TIS' operating loss for the year was $285 thousand compared with an operating loss of $346 thousand in 2004. The net loss for the year was $461 thousand, compared with a net loss of $168 thousand for year 2004. Loss per share in 2005 was $0.052 compared with a loss per share of $0.020 in 2004.

Fourth quarter and year highlights:

-- Increased operating profit quarter-over-quarter by 132%.

-- Total quarterly revenues in the fourth quarter increased to $4.71
million, up 25% from $3.76 million in the fourth quarter of 2004.

-- Total annual revenues in 2005 increased to a record of $16.82 million,
up 50% from $11.18 million in year 2004.

-- In the fourth quarter, the company generated positive operational cash
flow.

-- 41% of yearly revenues were generated from services.

-- Success in the Pacific Rim, generating 14% of company's yearly
revenues.

-- Growing success for Smart, TIS' solution for mail classification.
Offering state-of-the-art, algorithm based solution for classifying,
routing and indexing of any incoming information, Smart is already
installed in over half a dozen projects.

-- eFLOW Ability, the new integrated connector into SAP systems, gained
ground and is already implemented in seven projects for manufacturing and
logistics companies in Europe and the USA.

-- Company signed a five-year site license deal with the Australian
Ministry of Defense, extending the use of eFLOW system to human resources,
personal files, and medical record applications as well as additional
accounts payable functions. In addition to its obvious value for TIS'
revenues, this deal is strategically important for the company as it
provides a strong client reference in the Pacific Rim and further
strengthens partnership with CSC.

-- The company deepened relationships with CACI and jointly won and is
implementing the 2006 Irish census and additional projects for local UK
governments.

-- With the selection of eFLOW by Prodata, company provides technological
solutions for the four largest service bureaus in Germany.

-- In 2005, the company reinforced it relationship with strong partners
and distributors including Accenture, Xerox, CSC, CACI, Atos and Recall.
"We are delighted to announce our record fourth-quarter and year 2005 results. Revenues, operating profits, profit before tax and EPS are all up with strong organic year-over-year growth," commented Dr. Ido Schechter, Chief Executive Officer of Top Image Systems.

"Through 2005, we worked according to our three-year strategic plan and implemented it step by step. Most of our objectives were fully met. Our customers have welcomed the benefits that our widening solution has brought and we are enjoying a growing level of sales activity," added Dr. Schechter.

"In 2006 we intend to further strengthen our relationships with strong partners and distributors, while expanding our partners list to include additional partners, in order to ensure a steady revenue flow. Our market's growth rate is estimated at 14%, and we expect TIS' growth in 2006 to exceed this level. We aim to maintain the growth in revenues and profit by continuing our focus on those territories where we have a strong presence. Given our achievements in the 2005, we are confident in our prospects for year 2006," concluded Dr. Schechter.

Conference Call

TIS management will host a conference call today, February 23, 2006, at 10:00am EST (7:00 am. PST, 3:00pm UK Time, 5:00pm Israel Time) to review the fourth quarter and full year 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: 1 866 229 7198
UK Dial-in Number: 0 800 917 9141
ISRAEL Dial-in Number: 03 918 0610
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

http://biz.yahoo.com/iw/060223/0110862.html

Dubi