- Positive net cash flow, coming in at over $750 thousand in the quarter - Non-GAAP operating income reached $396 thousand in the quarter - Six months revenues reached $11.8M and non-GAAP operating profit reached $799 thousand
- Strong focus on eFLOW based software sales and tight control over expenses lead to non-GAAP operating margin of 7% and gross margin of 58% - Non-GAAP earnings per share of $0.031
- Strong performance in Continental Europe
- Sales pipeline is diversified with increased portion of larger deal including governmental business
Second Quarter 2009 Results
Revenues for the second quarter of 2009 reached $5.6 million. This represents a decrease
of 9% compared with the first quarter of 2009.
Non-GAAP operating income for the second quarter of 2009 reached $0.4 million compared with a non-GAAP operating income of $0.4 million for the second quarter of 2008 and a non-GAAP operating income of $0.4 million for the first quarter of 2009. Non-GAAP net income for the second quarter of 2009 totaled $0.3 million, compared to a non-GAAP net loss of $0.2 million in the second quarter of 2008 and to a non-GAAP net income of $0.2 million in the first quarter of 2009. Non-GAAP earnings per share in the second quarter of 2009 was $0.031, compared with non-GAAP loss per share of $0.025 in the second quarter of 2008 and a non-GAAP earnings per share of $0.024 in the prior quarter. Net loss, on a GAAP basis, for the second quarter of 2009 totaled $1.7 million, compared
to a net loss of $1.2 million in the second quarter of 2008 and to a net loss of $1.4 million
in the first quarter of 2009.
Net income, on a GAAP basis, in the quarter was negatively impacted by the financial expenses in the quarter, which amounted to $2.0 million, compared with financial expenses of $1.5 million in the second quarter of 2008 and financial expenses of $1.7 million in the prior quarter.
It is important to note that since the beginning of 2008, the Company adopted Financial Accounting Standard Board Statement no. 159, The Fair Value Option for Financial Assets and Financial Liabilities (âFAS 159â). Therefore, the Companyâs debenture is currently accounted for its fair value. This fair value is based on a base debenture market
price and also depends on the exchange rate between the Israeli Shekel and US Dollar. These values change on a daily basis, are not under the control of the Company and are unrelated to the operating performance of the Company. The Company experienced a high level of financing expenses in the quarter due to the increase in the fair value of the debentures. This was due to the substantial increase in the
traded market value of the debentures.
This financial charge is a non-cash expense in nature and has no effect on operating income.
âWe are pleased to announce another strong set of quarterly results with strong cash collection, high margins and operating profit,â commented Dr. Ido Schechter, CEO of Top Image Systems. âWe are also pleased with our overall revenue levels that were particularly driven by strong performance in Europe.â Dr. Schechter concluded, âDespite the continued uncertainty in the global markets, we remain cautiously optimistic. Our pipeline remains stable and strong, and we are targeting
bigger scale and more secure deals including large Governmental and population census projects as well as projects for banks and financial organizations that are looking to cut
costs and expand service offering. I believe that we have successfully navigated the current environment in order to maintain and build on our market leadership, utilizing on
our strategic accounts and growing pipeline. I believe 2009 will be an excellent year for
TIS, and we are looking forward for long-term profitable growth beyond that.â Conference