|
Top Image Systems Ltd.
By: /s/Don Dixon
Don Dixon
Executive Chairman
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· |
Revenues for the quarter were $7.9 million, compared to $7 million in the same period in 2016 and $7 million in the third quarter of 2017, representing 13% quarter over quarter growth in our top line revenue;
|
· |
Quarterly operating loss was ($1.2) million, compared to $(1.5) million in the third quarter of 2017 and $3.2 million in the same period in 2016;
|
· |
Adjusted EBITDA* was a loss of $(0.7) million, the same as in the third quarter of 2017 and $(1.1) million during the same period in 2016;
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· |
Quarterly recurring revenues were $4.6 million, representing 58% of total revenue, compared to $4.9 million, representing 70% of total revenues, in the third quarter of 2017 and $4.6 million, representing 65% of total revenues, in the same quarter of 2016;
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· |
Quarterly GAAP total expenses were $9.1 million, compared to $8.5 million in the third quarter of 2017.
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· |
Annual revenues were $29.7 million, compared to $31.6 million last year;
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· |
Net loss was $(6.6) million, the same as fiscal 2016;
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· |
Operating loss was $(5.8) million, the same as in 2016.
|
· |
Adjusted EBITDA* was a loss of $(2.8) million, compared to a loss of $(0.6) million for fiscal 2016;
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· |
Recurring revenues were $18.7 million, representing 63% of total revenues in fiscal 2017, compared to $19.4, representing 61% of total revenues, in 2016;
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· |
GAAP total expenses for fiscal 2017 were $35.4 million, compared to total expenses of $37.4 million for fiscal 2016.
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· |
Successfully extended multi-year subscription agreements with our top financial service providers, which will generate high-value private cloud recurring revenue streams;
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· |
Closed a multi-year, seven-figure agreement with a leading business process outsource service provider in EMEA, providing call center financial process automation and digital mailroom solutions;
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· |
Successfully upgraded one of our largest customers, Bosch, to the latest version of eFLOW AP, processing more than 450,000 invoices per month, which was featured by IDC in a published case study;
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· |
Closed a two-year, $3.3 million transaction with a leading multinational energy company to upgrade its existing accounts payable solution to eFLOW AP for SAP;
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· |
Selected by a Japanese personal care company with subsidiaries worldwide to implement an accounts payable solution that automates the capture and processing of over 180,000 supplier invoices annually; and
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· |
Closed two strategic deals for eFLOW AP for SAP in the US including a multi-year, six-figure transaction processing over 65,000 invoices annually in a hybrid cloud environment.
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· |
During fiscal 2017, TIS announced and implemented additional measures to achieve cost reductions through consolidation and restructuring:
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· |
Consolidation of sales and marketing functions for the Americas into our US headquarters in Plano, Texas, under the leadership of John McCaffrey, Vice President and General Manager of TIS Americas;
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· |
Integration of the global Engineering teams under Arvind Sharma, Senior Vice President of Engineering; and
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· |
Implementation of a Customer Success initiative designed to improve customer service levels and to maximize high-value recurring revenue from our installed base of customers.
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· |
These measures instituted in fiscal 2017 have resulted in a reduction of the Company’s operating expenses by $2 million.
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Top Image Systems Ltd.
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|||
Consolidated Balance Sheet as of
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December 31,
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December 31,
|
|||||||
2017
|
2016
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|||||||
In thousands
|
||||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash and Cash Equivalents
|
$
|
2,231
|
$
|
7,636
|
||||
Restricted Cash
|
220
|
119
|
||||||
Trade Receivables, net
|
5,226
|
6,717
|
||||||
Other Accounts Receivable and Prepaid Expenses
|
1,108
|
829
|
||||||
Total Current Assets
|
8,785
|
15,301
|
||||||
Long-Term Assets:
|
||||||||
Severance Pay Funds
|
638
|
1,029
|
||||||
Restricted Cash
|
163
|
145
|
||||||
Long-term Deposits and Long-term Assets
|
77
|
136
|
||||||
Property and Equipment, net
|
793
|
1,000
|
||||||
Intangible Assets, net
|
2,353
|
3,623
|
||||||
Goodwill
|
18,822
|
18,405
|
||||||
Total Long-term Assets
|
22,846
|
24,338
|
||||||
Total Assets
|
$
|
31,631
|
$
|
39,639
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Current Liabilities:
|
||||||||
Short-term Bank Loans
|
$
|
800
|
$
|
3,017
|
||||
Trade Payables
|
1,543
|
1,237
|
||||||
Deferred Revenues
|
3,033
|
3,594
|
||||||
Accrued Expenses and Other Accounts Payable
|
4,324
|
3,430
|
||||||
Total Current Liabilities
|
9,700
|
11,278
|
||||||
Long-Term Liabilities:
|
||||||||
Accrued Severance Pay
|
$
|
721
|
$
|
1,214
|
||||
Non-current Deferred Revenues
|
1,893
|
2,626
|
||||||
Other Long-term Liabilities
|
5,148
|
4,528
|
||||||
Total Long-term Liabilities
|
7,762
|
8,368
|
||||||
Total Liabilities
|
$
|
17,462
|
$
|
19,646
|
||||
Total Parent Shareholders' Equity
|
$
|
14,119
|
$
|
19,955
|
||||
Non-controlling Interest
|
50
|
38
|
||||||
Shareholders' Equity
|
14,169
|
19,993
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
31,631
|
$
|
39,639
|
Top Image Systems Ltd.
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|||||||
Statement of Operations for the
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|
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|
|
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Three months ended
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Three months ended
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Twelve months ended
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Twelve months ended
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|||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
In thousands, except per share data
|
||||||||||||||||
License Revenues
|
1,612
|
1,232
|
5,236
|
5,973
|
||||||||||||
Services Revenues
|
6,263
|
5,779
|
24,432
|
25,662
|
||||||||||||
Revenues
|
$
|
7,875
|
$
|
7,011
|
$
|
29,668
|
$
|
31,635
|
||||||||
Cost of License Revenues
|
143
|
(575
|
)
|
562
|
701
|
|||||||||||
Cost of Services Revenues
|
3,984
|
4,874
|
16,093
|
16,119
|
||||||||||||
Cost of Revenues
|
4,127
|
4,299
|
16,655
|
16,820
|
||||||||||||
Gross Profit
|
3,748
|
2,712
|
13,013
|
14,815
|
||||||||||||
Expenses
|
||||||||||||||||
Research & Development
|
1,260
|
1,025
|
4,997
|
4,581
|
||||||||||||
Sales & Marketing
|
1,927
|
1,702
|
6,586
|
7,448
|
||||||||||||
General & Administrative
|
1,657
|
3,104
|
6,593
|
6,910
|
||||||||||||
Amortization Costs
|
153
|
124
|
613
|
502
|
||||||||||||
Restructuring Charges
|
-
|
(44
|
)
|
-
|
1,142
|
|||||||||||
4,997
|
5,911
|
18,789
|
20,583
|
|||||||||||||
Operating (Loss) Profit
|
(1,249
|
)
|
(3,199
|
)
|
(5,776
|
)
|
(5,768
|
)
|
||||||||
Financing income (expenses), net
|
(288
|
)
|
(513
|
)
|
(603
|
)
|
(956
|
)
|
||||||||
Other Income (expenses), net
|
-
|
6
|
7
|
12
|
||||||||||||
(Loss) profit Before Taxes on Income
|
(1,537
|
)
|
(3,706
|
)
|
(6,372
|
)
|
(6,712
|
)
|
||||||||
Tax (expenses) Income
|
40
|
(306
|
)
|
(204
|
)
|
115
|
||||||||||
Net (Loss) Profit
|
(1,497
|
)
|
(4,012
|
)
|
(6,576
|
)
|
(6,597
|
)
|
||||||||
Net Income Attributable to Noncontrolling Interest
|
(3
|
)
|
(2
|
)
|
(12
|
)
|
(13
|
)
|
||||||||
Net (Loss) Profit
|
$
|
(1,500
|
)
|
$
|
(4,014
|
)
|
$
|
(6,588
|
)
|
$
|
(6,610
|
)
|
||||
Earnings per Share
|
||||||||||||||||
Basic (Loss) Earnings per Share
|
$
|
(0.08
|
)
|
$
|
(0.22
|
)
|
$
|
(0.37
|
)
|
$
|
(0.37
|
)
|
||||
Weighted Average Number of Shares Used in Computation of Basic Net (Loss) Income per Share
|
18,120
|
17,932
|
18,007
|
17,926
|
||||||||||||
Diluted (Loss) Earnings per Share
|
$
|
(0.08
|
)
|
$
|
(0.22
|
)
|
$
|
(0.37
|
)
|
$
|
(0.37
|
)
|
||||
Weighted Average Number of Shares Used in Calculation of Diluted Net (Loss) Earnings per Share
|
18,120
|
17,932
|
18,007
|
17,926
|
Three months ended
|
Three months ended
|
Twelve months ended
|
Twelve months ended
|
|||||||||||||
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|||||||||||||
2017
|
2016
|
2017
|
2016
|
|||||||||||||
In thousands, except per share data
|
||||||||||||||||
Adjusted EBITDA:
|
||||||||||||||||
Net (Loss) Profit
|
$
|
(1,500
|
)
|
$
|
(4,014
|
)
|
$
|
(6,588
|
)
|
$
|
(6,610
|
)
|
||||
Interest
|
171
|
69
|
691
|
143
|
||||||||||||
Other Financial Expenses
|
117
|
444
|
(88
|
)
|
813
|
|||||||||||
Taxes
|
(40
|
)
|
306
|
204
|
(115
|
)
|
||||||||||
Depreciation
|
178
|
158
|
704
|
668
|
||||||||||||
Amortization
|
159
|
359
|
1,294
|
1,441
|
||||||||||||
Stock-based Compensation Expenses
|
125
|
402
|
797
|
1,121
|
||||||||||||
Restructuring Charge
|
-
|
(44
|
)
|
-
|
1,142
|
|||||||||||
One time termination expenses
|
-
|
-
|
-
|
117
|
||||||||||||
Debt Reserve Adjustment
|
128
|
1,129
|
183
|
719
|
||||||||||||
Total Adjusted EBITDA
|
$
|
(663
|
)
|
$
|
(1,191
|
)
|
$
|
(2,804
|
)
|
$
|
(561
|
)
|
||||
Reconciliation of GAAP to Non-GAAP Results:
|
||||||||||||||||
Net (Loss) Profit
|
$
|
(1,500
|
)
|
$
|
(4,014
|
)
|
$
|
(6,588
|
)
|
$
|
(6,610
|
)
|
||||
Amortization
|
159
|
359
|
1,294
|
1,441
|
||||||||||||
Stock-based Compensation Expenses
|
125
|
402
|
797
|
1,121
|
||||||||||||
Debt Reserve Adjustment
|
128
|
1,129
|
183
|
719
|
||||||||||||
Restructuring Charge
|
-
|
(44
|
)
|
-
|
1,142
|
|||||||||||
Non-GAAP Net Profit
|
$
|
(1,089
|
)
|
$
|
(2,168
|
)
|
$
|
(4,315
|
)
|
$
|
(2,187
|
)
|
||||
Non-GAAP Net income used for basic earnings per share
|
$
|
(1,089
|
)
|
$
|
(2,168
|
)
|
$
|
(4,315
|
)
|
$
|
(2,187
|
)
|
||||
Shares Used in Basic Earnings per Share Calculation
|
18,120
|
17,932
|
18,007
|
17,926
|
||||||||||||
Non-GAAP Basic Earnings per Share
|
$
|
(0.06
|
)
|
$
|
(0.12
|
)
|
$
|
(0.24
|
)
|
$
|
(0.12
|
)
|
||||
Non-GAAP Net Income Used for Diluted Earnings per Share
|
$
|
(1,089
|
)
|
$
|
(2,168
|
)
|
$
|
(4,315
|
)
|
$
|
(2,187
|
)
|
||||
Shares Used in Diluted Earnings per Share Calculation
|
18,120
|
17,932
|
18,007
|
17,926
|
||||||||||||
Non-GAAP Diluted Earnings per Share
|
$
|
(0.06
|
)
|
$
|
(0.12
|
)
|
$
|
(0.24
|
)
|
$
|
(0.12
|
)
|