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FOR IMMEDIATE RELEASE EARNINGS RELEASE
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TOP IMAGE SYSTEMS REPORTS SECOND CONSECUTIVE PROFITABLE
QUARTER AND AN INCREASE OF 24% IN REVENUE AS COMPARED TO
CORRESPONDING QUARTER OF 2003
Tel Aviv, Israel -- May 20, 2004 -- Top Image Systems, Ltd. (NASDAQ: TISA), a
leading innovator of intelligent document recognition, announced today a 24%
increase in revenue in the first quarter of 2004, which ended on March 31, 2004,
as compared to the first quarter of 2003.
Top Image Systems (TiS) provides automated data capture solutions that improve
enterprise business processes by integrating data from multiple sources and of
different types, such as invoices, freight and shipping bills, purchase orders
and others, and by seamlessly delivering the extracted data to enterprise
applications such as document and content management, ERP, or CRM.
Revenue in the first quarter of 2004 was $2.36 million or 24% more than the
$1.90 million of revenue in the first quarter of 2003. TiS had net income of $15
thousand compared with a net loss of $288 thousand in the first quarter of 2003.
Income per share in this quarter was $0.002 compared with a loss per share of
$0.047 in the first quarter of 2003.
"Traditionally, the first quarter is the weakest quarter across our industry,
however this year, we are very pleased with our first quarter performance." Dr.
Ido Schechter, Chief Executive Officer of Top Image Systems stated. "Once again,
we continued a five-quarter trend of improvement and increased our quarterly
revenues. During the later part of the first quarter, we commenced
implementation of an extensive strategic plan to expand the Company's business.
Aiming to broaden our offering, and to expand it from product to a full
solution, we are expanding our manpower and investing in new technologies,
further developing eFLOW's capabilities as well as partnering with complementary
new technologies. During the quarter, we signed several major new contracts and
furthered the development of existing projects, such as the projects for the
Australian Department of Defence; Guardian Life Insurance Company of America,
the fourth-largest mutual life insurance company in the United States; and
Recall, one of the world's largest archive bureaus for physical documents. We
are also deepening our working relationship with partners across Europe and with
are extending our reach into government projects in the UK." Mr. Schechter
added.
ABOUT TOP IMAGE SYSTEMS
Top Image Systems is a leading innovator of enterprise solutions for managing
and validating content, which enters organizations from various sources. Whether
originating from mobile, electronic, paper or other sources, TiS solutions
deliver the content to applications that drive the organization. TiS' eFLOW
Unified Content Platform is a common platform for the company's solutions. TiS
markets its platform in more than 30 countries through a multi-tier network of
distributors, system integrators and value added resellers, as well as strategic
partners. For more information on TiS, visit the company's web site at:
http://www.topimagesystems.com/.
"Safe harbor" statement under the Private Securities Litigation Reform Act of
1995:
Certain matters discussed in this news release are forward-looking statements
that involve a number of risks and uncertainties including, but not limited to,
risks in product development plans and schedules, rapid technological change,
changes and delays in product approval and introduction, customer acceptance of
new products, the impact of competitive products and pricing, market acceptance,
the lengthy sales cycle, proprietary rights of the Company and its competitors,
risk of operations in Israel, government regulation, dependence on third parties
to manufacture products, general economic conditions and other risk factors
detailed in the Company's United States Securities and Exchange Commission
filings.
CONTACTS:
Adi Granot
Investor and Public Relations Manager
Top Image Systems Ltd.
+972 3 7679114
adi@TopImageSystems.com
FINANCIAL TABLES FOLLOW
Top Image Systems Ltd.
CONSOLIDATED BALANCE SHEET
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MARCH 31, MARCH 31, DECEMBER 31,
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2004 2003 2003
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$ $ $
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UNAUDITED UNAUDITED AUDITED
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents 5,238,386 6,891,930 5,854,436
Marketable securities 277,844 528,157 276,515
Trade receivables, net 5,009,815 3,266,246 4,606,254
Other current assets 478,701 373,221 413,716
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Total current assets 11,004,746 11,059,554 11,150,921
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LONG TERM DEPOSITS 80,287 75,715 85,995
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PROPERTY AND EQUIPMENT
Cost 1,758,312 1,709,468 1,778,512
Less accumulated depreciation (1,336,416) (1,235,599) (1,386,998)
------------ ----------- ------------
Net property and equipment 421,896 473,869 391,514
------------ ----------- ------------
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TOTAL ASSETS 11,506,929 11,609,138 11,628,430
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank loans 1,650,004 962,724 1,592,020
Trade payables 266,276 154,207 305,953
Other payables and accruals 1,649,354 2,399,352 1,899,835
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Total current liabilities 3,565,634 3,516,283 3,797,808
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LONG-TERM LIABILITIES:
Accrued severance pay, net 184,633 178,370 190,916
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SHAREHOLDERS' EQUITY
Share capital - Ordinary share of NIS 0.04 par value 73,627 73,079 73,274
Additional paid-in capital 22,481,859 22,339,501 22,380,262
Accumulated deficit (14,798,824) (14,498,095) (14,813,830)
------------ ----------- ------------
Total shareholders' equity 7,756,662 7,914,485 7,639,706
------------ ----------- ------------
------------ ----------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 11,506,929 11,609,138 11,628,430
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Top Image Systems Ltd.
CONSOLIDATED STATEMENTS OF OPERATIONS
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THREE MONTHS ENDED YEAR ENDED
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MARCH 31, MARCH 31, DECEMBER 31,
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2004 2003 2003
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$ $ $
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UNAUDITED UNAUDITED AUDITED
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REVENUES
Product revenues 1,809,373 1,409,778 6,210,526
Service revenues 555,113 492,538 2,108,476
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Total revenues 2,364,486 1,902,316 8,319,002
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COST OF REVENUES
Product costs 447,796 506,405 1,794,880
Service costs 172,995 132,732 544,910
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Total cost of revenues 620,791 639,137 2,339,790
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Gross profit 1,743,695 1,263,179 5,979,212
Research and development 196,822 215,131 863,209
Selling and marketing 1,063,504 945,114 3,768,901
General and administrative 476,670 398,691 2,049,525
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1,736,996 1,558,936 6,681,635
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Operating profit (loss) 6,699 (295,757) (702,423)
Financing income, net 8,307 7,445 98,376
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Profit (loss) before taxes on income 15,006 (288,312) (604,047)
Taxes on income -- -- --
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Net profit (loss) for the period 15,006 (288,312) (604,047)
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Net earning (loss) per share 0.002 (0.047) (0.096)
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Weighted average number of
shares used to compute net
earning (loss) per share 6,320,813 6,098,890 6,252,996
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