Top Image Reports Second Quarter 2013 Financial Results

TEL AVIV, Israel, Aug. 1, 2013 (GLOBE NEWSWIRE) -- Top Image Systems, Ltd. (TIS) (Nasdaq:TISA), a leading ECM (Enterprise Content Management) intelligent content capture, workflow and delivery and mobile payments solutions provider, today announced its financial results for the second quarter ended June 30, 2013.

Dr. Ido Schechter, CEO of Top Image Systems, commented, "The launch of our state-of-the-art, web-enabled eFLOW®5 platform, coupled with our revamped sales structure, has enabled us to deploy a Software as a Service (SaaS)-based business model that is in line with evolving customer expectations and better matches the economic challenges in Europe. This model helps our customers reduce up-front capital expenditures and provides more predictable expenses throughout the life of the agreement, and as such, we believe this will help Top Image to more rapidly capture market share. While the revenue is recognized in smaller incremental amounts spread out over several quarters, the business model itself provides us with a steady and stable stream of predictable revenue, and it provides investors with an important metric - recurring revenue. We are confident that the wider deployment of this business model, coupled with the ongoing strength we see in the U.S. market, will greatly contribute towards a strong second half of 2013."

Second Quarter 2013 Highlights include:

• Revenue for the quarter was $6.4 million;
• Recurring revenue from maintenance was $2.0 million, compared to $1.8 million in the second quarter of 2012;
• Recognized SaaS Revenues of $171,000, representing contracts of 12 – 24 months in duration;
• Partnered with K2 and Amazon Web Services and with Feith to offer joint capture and workflow solutions to Oracle users in the U.S.;
• Officially launched eFLOW5, Top Image's next-generation web-enabled multichannel capture & workflow platform, including hosting first launch events in New York and London;
• Signed eFLOW INVOICE AP Automation and Digital Mailroom agreements with several well-known Swiss companies;
• Reached targeted Phase I sales headcount for U.S. and achieved stated U.S. strategic targets according to plan.

Dr. Schechter continued, "In the short term, current economic conditions outside the U.S. have had strong impact on the purchasing behavior of enterprises, including that of some of our target customers. The slowdown has caused delays in closing sales in Southern Europe and in the UK. However, our sales pipeline, particularly in the U.S., continues to expand and we expect to convert a high percentage of this potential business. We also expect that our investment in the U.S. will deliver meaningful revenue in 2013."