Top Image Systems, Ltd. announced its financial results for the second quarter, ended June 30, 2009. Results Highlights
– Positive net cash flow, coming in at over USD 750 thousand in the quarter – Non-GAAP operating income reached USD 396 thousand in the quarter – Six months revenues reached USD 11.8M and non-GAAP operating profit reached USD 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 USD 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 USD 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 USD 0.4 million compared with a non-GAAP operating income of USD 0.4 million for the second quarter of 2008 and a non-GAAP operating income of USD 0.4 million for the first quarter of 2009. Non-GAAP net income for the second quarter of 2009 totaled USD 0.3 million, compared to a non-GAAP net loss of USD 0.2 million in the second quarter of 2008 and to a non-GAAP net income of USD 0.2 million in the first quarter of 2009. Non-GAAP earnings per share in the second quarter of 2009 was USD 0.031, compared with non-GAAP loss per share of USD 0.025 in the second quarter of 2008 and a non-GAAP earnings per share of USD 0.024 in the prior quarter. Net loss, on a GAAP basis, for the second quarter of 2009 totaled USD 1.7 million, compared to a net loss of USD 1.2 million in the second quarter of 2008 and to a net loss of USD 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 USD 2.0 million, compared with financial expenses of USD 1.5 million in the second quarter of 2008 and financial expenses of USD 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 (FAS 159). Therefore, the Companys 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.
D.C.