Top Image Systems Reports Fourth Quarter and Fiscal 2013 Results
Top Image Systems Ltd. today announced financial results for the fourth quarter ended December 31, 2013.
- Revenues increased to $8.0 million for fourth quarter 2013 compared to $7.3 million in fourth quarter 2012, an increase of 9%;
- First year of mobile revenues exceeded forecast by 100%, comprising more than 10% of total revenues;
- Quarterly SaaS (SAAX) revenues increased to $360,000 since second quarter SaaS business model launch; total recurring revenues for fourth quarter of $2.4 million, an increase of 29% year-over-year;
- Year-end cash balance returns to a healthy level of $3.2 million, compared to $2.2 million at the end of 2012; subsequent to year end, we closed public offering of ordinary shares, resulting in proceeds to the Company of $15.0 million, including exercise in full of overallotment option;
- Our growth solutions now represent 65% of our revenues compared to 47% in 2012, an increase of 39%;
- Expanding mobile portfolio includes: MobiCHECK, MobiPAY, MobiFLOW and now MobiCLAIM, MobiMETER, MobiCREDIT, MobiENROLL and more to come;
- Signed significant agreement to provide Fiserv, a leading global provider of financial services technology solutions, with TIS’s mobile and flagship eFLOW® platforms, which Fiserv currently uses to support its Snap-to-Pay” capability for select Fiserv mobile banking and payments solutions;
- US partnerships now provide TIS access to more than 50% of the banking market share;
- eFLOW CrowdBridge solution, using Amazon Mechanical Turk, is available to 500,000 registered workers from over 190 countries worldwide;
- Patent for GlassCapture”, a Google Glass capture application, filed in June 2013. Google Glass expected to reach 21 million units in annual sales by year-end 2018, according to BI Intelligence;
- eFLOW5, Top Image System’s next-generation web-enabled and SaaS-enabled multichannel capture and workflow platform, launched in New York and across Europe, with initial deployments to a number of customers;
- US headquarters expanded, hired targeted U.S. headcount of 14 and appointed a US-based Senior Director of Global Marketing; most recently TIS announced that Avi Mileguir has been named Executive Vice President and General Manager, Americas for the newly combined branches of TIS Latin America and TIS America, forming one strong TIS Americas;
- Focus on enhanced cloud capabilities, transition to SaaS and primary growth of our mobile portfolio drives our product, sales, market and executive recruitment strategies to ensure maximum revenue growth.
Michael Schrader, COO, Top Image Systems commented, “In 2013 we have reinforced our transition strategy, investing significantly in cloud and mobility and expanding our hybrid business model to gradually grow our SaaS subscription-based operations while maintaining our existing on-premise business. To this end, we have enhanced the cloud and mobile functionalities of our key enterprise growth solutions eFLOW Digital Mailroom and eFLOW INVOICE. Together with our new mobile portfolio, our growth solutions now represent 65% of our enterprise revenues in comparison to 47% in 2012, an increase of 39%. In 2013 we invested significant resources to promote our mobile imaging platform and applications; this growth engine performed beyond our expectations, also offering great potential upside from transaction based sales. The fact that mobile solution sales drive platform sales is a huge advantage that can generate substantial revenues going forward.”
Concluded Mr. Schrader, “This year our quarterly SaaS revenues increased to $360,000. Current investments in our cloud-based solutions will further promote SaaS sales. In 2013 we reinforced our mobile and cloud-directed product development strategy with powerful channel and technology partnerships, product launches, patent filings and key organizational changes to drive US market growth. We are confident that our business model transition and clear focus on our cloud, SaaS and mobile solution strategies in 2013 will drive us to maximum revenue growth.”
Fourth Quarter and Full Year 2013 Results
Revenues: Total revenues for the fourth quarter were $8.0 million, compared to $7.3 million for the fourth quarter of 2012. License revenues for the fourth quarter were $3.4 million, the same figure as for the fourth quarter last year. Professional Services revenues for the fourth quarter were $2.2 million, compared to $2.0 million for fourth quarter last year. Recurring revenues for the fourth quarter were $2.4 million, an increase of 29% on a year-over-year basis.
For the full year, total revenues were $29.1 million, compared to $31.3 million for 2012. The year-over-year decrease in total revenues is primarily attributable to the introduction of a new flexible SaaS business model. The introduction of this model is to meet market demand in legacy markets that are not a core to our rapid growth initiatives. License revenues were $11.8 million for the year compared to $15.3 million for 2012. Recurring revenues were $8.7 million, reflecting an increase of 14% year-over-year. Professional services revenues were $8.6 million, an increase of 3% on a year-over-year basis.
Gross Profit: Gross profit for the fourth quarter was $4.9 million, compared to $4.4 million for the fourth quarter of 2012. Gross margin for the fourth quarter was 61%, compared to 60% in the fourth quarter last year.
For the full year, gross profit was $17.2 million, compared to $19.3 million in 2012. Gross margin was 59%, compared to 62% for 2012.
Earnings: Non-GAAP operating income was $8,000, compared to $0.5 million for the fourth quarter of 2012. Non-GAAP net income was $0.2 million, compared to $0.3 million for the fourth quarter of 2012. Non-GAAP diluted earnings per share were $0.01 compared to $0.02 for the fourth quarter of 2012.
For the full year Non-GAAP operating income was $85,000, compared to $4.1 million in 2012. Non-GAAP net income was $169,000, compared to $3.8 million for the full year 2012. Non-GAAP diluted earnings per share were $0.01 compared to $0.31 for the full year 2012. The decrease in Non-GAAP earnings is primarily attributable to a one-time increase in R&D expenditures relating to our mobile products, development of cloud solutions and higher sales and marketing costs.
Cash: Total cash, cash equivalents increased to $3.2 million on December 31, 2013, from $2.2 million on December 31, 2012. In early 2014 we closed an underwritten public offering of our ordinary shares, generating proceeds to the Company of $15.0 million including exercise in full of an overallotment option.
Deferred Revenues: Deferred revenues increased to $2.3 million on December 31, 2013, compared to $1.5 million on December 31, 2012.