zk1211449.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

Form 6-K

 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of May, 2012

Commission File Number 001-14552
 
Top Image Systems Ltd.
(Translation of registrant’s name into English)
 
2 Ben Gurion Street, Ramat Gan, Israel 52573
(Address of principal executive office)
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
 
Form 20-F x Form 40-F o
 
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
 
Yes o No x
 
This Form 6-K including all attachments is being incorporated by reference into the Registration Statement on Form S-8 (file no. 333-125064) and the Registration Statements on Form F-3 (file no. 333-119885 and 333-175546).
 
 
 

 
 
CONTENTS

Attached hereto is a copy of the Registrant’s press release issued on May 9, 2012, reporting the results for the three months period ended March 31, 2012.
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
Top Image Systems Ltd.
 
Date: May 9, 2012
     
  By:
/s/ Ido Schechter
 
   
Ido Schechter
 
 
 
Chief Executive Officer
 
 
 

 
 
Top Image Reports Q1 2012 Financial Results
 
 Record First Quarter Revenue of $7.7 Million; Non-GAAP EPS of $0.09
 
Tel Aviv, Israel – May 9, 2012 - Top Image Systems, Ltd. (TIS) (Nasdaq: TISA), a leading ECM (Enterprise Content Management) intelligent content capture and delivery solutions provider, today announced its financial results for the first quarter ended March 31, 2012.
 
First Quarter Year-over-Year Highlights include:

·  
Revenue increased 7.3% to a record $7.7 million in comparison to $7.2 million in the first quarter of 2011, and increased 5% sequentially in comparison to $7.3 million in Q4 2011; this growth rate is in alignment with our guidance and is expected to  increase in each successive quarter as added sales reps, who were hired in late 2011, move deals into mature sales cycle stages and increase their contribution to the pipeline;
·  
TISA reiterates that it expects annual Non-GAAP operating income in the range of $4.2 to $4.5 million;
·  
GAAP net income increased 31% to $1.0 million compared to $0.7 million for first quarter of 2011;
·  
GAAP diluted EPS increased  to $0.08 per diluted share, compared to $0.07 per diluted share in first quarter of 2011;
·  
13th consecutive quarter of positive Non-GAAP operating income, $1.0 million, the same amount as the $1.0 million in Non-GAAP operating income recorded for the first quarter of 2011;
·  
Non-GAAP diluted EPS reached $0.09;
·  
Top Image ended the quarter with $4.2 million in cash and no debt compared to $2.6 million as of December 31, 2011;
·  
Patent filed and series of new products announced in the area of Mobile Applications, extending knowledge from core eFLOW technology to mobile devices.  Analysts indicate that this area represents  a minimum $1 billion market opportunity.
 
Commenting on the first quarter results, Dr. Ido Schechter, CEO of Top Image Systems (TISA), summarized, “The first quarter represents a solid start to the year for Top Image Systems, in which we delivered record revenues.  We expect revenues in each successive quarter to grow, in part, following the several new sales force hires we made in late 2011. We are investing in marketing to support the added sales reps, and opening an office in the United States in the first half of this year to begin to realize the billion dollar US mobile market opportunity; at the same time we continue to grow profitably, increasing the proportion of revenue growth coming from high-margin organic sales of eFLOW software licenses.”
 
 
 

 
 
Dr. Schechter continued, “We remain on track with our US strategy and we feel that a reasonable sales cycle for the new US mobile business will be 6-9 months.  Our current guidance calculation is based only on our existing eFLOW business.  We will continue to execute our long-term growth strategy by focusing on our Digital Mailroom, Banking Platform solutions and strong global partnerships, adding now mobile banking apps. For 2012, TISA reiterates that it expects annual growth of between 17% and 23%, revenues of between $33.5 million and $35.3 million, and Non-GAAP operating income in the range of $4.2 million to $4.5 million.”

First Quarter 2012 Results
 
Revenues for the first quarter of 2012 were $7.7 million, compared to $7.2 million for the first quarter of 2011; an increase of 7.3%. Net income on a GAAP basis was $1.0 million for the first quarter of 2012, compared to $0.7 million for the first quarter of 2011.  Diluted EPS on a GAAP basis was $0.08 per diluted share for the first quarter of 2012 compared to $0.07 per diluted share for the first quarter of 2011. Non-GAAP operating income was $1.0 million for the first quarter of 2012, compared to $1.0 million for the first quarter of 2011. Non-GAAP diluted EPS was $0.09 compared to $0.10 in the first quarter of 2011.

Conference Call

The Company will be holding a conference call today, Wednesday, May 9th at 10:00 am ET (7:00 am Pacific Time, 5:00 pm Israel Time) to review the first quarter 2012 results.

Mr. Izhak Nakar, Active Chairman of TISA, and Ms. Gili Shalita, CFO will be on-line to discuss these results and to take part in a Question and Answer session.

US Dial-in Number: +1-866-744-5399

ISRAEL Dial-in Number: 03-9180685

INTERNATIONAL Dial-in Number: +972-3-9180685

The conference call is scheduled to begin at:

10:00 am Eastern Time
  7:00 am Pacific Time
  5:00 pm Israel Time

For those unable to attend the live call, from the following day a recording of the call will be made available for download from the Investors section of the Top Image Systems' website www.topimagesystems.com.
 
About Top Image Systems

Top Image Systems (TIS) is a leading innovator of enterprise solutions for managing and validating content entering 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's eFLOW™ Platform is a common platform for the company's solutions. TIS markets its platform in more than 40 countries through a multi-tier network of distributors, system integrators, value-added resellers as well as strategic partners. Visit the company's website http://www.TopImageSystems.com for more information.
 
 
 

 
 
Caution Concerning Forward-Looking Statements

Certain matters discussed in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results expressed or implied in those forward looking statements. Words such as "will," "expects," "anticipates," "estimates," and words and terms of similar substance in connection with any discussion of future operating or financial performance identify forward-looking statements. These statements are based on management's current expectations or beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, risks in product development, approval and introduction plans and schedules, rapid technological change, customer acceptance of new products, the impact of competitive products and pricing, the lengthy sales cycle, proprietary rights of TIS and its competitors, risk of operations in Europe and Israel, government regulation, litigation, general economic conditions and other risk factors detailed in the Company's most recent annual report on Form 20-F and other subsequent filings with the United States Securities and Exchange Commission. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Shelli Zargary
Director of Corporate Marketing
shelli.zargary@topimagesystems.com
+972-3-767-9114
 
Investors:
James Carbonara
Regional Vice President, Hayden IR
james@haydenir.com
+ 1-646-755-7412

 
 

 
 
Top Image Systems Ltd.
Consolidated Balance Sheet as of

 
   
March 31,
   
December 31,
 
   
2012
   
2011
 
   
In thousands
 
   
Unaudited
   
Audited
 
             
Assets
           
             
Current assets:
           
Cash and cash equivalents
  $ 3,610     $ 2,090  
Restricted cash
    165       20  
Trade receivables, net
    5,919       4,631  
Other account receivable and prepaid expenses
    951       637  
                 
Total current assets
    10,645       7,378  
                 
Long term assets:
               
Severance pay funds
    1,379       1,299  
Restricted cash
    376       499  
Long-term deposits and long-term assets
    80       84  
Property and equipment, net
    476       485  
Intangible assets, net
    9       11  
Goodwill
    6,033       5,842  
                 
Total long-term assets
    8,353       8,220  
                 
Total assets
  $ 18,998     $ 15,598  
                 
Liabilities and Shareholders' Equity
               
                 
Current liabilities:
               
                 
Trade payables
  $ 783     $ 351  
Deferred revenues
    2,926       2,084  
Accrued expenses and other accounts payable
    2,762       2,480  
                 
Total current liabilities
    6,471       4,915  
                 
Long-term liabilities:
               
Accrued severance pay
    1,658       1,543  
                 
Total long-term liabilities
    1,658       1,543  
                 
Total liabilities
    8,129       6,458  
                 
Shareholders' equity
    10,869       9,140  
                 
Total liabilities and shareholders' equity
  $ 18,998     $ 15,598  
 
 
 

 
 
Top Image Systems Ltd.
Statements of Operations for the

 
   
Three months ended
   
Three months ended
 
   
March 31,
   
March 31,
 
   
2012
   
2011
 
   
In thousands, except per share data
 
   
Unaudited
             
Revenues
  $ 7,684     $ 7,158  
                 
Cost of revenues
    2,852       2,702  
                 
Gross profit
    4,832       4,456  
                 
Expenses
               
                 
Research and development costs
    688       491  
Selling and marketing
    2,077       1,729  
General and administrative
    1,148       1,222  
                 
      3,913       3,442  
                 
Operating income
    919       1,014  
                 
Financing income (expenses), net
    80       (276 )
                 
Income before taxes on income
    999       738  
                 
Taxes on Income
    (37 )     (1 )
                 
Net income for the period
  $ 962     $ 737  
                 
Earnings per Share
               
                 
Basic earning per share
  $ 0.09     $ 0.08  
                 
Weighted average number of shares used in computation of basic net income per share
    10,991       9,401  
                 
Diluted earning per share
  $ 0.08     $ 0.07  
                 
Weighted average number of shares used in computation of diluted net earnings per share
    11,830       10,493  
 
 
 

 
 
Reconciliation of GAAP to Non-GAAP results:
           
             
   
Three months ended
   
Three months ended
 
   
March 31,
   
March 31,
 
   
2012
   
2011
 
   
In thousands, except per share data
 
             
GAAP operating income
  $ 919     $ 1,014  
Stock-based compensation expenses
    84       -  
Amortization of intangible assets related to acquisition
    11       11  
Non- GAAP operating income
  $ 1,014     $ 1,025  
                 
Net income for the period
  $ 962     $ 737  
Stock-based compensation expenses
    84       -  
Amortization of intangible assets related to acquisition
    11       11  
Change In Fair Value of Convertible Debentures
    -       346  
Non-GAAP Net income
  $ 1,057     $ 1,094  
                 
Non-GAAP Net income used for basic earnings per share
    1,057       1,094  
Interest expenses on convertible debentures used as diluted adjustment
    -       5  
Non-GAAP Net income used for diluted earnings per share
  $ 1,057     $ 1,099  
                 
Shares used in diluted earnings per share calculation
    11,830       10,493  
                 
Non-GAAP diluted earnings per share
  $ 0.09     $ 0.10