Top Image Updates Financial Outlook for Full Year 2012

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TEL AVIV, Israel, Jan. 7, 2013 (GLOBE NEWSWIRE) -- Top Image Systems, Ltd. (Nasdaq:TISA), a leading Enterprise Content Management (ECM) intelligent content capture and delivery solutions provider, today announced updated expectations for the fiscal year ended December 31, 2012.

Management expects revenues of between $30.9 million and $31.5 million, representing year-over-year growth of 8%-10%, and non-GAAP operating profit of between $4.0 million and $4.2 million, representing year-over-year growth of 10%-15%. This 8% deviation in revenues from the low end of previously announced guidance reflects:

  • Delays in closing several major sales, previously expected to close in the fourth quarter, which are now expected to close during 2013;
  • A more than $1.0 million EURO-Dollar exchange rate impact, without which the deviation would have been only 5%.

In parallel, several orders that were to close in 2012 are expected to be finalized in 2013, and the pipeline of potential sales internationally and in the United States has increased. Therefore, management remains confident regarding its ability to deliver solid growth in 2013 and will announce formal guidance in conjunction with the release of full-year results.

"Traditionally in our market, numerous sales are closed during the last few weeks of the calendar year," commented Dr. Ido Schechter, CEO of Top Image Systems. "However, we are witnessing that current economic conditions are causing a slowdown in decision-making and an extension of enterprise sales cycles that has delayed expected TIS sales closures in these last weeks. Our product offering remains strong and competitive and we believe that the challenging economic conditions facing enterprises will in the long run prove an opportunity for growth. The growing list of opportunities we have in the United States in mobile and non-mobile, as well as in our core international business, reinforce our confidence that we will experience significant top and bottom-line growth in 2013. We believe it is premature to issue formal estimates, but given the pipeline and pending deals we plan to announce, we expect a strong year, and will add clarity to that when we issue formal guidance simultaneous with the release of our full-year results."

Concluded Dr. Schechter, "We believe that the cautious signs of economic recovery in the US, together with the intensified business activities we are executing with potential partners and a significantly increasing pipeline, all indicate that we will carry out our US expansion in 2013 as planned. Our ongoing dialogue with our customers ensures us that we continue to hold a strong position within our industry, and suggests optimism for our growth in 2013."

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 for more information.

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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 +972 3 767 9114 Investors: James Carbonara Regional Vice President, Hayden IR + 1 646 755 7412

Source:Top Image Systems Ltd.