Tel Aviv-based Top Image Systems (Nasdaq: TISA) reported today that revenues in the second quarter of 2002 declined to $2.1 million, compared with $3.2 million in the second quarter of 2001.
Top Image Systems (TiS), which provides systems that validate information sent by individuals to a company, lost $741,000, or $0.121 in the second quarter, compared with a net loss of $139,481 in the second quarter of 2001.
Top Image CEO Ido Schechter said, "We are repositioning Top Image Systems from the niche imaging market into the broader, high-value enterprise market with our eFLOW platform solution. We are expanding into a new business and market structure for TiS' long-term future and these world-level partnerships will provide TiS with access to a new enterprise level customer base."
Schechter continued, “We have received a strong positive response to our eFLOW platform for solutions in new areas addressing the needs of data capture and validation from invoices, accounts payable and other financial applications. Our platform strategy enables us to expand our market from our traditional structured forms processing customers to new areas of business in the enterprise that will generate recurring revenue streams. While the sales cycle is longer, these enterprise sales are higher value and more profitable to TiS."
“Like many companies, we experienced the effects of the worldwide economic slowdown. We have found that the decision-making process has been prolonged and customers delayed or put on hold business opportunities that we expected to close in the quarter. The tight expense control program that we implemented at the beginning of the year resulted in an 11% reduction in expenses in the quarter and a 24% reduction in the first half of the year, compared with the results in the same periods of 2001," Schechter concluded.
Top Image Systems shares closed on Nasdaq on Wednesday at $2.
Published by Globes [online] - www.globes.co.il - on 8 August, 2002