Earnings Call Excerpt
Top Image Systems Ltd. (TISA)
Q1 2009 Earnings Call Transcript
May 13, 2009 10:00 am EST
Executives
Ido Schechter – CEO
Ehud Helft – GK Investor Relations
Presentation
Operator
Ladies and gentlemen, thank you for standing by. Welcome to the Top Image Systems’ first quarter 2009 results conference call.
All participants are at present in listen-only mode. Following management’s formal presentation instructions will be given for the question and answer session.
As a reminder this conference is being recorded.
By now you should have all received the company’s press release, if you have not received it please contact GK Investor Relations on 1 646 201 9246, or visit the company's website – www.topimagesystems.com
I would now hand over the call to Mr. Ehud Helft of GK Investor Relations
Mr. Helft, would you like to begin?
Ehud Helft
Thank you.
Good day to everyone. I would like to thank Top Image Systems’ management for hosting this conference call to discuss their first quarter 2009 results.
Before we start, I would like to remind everyone that the conference call may contain projections or other forward-looking statements and the safe harbor provision in the press release issued today also refers to the contents of this conference call.
With me today on the call is: Dr. Ido Schechter, CEO;
Ido, would you like to begin?
Ido Schechter
Thank you, Ehud.
Good day everyone. Thank you for joining us today.
We are pleased with the results of the first quarter, ending with a strong improvement in our operating income, due to our higher margin levels.
We’re also pleased with our revenue levels, which generally came in-line with our budget. Germany and the rest of Europe showed particularly strong performance, making up for weaker performance in Japan, the market we see hit particularly hard by the global recession.
I’d like to delve into the makeup of our revenue so you can better understand our results.
As we mentioned in the past two quarters, we have embarked on a strategy to cease low-margin hardware and third party sales. In 2008 as a whole, around a quarter of our revenues came from third party sales. In the fourth quarter of 2008, the transition began and this quarter almost all of our revenues were based on eFLOW solution sales.
So you can see, while we did have a sequential decline in overall revenues; our software sales actually grew. We are particularly pleased with this, given that our first quarter is seasonally the slowest for software sales, plus we have a global economic slowdown to contend with.
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