Earnings Call Excerpt
Top Image Systems Ltd. (TISA)
Q2 2009 Earnings Call
August 11 2009, 9:00 am ET
Executives
Ehud Helft - GK Investor Relations
Dr. Ido Schechter – CEO
Gili Shalita - CFO
Presentation
Operator
Ladies and gentlemen, thank you for standing by. Welcome to the Top Image Systems’ second 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 second 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,and Gili Shalita, CFO. Ido, would you like to begin?
Ido Schechter
Thank you, Ehud. Good day everyone. Thank you for joining us today.
I’m very happy with the results of the second quarter. It was a quarter in which we generated a good operating profit, coming out to $310 thousand, with good operating margins of 5.5%, and we are pleased with these results. In fact, we are well on the way to crossing our $1 million target in operating profit in 2009.
We are also especially pleased with our very strong operating cash flow of over $750 thousand in the quarter. As we mentioned in the past few quarters, our focus was and is to increase the profitability of our overall business, partially by means of ceasing low-margin hardware sales. In 2008 as a whole, around 25% of our revenues came from hardware sales while this quarter, our revenues were solely software related sales.
The improvement in our operating margins were not only driven by the shift to software sales, but also the generally improved efficiencies and lower costs across the board. In line with this strategy, we merged the European teams in the first quarter and we are now benefiting from a strong, efficient organization that enjoys full utilization of resources at reduced costs.
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