A great four year turn-around story of Top Image Systems has been disrupted by several headwinds this year. It's likely that these problems are temporary: the company is transitioning to a subscription model which may result in more revenue long-term. With no debt and minimal off-balance sheet obligations, TISA is a great acquisition target as its intellectual property, blue-chip customer base, and well-differentiated comprehensive product offering makes it a great acquisition target. Today, the company trades for less than its yearly revenue whereas its unprofitable competitors were acquired for multiples of that.
Chart 1: Top Image Systems price has been steadily declining for a year (TISA is blue, NASDAQ is green)
(click to enlarge)
What does Top Image Systems...
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