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Top Image Systems Ltd. (NASDAQ:TISA)

Q3 2013 Earnings Call

October 30, 2013 10:00 AM ET

Executives

Shelli Zargary – Director, Corporate Marketing and IR

Izhak Nakar – Founder and Active Executive Chairman

Gili Shalita – CFO

Analysts

Igor Novgorodtsev – Lares Capital

Mark Schappel – Benchmark Capital

Chuck Lipson – CSL

Operator

Greetings and welcome to the Top Image Systems’ Third Quarter 2013 Earnings Release teleconference. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Shelli Zargary, Director of Corporate Marketing and Investor Relations for Top Image Systems. Thank you Ms. Zargary, you may now begin.

Shelli Zargary

Thank you and good day everyone. Again, my name is Shelli Zargary, Director of Corporate Marketing for Top Image Systems. Our earnings release was issued before the market opened this morning and it’s been posted on our company website at www.topimagesystems.com.

Representing the company here on the call today are Mr. Izhak Nakar, our Active Chairman of the Board and Ms. Gili Shalita, our CFO. Before we begin, I would like to remind everyone that this conference call may contain projections or other forward-looking statements and the Safe Harbor provision in the press release issued today also applies to the contents of the call. Top Image Systems expressly disclaims any obligation to update or revise any of the forward-looking statements whether because of future events, new information, change in views or expectations or otherwise.

The call is the property of Top Image Systems Limited. And any distribution, transmission, broadcast or rebroadcast of this call in any form without the expressed written consent of the company is prohibited. A replay of the call will be available from the day after the call on our Investor Relations section of our website at www.topimagesystems.com or via the webcast link, which appeared in the earnings release that we published today.

With that out of the way, I’ll turn the call over to Mr. Izhak Nakar, our Founder and Executive Chairman of Top Image Systems.

Izhak Nakar

Thank you Shelli and hello everyone. On the call today, we will start with overview of our third quarter following by strategic objects, a more detailed overview of our Q3 financial results. And then we will follow up with an update of our business outlook. The last several quarter has been marked by strategic initiation. Key to our long-term growth and profitability and especially by activity we have undertaken to launch our entry into the U.S. market which has been one of our most central strategic initiation.

In Q3, we sign a major contract to supply TIS mobile platform and flagship eFLOW platform to Fiserv. There are three key aspects that are very important to understand about this transaction. The first aspect, this is not simply partnership providing cost inflation with the hope that it might yield revenue. TIL receive up from slight to its peak of several million dollar to enable the Fiserv solution snap and pay that leverage TIS imaging technology for mobile bill pay and it’s already rolling out from Fiserv banking customer.

The second aspect is our mobile platform is to create additional opportunity to sell our flagship eFLOW platform. And thus make the double figure for the overall install. As a part of initiate all of with Fiserv banking customer we sold license for our mobile platform as a phone to end for our multi-channel eFLOW suite to do their banking processing with the integration of those solution. This combine has been the common trend for our mobile platform sell, further more in short period it’s not their only a mobile apps widow but as a multi-channel window with broad portfolio of other product to sell.

Fiserv may use the image mobile capture technology they have license from TIS for rent of additional product beyond the initial deployment. And with third aspect will be the per transaction fee, will become a game changer for TIS in this case. This is our primary value proposition. We want to grow with our base business and the position again when their first mobile market potential start to be realize and rapidly increasing user adaptation with drive to increase the TIS on the per transaction base.

The significant of the revenue opportunity from per transaction fee is especially evident when we note the fact that the basic Fiserv already support the large electronic bill payment within U.S. facilitate bill payments through a thousand of dealers and financial institutional for millions of end customers. As you aware this is only our first year in U.S. and we are already signed a contract partnership and launch a product with Amazon, Google, K2, TransCentra, Datamark Jack Henry and recently with Fiserv. All of which we have chosen that top leverage for its innovation and robust solution.

U.S. revenue will account for loss of 10% of our revenue this year. And that’s before factoring in the large potential of transaction based revenue. We now have 12 employees in U.S. and have just hired an ex-Chief Executive to be our Senior of Marketing based in U.S. And this trend will continue to move and to small resources in U.S. especially on the management team in TIS. In Southern Europe, it’s still not back to our formality level but it’s been improving. In other hand, on the North Europe we continue to be a solid source of growth.

In a news analysis about TIS Fiserv partnership released by Senior Gartner Research Analyst Stessa Cohen, she commented and I quote here. A deal between Fiserv and Top Image system will deliver a mobile banking up like bill payment within a mobile imaging service. Mobile imaging will boost operational efficiency and bring new service to consumer and the business. And I’m happy to say that we now well positioned by being at the right time with the right technology with the right partner, contract and product launch.

At this point, I would like to turn the call over to Gili Shalita, our CFO.

Gili Shalita

Thank you, Izhak. In Q3, our revenue grew 24% sequentially to $7.9 million and profits grew by $1.4 million compared to last quarter. Revenues for the third quarter of this year were $7.9 million, compared to $8.3 million for the third quarter last year. Non-GAAP operating income of $0.8 million compared to non-GAAP operating income to $1.4 million for the third quarter last year. Non-GAAP net income was $1 million compared to a non-GAAP net income of $1.3 million for the third quarter last year. Non-GAAP diluted EPS was $0.08 compared to non-GAAP diluted EPS of $0.10 for the third quarter last year. This quarter we had SaaS license revenues in the amount of 294,000.

From a balance sheet standpoint, our cash position was $1.2 million for the period ended September compared to $2.8 million which was our cash balance at the end of the year. There is no debt, only short-term credit lines from our bank covering temporary need. However we’re happy to report to-date we have collected $5 million of our outstanding receivable at the end of the quarter.

I’d like now to turn the call over to Shelli to review the third quarter business activities in more detail.

Shelli Zargary

Thank you, Gili. Okay. So, looking at the third quarter more closely we closed a number of deals and pursued significant business activities when we expect to accelerate revenue in the coming quarter. First of all we’ve made great progress with our mobile capture sweet especially via the partnership with Fiserv as well as via other business opportunities that we are developing. As Izhak already mentioned, the first state news analysis by Stessa Cohen and she indicated that this deal is important because it makes it easier for banks to adopt mobile imaging technology so we will drive times to implement these apps factor which will in turn grows faster and wider consumer uptake.

Following, rather than offering a point product Fiserv has chosen to use TIS’s eFLOW platform. This and future partnerships will make it easier for banks to adopt this technology. In pursuit of additional business development opportunities, TIS has showcased mobile fleet earlier this month at Las Vegas raised money 20-20 which is the break out annual event for emerging payments and financial services where our TIS has great coverage for our MobiCHECK, MobiPAY and MobiCloud solutions. The conference exposed the 1500 attending companies and over 5000 participants from the emerging mobile payments community to our mobile image processing solutions sweet.

Also noteworthy is the fact that in quarter three card payment was listed by Gartner Research and its Hype Cycle for Digital back in 2013 as a sample vendors in the Mobile Commercial Remote Deposit Capture and the Mobile Consumer Remote deposit category. As leading financial institutions which are TIS top customers used Gartner Research’s recommendations to assess the varied mobile technologies on the market and select those that will best match their long-term requirements the positioning of TIS in this Gartner Hype Cycle is extremely significant for our banking business.

Adding to our mobile wins this quartet we also signed a Six-Figure contract with the major Israeli bank for the MobiCHECK for mobile remote deposit capture solutions which instead of this deal to be a sign of a growing interest and potentials for mobile imaging technology business outside of the United States. Now shifting our focus to new products, during the third quarter we also launched the eFLOW CrowdBridge solution develops using Amazon Web Services. The prospective sales for this solution are significant as Amazon Mechanical and Turk community between 2007 and 2011 has grown from a 100,000 registered workers in 100 countries to 500,000 registered workers in over 190 countries worldwide and this community is expected to continue to grow.

To promote on new eFLOW CrowdBridge solution this quarter Top Image took part in a ground-breaking mass solution NYC event promoting innovative crowd-sourcing solutions for enterprises. The conference examined how top-end companies like IBM, Wal-Mart and J&J and others are outsourcing enterprise crowd-sourcing and crowd-funding. By minimizing or even eliminating on-site data entry our eFLOW CrowdBridge solution enterprise increased quite stability and straight to processing and reduce operational cost.

We are confident that entering the enterprise crowd-sourcing market so early on with our ground-breaking solutions will prove very significant for Top Image both in terms of our reputation as an innovator as well as in terms of upgrading as well.

Turning to our eFLOW Digital Mailroom solution or EMR, in quarter three we had significant link among these deal at a large European Central Bank and a leading Swiss Insurance Provider and at the very large European government institution. And we were also proud to report the successful deployment of the Digital Mailroom at leading German entity we call it EnBW. To further promote Digital Mailroom, we’ve also launched a movie that you can watch on our TIS YouTube channel.

During the quarter we continue to launch an initial deployment of the latest release of our flagship platform – a flagship multi-channel capture platform, eFLOW5. This series of event kicks off originally in New York City and is continuing to execute through our worldwide go-to-market programs for eFLOW5 with launches in London, Munich, Amsterdam and Madrid and soon in Prague. The first eFLOW5 deployments have included Mul T Lock, UPS in Israel, a Swiss insurance firm, a large bank in the United States and a government institution in Singapore. Customers have noted that eFLOW5’s powerful recognition designer ability enabled us to make strong progress in complex recognition, an important competitive advantage.

This competitive advantage allows the creator of an eFLOW-based solution to easily construct ad hoc recognition algorithms by simply dragging and dropping recognition components, enabling quick and easy creation of algorithms for very complex documents and recognition needs; again, showing TIS’ sophistication and innovation.

As part of our strategic initiatives, we continue to expand the scope of our global partnerships. We expanded our joint activities with U.S. based sites, with whom we presented this year at Oracle OpenWorld. We are also working in closer co-operation with Xerox in Europe and in Latin America, where we joined Xerox at the ETM Show in Sao Paulo, Brazil.

We are pursuing solution developments to cover new user scenarios and sales partnerships with several leading technology providers and we expect to be able to announce these publicly in the near future.

Our eFLOW invoice processing business expands nicely, mainly in Northern part of Europe and we also see positive development on this pipeline, which we have been promoting through sales activities in the United States.

In terms of banking, we now have a significant advantage. We start with mobile banking as a foot in the door but we are very happy to see both the mobile and the eFLOW multichannel platforms have been generating interest as a winning combination of solutions, which works very well together. So we see more and more business with mobile being the front end and the comprehensive eFLOW banking platform at the back end.

Looking ahead, we expect the U.S. to continue to be a major growth area, so we are putting significant resources there. We are continuing grow in North Europe, in Asia Pacific and even in Southern Europe, which we believe will result by next year, although we are not relying on it.

Mobile is a significant driver for future growth and especially mobile applications integrated with eFLOW. We feel that we can achieve solid revenue growth and profits and prosper in large markets because we are more than just a mobile add-on. Our core expertise and strong position in enterprise content and business process management market, which have fundamentals [indiscernible] also proves to be a key differentiator for our mobile offerings, which can be sold not only standalone but as an entry point to our product suite of multichannel capture and workflow solution.

We are very happy with the execution on our plan in the U.S. to-date and then our penetration of the U.S. market, especially through partnerships with leading companies. We are optimistic and pleased by the great work executed by our sales team especially in mobile and in the U.S.

And last, but not least, as highlighted by our inclusion in last year’s poster [ph] multichannel capturing and most recently underscored and are mentioned in the Gartner’s Hype Cycle for Digital Banking, we know that our positioning as a technology leader is a key reason that we are winning top tiers [ph].

At this point, we are ready to open the floor to questions. And our top management executives, Ms. Shalita and Mr. Nakar, are standing by to take your questions. So, please operator could you help us to initiate the Q&A session?

Question-and-Answer Session

Operator

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

Thank you. Our first question is from the line of Igor Novgorodtsev with Lares Capital. Please proceed with your question.

Igor Novgorodtsev – Lares Capital

Hello. Thank you for taking my question. How are you?

Izhak Nakar

Good, good.

Igor Novgorodtsev – Lares Capital

I have two. First of all, let’s talk about U.S., I’m glad to see that you said that 10% of order revenue came from the United States. How much of this came with mobile products, in other words, is it strictly mobile products sold to the banking industry or this revenue included something else?

Izhak Nakar

Thank you, Igor for your question. Most of the revenue in the U.S. it’s coming from the mobile. As you part of our strategy when we opened the office something – to at least, some investor will remember, we see that we will – go-to-market strategy will be – start with mobile as a foot in the door and then slowly but in the right way bring the other product to U.S. so definitely we bring and start to bring the product, they have the sales cycle, of course.

So in U.S. right now mostly it’s coming from mobile but you need to be aware about one issue that we elaborate a lot that it’s not only mobile, it’s mobile working together with eFLOW. So this is the platform. So it’s not just the handset of the mobile, all the pluses [ph] that we are working right now definitely is kind of confirm our strategy that the mobile and eFLOW can work very well together and this is what we find when we approach our customer. It’s totally different from other, let’s say, other competitors that we have in the market.

Unidentified Analyst

Right. So when you said you would get a foot in the door, do you think that you will be able to have a follow-on offer or follow-on sales to the same customers which you sold the mobile solutions or this is just to get foot in the door in a sense to increase the awareness of your product in general in the U.S.?

Izhak Nakar

Yes, it is, it’s going to be a tentative off-sale definitely, yes.

Unidentified Analyst

Okay, great. My other question is about your cloud offerings, I know that you split your business model and you started to offer solution-as-a-service and I saw that the revenue for SaaS is relatively small. Does it mean that majority of your customers still want to buy your solutions in an old fashion way and sold the servers locally?

Izhak Nakar

[indiscernible], do you hear me?

Unidentified Analyst

Yeah.

Izhak Nakar

Because – okay. Yes definitely…

Unidentified Analyst

I’m sorry, can you hear me, okay?

Izhak Nakar

Yeah, I hear you well.

Unidentified Analyst

Okay.

Izhak Nakar

We see more and more customers, some of them ask SaaS model and the other really going with the license fee. We are very open according to this situation we make the decision maybe one quarter could be more and more SaaS, but be aware that we recognized in this quarter close to..

Gili Shalita

300,000.

Izhak Nakar

Almost 300,000 that it’s going to be in the next 10 quarter, so if you normalize and it’s going to be one lump-sum it’s going to be 10 multiplied by almost $300,000.

Unidentified Analyst

Right. So just drilling a little bit more in detail in U.S. for your mobile offering, is it mostly going to be sold as a SaaS or its going to be sold as an installation?

Izhak Nakar

No, in the U.S. we are not implementing this model yet, we do it usually for INVOICE product and for the DMR but we have not implemented this yet in U.S.

Unidentified Analyst

Okay. And then your deal with Fiserv that’s also that your – a product that are going to be excluded as part of their offering it’s not going to be as a standalone product in other words the customers would be buying a solution for Fiserv and then Fiserv could bring you in to fulfill the specific needs?

Izhak Nakar

No, no, it’s again Fiserv we cannot disclose all the information regarding Fiserv but definitely is mobile connected with eFLOW and they are going to implement this kind of product the bill pay in their customer which is a tier A banking customer.

Unidentified Analyst

So it’s more like a VAR model evaluated with seller model or if your Fiserv is essentially interacted with the customer, I’m just trying to understand how it’s implemented, I understand that you don’t disclose all the details but for the best of your ability?

Shelli Zargary

Can you repeat the question…

Izhak Nakar

Yeah because we didn’t hear you well…

Unidentified Analyst

I apologize, is it more of a VAR model basically value-added for a seller but if a customer comes to Fiserv and ask for a solution and they offer you a solution or a customer still interact directly for the Fiserv and then Fiserv says that okay I know that great company which gives both the specific need, I would just go and bring it as a niche or my overall solutions we are back?

Izhak Nakar

No, no, no, no, we mentioned before, we get even some let’s say I’ll call it several million dollars from Fiserv, this is a product, this is Fiserv product that it can offer to the customer, it’s strategic decision for Fiserv. They put our product on their platform, this is what I say, it’s not that it’s kind of referring between company, no, this is Fiserv product, that the technology is embedded in Fiserv platform.

Unidentified Analyst

Okay, great. I got it. Okay. Thank you very much and I have many more questions. Congratulations on your great quarter.

Izhak Nakar

Thank you.

Operator

Thank you. Our next question is from the line of Mark Schappel with Benchmark Capital. Please proceed with your question.

Mark Schappel – Benchmark Capital

Hi good morning. I was wondering if you could just go into a little bit more detail on your partnership with Amazon specifically in terms of what technologies are you providing them in your partnership.

Izhak Nakar

Yeah, we – thank you Mark for your question. Actually we – as we build it, it’s a kind of crowd sourcing solution. As you know data show that in March 2007 there were more than 100,000 in the homecare in over 100 countries. This increase – go over to half million that’s go out of homecare in 190 countries from beginning of this year. So we are going to build kind of platform part of their mechanical talk. We did old recognition engine and all the process which we need to recognize the data, any kind of data. So in case if we cannot recognize they have all the people on the net which they view the information and complete the data which we are doing we take all this information, subtract the data, send it to many, many different people and then consolidate this back all this data so this is what is going to be.

Mark Schappel – Benchmark Capital

Thank you.

Izhak Nakar

And actually to select – actually our technology be part of their product platform and we already have actually one big customer probably the largest outsourcing company in Europe they already use our technology with Amazon platform.

Mark Schappel – Benchmark Capital

Thank you.

Operator

Thank you. Our next question comes from the line of [Jon Mcgrath] with [indiscernible]. Please proceed with your question.

Unidentified Analyst

Good morning guys. This is [indiscernible].

Izhak Nakar

Hi, how are you?

Unidentified Analyst

Good, good. Couple of questions, first of all Fiserv revenue, did you recognize 100% of that revenue or you’re going to recognize that over time?

Izhak Nakar

Gili is going to answer for it.

Gili Shalita

Thank you. So the start is now and the big number one is really now and first of all as I mentioned before the [indiscernible] structure in that several part of this is [indiscernible] is first the transaction, even for the last part we didn’t recommend all and it could be recommended over a period of time.

Unidentified Analyst

Okay. So a portion of it has been recognized and the majority of it will continue to be recognized over time, is that the answer?

Gili Shalita

A portion was recognized and another portion will be recognized..

Unidentified Analyst

Okay, great. And then the other person was trying to ask the question in terms of the – your product with Fiserv, are they labeling as a Fiserv product or is it labeled a TIS product?

Shelli Zargary

It’s a platform.

Izhak Nakar

It’s a platform.

Unidentified Analyst

Okay.

Izhak Nakar

And they integrate our product in their platform so in the end of the day okay in the end of the day if they have a bank and the bank they – we have an icon which is powered by TIS but this is our technology in all the platforms supplied by Fiserv.

Unidentified Analyst

Got it, so they’re buying Fiserv product and they’ll just say powered by TIS?

Izhak Nakar

Exactly.

Unidentified Analyst

Okay. And then last question is just in terms of the cash balance you said you collected some of the accounts receivable if you look at the cash balance today could you help me out understand where you are today and on your cash?

Gili Shalita

But this is the easy question. Today we have approximately $4 million in our bank. We’ve collected $5 million as I mentioned of course we spent some that you know for the vendors and they’re first to right now in the cash balance is about $4 million.

Unidentified Analyst

Got it. Thank you. and last and one last one, would you expect this seasonality this year to be similar to yours in the past the fourth quarter?

Izhak Nakar

We never mentioned that we have any seasonal, we have some as we already mentioned in the last two quarter or three quarter kind of shortfall because the microeconomic in sell spot of in that, but it’s, we never mentioned that they are seasonal in our revenue.

Unidentified Analyst

Okay, thank you.

Operator

Thank you. Our next question is from the line of Chuck Lipson with CSL. Please proceed with your question.

Chuck Lipson – CSL

Good evening I guess it is there. Yeah on the Fiserv deal, are there other products to be licensed to Fiserv were this an overall license and could you give some idea of what kind of transaction fee you will, you would, you receiving on anything they’d license your product out there?

Izhak Nakar

Hi Chuck, how are you?

Chuck Lipson – CSL

Good, thank you.

Izhak Nakar

Yeah. First of all we cannot really disclose the information we’re not allowed to do so. What mainly I’m answering for all the audience the products which Fiserv going to market is going to be is Snap-to-Pay this is a product is a part of Fiserv platform so it’s not something else, it’s not worth licensing or something that like this it’s a product and part of this product would be just Snap-to-Pay this is our technology in this case. We really cannot disclose with all the respect any information regarding the deal with Fiserv and we’re not allowed to do so. Sorry Chuck.

Chuck Lipson – CSL

As I tell other financial institutions the transactions fee will always be a part of I guess any deal that they sign, is that…

Izhak Nakar

You’re right, you’re right it’s going to be any let’s talk about customer it’s easy to understand it. they sell the product to bank and they put, they install it in the bank, they need to install platform with the product and services every bank they are going to install above certain transaction we get paid for it.

Chuck Lipson – CSL

Okay. but previously you had disclosed that you know that would be app may be on the phone the smartphone your app, is that is Fiserv superseding that strategy and you will get paid for each app that was downloaded or something that effect, is it different than what previously we were thinking or is that well Fiserv download app for free?

Izhak Nakar

No, no it’s not download the app, it’s a product…

Chuck Lipson – CSL

Okay.

Izhak Nakar

It’s Fiserv product is Snap-to-Pay this is the name of the product.

Chuck Lipson – CSL

Okay.

Gili Shalita

The first button.

Izhak Nakar

The first button should be Snap-to-Pay, this is exactly what’s going to be, and this Snap-to-Pay is button which provided by Fiserv, behind Snap-to-Pay in EIS Technology.

Chuck Lipson – CSL

Okay. Two more questions then. Could you give some color on how big the amazon app opportunity is revenue wise is it you know something in the 7 figured number or 6 figured number or any?

Izhak Nakar

It’s very big thing I have to estimate it right now, but I can tell you one thing which is very important. It’s how many people there are on this platform. And they’re having more than 500,000 people over 190 countries. Probably we will nice revenue in the next two years from this platform. But we cannot give any estimation right now regarding this deal. But we are very proud that they select us as a technology platform for their like any concern.

Unidentified Analyst

Okay. Last question, yes, I think about a year ago you signed a deal with Fiserv competitor, I have to get the name of the company for some reason.

Izhak Nakar

Jack Henry.

Unidentified Analyst

Jack Henry, is there deal similar or does this supersede Jack Henry deal or what’s the Jack Henry deal?

Izhak Nakar

It regarding further Jack Henry continue to walk and we are in the processing several customer of Jack Henry.

Unidentified Analyst

Okay. Keep up the good work. Let’s hope that the future is although we think it could be.

Izhak Nakar

Thank you for your support.

Operator

Thank you. Our next question is from the line of Nick [indiscernible] of Axiom. Please proceed with your question.

Unidentified Analyst

Good morning and congrats on the progress you are making. I got a couple of questions. The first have to do with the income statement, was a line item called other income which was $377,000, if you elaborate on what that represents?

Gili Shalita

Sure. This has to do with subsidiary being sold one for business divestitures, which is partly tested with the position better to 2007.

Unidentified Analyst

But this is not a recurring item?

Gili Shalita

No. This is I think rather in compliant.

Unidentified Analyst

When did you sign the Fiserv agreement, was any – I think on the call you said you recognized some revenue from that agreement in the third quarter?

Gili Shalita

Right.

Unidentified Analyst

I think the announcement came after the quarter that’s the only question I have.

Izhak Nakar

Yes, it is because this is the time that allowed us to announce it?

Unidentified Analyst

And when you announced the agreement you indicated that Fiserv was in the process, which was already rolling it out on a platform and planned another roll out later this year. What portion of their customer base are they offering this towards, it’s up to the customer to decide whether they want to utilize the product?

Izhak Nakar

I don’t think we have all the details. And I’m leaving it here and even if I elevate, I cannot disclose any information regarding what I can say is one thing which is very important. They have customer in the banking in Tier-1, which is very important and they are going to offer this kind of product for all of them. And here the big platform, they have another application not only snap-to-pay. Right now its snap-to-pay but they have mentioned and even the Fiserv PR, they are going to lose more and more product from TIS in this case. But we are not in the part of the relationship between the customer and Fiserv.

Unidentified Analyst

Okay. And one other question. As Fiserv starts to use eFLOW in the mobile area, does it make sense for them to consider looking at it in some of their more mature and traditional areas of processing.

Izhak Nakar

Yes. Of course, this is processing, definitely the –

Unidentified Analyst

Sorry, I should know it. Does it make sense then that it can have two recognitions systems operating side by side?

Izhak Nakar

It depends, which application maybe it’s totally different application. We use it has what we call multichannel. Right now given eFLOW, they work in mobile, tomorrow its different application, it’s different application, not necessarily they use in the same platform.

Unidentified Analyst

What opportunity at Fiserv you think is larger, expanding the use of mobile beyond just bill pay or expanding the penetration with eFLOW?

Izhak Nakar

I believe is both. If you ask me, both of them are large enough, they started right now as enough to pay as product, this is what they are pushing right now in marketing to the banking customer. Definitely we are talking to the sponsor. We did kind of good roadmap – technology roadmap. And we will try to push some other quarters which we have that Fiserv will go into push in almost 4000 banking worldwide.

Unidentified Analyst

Okay. Shifting gears from Fiserv, at various times you have mentioned the potentials for your mobile product or debit cards and check cashing. If you can give us any update on where that’s been?

Izhak Nakar

I still whole through the year, finish our thought in this case. And we are still waiting to finish the integration and the development.

Unidentified Analyst

So it would be fair to day that the program is very much alive?

Izhak Nakar

Yes. But I cannot give you any estimation when it’s going to be live.

Unidentified Analyst

Okay. Well, once again, congrats on the progress and look forward to seeing you in future quarters. Thank you for taking the call.

Izhak Nakar

Thank you, Nick. Thank you for your support.

Unidentified Analyst

Thank you.

Operator

At this time, there are no further questions, I would like to turn the floor back to management for closing comments.

Shelli Zargary

Thank you, all. Thank you very much everyone for attending the call. We appreciate very much your interest in and attention and support. And we like to wish you a very good afternoon. Thank you.

Operator

This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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