PR Newswire: news distribution, targeting and monitoring

Sapiens Q3 2012 Revenue Increases 67% to $29.6 Million

 

Q3 Operating profit grows 144% to $3.3 Million; Q3 Non-GAAP Operating Profit margin expands during 2012 to 14%

Share with Twitter Share with LinkedIn

REHOVOT, Israel, November 13, 2012 /PRNewswire/ --

Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a provider of innovative software solutions for the financial services and a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), announces its financial results for the third quarter ended September 30, 2012.

     (Logo: http://photos.prnewswire.com/prnh/20120508/531104 )

Third Quarter Year-over-Year Financial and Business Highlights include:

  • Revenue increased 67% to $29.6 million, compared to revenue of $17.8 million in the third quarter of 2011
  • Non-GAAP operating profit increased 96% to $4.1 million, compared to $2.1 million in third quarter of 2011. Operating profit grows 144% to $3.3 million, compared to $1.4 million in the third quarter of 2011
  • Non-GAAP net income increased 86% to $4.3 million, compared to $2.3 million in the third quarter of 2011. Net income increased by 123% to $3.5 million, compared to $1.6 million in the third quarter of 2011
  • Non-GAAP operating profit margin expanded to 14.0%, compared to $11.9% for third quarter of 2011
  • Non-GAAP diluted EPS was $0.10, compared to $0.07 per diluted share for the third quarter of 2011.
  • Sapiens has signed several new customers, including MTL Insurance (US) with  Sapiens ALIS  and MDIS (UK) with Sapiens IDIT
  • Cash position at the end of the quarter reached $33.1 million, compared to $21.5 million at December 31, 2011

Nine months Year-over-Year Financial Highlights include:

  • Revenue increased 82% to $82.7 million, compared to revenue of $45.3 million in the same period last year
  • Non-GAAP operating profit increased 80% to $11.2 million, compared to $6.2 million in same period last year
  • Non-GAAP net income increased 76% to $11.0 million, compared to $6.2 million in the same period last year
  • Non-GAAP diluted EPS was $0.26, compared to $0.24 per diluted share for the same period last year.

Roni Al Dor, President & CEO of Sapiens International, commented, "Q3 was another strong quarter for Sapiens. We were extremely pleased with the opportunity to partner with new customers, further establishing Sapiens as a market leader. Sapiens client base is rapidly growing, and our market recognition in the global market is further enhanced, with the adoption of our Property & Casualty, Life & Annuity and Decision Management solutions. We are growing rapidly, profitably and we are expanding margins. To meet our growth plans, we are also growing our team of insurance and technology experts, globally. Sapiens continues to execute and is  well positioned to accelerate profitable growth as a leading global provider of innovative software solutions and services."

Increased 2012 Guidance

Mr. Al Dor continued, "As a result of the year-to-date progress, and our strengthening sales pipeline, we are increasing our 2012 revenue guidance. We now expect to exceed $113 million in revenue for the year."

Non-GAAP Financial Measures

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, share-based compensation expenses and certain business combination accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods.

    U.S. Dollars in thousands,
    except per share amounts
 
                         For the three months ended            For the year ended
    U.S GAAP
    basis                    30/09/2012   30/09/2011        30/09/2012  30/09/2011
                            (Unaudited)  (Unaudited)       (Unaudited)   (Audited)
    Revenues                     29,574       17,757            87,739      45,341
    Gross profit                 12,919        7,749            35,355      20,603
    Operating
    profit                        3,323        1,362             8,526       4,761
    Net income                    3,474        1,555             8,464       4,853
    Basic 
    earnings
    per share                      0.09         0.05              0.21        0.20
    Diluted
    earning
    per share                      0.08         0.05              0.20        0.18
 
    Non-GAAP
    Revenues                     29,549       17,834            83,058      45,418
    Gross profit                 13,956        8,916            38,871      24,135
    Operating
    profit                        4,145        2,117            11,168       6,200
    Net income                    4,254        2,290            10,978       6,227
    Basic
    earnings
    per share                      0.11         0.08              0.28        0.25
    Diluted
    earnings
    per share                      0.10         0.07              0.26        0.24


About Sapiens International

Sapiens International Corporation (NASDAQ and TASE: SPNS) is a global provider of innovative software solutions for the financial services market with focus on insurance. We serve over 100 financial services customers, backed by a team of over 800 experts, operating through fully-owned subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific.

Except for historical information contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, changing regulatory environment, changing economic conditions, risks in new product and service development, the effect of accounting policies, specific system configurations and software needs of individual customers and other risk factors.

                            SAPIENS INTERNATIONAL CORPORATION N.V.
                        Condensed Consolidated Statements of Operations
                     (U.S. Dollars in thousands, except per share amounts)
 
                         For the three months ended              For the nine months ended
                      30/09/2012         30/09/2011          30/09/2012         30/09/2011
 
                      Unaudited           Unaudited           Unaudited          Unaudited
 
    Revenues           $ 29,574            $ 17,757            $ 82,739           $ 45,341
 
    Cost of
    revenues           $ 16,655            $ 10,008            $ 47,384           $ 24,738
 
    Gross Profit         12,919               7,749              35,355             20,603
 
    Operating
    expenses
    Research and
    development,
    net                 $ 2,830             $ 1,655             $ 7,575            $ 3,906
    Selling,
    marketing,
    general and
    administrative      $ 6,766             $ 4,732            $ 19,254           $ 11,936
    Total operating
    expenses            $ 9,596             $ 6,387            $ 26,829           $ 15,842 
    Operating
    Income                3,323               1,362             $ 8,526              4,761
 
    Financial
    income, net         $ (239)             $ (276)             $ (385)            $ (175)
    Taxes and other 
    expenses (income), 
    net                    $ 43                $ 41               $ 424               $ 41
 
    Net Income          $ 3,519             $ 1,597             $ 8,487            $ 4,895
 
    Attributetable
    to
    non-controlling
    interest               $ 45                $ 42                $ 23               $ 42
 
    Net income
    attributable to
    Sapiens             $ 3,474             $ 1,555             $ 8,464            $ 4,853
 
    Earnings per
    share
    Basic                $ 0.09              $ 0.05              $ 0.21             $ 0.20
    Diluted              $ 0.08              $ 0.05              $ 0.20             $ 0.18
 
    Weighted
    average number
    of shares used
    to computation
    of earnings per
    share
 
    Basic                40,294              29,894             39,771              24,681
    Diluted              42,230              31,916             41,733              26,445
 


                                SAPIENS INTERNATIONAL CORPORATION N.V.
                              Reconciliation of GAAP to Non-GAAP results
                        (U.S. Dollars in thousands, except per share amounts)
 
                              For the three months ended              For the year ended
                            30/09/2012        30/09/2011     30/09/2012        30/09/2011
                           (Unaudited)       (Unaudited)    (Unaudited)       (Unaudited)
 
    GAAP revenues               29,574            17,757         82,739            45,341
    Valuation
    adjustment on
    acquired
    deferred
    revenue and
    long term
    contract                      (25)                77            319                77
    Non-GAAP
    revenues                    29,549            17,834         83,058            45,418
 
    GAAP gross
    profit                      12,919             7,749         35,355            20,603
    Revenues
    adjustment                    (25)                77            319                77
    Amortization of
    capitalized
    software                       857               952          2,566             3,317
    Amortization of
    other
    intangible
    assets                         205               138            631               138
    Non-GAAP gross
    profit                      13,956             8,916         38,871            24,135
 
    GAAP operating
    income                       3,323             1,362          8,526             4,761
    Gross profit
    adjustment                   1,034             1,167          3,516             3,532
    Capitalization
    of software
    development                  (730)             (970)        (2,645)           (3,400)
    Amortization of
    other
    intangible
    assets                         357               486          1,305             1,076
    Stock-based
    compensation                   158                72            466               231
    Non-GAAP
    operating
    profit                       4,145             2,117         11,168             6,200
 
    GAAP net income
    attributable to
    Sapiens
    shareholders                 3,474             1,555          8,464             4,853
    Operating
    income
    adjustments                    822               755          2,642             1,439
    Non-controlling
    interest in
    amortization
    intangible
    assets                        (20)                             (66)
    Deferred taxes
    related to
    acquisition                   (22)              (20)           (62)              (65)
    Non-GAAP net
    income
    attributable to
    Sapiens
    shareholders                 4,254             2,290         10,978             6,227
 
    Non-GAAP basic
    earnings per
    share                         0.11              0.08           0.28              0.25
 
    Non-GAAP
    diluted
    earnings per
    share                         0.10              0.07           0.26              0.24
 
    Weighted
    average number
    of shares used
    to computation
    of earnings per
    share
    Basic                       40,294            29,894         39,771            24,681
 
    Diluted                     42,230            31,916         41,733            26,445
 


                                   SAPIENS INTERNATIONAL CORPORATION N.V.
                                   Condensed Consolidated Balance Sheets
                                        (U.S. Dollars in thousands)
 
                                                                30/09/2012      31/12/2011
 
                                                               (Unaudited)       (Audited)
    Assets
 
                        Cash and cash equivalents                $ 33,110         $ 21,460
                        Restricted cash                               341              456
                        Trade receivables, net                     16,978           14,484
                        Other receivables and prepaid expenses      3,097            3,229
                        Total current assets                       53,526           39,629
 
                       
                        Property and equipment, net                 2,007            1,814
                        Severance pay fund                          9,793           10,172
                        Other intangible assets, net               31,979           35,138
                        Goodwill                                   65,427           66,715
                        Total Long-term assets                    109,206          113,839
    Total assets                                                $ 162,732        $ 153,468
    Liabilities and Equity
 
                        Trade payables                            $ 3,760          $ 2,559
                        Accrued expenses and other 
                        liabilities                                18,335           19,731
                        Deferred revenue                           10,417            9,603
                        Total current liabilities                  32,512           31,893
                        Other long-term liabilities                   631              614
                        Accrued severance pay                      11,369           10,714  
 
                        Long-term liabilities                      12,000           11,328
                        EQUITY                                    118,220          110,247
 
    Total liabilities and shareholders' equity                  $ 162,732        $ 153,468
 


Investor Relations Contact: 
Roni Giladi, CFO 
Sapiens International 
Tel: +972-8-9382721 
e-mail: roni.g@sapiens.com

or

James Carbonara, Regional Vice President
Hayden IR
Office: +1(646)-755-7412
James@haydenir.com

SOURCE Sapiens International Corporation N.V.



Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos and customised feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Get content for your website

Enhance your website's or blog's content with PR Newswire's customised real-time news feeds.
Start today.

 

 
 

Contact PR Newswire

Send us an email at info@prnewswire.co.il or call us at +972-77-2005042

 

 
 

Become a PR Newswire client

Send us an email at info@prnewswire.co.il or call us at +972-77-2005042

 

 
  1. Products & Services
  2. News Releases
  3. Contact Us