CARY, North Carolina, August 20 /PRNewswire-FirstCall/ -- SapiensInternational Corporation N.V. (NASDAQ and TASE: SPNS) ("Sapiens" or"Company"), a leading global provider of innovative business solutions thatmodernize business processes and enable insurance organizations to adaptquickly to change, and a member of the Formula (NASDAQ: FORTY and TASE: FORT)Group, today announced its results of operations for the second quarter of2009.
Highlights for Q2 2009 - Operating profit reached $1.3 million, reflecting growth of 117% compared with $0.6 million in Q2 2008 -
Eleven consecutive quarters of operational profit. -
Net Income reached $1.1 million on a non GAAP basis, compared with a ($0.4) million net loss in Q2 2008 - Revenues reached $10.2 million, a decrease of 7% compared with $11.0 million in Q2 2008. - Total equity of $23.7 million, which represents 50% of balance sheet. -
Earnings per share for this quarter were $0.04 (fully diluted), a significant increase from $0.02 (fully diluted) loss per share reported in Q2 08.
Roni Al-Dor, President and CEO of Sapiens, commented, "In the secondquarter of 2009, we continued to improve our results despite the challengingworld-wide economical environment. During the first half of 2009, we morethan doubled our operational profit reaching $2.3 million and reached a netincome of $1.9 million from loss of $1.7 million in first half of 2008. In Q2of 2009 we further improved our operational profit compared to Q1 of 2009 andthe comparable period of Q2 2008 reaching operational profit of $1.5 millionon non GAAP basis. Revenue in Q2 of 2009 reached $10.2 million, slightlydecreased from comparable Q2 of 2008, due to deferred of revenues in aproject which will be off-set in the coming quarters.
Mr.
Al-Dor continued, "Our success is reflected in the company balancesheet working capital and cash position we have today compared to previousyears. In addition, we are dealing with an increasing number of opportunitieswhich are addressed by our products suites including the Sapiens INSIGHT forClosed Books platform, as well as the Sapiens INSIGHT for Reinsurance, aswell as our windows for eMerge applications.
"Looking forward, with our proven solutions, improved financialperformance and a broad customer base; I believe that we are well positionedto continue improving our performance", concluded Mr.
Al-Dor.
Reconciliation between U.S. GAAP and Non-GAAP results is summarized inthe following table. For a complete reconciliation, please refer to thetables at the end of this release.
U.S. Dollars in thousands, except per share amounts For the three months ended For the year ended U.S GAAP basis 06/30/2009 06/30/2008 06/30/2009 06/30/2008 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues 10,233 11,012 20,977 21,503 Operating profit 1,260 579 2,340 1,002
Net income (loss) 886 (526) 1,904 (1,726) Basic earning (loss) per share 0.04 (0.02) 0.09 (0.08) Diluted earning (loss) per share 0.04 (0.02) 0.09 (0.08)
Non-GAAP Revenues 10,233 11,012 20,977 21,503 Operating profit 1,457 689 2,733 1,211
Net income (loss) 1,083 (416) 2,297 (1,517) Basic earning (loss) per share 0.05 (0.02) 0.11 (0.07) Diluted earning (loss) per share 0.05 (0.02) 0.11 (0.07)
U.S. GAAP results include amortization of capitalized softwaredevelopments, capitalization of software development costs, and stock-basedcompensation expenses.
Comment Regarding Non-GAAP
Sapiens' management believes that the presentation of non-GAAP measurescan enhance the understanding of the company's ongoing economic performance,and provides useful information to investors regarding financial and businesstrends relating to the company's financial condition and results ofoperations. Sapiens therefore uses internally the non-GAAP information toevaluate and manage the Company's operations.
This non-GAAP financial measures are not in accordance with, or analternative for, generally accepted accounting principles and may bedifferent from non-GAAP financial measures used by other companies. Inaddition, these non-GAAP financial measures are not based on anycomprehensive set of accounting rules or principles. Sapiens believes thatnon-GAAP financial measures have limitations in that they do not reflect allof the amounts associated with Sapiens' results of operations as determinedin accordance with GAAP and that these measures should only be used toevaluate Sapiens' results of operations in conjunction with the correspondingGAAP measures.
Please refer to the Reconciliation of GAAP to Non-GAAP Results at the endof this release.
About Sapiens International
Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a memberof Formula Group (NASDAQ: FORTY and TASE: FORT), which is a member of theEmblaze Group (LSE: BLZ.L) is a leading global provider of proven ITsolutions that modernize business processes and enable insuranceorganizations to adapt quickly to change. Sapiens' innovative solutions arewidely recognized for their ability to cost-effectively align IT with thebusiness demands for speed, flexibility and efficiency. Sapiens operatesthrough its subsidiaries in North America, the United Kingdom, EMEA and AsiaPacific, and has partnerships with market leaders such as IBM and EDS.Sapiens' clients include AXA, ING, Liverpool Victoria, Menora Mivtachim,
Norwich Union, Occidental Fire & Casualty, OneBeacon, Principal FinancialGroup, Santam and Texas Farm Bureau among others. For more information,please visit http://www.sapiens.com.
Except for historical information contained herein, the matters set forthin this release are forward-looking statements that are dependent on certainrisks and uncertainties, including such factors, among others, as marketacceptance, market demand, pricing, changing regulatory environment, changingeconomic conditions, risks in new product and service development, the effectof the Company's accounting policies, specific system configurations andsoftware needs of individual customers and other risk factors detailed in theCompany's SEC filings.
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V. Condensed Consolidated Balance Sheets (U.S. Dollars in thousands) 6/30/2009 12/31/2008 (Unaudited) (Audited) Assets Cash and cash equivalents $ 10,363 $ 7,938 Restricted cash 352 - Trade receivables, net 7,511 6,860 Other current assets 2,785 2,565 Total current assets 21,011 17,363 Property and equipment, net 949 1,055 Other assets, net 25,938 26,759 Total assets $ 47,898 $ 45,177 Liabilities and shareholders' equity Current maturities of long-term debt and convertible debentures $ 4,835 $ 5,745 Trade payables 1,003 1,500 Other liabilities and accrued expenses 10,151 9,716 Deferred revenue 6,910 4,908 Total current liabilities 22,899 21,869 Long-term debt and other long-term liabilities 1,253 1,432 Shareholders' equity 23,746 21,876 Total liabilities and shareholders' equity $ 47,898 $ 45,177 SAPI
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V. Condensed Consolidated Statements of Operations (U.S. Dollars in thousands, except per share amounts) For the three months ended For the six months ended 06/30/2009 06/30/2008 06/30/2009 06/30/2008 Unaudited Unaudited Unaudited Unaudited Revenues $ 10,233 $ 11,012 $ 20,977 $ 21,503 Cost of revenues $ 5,198 $ 6,542 $ 11,186 $ 12,798 Gross Profit 5,035 4,470 9,791 8,705 Operating expenses Research and development, net $ 717 $ 857 $ 1,448 $ 1,647 Selling, marketing, general and administrative $ 3,058 $ 3,034 $ 6,003 $ 6,056 Operating Profit 1,260 579 2,340 1,002 Financial expenses (income), net $ 349 $ 1,002 $ 363 $ 2,467 Taxes on income $ 25 $ 109 $ 73 $ 227
Net Income (Loss) $ 886 $ (532) $ 1,904 $ (1,692) Attributetable to non- controlling interest $ - $ (6) $ - $ 34
Net income (Loss) attributable to Sapiens $ 886 $ (526) $ 1,904 $ (1,726)
Earning (loss) per share Basic $ 0.04 $ (0.02) $ 0.09 $ (0.08) Diluted $ 0.04 $ (0.02) $ 0.09 $ (0.08) Weighted average number of shares used to computation of earning (loss) per share Basic 21,591 21,541 21,591 21,541 Diluted 21,591 21,541 21,591 21,541 SAPI
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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 06/30/2009 06/30/2008 06/30/2009 06/30/2008 (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP operating profit 1,260 579 2,340 1,002 Amortization of intangibles 1,062 1,042 2,068 2,002 Capitalization of software development (915) (982) (1,774) (1,858) Stock-based compensation 50 50 99 65 Total adjustments to GAAP 197 110 393 209
Non-GAAP operating profit 1,457 689 2,733 1,211 GAAP net income (loss) 886 (526) 1,904 (1,726) Total adjustments to GAAP as above 197 110 393 209
Non-GAAP net income (loss) 1,083 (416) 2,297 (1,517)
Non-GAAP basic earnings (loss) per share 0.05 (0.02) 0.11 (0.07)
Non-GAAP diluted earnings (loss) per share 0.05 (0.02) 0.11 (0.07) Weighted average number of shares used to computation of earning (loss) per share Basic 21,591 21,541 21,591 21,541 Diluted 21,591 21,541 21,591 21,541 For additional information: Roni Giladi Chief Financial Officer Sapiens International Tel: +972-8-938-2721
E-mail:
IR.Sapiens@sapiens.com Roni Al-Dor Chief
Executive Officer Sapiens International Tel: +972-8-938-2721
E-mail:
IR.Sapiens@sapiens.com
SOURCE Sapiens International Corporation N.V
