Sapiens Q1 2012 Revenue Nearly Doubled Year Over Year Reaching $26 Million
REHOVOT, Israel, May 8, 2012 /PRNewswire/ –
Sapiens International Corporation N.V. [http://www.sapiens.com ] (NASDAQ and TASE:
SPNS), a provider of innovative insurance software solutions and a member of the Formula
Group (NASDAQ: FORTY and TASE: FORT), announces its financial results for the first
quarter ended March 31, 2012.
First Quarter 2012 Highlights Include:
- Revenue increased 95% to $26.0 million, compared to $13.3 million in the first quarter of 2011; - Non-GAAP net income increased 63% to $3.2 million compared to $2.0 million for first quarter of 2011; - Non-GAAP operating profit increased 63% to $3.3 million, compared to $2.0 million in first quarter of 2011; - Non-GAAP EPS is $0.08 per diluted share, compared to $0.08 per diluted share in first quarter of 2011; - Three Sapiens Clients, Philadelphia Insurance Companies, DirectAsia.com, and L&T General Insurance, Named Winners of Celent Model Insurer Awards; - Announced a new release of the IDIT(TM) Software Suite; - The Company ended the quarter with $27.1 million in cash, compared to $21.5 million at December 31, 2011.
Commenting on the first quarter results, Roni Al Dor, President and CEO of Sapiens
International, “The first quarter was a good start for Sapiens, as we begin our first full
year following the acquisitions of IDIT and FIS. Our revenue grew by 95%, non-GAAP net
income & non-GAPP operating profit both increased 63.0%. We will continue to improve the
operational efficiencies of the newly acquired entities and expand the margins, as we have
done many times in the past, with other companies, including Sapiens itself.
As a global provider of insurance solutions, with new products, geographical coverage
and channels to sell in to, we are very encouraged about our opportunities for growth. We
are seeing high demand for our products in North America, and have increased our staff by
30 employees in the last quarter due to demand from customers. Compounding our growth
prospects are the market dynamics, insurance companies shifting its information technology
(IT) spend to external providers.”
Mr. Al Dor continued, “We reiterate our guidance for 2012 to grow revenue in excess of
Reconciliation between U.S. GAAP and Non-GAAP results is summarized in the following
table. For a complete reconciliation, please refer to the tables at the end of this
(U.S. Dollars in thousands, except per share amounts)
For the three months ended U.S GAAP basis 3/31/2012 3/31/2011 (Unaudited) (Unaudited) Revenues 25,983 13,325 Operating profit 2,441 1,720 Net income attributable to Sapiens 2,388 1,673 Basic earnings per share 0.06 0.08 Diluted earnings per share 0.06 0.07 Non-GAAP Revenues 25,983 13,325 Operating profit 3,308 2,034 Net income attributable to Sapiens 3,211 1,963 Basic earnings per share 0.08 0.09 Diluted earnings per share 0.08 0.08
First Quarter 2012 Results
Revenue for the first quarter of 2012 was $26.0 million, compared to $13.3 million for
the first quarter of 2011; an increase of 95%. Net income attributable to Sapiens on a
GAAP basis was $2.4 million for the first quarter of 2012, compared to net income of $1.7
million for the first quarter of 2011. EPS was $0.06 per diluted share for the first
quarter of 2012 compared to $0.07 per diluted share for the first quarter of 2011. GAAP
operating income was $2.4 million for the first quarter of 2012, compared to $1.7 million
for the first quarter of 2011.
Non-GAAP net income attributable to Sapiens for the first quarter of 2012 totaled $3.2
million, compared to non-GAAP net income of $2.0 million for the first quarter of 2011.
Non-GAAP EPS was $0.08 per diluted share for the first quarter of 2012, compared to $0.08
per diluted share for the first quarter of 2011. Non-GAAP operating income was $3.3
million for the three months ended March 31, 2012, compared to $2.0 million in the same
period last year.
About Sapiens International
Sapiens International Corporation (NASDAQ and TASE: SPNS), is a leading global
provider of innovative business solutions for the insurance industry, helping to modernize
business processes, to proactively define and provide innovative new services and to
respond quickly to changes in the industry. We offer end to end solutions for the L&P, P&C
and Reinsurance markets, with customers across the globe. We jointly serve over 70
insurance customers, backed by a team of over 700 insurance experts. Coupled with our
financial stability, Sapiens aims to become the vendor of choice in the insurance software
marketplace. For more information about Sapiens, visit http://www.sapiens.com.
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 Balance Sheets (U.S. Dollars in thousands) 3/31/2012 12/31/2011 (Unaudited) (Audited) Assets Cash and cash equivalents $ 27,093 $ 21,460 Restricted cash 464 456 Trade receivables, net 18,953 14,484 Other current assets 3,476 3,229 Total current assets 49,986 39,629 Property and equipment, net 1,767 1,814 Other assets, net 113,740 112,025 Total assets $ 165,493 $ 153,468 Liabilities and shareholders' equity Trade payables $ 2,530 $ 2,559 Other liabilities and accrued expenses 18,019 19,731 Deferred revenue 17,271 9,603 Total current liabilities 37,820 31,893 Long-term debt and other long-term liabilities 11,591 11,328 Equity 116,082 110,247 Total liabilities and equity $ 165,493 $ 153,468
SAPIENS INTERNATIONAL CORPORATION N.V. Condensed Consolidated Statements of Operations (U.S. Dollars in thousands, except per share amounts) For the three months ended 3/31/2012 3/31/2011 Unaudited Unaudited Revenues $ 25,983 $ 13,325 Cost of revenues $ 15,157 $ 7,125 Gross Profit 10,826 6,200 Operating expenses Research and development, net $ 2,300 $ 1,060 Selling, marketing, general and administrative $ 6,085 $ 3,420 Operating Profit 2,441 1,720 Financial expenses (income), net $ (61) $ 41 Other expenses, net $ 108 $ 6 Net Income $ 2,393 $ 1,673 Attributetable to non-controlling interest $ 5 $ - Net income attributable to Sapiens $ 2,388 $ 1,673 Earnings per share Basic $ 0.06 $ 0.08 Diluted $ 0.06 $ 0.07 Weighted average number of shares used to computation of earnings per share Basic 39,719 21,602 Diluted 42,401 23,199
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 3/31/2012 3/31/2011 (Unaudited) (Unaudited) GAAP operating profit 2,441 1,720 Amortization of intangibles assets and compensation related to acquisition 863 294 Amortization of capitalized software 834 1,090 Capitalization of software development (980) (1,155) Stock-based compensation 150 85 Total adjustments to GAAP 867 314 Non-GAAP operating profit 3,308 2,034 GAAP net income 2,388 1,673 Total adjustments to GAAP as above 867 314 Non-controlling interest in amortization intangible assets (24) - Deferred taxes related to acquisition (20) (24) Non-GAAP net income 3,211 1,963 Non-GAAP basic earnings per share 0.08 0.09 Non-GAAP diluted earnings per share 0.08 0.08 Weighted average number of shares used to computation of earnings per share Basic 39,719 21,602 Diluted 42,401 23,199
Investor Relations Contact: Roni Giladi, CFO Sapiens International Tel: +972-8-9382721 E-mail: firstname.lastname@example.org or James Carbonara, Regional Vice President Hayden IR Office: +1-646-755-7412 James@haydenir.com
SOURCE Sapiens International Corporation