Sapiens Reports Q2 2011 Results: Q2 2011 Year Over Year Revenues Grow 14%; Net Income Grows 15%
REHOVOT, Israel, August 10, 2011 /PRNewswire/ --
Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a global provider of innovative insurance software solutions and a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), today announced its results of operations for the second quarter of 2011.
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On July 21st 2011 Sapiens entered into a definitive agreement to merge with FIS Software Ltd. and IDIT I.D.I. Technologies Ltd., providers of insurance software solutions.
Second Quarter 2011 Highlights Include:
- Revenues increased 14% compared to Q2 2010, and reached $14.3 million
- Operating profit reached $1.7 million, 7% growth compared to Q2 of 2010
- Non-GAAP Net Income of $2.0 million compared to $1.8 million in Q2 2010
- As of June 30, 2011, cash and cash equivalents totaled to $16.5 million
- Total shareholders' equity of $38.5 million as of June 30, 2011, representing 65% of the total balance sheet
Roni Al-Dor, President and CEO of Sapiens International Corporation, commented: "Sapiens continued to generate strong results in the second quarter, reflecting the growth path we have taken. These results are credited to new business we have signed with new customers, as well as with our existing client base. While improving our top line, we also strive to improve our operating and net income results."
Mr. Al-Dor continued, "Last month we announced a major milestone in our growth strategy to merge with FIS and IDIT. We continue to promote our strategy to focus on the insurance software market, and we aim to become the vendor of choice in this marketplace. Looking ahead, we intend to further extend our global reach, expand our technology and solutions, broaden our customer base, and increase our distribution channels in the markets in which we operate."
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 release.
For the three months ended For the six months ended
U.S GAAP basis 30/06/2011 30/06/2010 30/06/2011 30/06/2010
(Unaudited) (Unaudited) (Unaudited) (Audited)
Revenues 14,258 12,497 27,584 24,420
Operating profit 1,678 1,563 3,400 3,181
Net income attributable
to Sapiens 1,624 1,415 3,298 2,941
Basic earnings per share 0.07 0.06 0.15 0.13
Diluted earnings per share 0.07 0.06 0.14 0.13
Non GAAP
Revenues 14,258 12,497 27,584 24,420
Operating profit 2,049 1,977 4,085 3,860
Net income 1,973 1,814 3,937 3,605
Basic earnings per share 0.09 0.08 0.18 0.17
Diluted earnings per share 0.08 0.08 0.17 0.16
About Sapiens International
Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), is a leading global provider of business solutions for the insurance industry, helping modernize business processes and enabling insurance organizations to adapt quickly to change. Sapiens' innovative solutions are widely recognized for their ability to cost-effectively align IT with the business demands for speed, flexibility and efficiency. Sapiens operates through its 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.
Matters set forth in this release that are forward-looking statements 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)
30/06/2011 31/12/2010
(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 16,486 $ 16,182
Trade receivables, net 9,507 5,511
Other current assets 2,606 3,031
Total current assets 28,599 24,724
Property and equipment, net 1,233 1,161
Other assets, net 29,519 29,184
Total assets $ 59,351 $ 55,069
Liabilities and shareholders' equity
Trade payables $ 1,100 $ 1,693
Other liabilities and accrued expenses 11,188 11,646
Deferred revenue 7,350 6,517
Total current liabilities 19,638 19,856
Long-term debt and other long-term
liabilities 1,235 1,095
Shareholders' equity 38,478 34,118
Total liabilities and shareholders'
equity $ 59,351 $ 55,069
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 six month ended
30/06/2011 30/06/2010 30/06/2011 30/06/2010
Unaudited Unaudited Unaudited Unaudited
Revenues $ 14,258 $ 12,497 $ 27,584 $ 24,420
Cost of revenues $ 7,607 $ 6,999 $ 14,730 $ 13,972
Gross Profit 6,651 5,498 12,854 10,448
Operating expenses
Research and
development, net $ 1,191 $ 761 $ 2,251 $ 1,472
Selling, marketing,
general and
administrative $ 3,782 $ 3,174 $ 7,203 $ 5,795
Operating Profit 1,678 1,563 3,400 3,181
Financial expenses, net $ 54 $ 31 $ 102 $ 22
Other expenses, net $ - $ 106 $ - $ 242
Net Income $ 1,624 $ 1,426 $ 3,298 $ 2,917
Attributable to non-
controlling interest $ - $ 11 $ - $ (24)
Net income attributable
to Sapiens $ 1,624 $ 1,415 $ 3,298 $ 2,941
Earnings per share
Basic $ 0.07 $ 0.06 $ 0.15 $ 0.13
Diluted $ 0.07 $ 0.06 $ 0.14 $ 0.13
Weighted average number
of shares used to
computation of earnings
per share
Basic 22,050 21,927 22,047 21,762
Diluted 23,723 22,616 23,735 22,151
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 six month ended
30/06/2011 30/06/2010 30/06/2011 30/06/2010
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP operating profit 1,678 1,563 3,400 3,181
Amortization of
intangibles assets
and compensation
related to acquisition 296 103 590 103
Amortization of
capitalized software 1,275 1,448 2,365 2,796
Capitalization of
software development (1,275) (1,250) (2,430) (2,408)
Stock-based compensation 74 113 159 188
Total adjustments to GAAP 371 414 685 679
Non-GAAP operating profit 2,049 1,977 4,085 3,860
GAAP net income 1,624 1,415 3,298 2,941
Total adjustments to GAAP
as above 371 414 685 679
Deferred taxes related
to acquisition (21) (15) (45) (15)
Non-GAAP net income 1,973 1,814 3,937 3,605
Non-GAAP basic earnings
per share 0.09 0.08 0.18 0.17
Non-GAAP diluted earnings
per share 0.08 0.08 0.17 0.16
Weighted average number of
shares used to computation
of earnings per share
Basic 22,050 21,927 22,047 21,762
Diluted 23,723 22,616 23,735 22,151
For More Information
Roni Giladi, CFO
Sapiens International
Tel: +972-8-938-2721
[email protected]
SOURCE Sapiens Technologies
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