Sapiens Reports Q3 2011 Results: Q3 Revenues Grow 35% Year Over Year
REHOVOT, Israel, November 9, 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 third quarter of 2011.
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On August 21st 2011 Sapiens completed the merger transaction with FIS Software Ltd. and IDIT I.D.I. Technologies Ltd. This quarter's results reflect organic growth in Sapiens' business, and a partial contribution of FIS and IDIT.
Third Quarter 2011 Highlights Include:
- Revenues increased 35% compared to Q3 2010, and reached $17.8 million
- Non-GAAP Operating profit reached $2.1m, up 4% compared to Q3 2010
- Non-GAAP Net income grew 19% and reached $2.3 million compared to $1.9 million in Q3 2010
- As of September 30, 2011, cash and cash equivalents reached $19.5 million
- Total shareholders' equity of $118.7 million as of September 30, 2011, representing 74% of the total balance sheet. The increase is mainly due to issuance of shares as part of the merger transaction
Roni Al-Dor, President and CEO of Sapiens International Corporation, commented: "We continue to see growth in Sapiens' existing and new businesses. Our customers express their confidence in our company and show interest in our growing product portfolio. We are encouraged by the overall positive feedback we have received from the market since the formal closing of the merger", Mr. Al-Dor continued. "The integration is well underway, and we expect to see its fruits during 2012. We are focusing on maximizing the synergies between the companies in all aspects - products, territories, teams and operations. We are now finalizing our 2012 plans to support our future growth."
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.
(U.S. Dollars in thousands, except per share amounts)
For the three months For the nine months
ended ended
U.S GAAP basis 30/09/2011 30/09/2010 30/09/2011 30/09/2010
(Unaudited)(Unaudited) (Unaudited) (Unaudited)
Revenues 17,757 13,148 45,341 37,568
Operating profit 1,362 1,592 4,761 4,773
Net income 1,555 1,505 4,853 4,446
Basic earnings per share 0.05 0.07 0.20 0.20
Diluted earning per share 0.05 0.07 0.18 0.20
NonGAAP
Revenues 17,757 13,148 45,341 37,568
Operating profit 2,116 2,038 6,199 5,898
Net income 2,289 1,931 6,226 5,536
Basic earnings per share 0.08 0.09 0.25 0.25
Diluted earnings per share 0.07 0.08 0.24 0.25
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.
SAPIENS INTERNATIONAL CORPORATION N.V.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
30/09/2011 31/12/2010
(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 19,460 $ 16,182
Trade receivables, net 15,103 5,511
Other current assets 6,500 3,031
Total current assets 41,063 24,724
Property and equipment, net 1,995 1,161
Other assets, net 118,011 29,184
Total assets $ 161,069 $ 55,069
Liabilities and shareholders' equity
Trade payables $ 3,172 $ 1,693
Other liabilities and accrued expenses 22,500 11,646
Deferred revenue 9,908 6,517
Total current liabilities 35,580 19,856
Long-term debt and other long-term
liabilities 6,822 1,095
Shareholders' equity 118,667 34,118
Total liabilities and shareholders'
equity $ 161,069 $ 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 nine months ended
30/09/2011 30/09/2010 30/09/2011 30/09/2010
Unaudited Unaudited Unaudited Unaudited
Revenues $ 17,757 $ 13,148 $ 45,341 $ 37,568
Cost of
revenues $ 10,008 $ 7,773 $ 24,738 $ 21,745
Gross Profit 7,749 5,375 20,603 15,823
Operating
expenses
Research and
development,
net $ 1,655 $ 842 $ 3,906 $ 2,314
Selling,
marketing,
general and
administrative $ 4,732 $ 2,941 $ 11,936 $ 8,736
Operating
Profit 1,362 1,592 4,761 4,773
Financial
expenses
(income), net $ (276) $ 35 $ (175) $ 57
Other expenses,
net $ 41 $ 52 $ 41 $ 294
Net Income $ 1,597 $ 1,505 $ 4,895 $ 4,422
Attributable to
non-controlling
interest $ 42 $ - $ 42 $ (24)
Net income
attributable to
Sapiens $ 1,555 $ 1,505 $ 4,853 $ 4,446
Earnings per
share
Basic $ 0.05 $ 0.07 $ 0.20 $ 0.20
Diluted $ 0.05 $ 0.07 $ 0.18 $ 0.20
Weighted
average number
of shares used
to computation
of earnings per
share
Basic 29,894 22,058 24,681 21,862
Diluted 31,916 22,846 26,445 22,427
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 For the nine months
ended ended
30/09/2011 30/09/2010
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP operating
profit 1,362 1,592 4,761 4,773
Amortization of
intangibles assets
and compensation
related to
acquisition 700 154 1,290 257
Amortization of
capitalized
software 952 1,510 3,317 4,306
Capitalization of
software
development (970) (1,357) (3,400) (3,765)
Stock-based
compensation 72 139 231 327
Total adjustments
to GAAP 754 446 1,438 1,125
Non-GAAP operating
profit 2,116 2,038 6,199 5,898
GAAP net income 1,555 1,505 4,853 4,446
Total adjustments
to GAAP as above 754 446 1,438 1,125
Deferred taxes
related to
acquisition (20) (20) (65) (35)
Non-GAAP net income 2,289 1,931 6,226 5,536
Non-GAAP basic
earnings per share 0.08 0.09 0.25 0.25
Non-GAAP diluted
earnings per share 0.07 0.08 0.24 0.25
For More Information
Roni Giladi, CFO
Sapiens International
Tel: +972-8-938-2721
[email protected]
SOURCE Sapiens Technologies
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