Sapiens Reports Strong Q4 Net Profit in 2009; Non GAAP 2009 Annual Operating Profit of $6.53 Million
CARY, North Carolina, March 10, 2010 /PRNewswire-FirstCall/ --
- Q4/2009 Revenues Increased 7% Compared to Q4 2008 to $11.77 Million
- Q4/2009 Non-GAAP Net Income of $1.87 Million
- Non-GAAP Annual Operating Profit Almost Doubled to $6.53 Million Compared to $3.38 Million in 2008
- $11.17 Million in Cash and Cash Equivalents , and Zero Debt, as of December 31, 2009
Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a leading 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 fourth quarter and full year ended December 31, 2009.
Fourth Quarter 2009 Highlights Include:
- Revenues increased 7% compared to Q4 2008, reaching $11.77 million
- GAAP Net income reached $1.26 million, 25% higher than Q4 of 2008
- Non-GAAP Operating profit more than doubled to $2.12 million, compared
to Q4 2008
Fiscal Year 2009 Highlights Include:
- Annual revenue grew to $45.7 million
- Non-GAAP annual operating profit almost doubled to $6.53 million
compared to $3.38 million in 2008
- Annual net income significantly grew to $4.2 million in 2009, compared
to loss of $334,000 in 2008
- Total shareholders' equity of $26.4 million in December 2009 which
represents 57.7% of the total balance sheet, compared to 48.4% in
December 2008.
Roni Al-Dor, President and CEO of Sapiens International Corporation, commented, "I am pleased to report that we have brought the company back to the growth path, with zero debt and a relatively strong cash position. These positive results validate our strategy and the investments made in improving our product offering, our market reach and our team. The net income of $4.2 million in 2009 confirms the path we have carefully paved. These results were achieved thanks to focusing our resources - people and funds - in the growth engines we have identified. In 2010, we intend to focus on growing our client base, while maintaining our strong relations with our existing ones. We expect that these achievements, coupled with our technology, products, and excellent team, will drive our future growth." concluded Mr. Al-Dor.
Mr. Al Dor continued: "During 2009, we signed several long-term deals that proved once more the confidence our customers have in Sapiens. We continued our investments in the insurance solutions portfolio and will look to new investments to meet the demanding needs of the insurance market" Mr. Al-Dor concluded.
Mr. Roni Giladi, CFO of Sapiens International Corporation, added: "In December 2009, we paid approximately $5.3 million which represented the fourth and last installment of the Series "A" Debentures. Today Sapiens is in a firm financial position, with zero debt".
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 ended For the year ended
U.S GAAP basis 12/31/2009 12/31/2008 12/31/2009 12/31/2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues 11,767 11,007 45,695 43,534
Operating profit 1,512 774 5,341 2,485
Net income (loss) 1,262 1,007 4,201 (344)
Basic earning (loss)
per share 0.06 0.05 0.19 (0.02)
Diluted earning (loss)
per share 0.06 0.05 0.19 (0.02)
NonGAAP
Revenues 11,767 11,007 45,695 43,534
Operating profit 2,118 1,030 6,531 3,378
Net income 1,868 1,263 5,391 549
Basic earning per share 0.09 0.06 0.25 0.03
Diluted earning per share 0.09 0.06 0.25 0.03
U.S. GAAP results include amortization of capitalized software developments, capitalization of software development costs, and stock-based compensation expenses.
Comment Regarding Non-GAAP
Sapiens' management believes that the presentation of non-GAAP measures can enhance the understanding of the company's ongoing economic performance, and provides useful information to investors regarding financial and business trends relating to the company's financial condition and results of operations. Sapiens therefore uses internally the non-GAAP information to evaluate and manage the Company's operations.
This 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. Sapiens believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Sapiens' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Sapiens' results of operations in conjunction with the corresponding GAAP measures.
Please refer to the Reconciliation of GAAP to Non-GAAP Results at the end of this release.
About Sapiens International
Sapiens International Corporation N.V. 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. For more information, please 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 the Company's accounting policies, specific system configurations and
software needs of individual customers and other risk factors detailed in the
Company's SEC filings.
SAPIENS INTERNATIONAL CORPORATION N.V.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
12/31/2009 12/31/2008
(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 11,172 $ 7,938
Trade receivables, net 5,132 6,860
Other current assets 2,621 2,565
Total current assets 18,925 17,363
Property and equipment, net 897 1,055
Other assets, net 25,952 26,759
Total assets $ 45,774 $ 45,177
Liabilities and shareholders' equity
Current maturities of
long-term debt and convertible
debentures $ - $ 5,745
Trade payables 1,197 1,500
Other liabilities and accrued expenses 10,199 9,716
Deferred revenue 6,991 4,908
Total current liabilities 18,387 21,869
Long-term debt and other
long-term liabilities 972 1,432
Shareholders' equity 26,415 21,876
Total liabilities and
shareholders' equity $ 45,774 $ 45,177
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 year ended
12/31/2009 12/31/2008 12/31/2009 12/31/2008
Unaudited Unaudited Unaudited Audited
Revenues $ 11,767 $ 11,007 $ 45,695 $ 43,534
Cost of revenues $ 7,388 $ 7,010 $ 26,571 $ 26,457
Gross Profit 4,379 3,997 19,124 17,077
Operating expenses
Research and
development, net $ 950 $ 1,352 $ 2,735 $ 3,884
Selling, marketing,
general and
administrative $ 1,917 $ 1,871 $ 11,048 $ 10,708
Operating Profit 1,512 774 5,341 2,485
Financial expenses
(income), net $ 132 $ (530) $ 880 $ 2,236
Other expenses, net $ 118 291 $ 260 552
Net Income (Loss) $ 1,262 $ 1,013 $ 4,201 $ (303)
Attributetable to
non-controlling
interest $ - $ 6 $ - $ 41
Net income (Loss)
attributable to
Sapiens $ 1,262 $ 1,007 $ 4,201 $ (344)
Earning (loss)
per share
Basic $ 0.06 $ 0.05 $ 0.19 $ (0.02)
Diluted $ 0.06 $ 0.05 $ 0.19 $ (0.02)
Weighted average
number of shares used
to computation of
earning (loss) per
share
Basic 21,591 21,577 21,591 21,550
Diluted 21,593 21,600 21,592 21,550
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
12/31/2009 12/31/2008 12/31/2009 12/31/2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP operating profit 1,512 774 5,341 2,485
Amortization of intangibles 1,352 989 4,623 4,224
Capitalization of
software development (851) (783) (3,692) (3,496)
Stock-based compensation 105 50 259 165
Total adjustments to GAAP 606 256 1,190 893
Non-GAAP operating profit 2,118 1,030 6,531 3,378
GAAP net income (loss) 1,262 1,007 4,201 (344)
Total adjustments to
GAAP as above 606 256 1,190 893
Non-GAAP net income 1,868 1,263 5,391 549
Non-GAAP basic earnings
per share 0.09 0.06 0.25 0.03
Non-GAAP diluted earnings
per share 0.09 0.06 0.25 0.03
Weighted average number of
shares used to computation
of earning (loss) per share
Basic 21,591 21,577 21,591 21,550
Diluted 21,593 21,600 21,592 21,550
For Additional Information:
Roni Giladi
Chief Financial Officer
Sapiens International
Tel: +972-8-938-2721
E-mail: [email protected]
Roni Al-Dor
Chief Executive Officer
Sapiens International
Tel: +972-8-938-2721
E-mail: [email protected]
SOURCE Sapiens International Corporation N.V
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