Sapiens 2011 Revenue Increases 34% to $70 Million
2011 Non-GAAP Net Income Grows 22% to $9.4 Million;
REHOVOT, Israel, March 7, 2012 /PRNewswire/ --
Sapiens International Corporation N.V. (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 fourth quarter and full year ended December 31, 2011.
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Fourth Quarter Year-over-Year Highlights include:
- Revenue increased 68% to $24.6 million, compared to $14.7 million in the fourth quarter of 2010;
- Non-GAAP net income increased 27% to $2.8 million compared to $2.2 million for fourth quarter of 2010;
Full Year 2011 Highlights include:
- Full year revenue increased 34% to $70.0 million, compared to $52.2 million in 2010;
- Non-GAAP operating income increased 11% to $9.2 million, compared to $8.3 million
- Non-GAAP net income increased 22% to $9.4 million, compared to $7.7 million in 2010;
- End of year cash and cash equivalent reached $21 million, no debt, with total equity of $115 million, representing 73% of total balance sheet
Roni Al Dor, CEO of Sapiens International, commented, "As expected, 2011 was a good year of performance for Sapiens, setting the stage for us to capitalize on growth trends in the insurance industry. Our revenue grew organically and non-organically by 34%. Our 2011 net income GAAP reach $5.9 million, compared to $6.2 million last year. This mainly due to the one-time restructuring and related transaction expenses following the merger that we have completed during the third quarter of 2011; on a non-GAAP basis we showed growth of 22% on our net profit."
"With our operations worldwide, over 70 top-tier insurance customers in multiple geographic markets, a proven track record, and regulation-compliant solutions to handle domestic and overseas expansion, I firmly believe Sapiens will grow to be recognized as a leader in the industry." Mr. Al-Dor continued. "Sapiens products and customers have been recognized for their business, technology and functionality excellence, winning excellent awards by industry analysts."
Mr. Al Dor concluded, "Looking ahead to 2012, we expect to cross the $100 million revenue bar."
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 years ended
31/12/2011 31/12/2010 31/12/2011 31/12/2010
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues 24,586 14,667 69,927 52,235
Operating profit 864 1,938 5,624 6,711
Net income 1,044 1,706 5,897 6,152
Basic earnings per share 0.03 0.08 0.21 0.29
Diluted earnings per share 0.02 0.07 0.19 0.28
Non GAAP
Revenues 24,586 14,667 69,927 52,235
Operating profit 2,635 2,408 9,224 8,306
Net income 2,761 2,156 9,377 7,692
Basic earnings per share 0.07 0.10 0.33 0.36
Diluted earnings per share 0.07 0.09 0.31 0.35
About Sapiens International
Sapiens International Corporation (NASDAQ and TASE: SPNS), is a 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)
31/12/2011 31/12/2010
(Unaudited) (Unaudited)
Assets
Cash and cash equivalents $ 21,460 $ 16,182
Restricted cash 456 -
Trade receivables, net 14,484 5,511
Other current assets 3,485 3,031
Total current assets 39,885 24,724
Property and equipment, net 1,814 1,161
Other assets, net 115,779 32,834
Total assets $ 157,478 $ 58,719
Liabilities and shareholders' equity
Trade payables $ 3,233 $ 1,693
Other liabilities and
accrued expenses 18,985 11,646
Deferred revenue 9,584 6,517
Total current liabilities 31,802 19,856
Long-term debt and other
long-term liabilities 10,954 4,745
Shareholders' equity 114,722 34,118
Total liabilities and shareholders' equity $ 157,478 $ 58,719
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 years ended
31/12/2011 31/12/2010 31/12/2011 31/12/2010
Unaudited Unaudited Unaudited Unaudited
Revenues $ 24,586 $ 14,667 $ 69,927 $ 52,235
Cost of revenues $ 15,354 $ 8,176 $ 40,067 $ 29,921
Gross Profit 9,232 6,491 29,860 22,314
Operating expenses
Research and
development, net $ 1,126 $ 979 $ 5,008 $ 3,293
Selling, marketing,
general and
administrative $ 6,517 $ 3,574 $ 18,113 $ 12,310
Restructuring
and other related
transaction costs $ 725 $ - $ 1,115 $ -
Operating Profit 864 1,938 5,624 6,711
Financial expenses
(income), net $ 20 $ 307 $ (155) $ 364
Other expenses
(income), net $ (205) $ (117) $ (164) $ 177
Net Income $ 1,049 $ 1,748 $ 5,943 $ 6,170
Attribute table to
non-controlling
interest $ 5 $ 42 $ 46 $ 18
Net income attributable
to Sapiens $ 1,044 $ 1,706 $ 5,897 $ 6,152
Earnings per share
Basic $ 0.03 $ 0.08 $ 0.21 $ 0.29
Diluted $ 0.02 $ 0.07 $ 0.19 $ 0.28
Weighted average number
of shares used to
computation of earnings
per share
Basic 39,647 22,058 28,461 21,583
Diluted 41,955 22,846 30,361 22,181
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 years ended
31/12/2011 31/12/2010 31/12/2011 31/12/2010
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP operating profit 864 1,938 5,624 6,711
Amortization of intangibles assets
and compensation related to
acquisition 1,003 444 2,293 701
Amortization of capitalized
software 1,227 1,563 4,544 5,869
Capitalization of software
development (1,287) (1,622) (4,687) (5,387)
Stock-based compensation 104 85 335 412
Restructuring and other related
transaction costs 725 - 1,115 -
Total adjustments to GAAP 1,772 470 3,600 1,595
Non-GAAP operating profit 2,635 2,408 9,224 8,306
GAAP net income 1,044 1,706 5,897 6,152
Total adjustments to GAAP as above 1,772 470 3,600 1,595
Non-controlling interest in
amortization intangible assets (35) - (35) -
Deferred taxes related to
acquisition (20) (20) (85) (55)
Non-GAAP net income 2,761 2,156 9,377 7,692
Non-GAAP basic earnings per share 0.07 0.10 0.33 0.36
Non-GAAP diluted earnings per share 0.07 0.09 0.31 0.35
Weighted average number of shares
used to computation of earnings
per share
Basic 39,647 22,058 28,461 21,583
Diluted 41,955 22,846 30,361 22,181
Investor Relations Contact:
Roni Giladi, CFO
Sapiens International
Tel: +972-8-9382721
E-mail: [email protected]
or
James Carbonara, Regional Vice President
Hayden IR
Office: +1-646-755-7412
[email protected]
SOURCE Sapiens International Corporation N.V.
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