Sapiens Q3 2012 Revenue Increases 67% to $29.6 Million
Q3 Operating profit grows 144% to $3.3 Million; Q3 Non-GAAP Operating Profit margin expands during 2012 to 14%
REHOVOT, Israel, November 13, 2012 /PRNewswire/ --
Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a provider of innovative software solutions for the financial services and a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), announces its financial results for the third quarter ended September 30, 2012.
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Third Quarter Year-over-Year Financial and Business Highlights include:
- Revenue increased 67% to $29.6 million, compared to revenue of $17.8 million in the third quarter of 2011
- Non-GAAP operating profit increased 96% to $4.1 million, compared to $2.1 million in third quarter of 2011. Operating profit grows 144% to $3.3 million, compared to $1.4 million in the third quarter of 2011
- Non-GAAP net income increased 86% to $4.3 million, compared to $2.3 million in the third quarter of 2011. Net income increased by 123% to $3.5 million, compared to $1.6 million in the third quarter of 2011
- Non-GAAP operating profit margin expanded to 14.0%, compared to $11.9% for third quarter of 2011
- Non-GAAP diluted EPS was $0.10, compared to $0.07 per diluted share for the third quarter of 2011.
- Sapiens has signed several new customers, including MTL Insurance (US) with Sapiens ALIS and MDIS (UK) with Sapiens IDIT
- Cash position at the end of the quarter reached $33.1 million, compared to $21.5 million at December 31, 2011
Nine months Year-over-Year Financial Highlights include:
- Revenue increased 82% to $82.7 million, compared to revenue of $45.3 million in the same period last year
- Non-GAAP operating profit increased 80% to $11.2 million, compared to $6.2 million in same period last year
- Non-GAAP net income increased 76% to $11.0 million, compared to $6.2 million in the same period last year
- Non-GAAP diluted EPS was $0.26, compared to $0.24 per diluted share for the same period last year.
Roni Al Dor, President & CEO of Sapiens International, commented, "Q3 was another strong quarter for Sapiens. We were extremely pleased with the opportunity to partner with new customers, further establishing Sapiens as a market leader. Sapiens client base is rapidly growing, and our market recognition in the global market is further enhanced, with the adoption of our Property & Casualty, Life & Annuity and Decision Management solutions. We are growing rapidly, profitably and we are expanding margins. To meet our growth plans, we are also growing our team of insurance and technology experts, globally. Sapiens continues to execute and is well positioned to accelerate profitable growth as a leading global provider of innovative software solutions and services."
Increased 2012 Guidance
Mr. Al Dor continued, "As a result of the year-to-date progress, and our strengthening sales pipeline, we are increasing our 2012 revenue guidance. We now expect to exceed $113 million in revenue for the year."
Non-GAAP Financial Measures
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, share-based compensation expenses and certain business combination accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our 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. We believe that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods.
U.S. Dollars in thousands,
except per share amounts
For the three months ended For the year ended
U.S GAAP
basis 30/09/2012 30/09/2011 30/09/2012 30/09/2011
(Unaudited) (Unaudited) (Unaudited) (Audited)
Revenues 29,574 17,757 87,739 45,341
Gross profit 12,919 7,749 35,355 20,603
Operating
profit 3,323 1,362 8,526 4,761
Net income 3,474 1,555 8,464 4,853
Basic
earnings
per share 0.09 0.05 0.21 0.20
Diluted
earning
per share 0.08 0.05 0.20 0.18
Non-GAAP
Revenues 29,549 17,834 83,058 45,418
Gross profit 13,956 8,916 38,871 24,135
Operating
profit 4,145 2,117 11,168 6,200
Net income 4,254 2,290 10,978 6,227
Basic
earnings
per share 0.11 0.08 0.28 0.25
Diluted
earnings
per share 0.10 0.07 0.26 0.24
About Sapiens International
Sapiens International Corporation (NASDAQ and TASE: SPNS) is a global provider of innovative software solutions for the financial services market with focus on insurance. We serve over 100 financial services customers, backed by a team of over 800 experts, operating through fully-owned 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 Statements of Operations
(U.S. Dollars in thousands, except per share amounts)
For the three months ended For the nine months ended
30/09/2012 30/09/2011 30/09/2012 30/09/2011
Unaudited Unaudited Unaudited Unaudited
Revenues $ 29,574 $ 17,757 $ 82,739 $ 45,341
Cost of
revenues $ 16,655 $ 10,008 $ 47,384 $ 24,738
Gross Profit 12,919 7,749 35,355 20,603
Operating
expenses
Research and
development,
net $ 2,830 $ 1,655 $ 7,575 $ 3,906
Selling,
marketing,
general and
administrative $ 6,766 $ 4,732 $ 19,254 $ 11,936
Total operating
expenses $ 9,596 $ 6,387 $ 26,829 $ 15,842
Operating
Income 3,323 1,362 $ 8,526 4,761
Financial
income, net $ (239) $ (276) $ (385) $ (175)
Taxes and other
expenses (income),
net $ 43 $ 41 $ 424 $ 41
Net Income $ 3,519 $ 1,597 $ 8,487 $ 4,895
Attributetable
to
non-controlling
interest $ 45 $ 42 $ 23 $ 42
Net income
attributable to
Sapiens $ 3,474 $ 1,555 $ 8,464 $ 4,853
Earnings per
share
Basic $ 0.09 $ 0.05 $ 0.21 $ 0.20
Diluted $ 0.08 $ 0.05 $ 0.20 $ 0.18
Weighted
average number
of shares used
to computation
of earnings per
share
Basic 40,294 29,894 39,771 24,681
Diluted 42,230 31,916 41,733 26,445
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
30/09/2012 30/09/2011 30/09/2012 30/09/2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
GAAP revenues 29,574 17,757 82,739 45,341
Valuation
adjustment on
acquired
deferred
revenue and
long term
contract (25) 77 319 77
Non-GAAP
revenues 29,549 17,834 83,058 45,418
GAAP gross
profit 12,919 7,749 35,355 20,603
Revenues
adjustment (25) 77 319 77
Amortization of
capitalized
software 857 952 2,566 3,317
Amortization of
other
intangible
assets 205 138 631 138
Non-GAAP gross
profit 13,956 8,916 38,871 24,135
GAAP operating
income 3,323 1,362 8,526 4,761
Gross profit
adjustment 1,034 1,167 3,516 3,532
Capitalization
of software
development (730) (970) (2,645) (3,400)
Amortization of
other
intangible
assets 357 486 1,305 1,076
Stock-based
compensation 158 72 466 231
Non-GAAP
operating
profit 4,145 2,117 11,168 6,200
GAAP net income
attributable to
Sapiens
shareholders 3,474 1,555 8,464 4,853
Operating
income
adjustments 822 755 2,642 1,439
Non-controlling
interest in
amortization
intangible
assets (20) (66)
Deferred taxes
related to
acquisition (22) (20) (62) (65)
Non-GAAP net
income
attributable to
Sapiens
shareholders 4,254 2,290 10,978 6,227
Non-GAAP basic
earnings per
share 0.11 0.08 0.28 0.25
Non-GAAP
diluted
earnings per
share 0.10 0.07 0.26 0.24
Weighted
average number
of shares used
to computation
of earnings per
share
Basic 40,294 29,894 39,771 24,681
Diluted 42,230 31,916 41,733 26,445
SAPIENS INTERNATIONAL CORPORATION N.V.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
30/09/2012 31/12/2011
(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 33,110 $ 21,460
Restricted cash 341 456
Trade receivables, net 16,978 14,484
Other receivables and prepaid expenses 3,097 3,229
Total current assets 53,526 39,629
Property and equipment, net 2,007 1,814
Severance pay fund 9,793 10,172
Other intangible assets, net 31,979 35,138
Goodwill 65,427 66,715
Total Long-term assets 109,206 113,839
Total assets $ 162,732 $ 153,468
Liabilities and Equity
Trade payables $ 3,760 $ 2,559
Accrued expenses and other
liabilities 18,335 19,731
Deferred revenue 10,417 9,603
Total current liabilities 32,512 31,893
Other long-term liabilities 631 614
Accrued severance pay 11,369 10,714
Long-term liabilities 12,000 11,328
EQUITY 118,220 110,247
Total liabilities and shareholders' equity $ 162,732 $ 153,468
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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