Sapiens Q3 2012 Revenue Increases 67% to $29.6 Million

2012-11-13

 

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 - 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 third quarter ended September 30, 2012.

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 a 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 nine months ended

U.S GAAP basis

 

30/09/2012

 

30/09/2011

 

30/09/2012

 

30/09/2011

   

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

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 earnings 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.

 

Investor Relations Contact: 

Roni Giladi, CFO 
Sapiens International 
Tel: +972-8-9382721 
E-mail: roni.g@sapiens.com

Or

James Carbonara, Regional Vice President

Hayden IR

Office: (646)-755-7412

E-mail: James@haydenir.com