Sapiens Q1 2012 Revenue Nearly Doubled Year Over Year Reaching $26 Million
Non-GAAP Net Income Grows 63% to $3.2 Million
REHOVOT, Israel, May 8, 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 first quarter ended March 31, 2012.
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First Quarter 2012 Highlights Include:
- Revenue increased 95% to $26.0 million, compared to $13.3 million in the first quarter of 2011;
- Non-GAAP net income increased 63% to $3.2 million compared to $2.0 million for first quarter of 2011;
- Non-GAAP operating profit increased 63% to $3.3 million, compared to $2.0 million in first quarter of 2011;
- Non-GAAP EPS is $0.08 per diluted share, compared to $0.08 per diluted share in first quarter of 2011;
- Three Sapiens Clients, Philadelphia Insurance Companies, DirectAsia.com, and L&T General Insurance, Named Winners of Celent Model Insurer Awards;
- Announced a new release of the IDIT™ Software Suite;
- The Company ended the quarter with $27.1 million in cash, compared to $21.5 million at December 31, 2011.
Commenting on the first quarter results, Roni Al Dor, President and CEO of Sapiens International, "The first quarter was a good start for Sapiens, as we begin our first full year following the acquisitions of IDIT and FIS. Our revenue grew by 95%, non-GAAP net income & non-GAPP operating profit both increased 63.0%. We will continue to improve the operational efficiencies of the newly acquired entities and expand the margins, as we have done many times in the past, with other companies, including Sapiens itself.
As a global provider of insurance solutions, with new products, geographical coverage and channels to sell in to, we are very encouraged about our opportunities for growth. We are seeing high demand for our products in North America, and have increased our staff by 30 employees in the last quarter due to demand from customers. Compounding our growth prospects are the market dynamics, insurance companies shifting its information technology (IT) spend to external providers."
Mr. Al Dor continued, "We reiterate our guidance for 2012 to grow revenue in excess of $100 million."
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
U.S GAAP basis 3/31/2012 3/31/2011
(Unaudited) (Unaudited)
Revenues 25,983 13,325
Operating profit 2,441 1,720
Net income attributable to Sapiens 2,388 1,673
Basic earnings per share 0.06 0.08
Diluted earnings per share 0.06 0.07
Non-GAAP
Revenues 25,983 13,325
Operating profit 3,308 2,034
Net income attributable to Sapiens 3,211 1,963
Basic earnings per share 0.08 0.09
Diluted earnings per share 0.08 0.08
First Quarter 2012 Results
Revenue for the first quarter of 2012 was $26.0 million, compared to $13.3 million for the first quarter of 2011; an increase of 95%. Net income attributable to Sapiens on a GAAP basis was $2.4 million for the first quarter of 2012, compared to net income of $1.7 million for the first quarter of 2011. EPS was $0.06 per diluted share for the first quarter of 2012 compared to $0.07 per diluted share for the first quarter of 2011. GAAP operating income was $2.4 million for the first quarter of 2012, compared to $1.7 million for the first quarter of 2011.
Non-GAAP net income attributable to Sapiens for the first quarter of 2012 totaled $3.2 million, compared to non-GAAP net income of $2.0 million for the first quarter of 2011. Non-GAAP EPS was $0.08 per diluted share for the first quarter of 2012, compared to $0.08 per diluted share for the first quarter of 2011. Non-GAAP operating income was $3.3 million for the three months ended March 31, 2012, compared to $2.0 million in the same period last year.
About Sapiens International
Sapiens International Corporation (NASDAQ and TASE: SPNS), is a leading 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)
3/31/2012 12/31/2011
(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 27,093 $ 21,460
Restricted cash 464 456
Trade receivables, net 18,953 14,484
Other current assets 3,476 3,229
Total current assets 49,986 39,629
Property and equipment, net 1,767 1,814
Other assets, net 113,740 112,025
Total assets $ 165,493 $ 153,468
Liabilities and shareholders' equity
Trade payables $ 2,530 $ 2,559
Other liabilities and accrued expenses 18,019 19,731
Deferred revenue 17,271 9,603
Total current liabilities 37,820 31,893
Long-term debt and other long-term
liabilities 11,591 11,328
Equity 116,082 110,247
Total liabilities and equity $ 165,493 $ 153,468
SAPIENS INTERNATIONAL CORPORATION N.V.
Condensed Consolidated Statements of Operations
(U.S. Dollars in thousands, except per share amounts)
For the three months ended
3/31/2012 3/31/2011
Unaudited Unaudited
Revenues $ 25,983 $ 13,325
Cost of revenues $ 15,157 $ 7,125
Gross Profit 10,826 6,200
Operating expenses
Research and development,
net $ 2,300 $ 1,060
Selling, marketing,
general and administrative $ 6,085 $ 3,420
Operating Profit 2,441 1,720
Financial expenses
(income), net $ (61) $ 41
Other expenses, net $ 108 $ 6
Net Income $ 2,393 $ 1,673
Attributetable to
non-controlling interest $ 5 $ -
Net income attributable to
Sapiens $ 2,388 $ 1,673
Earnings per share
Basic $ 0.06 $ 0.08
Diluted $ 0.06 $ 0.07
Weighted average number of
shares used to computation
of earnings per share
Basic 39,719 21,602
Diluted 42,401 23,199
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
3/31/2012 3/31/2011
(Unaudited) (Unaudited)
GAAP operating profit 2,441 1,720
Amortization of intangibles assets
and compensation
related to acquisition 863 294
Amortization of capitalized software 834 1,090
Capitalization of software development (980) (1,155)
Stock-based compensation 150 85
Total adjustments to GAAP 867 314
Non-GAAP operating profit 3,308 2,034
GAAP net income 2,388 1,673
Total adjustments to GAAP as above 867 314
Non-controlling interest in amortization
intangible assets (24) -
Deferred taxes related to acquisition (20) (24)
Non-GAAP net income 3,211 1,963
Non-GAAP basic earnings per share 0.08 0.09
Non-GAAP diluted earnings per share 0.08 0.08
Weighted average number of shares used to
computation of
earnings per share
Basic 39,719 21,602
Diluted 42,401 23,199
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: +1-646-755-7412
James@haydenir.com
SOURCE Sapiens International Corporation
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