CARY, North Carolina, November 19 /PRNewswire-FirstCall/ -- Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS) today announced its financial results for the third quarter of 2006, ended September 30, 2006. The Company showed continued improved results and a strong commitment to achieve operational turnaround with sustained profitability and strong growth.
Revenues increased 14% to $11.3 million, up from $9.9 million in the third quarter of 2005. Revenues totaled $33.4 million for the first nine months of 2006, up from $29.6 million for the first nine months of 2005. Operating Loss, including a $0.36 million write-off due to bad debt, decreased 77% to $0.21 million, down from $0.94 million in the third quarter of 2005. Net of the write-off, the company showed an Operating Profit of $0.15 million for the third quarter. Operating Loss for the first nine months of 2006, decreased to $0.91 million, down from $4.6 million for the first nine months of 2005.
Net Loss significantly decreased 61% to $0.62 million in the quarter, from $1.6 million in the third quarter of 2005. Net Loss for the first nine months of 2006 decreased to $2.6 million, down from $5.9 million for the first nine months of 2005.
Roni Al-Dor, President and CEO, commented "Our shareholders now see the first signs of our intended turnaround. Our two consecutive quarters of significant operational improvement are very encouraging and a great start. We have the repeat customers, the products, the technological edge and the will. We have planted the seeds for our future."
FOR ADDITIONAL INFORMATION:
Elior Brin Roni Al-Dor
Chief Financial Officer Chief Executive Officer
Sapiens International Sapiens International
Tel: +972-8-938-2934 Tel: +972-8-938-2934
E-mail: E-mail:
Sapiens International Corporation N.V. , a member of Formula Group and , is a leading global provider of proven IT solutions that modernize business processes and enable 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, and has partnerships with market leaders such as IBM and EDS. Sapiens' clients include AXA, Liverpool Victoria, Norwich Union, OneBeacon, Principal Financial Group, Prudential, ING, and Occidental Fire & Casualty among others. 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)
9/30/2006 12/31/2005
Unaudited
Assets
Cash and cash equivalents $ 4,783 $ 6,699
Short-term investments 499 5,337
Trade receivables, net 12,433 8,339
Other current assets 2,044 1,621
Total current assets 19,759 21,996
Property and equipment, net 1,562 1,716
Other assets, net 28,710 28,154
Total assets $ 50,031 $ 51,866
Liabilities and shareholders'
equity
Short-term bank credit and
current maturities
of long-term debt and
convertible debentures $ 11,666 $ 19,112
Trade payables 2,305 1,910
Other liabilities and
accrued expenses 8,627 6,742
Deferred revenue 4,464 4,867
Total current liabilities 27,062 32,631
Long-term debt and other
long-term liabilities 1,874 1,584
Convertible debentures and
warrants 16,345 14,019
Shareholders' equity 4,750 3,632
Total liabilities and
shareholders' equity $ 50,031 $ 51,866
SAPIENS INTERNATIONAL CORPORATION N.V.
Unaudited Condensed Consolidated Statements of Operations
(U.S. Dollars in thousands, except per share amounts)
For the three months For the nine months
ended ended
9/30/2006 9/30/2005 9/30/2006 9/30/2005
Revenues
Products $ 3,686 $ 3,648 $ 11,072 $ 9,748
Consulting and
other services 7,616 6,272 22,371 19,885
Total revenues 11,302 9,920 33,443 29,633
Cost of
revenues
Products 3,366 3,128 9,287 8,265
Consulting and
other services 3,904 3,047 12,195 10,314
Total cost of
revenues 7,270 6,175 21,482 18,579
Gross Profit 4,032 3,745 11,961 11,054
Operating
expenses
Research and
development,
net 682 776 1,968 2,243
Selling,
marketing,
general and
administrative 3,535 3,644 10,243 12,258
Restructuring
expenses 25 267 656 1,113
Operating Loss 210 942 906 4,560
Financial
expenses, net 372 605 1,586 1,381
Other
expenses, net
(b) 41 82 135 41
Net Loss $ 623 $ 1,629 $ 2,627 $ 5,982
Basic and
diluted loss
per share (c) $ 0.05 $ 0.13 $ 0.20 $ 0.51
Weighted
average shares
used to
compute basic
and diluted
loss
per share (c) 13,707 12,491 12,909 11,811
Note a: Certain prior year's amounts have
been reclassified to conform with
current year presentation
b: Includes taxes and minority interest
c: Due to the net loss in 2005 and
2006 the inclusion of dilutive
securities would be
antidilutive.
