Sapiens International Corporation N.V. News
SAPIENS Announces Q4 2007 and Year-End Results
CARY, North Carolina,
Highlights for 2007
-
-
- Five consecutive quarters of Operating Profit with
- Continued success of the Company's turnaround plan and its preparations for 2008
- Completion of
- Repurchase of Debentures and Payment of Second Installment of Principal of
U.S. GAAP
- Operating Profit for the year of
- Significant reduction in annual Net Loss by 34.2% to
- Operating Profit of
Non-GAAP
- Operating Profit for the year of
- Significant increase in Fourth Quarter Operating Profit of 190% to
U.S. GAAP results include amortization of capitalized software developments, capitalization of software development costs, and stock-based compensation expenses.
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 (Unaudited) For the three months ended For the year ended U.S. GAAP 12/31/2007 12/31/2006 12/31/2007 12/31/2006 Revenues 10,176 11,213 42,395 44,311 Operating profit (loss) 301 80 797 (1,257) Net loss (1,136) (767) (2,544) (3,825) Basic and diluted loss per share (0.05) (0.05) (0.14) (0.29) Non-GAAP Revenues 10,176 11,213 42,395 44,311 Operating profit (loss) 386 133 809 (1,197) Net loss (1,051) (714) (2,532) (3,765) Basic and diluted loss per share (0.05) (0.05) (0.14) (0.28)
Roni Al-Dor, President and CEO, commented "Among our many positive achievements in 2007, I am particularly proud to announce that Sapiens reports an Operating Profit, on an annual basis, for the first time since 1999. In addition, our hard work has paid off as we also report a
Mr. Al-Dor added, "We are not resting for a moment. We will leverage upon the financial successes of 2007 to grow with our existing customers and to capture new customers in the multi-billion dollar insurance markets."
Comment Regarding Non-GAAP
Sapiens' management believes that the presentation of Non-GAAP measures can enhance the understanding of the company's ongoing economic performance, and provides useful information to investors regarding financial and business trends relating to the company's financial condition and results of operations. Sapiens therefore uses internally the Non-GAAP information to evaluate and manage the Company's operations.
These 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. Sapiens believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Sapiens' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Sapiens' results of operations in conjunction with the corresponding GAAP measures.
Please refer to the Reconciliation of GAAP to Non-GAAP Results at the end of this release.
About Sapiens International
Sapiens International Corporation N.V. (Nasdaq and TASE: SPNS), a member of Formula Group (Nasdaq: FORTY and TASE: FORT), which is a member of the Emblaze Group (LSE: BLZ.L) 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
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) 12/31/2007 12/31/2006 (Unaudited) (Audited) Assets Cash and cash equivalents $ 13,125 $ 3,108 Short-term investments - 32 Trade receivables, net 7,549 11,010 Other current assets 1,835 1,689 Total current assets 22,509 15,839 Property and equipment, net 1,219 1,495 Other assets, net 28,804 28,285 Total Assets $ 52,532 $ 45,619 Liabilities and shareholders' equity Short-term bank credit and current maturities of long-term debt and convertible debentures $ 9,456 $ 15,603 Trade payables 1,088 2,019 Other liabilities and accrued expenses 8,375 7,370 Deferred revenue 4,203 3,463 Total current liabilities 23,122 28,455 Long-term debt and other long-term liabilities 1,132 1,439 Convertible debentures and warrants 6,428 11,796 Shareholders' equity 21,850 3,929 Total liabilities and shareholders' equity $ 52,532 $ 45,619 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 year ended 12/31/2007 12/31/2006 12/31/2007 12/31/2006 (Unaudited) (Unaudited) (Unaudited) (Audited) Revenues $ 10,176 $ 11,213 $ 42,395 $ 44,311 Cost of revenues $ 5,085 $ 7,319 $ 25,583 $ 28,801 Gross Profit 5,091 3,894 16,812 15,510 Operating expenses Research and development, net $ 1,823 $ 483 $ 3,502 $ 2,451 Selling, marketing, general and administrative $ 2,967 $ 3,254 $ 12,303 $ 13,558 Restructuring expenses - $ 77 $ 210 $ 758 Operating Profit (Loss) 301 80 797 (1,257) Financial expenses, net$ 1,058 $ 644 $ 2,689 $ 2,230 Other expenses, net (a) $ 379 $ 203 $ 652 $ 338 Net Loss $ 1,136 $ 767 $ 2,544 $ 3,825 Basic and diluted net loss per share (b) $ 0.05 $ 0.05 $ 0.14 $ 0.29 Weighted average shares used to compute basic and diluted net loss per share (b) 21,550 14,854 18,218 13,395 Note a: Includes taxes, equity losses, minority interest and capital losses due to repurchase of debentures. b: Due to the net loss in 2006 and 2007 the inclusion of dilutive securities would be antidilutive. 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 12/31/2007 12/31/2006 12/31/2007 12/31/2006 (Unaudited) (Unaudited) (Unaudited) (Unaudited) GAAP operating profit (loss) 301 80 797 (1,257) Amortization of intangibles and capitalization of software development 62 53 (98) 60 Stock-based compensation 23 - 110 - Total adjustments to GAAP 85 53 12 60 Non-GAAP operating profit (loss) 386 133 809 (1,197) GAAP net loss (1,136) (767) (2,544) (3,825) Total adjustments to GAAP as above 85 53 12 60 Non-GAAP net loss (1,051) (714) (2,532) (3,765) Non-GAAP basic and diluted net loss per share (0.05) (0.05) (0.14) (0.28) Weighted average number of shares used in computing basic and diluted net loss per share 21,550 14,854 18,218 13,395 For Additional Information: Roni Giladi Roni Al-Dor Chief Financial Officer Chief Executive Officer Sapiens International Sapiens International Tel: +972-8-938-2721 Tel: +972-8-938-2721 E-mail: IR.Sapiens@sapiens.com E-mail: IR.Sapiens@sapiens.com
SOURCE Sapiens International Corporation N.V.
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