Sapiens Continues its Revenue Growth with an Increase of 21% Year over Year to Record Revenue of $31.5M for Q1 2013
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REHOVOT, Israel, May 6, 2013 – Sapiens International Corporation, (NASDAQ and TASE: SPNS), a global provider of innovative software solutions for the financial services industry and a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), announces its financial results for the first quarter ended March 31, 2013.
First Quarter 2013 Highlights include:
- Revenue increased 21% to $31.5 million, compared to $26.0 million in the first quarter of 2012.
- Non-GAAP operating profit totaled $3.4 million, compared to $3.3 million in the first quarter of 2012.
- Non-GAAP net income attributable to Sapiens’ shareholders increased 5% to $3.4 million, compared to $3.2 million for the first quarter of 2012.
Balance Sheet and Cash Flow:
- Cash and cash equivalents totaled $25.6 million, after distribution of dividend in the amount of $5.8 million in February 2013. The company maintains its strong balance sheet with no debt.
- Total equity from total assets was 70%.
Roni Al-Dor, President and CEO of Sapiens, commented: “The first quarter was a strong start for Sapiens for the year 2013. We experience a growing demand for our solutions in our major markets and across all of our products: L&P, P&C, and Decision. The huge insurance market we operate in is actively looking for modern platforms to help carriers grow and better compete. Our business decision management solution is gaining traction with top-tier financial services, and we experienced growing interest in this market as well.”
Mr. Al-Dor continued: “We have made a strategic decision to increase our investments across our R&D, sales & marketing, and delivery. We believe that these investments will allow us to maintain our products’ excellence and further enrich their functionality; extend our market reach and visibility; and increase our delivery team to help meet the growing needs of our customers. In the short term, this will impact our gross and operating margins, but we believe it will also support our growth plans to become a market leader and achieve higher margins in the long term.”
Mr. Al-Dor concluded: “We reiterate our revenue guidance of $135 million for the year 2013.”
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: Non-GAAP revenue, Non-GAAP gross profit, Non-GAAP operating income, Non-GAAP net income, Non-GAAP basic and diluted earnings per share.
Sapiens believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Sapiens’ financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.
Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. Sapiens urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.
Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables of this release.
Sapiens International Corporation (NASDAQ and TASE: SPNS) is a global provider of innovative software solutions for the financial services industry. We offer core, end-to-end solutions for the general insurance, property & casualty, life, pension and annuities markets, and business decision management software, globally. We have a track record of over 30 years in delivering superior software solutions to more than 100 financial services organizations. Our team operates through our fully-owned subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific.
Information provided in this press release may contain statements relating to current expectations, estimates, forecasts and projections about future events that are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to the Company’s plans, objectives and expectations for future operations, including its projected results of operations and the expected timing of increasing the Company’s investments. These forward-looking statements are based upon management’s current estimates and projections of future results or trends. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These factors include, but are not limited to the discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2013 filed with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.