SECURITIES AND
EXCHANGE COMMISSION
Washington D.C. 20549
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Sapiens International
Corporation N.V.
(translation
of registrant’s name into English)
c/o Landhuis Joonchi
Kaya Richard J. Beaujon z/n
P.O. Box 837
Willemstad
Curaçao,
Netherlands Antilles
(599) (9) 7366277
(address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2 (b) under the Securities Exchange Act of 1934
Yes o No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______________.
SAPIENS ANNOUNCES Q2
2008 RESULTS
Company Reports Seventh Consecutive Quarter of Operating Profit;
Approximately $2.4 million of Cash Flow from Operations
Cary, N.C. – August 13, 2008 – Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a member of the Emblaze/Formula Group (LSE:BLZ.L) (NASDAQ: FORTY and TASE: FORT), today announced its results of operations for the second quarter of 2008.
Highlights for Q2 2008 and H1 2008
| — | Revenue in the second quarter of 2008 reached $11 million, a 3% increase from the second quarter of 2007. |
| — | The second quarter of 2008 shows seventh consecutive quarter of operating profit with $579,000, a significant increase of 257% from the second quarter of 2007. |
| — | Cash flow from operations in the second quarter of 2008 is approximately $2.4 million. |
| — | Operational profit for the first six months of the year is $ 1 million. |
| — | During the first six months of the year, the company generated $2.8 million in cash flow from operations, reaching total cash equivalents and short term investments on hand of $12 million. |
| — | Sapiens is enjoying an increasing pipeline of potential deals with major customers’ world wide. |
| U.S. GAAP |
| — | Operating profit of $579,000, a 257% increase from the second quarter of 2007 and a 37% increase from the first quarter of 2008. |
| Non-GAAP |
| — | Operating profit of $689,000, a turn around from the operating loss of $57,000 in the second quarter of 2007, and a 32% increase from $522,000 in the first quarter of 2007. |
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
| For the three months
ended |
For the six months
ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 06/30/2008 |
06/30/2007 |
06/30/2008 |
06/30/2007 | |||||||||||
| (Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited | |||||||||||
| U.S GAAP basis | ||||||||||||||
| Revenues | 11,012 | 10,680 | 21,503 | 21,687 | ||||||||||
| Operating profit | 579 | 162 | 1,002 | 311 | ||||||||||
| Net loss | (526 | ) | (715 | ) | (1,726 | ) | (1,120 | ) | ||||||
| Basic and diluted loss per share | 0.02 | 0.05 | 0.08 | 0.07 | ||||||||||
| NonGAAP | ||||||||||||||
| Revenues | 11,012 | 10,680 | 21,503 | 21,687 | ||||||||||
| Operating profit (loss) | 689 | (57 | ) | 1,211 | (59 | ) | ||||||||
| Net loss | (416 | ) | (934 | ) | (1,517 | ) | (1,490 | ) | ||||||
| Basic and diluted loss per share | 0.02 | 0.06 | 0.07 | 0.10 | ||||||||||
Roni Al-Dor, President and CEO, commented “Today we reported our seventh consecutive quarter of operating profit, which proves our strategy direction and improving performance. In the last six months we achieved a significant improvement in the aggregate of $1 million in operational profit and $2.8 million in cash flow from operations. The net loss is a result of financial expenses relating to the Company’s debentures due to the evaluation of the New Israeli Shekel exchange rate against the U.S. Dollar. Neutralizing this exchange rate decrease, Sapiens would be reporting net income today. However, despite the drop in the U.S Dollar/New Israeli Shekel exchange rate, we reported an operational profit of $579,000, an improvement compared with the first quarter of 2008 and the second quarter of 2007. In addition, we improved our pipe line, competing in a few major tenders and face several promising opportunities which we expect will become signed agreements in 2008.
Mr. Al-Dor added, “We thank our customers, our investors and our employees for the good news we reported today”.
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.
This 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.
| 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 |
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 North America, the United
Kingdom, EMEA and Asia Pacific, and has partnerships with market leaders such as IBM and
EDS. Sapiens’ clients include AXA, ING, Liverpool Victoria, Menora Mivtachim, Norwich
Union, Occidental Fire & Casualty, OneBeacon, Principal Financial Group, Santam and
Texas Farm Bureau 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)
| 06/30/2008 |
12/31/2007 | |||||||
|---|---|---|---|---|---|---|---|---|
| (Unaudited) |
(Audited) | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 8,990 | $ | 13,125 | ||||
| Short-term investments | 3,000 | - | ||||||
| Trade receivables, net | 9,397 | 7,549 | ||||||
| Other current assets | 2,287 | 1,881 | ||||||
| Total current assets | 23,674 | 22,555 | ||||||
| Property and equipment, net | 1,229 | 1,219 | ||||||
| Other assets, net | 30,485 | 28,758 | ||||||
| Total assets | $ | 55,388 | $ | 52,532 | ||||
| Liabilities and shareholders' equity | ||||||||
| Short-term bank credit and current maturities | ||||||||
| of long-term debt and convertible debentures | $ | 7,539 | $ | 9,456 | ||||
| Trade payables | 1,872 | 1,088 | ||||||
| Other liabilities and accrued expenses | 10,166 | 8,375 | ||||||
| Deferred revenue | 6,066 | 4,203 | ||||||
| Total current liabilities | 25,643 | 23,122 | ||||||
| Other long-term liabilities | 1,740 | 1,132 | ||||||
| Convertible debentures | 5,885 | 6,428 | ||||||
| Shareholders' equity | 22,120 | 21,850 | ||||||
| Total liabilities and shareholders' equity | $ | 55,388 | $ | 52,532 | ||||
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 six months ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 06/30/2008 |
06/30/2007 |
06/30/2008 |
06/30/2007 | |||||||||||
| Unaudited |
Unaudited |
Unaudited |
Unaudited | |||||||||||
| Revenues | $ | 11,012 | $ | 10,680 | $ | 21,503 | $ | 21,687 | ||||||
| Cost of revenues | $ | 6,542 | $ | 6,849 | $ | 12,798 | $ | 13,925 | ||||||
| Gross Profit | 4,470 | 3,831 | 8,705 | 7,762 | ||||||||||
| Operating expenses | ||||||||||||||
| Research and development, net | $ | 857 | $ | 486 | $ | 1,647 | $ | 976 | ||||||
| Selling, marketing, general and administrative | $ | 3,034 | $ | 3,183 | $ | 6,056 | $ | 6,475 | ||||||
| Operating Profit | 579 | 162 | 1,002 | 311 | ||||||||||
| Financial expenses, net | $ | 1,002 | $ | 692 | $ | 2,185 | $ | 1,116 | ||||||
| Other expenses, net (a) | $ | 103 | $ | 185 | $ | 543 | $ | 315 | ||||||
| Net Loss | $ | 526 | $ | 715 | $ | 1,726 | $ | 1,120 | ||||||
| Basic and diluted net loss per share (b) | $ | 0.02 | $ | 0.05 | $ | 0.08 | $ | 0.07 | ||||||
| Weighted average shares used to compute - | ||||||||||||||
| basic and diluted net loss per share (b) | 21,541 | 15,514 | 21,541 | 15,184 | ||||||||||
| Note |
| a: Includes taxes, equity losses, minority interest and capital losses due to repurchase of debentures. |
| b: Due to the net loss in the six and three months period ended June 30, 2007 and 2008 the inclusion of dilutive securities would be antidilutive. |
SAPIENS INTERNATIONAL CORPORATION N.V.
Reconcilation of GAAP to Non-GAAP results
(U.S. Dollars in thousands, except per share amounts)
| For the three months ended |
For the six months ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 06/30/2008 |
06/30/2007 |
06/30/2008 |
06/30/2007 | |||||||||||
| (Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
|||||||||||
| GAAP operating profit | 579 | 162 | 1,002 | 311 | ||||||||||
| Amortization of intangibles | 1,042 | 885 | 2,002 | 2,068 | ||||||||||
| Capitalization of software development | (982 | ) | (1,134 | ) | (1,858 | ) | (2,475 | ) | ||||||
| Stock-based compensation | 50 | 30 | 65 | 37 | ||||||||||
| Total adjustments to GAAP | 110 | (219 | ) | 209 | (370 | ) | ||||||||
| Non-GAAP operating profit (loss) | 689 | (57 | ) | 1,211 | (59 | ) | ||||||||
| GAAP net loss | (526 | ) | (715 | ) | (1,726 | ) | (1,120 | ) | ||||||
| Total adjustments to GAAP as above | 110 | (219 | ) | 209 | (370 | ) | ||||||||
| Non-GAAP net loss | (416 | ) | (934 | ) | (1,517 | ) | (1,490 | ) | ||||||
| Non-GAAP basic net loss per share | 0.02 | 0.06 | 0.07 | 0.10 | ||||||||||
| Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share | 21,541 | 15,514 | 21,541 | 15,184 | ||||||||||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 13, 2008 |
Sapiens International Corporation N.V. (Registrant) By: /s/ Roni Giladi —————————————— Roni Giladi Chief Financial Officer |