SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November 2004
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 ___
[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 ___ No X
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SAPIENS ANNOUNCES Q3 2004 RESULTS
The Company reports marginally reduced net loss for the quarter
Research Triangle Park, N.C. — November 9, 2004 — Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS) today announced its unaudited results of operations for the third quarter ended September 30, 2004.
Third quarter revenues were $11.4 million, compared with $11.8 million in the second quarter of 2004. Gross profit was $4.8 million, compared with $5.2 million in the second quarter, and gross profit margin was 42.3%, compared with 44.0% in the second quarter. The Company reported an operating loss of $0.2 million and a net loss of $0.95 million in the third quarter of 2004, a minor improvement over an operating loss of $0.3 million and a net loss of $1.1 million in the previous quarter.
Third quarter revenues were $11.4 million, compared with $13.4 million in the third quarter of 2003. Gross profit was $4.8 million compared with $6.4 in the third quarter of 2003. Gross profit margin was 42.3%, compared with 47.7% in the third quarter of 2003. The Company reported an operating loss of $0.2 million, compared with an operating income of $0.3 million in Q3 2003. Net loss for the quarter was $0.95 million, compared with a net income of $0.04 million in the third quarter of 2003.
Itzick Sharir, President and Chief Executive Officer of Sapiens, commented:
"The results of the third quarter do not yet show a positive trend in revenue and we face further delays in penetrating the insurance industry, mainly due to a seasonal summer quarter. However, we have effectively succeeded in reducing costs and thus slightly improved our bottom line results. We expect to achieve further improvements in the fourth quarter of 2004 and continue to believe that we can return to profitability as a result of growing revenues and further cost cutting. Our pipeline for insurance applications continues to develop, in both the life & pension and property & casualty sectors, while we continue to service our customers in all sectors of industry.”
[more]
Q3 04 CONFERENCE CALL: | |
Sapiens International will hold a Conference Call to discuss the results on Tuesday, November 9th, 2004, at 08:45AM (EST) To participate, please call: | |
FOR ADDITIONAL INFORMATION: | |
Yuval Hadari | Itzick Sharir |
Chief Financial Officer | Chief Executive Officer |
Sapiens International | Sapiens International |
Tel: +1-877-554-2426 +972-8-938-2721 | Tel: +44-1895-464 265 |
E-mail: yuval.h@sapiens.com | E-mail: itzik.s@sapiens.com |
About Sapiens
Sapiens International Corporation (NASDAQ and TASE: SPNS), a member of the Formula Group of companies, 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, United Kingdom, EMEA and Asia Pacific and has partnerships with market leaders such as IBM and EDS. Sapiens’ clients include Allianz Group, AXA, Liverpool Victoria, Menora, Norwich Union, OneBeacon, Principal Financial, Prudential, Abbey National, ING and Occidental Fire & Casualty, among others.
For more information, please visit http://www.sapiens.com.
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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 and other risk factors detailed in the Company’s SEC filings.
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SAPIENS INTERNATIONAL CORPORATION N.V. | ||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||
(U.S. Dollars in thousands, except per share amounts) | ||||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||||
9/30/2004 | 9/30/2003 | 9/30/2004 | 9/30/2003 | |||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
Revenues | ||||||||||||||||||
Products | $ 6,040 | $ 8,946 | $ 20,065 | $ 23,591 | ||||||||||||||
Consulting and other services | 5,323 | 4,461 | 15,710 | 15,253 | ||||||||||||||
Total revenues | 11,363 | 13,407 | 35,775 | 38,844 | ||||||||||||||
Cost of revenues | ||||||||||||||||||
Products | 4,077 | 4,598 | 12,733 | 13,100 | ||||||||||||||
Consulting and other services | 2,480 | 2,416 | 7,282 | 8,715 | ||||||||||||||
Total cost of revenues | 6,557 | 7,014 | 20,015 | 21,815 | ||||||||||||||
Gross Profit | 4,806 | 6,393 | 15,760 | 17,029 | ||||||||||||||
Expenses | ||||||||||||||||||
Research and development, net | 766 | 508 | 1,951 | 2,929 | ||||||||||||||
Selling, marketing, general and administrative | 4,230 | 5,558 | 14,636 | 16,125 | ||||||||||||||
Operating Income/(Loss) | (190) | 327 | (827) | (2,025) | ||||||||||||||
Financial income/(expenses), net | (588) | (291) | (1,684) | (601) | ||||||||||||||
Other income/(expenses), net (a) | (176) | 6 | (633) | 294 | ||||||||||||||
Net Income/(Loss) | $ (954) | $ 42 | $ (3,144) | $ (2,332) | ||||||||||||||
Settlement of redeemable shares in a subsidiary | - | - | (299) | - | ||||||||||||||
Net income/(loss) to common shareholders | $ (954) | $ 42 | $ (3,443) | $ (2,332) | ||||||||||||||
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Basic and diluted earnings/(loss) per share (b) | $ (0.08) | $ 0.00 | $ (0.31) | $ (0.22) | ||||||||||||||
Weighted average shares used to compute | ||||||||||||||||||
Basic earnings/(loss) per share | 11,449 | 10,694 | 11,215 | 10,693 | ||||||||||||||
Diluted earnings/(loss) per share (b) | 11,449 | 12,856 | 11,215 | 10,693 | ||||||||||||||
Note | a: Includes taxes and minority interest | |||||||||||||||||
b: Due to the net loss in 2003 and 2004 the inclusion of dilutive securities would be antidilutive. | ||||||||||||||||||
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SAPIENS INTERNATIONAL CORPORATION N.V. | |||||
Condensed Consolidated Balance Sheets | |||||
(U.S. Dollars in thousands) | |||||
9/30/2004 | 12/31/2003 | ||||
(Unaudited) | (Audited) | ||||
Assets | |||||
Cash and cash equivalents | $ 11,577 | $ 31,775 | |||
Short-term investments | 9,661 | 1,039 | |||
21,238 | 32,814 | ||||
Trade receivables, net | 8,854 | 9,133 | |||
Other current assets | 4,960 | 5,647 | |||
Total current assets | 35,052 | 47,594 | |||
Property and equipment, net | 2,456 | 3,060 | |||
Other assets, net | 29,574 | 26,069 | |||
Total assets | $ 67,082 | $ 76,723 | |||
Liabilities and shareholders' equity | |||||
Short-term loans and current maturities | |||||
of long-term debt | $ 18,816 | $ 9,579 | |||
Trade payables | 2,075 | 2,619 | |||
Other liabilities and accrued expenses | 8,307 | 11,054 | |||
Deferred revenue | 3,916 | 3,254 | |||
Total current liabilities | 33,114 | 26,506 | |||
Long-term debt and other liabilities | 3,037 | 8,111 | |||
Convertible debentures | 18,141 | 16,672 | |||
Redeemable shares in a subsidiary | - | 11,505 | |||
Shareholders' equity | 12,790 | 13,929 | |||
Total liabilities and shareholders' equity | $ 67,082 | $ 76,723 | |||
Note: | Certain prior year's amounts have been reclassified to conform with current year presentation | ||||
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SIGNATURE
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.
Sapiens International Corporation N.V.
(Registrant)
Date: November 10, 2004
By:
/s/ Andrew Treitel
Andrew Treitel
General Counsel and
Corporate Secretary