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 August 2012
Commission File Number 000-20181
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
(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 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 ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______________.
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: August 13, 2012 | By: | /s/ Roni Giladi |
|
Roni Giladi Chief Financial Officer | ||
Sapiens Q2 2012 Revenue Increases 91% to $27 Million
Operating Income Grows 65% to $2.8 Million
Non-GAAP Operating Margin increased to 13.7%
REHOVOT, Israel, August 13, 2012 -- Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a provider of innovative insurance software solutions and a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), announces its financial results for the second quarter ended June 30, 2012.
Second Quarter Year-over-Year Financial and Business Highlights include:
Roni Al Dor, CEO of Sapiens International, commented, “This was a quarter of strong execution, as we continue to grow our revenues and improve the profitability of the consolidated organization, while capitalizing on increasing demand to our product portfolio. Halfway through our first full year following the merger, we are delivering revenues on our promise and reaching Non-GAAP operating margins of 13.7% which reflect steady improvement from previous quarters. We continue to see high demand for our products in North America and European markets with a strong pipeline to gain new customers in the short term. We continue to invest in technology and functionality to further enrich our product portfolio and recruit new employees to our R&D centers and target markets.
First half Year-over-Year Financial Highlights include:
Revenue for the six months ended June 30, 2012 increased 93% to $53.2 million, compared to $27.6 million for same period in 2011.
Non-GAAP operating income was $7.0 million compared to $4.1 million. Non-GAAP net income for the six months ended June 30 2012 totaled $6.7 million, compared to Non-GAAP net income of $3.9 million for the same period in 2011
Non-GAAP Financial Measures
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, share-based compensation expenses and certain business combination accounting entries. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our 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. We believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods.
| U.S. Dollars in thousands, except per share amounts | ||||||||||||||||
| For the three months ended | For the six months ended | |||||||||||||||
| U.S GAAP basis | 30/06/2012 | 30/06/2011 | 30/06/2012 | 30/06/2011 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenues | 27,182 | 14,258 | 53,165 | 27,584 | ||||||||||||
| Gross profit | 11,610 | 6,651 | 22,436 | 12,854 | ||||||||||||
| Operating profit | 2,762 | 1,678 | 5,203 | 3,400 | ||||||||||||
| Net income | 2,601 | 1,624 | 4,990 | 3,298 | ||||||||||||
| Basic earnings per share | 0.06 | 0.07 | 0.12 | 0.15 | ||||||||||||
| Diluted earnings per share | 0.06 | 0.07 | 0.12 | 0.14 | ||||||||||||
| Non-GAAP | ||||||||||||||||
| Revenues | 26,986 | 14,258 | 52,821 | 27,584 | ||||||||||||
| Gross profit | 12,501 | 7,926 | 24,227 | 15,219 | ||||||||||||
| Operating profit | 3,715 | 2,048 | 7,023 | 4,084 | ||||||||||||
| Net income | 3,512 | 1,973 | 6,724 | 3,937 | ||||||||||||
| Basic earnings per share | 0.09 | 0.09 | 0.17 | 0.18 | ||||||||||||
| Diluted earnings per share | 0.08 | 0.08 | 0.16 | 0.17 | ||||||||||||
About Sapiens International
Sapiens International Corporation (NASDAQ and TASE: SPNS), is a leading global provider of innovative business solutions for the insurance industry, helping to modernize business processes, to proactively define and provide innovative new services and to respond quickly to changes in the industry. We offer end to end solutions for the L&P, P&C and Reinsurance markets, with customers across the globe. We jointly serve over 70 insurance customers, backed by a team of over 700 insurance experts. Coupled with our financial stability, Sapiens aims to become the vendor of choice in the insurance software marketplace. For more information about Sapiens, 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 accounting policies, specific system configurations and software needs of individual customers and other risk factors.
Investor
Relations Contact:
Roni Giladi, CFO
Sapiens International
Tel: +972-8-9382721
E-mail: roni.g@sapiens.com
Or
James Carbonara, Regional Vice President
Hayden IR
Office: (646)-755-7412
James@haydenir.com
SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Revenues | 27,182 | 14,258 | 53,165 | 27,584 | ||||||||||||
| Cost of revenues | 15,572 | 7,607 | 30,729 | 14,730 | ||||||||||||
| Gross profit | 11,610 | 6,651 | 22,436 | 12,854 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Research and development, net | 2,436 | 1,191 | 4,736 | 2,251 | ||||||||||||
| Selling, marketing, general and administrative | 6,412 | 3,782 | 12,497 | 7,203 | ||||||||||||
| Total operating expenses | 8,848 | 4,973 | 17,233 | 9,454 | ||||||||||||
| Operating income | 2,762 | 1,678 | 5,203 | 3,400 | ||||||||||||
| Financial expenses (income), net | (85 | ) | 54 | (146 | ) | 102 | ||||||||||
| Taxes and other expenses (income), net | 272 | - | 380 | - | ||||||||||||
| Net income | $ | 2,575 | $ | 1,624 | $ | 4,969 | $ | 3,298 | ||||||||
| Attributetable to non-controlling interest | $ | (26 | ) | - | $ | (21 | ) | - | ||||||||
| Net income attributable to Sapiens shareholders | $ | 2,601 | $ | 1,624 | $ | 4,990 | $ | 3,298 | ||||||||
| Basic earnings per share | $ | 0.06 | $ | 0.07 | $ | 0.12 | $ | 0.15 | ||||||||
| Diluted earnings per share | $ | 0.06 | $ | 0.07 | $ | 0.12 | $ | 0.14 | ||||||||
| Weighted average number of shares | ||||||||||||||||
| outstanding used to compute: | ||||||||||||||||
| Basic earnings per share | 40,088 | 22,050 | 39,927 | 22,047 | ||||||||||||
| Diluted earnings per share | 42,334 | 23,723 | 42,250 | 23,735 | ||||||||||||
SAPIENS INTERNATIONAL CORPORATION N.V. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share amounts)
| Three months ended | Six months ended | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| GAAP revenues | $ | 27,182 | $ | 14,258 | $ | 53,165 | $ | 27,584 | ||||||||
| Valuation adjustment on acquired deferred revenue and long term contract | (196 | ) | - | (344 | ) | - | ||||||||||
| Non-GAAP revenues | $ | 26,986 | $ | 14,258 | $ | 52,821 | $ | 27,584 | ||||||||
| GAAP gross profit | $ | 11,610 | $ | 6,651 | $ | 22,436 | $ | 12,854 | ||||||||
| Revenues adjustment | (196 | ) | - | (344 | ) | - | ||||||||||
| Amortization of capitalized software | 875 | 1,275 | 1,709 | 2,365 | ||||||||||||
| Amortization of other intangible assets | 212 | - | 426 | - | ||||||||||||
| Non-GAAP gross profit | $ | 12,501 | $ | 7,926 | $ | 24,227 | $ | 15,219 | ||||||||
| GAAP operating income | $ | 2,762 | $ | 1,678 | $ | 5,203 | $ | 3,400 | ||||||||
| Gross profit adjustments | 891 | 1,275 | 1,791 | 2,365 | ||||||||||||
| Capitalization of software development | (935 | ) | (1,275 | ) | (1,915 | ) | (2,430 | ) | ||||||||
| Amortization of other intangible assets | 839 | 296 | 1,636 | 590 | ||||||||||||
| Stock-based compensation | 158 | 74 | 308 | 159 | ||||||||||||
| Non-GAAP operating income | $ | 3,715 | $ | 2,048 | $ | 7,023 | $ | 4,084 | ||||||||
| GAAP net income attributable to Sapiens shareholders | $ | 2,601 | $ | 1,624 | $ | 4,990 | $ | 3,298 | ||||||||
| Operating income adjustments | 953 | 370 | 1,820 | 684 | ||||||||||||
| Non-controlling interest in amortization intangible assets | (22 | ) | - | (46 | ) | - | ||||||||||
| Deferred taxes related to acquisition | (20 | ) | (21 | ) | (40 | ) | (45 | ) | ||||||||
| Non-GAAP net income attributable to Sapiens shareholders | $ | 3,512 | $ | 1,973 | $ | 6,724 | $ | 3,937 | ||||||||
| Non-GAAP basic earnings per share | $ | 0.09 | $ | 0.09 | $ | 0.17 | $ | 0.18 | ||||||||
| Non-GAAP diluted earnings per share | $ | 0.08 | $ | 0.08 | $ | 0.16 | $ | 0.17 | ||||||||
SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
| June 30, | December 31, | |||||||
| 2012 | 2011 | |||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 31,234 | $ | 21,460 | ||||
| Restricted cash | 447 | 456 | ||||||
| Trade receivables, net | 14,654 | 14,484 | ||||||
| Other receivables and prepaid expenses | 3,168 | 3,229 | ||||||
| Total current assets | 49,503 | 39,629 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Property and equipment, net | 1,948 | 1,814 | ||||||
| Severance pay fund | 9,711 | 10,172 | ||||||
| Other intangible assets, net | 32,911 | 35,138 | ||||||
| Goodwill | 65,227 | 66,715 | ||||||
| Total long-term assets | 109,797 | 113,839 | ||||||
| TOTAL ASSETS | $ | 159,300 | $ | 153,468 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 3,356 | $ | 2,559 | ||||
| Accrued expenses and other liabilities | 17,270 | 19,731 | ||||||
| Deferred revenue | 12,968 | 9,603 | ||||||
| Total current liabilities | 33,594 | 31,893 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Other long-term liabilities | 632 | 614 | ||||||
| Accrued severance pay | 11,108 | 10,714 | ||||||
| Total long-term liabilities | 11,740 | 11,328 | ||||||
| EQUITY | 113,966 | 110,247 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 159,300 | $ | 153,468 | ||||