SECURITIES AND EXCHANGE COMMISSION

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 May 2008


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, 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 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-_______________.


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SAPIENS ANNOUNCES Q1 2008 RESULTS

Company Continues to Improve Performance for the Sixth Consecutive Quarter


Cary, N.C. – May 20, 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), announces today its results of operations for the first quarter of 2008.


Highlights for Q1 2008

•

$423,000 Operating Profit, a significant increase of 41% from the fourth quarter of 2007

•

Sixth consecutive quarter of Operating Profit

•

Approximately $400,000 Cash Flow from Operations, following upon the positive Cash Flow from Operations in 2007

•

Revenue of $10.5 million, a 3.1% increase from the fourth quarter of 2007

•

Signed a major agreement, for $1 million, in Japan

•

Increased pipeline of potential deals with major customers

•

Repurchase of Debentures in Q1 2008 of $2.1 million

•

The increase in Financial Expenses is due to the devaluation of the US Dollar vs. the New Israeli Shekel


U.S. GAAP

•

Operating Profit of $423,000, a 184% increase from the first quarter of 2007 and a significant increase of 41% from the fourth quarter of 2007


Non-GAAP

•

Operating Profit of $522,000, a turn around from the Operating Loss of $2,000 in the First Quarter of 2007, and a significant increase  of 35% from $386,000 in the Fourth Quarter of 2007


U.S. GAAP results include amortization of capitalized software developments, capitalization of software development costs, and stock-based compensation expenses.


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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

 

03/31/2008

03/31/2007

 

(Unaudited)

(Unaudited)

U.S. GAAP

  

Revenues

       10,491

          11,007

Operating profit

            423

              149

Net loss

       (1,200)

            (405)

Basic and diluted loss per share

         (0.06)  

           (0.03)

 

 

 

Non-GAAP

 

 

Revenues

       10,491

          11,007

Operating profit (loss)

            522

                 (2)

Net loss

        (1,101)

             (556)

Basic and diluted loss per share

          (0.05)

            (0.04)


Roni Al-Dor, President and CEO, commented "We report our sixth consecutive quarter of operating profit. We also report approximately $400,000 positive cash flow from operations for the first quarter of 2008.  We are now benefitting from our past activities to increase efficiencies at each of our subsidiaries. We have stabilized our ship and are sailing forward. We have increased our lead generation and face several promising opportunities that we expect will become signed agreement in 2008.  Due to the devaluation of the US Dollar against the New Israeli Shekel, we had an increase in finance expenses which created an increase in our Net Loss."


Mr. Al-Dor added, "We thank our customers, our investors and our employees for the good news we report today. We believe that our positive trend will continue and that we will have more good news to report to you in the future."


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.


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SAPIENS INTERNATIONAL CORPORATION N.V.

Condensed Consolidated Balance Sheets

(U.S. Dollars in thousands)

 
    

03/31/2008

 

12/31/2007

    

(Unaudited)

 

 (Unaudited)

Assets

     
       
 

Cash and cash equivalents

 

$10,523

 

$13,125

 

Trade receivables, net

 

            8,722

 

            7,549

 

Other current assets

 

            1,810

 

            1,835

 

Total current assets

 

          21,055

 

          22,509

       
 

Property and equipment, net

 

            1,158

 

            1,219

 

Other assets, net

  

          29,731

 

          28,804

       

Total assets

  

$       51,944

 

$    52,532

       

Liabilities and shareholders' equity

    
       
 

Short-term bank credit and current maturities

    
 

  of long-term debt and convertible debentures

 

$8,184

 

$9,456

 

Trade payables

  

            1,481

 

            1,088

 

Other liabilities and accrued expenses

 

            9,292

 

            8,375

 

Deferred revenue

  

            4,322

 

            4,203

 

Total current liabilities

 

           23,279

 

          23,122

       
 

Long-term debt and other long-term liabilities

 

            1,450

 

            1,132

 

Convertible debentures

 

            5,440

 

            6,428

 

Shareholders' equity

 

          21,775

 

          21,850

       

Total liabilities and shareholders' equity

 

$       51,944

 

$     52,532


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SAPIENS INTERNATIONAL CORPORATION N.V.

Condensed Consolidated Statements of Operations

(U.S. Dollars in thousands, except per share amounts)


         
         
  

 

For the three months ended

   
   

03/31/2008

 

03/31/2007

   
   

 

 

 

   
   

(Unaudited)

 

(Unaudited)

   
         

Revenues

 

 $     10,491

 

 $ 11,007

   
         

Cost of revenues

 

 $       6,256

 

 $   7,076

   
         

Gross Profit

 

          4,235

 

      3,931

   
         

Operating expenses

       

Research and development, net

 

 $       790

 

 $      490

   

Selling, marketing, general and administrative (a)

 

 $       3,022

 

 $   3,292

   
         

Operating Profit

 

             423

 

         149

   
         

Financial expenses, net

 

 $       1,183

 

 $      424

   

Other expenses, net (b)

 

 $          440

 

 $      130

   
         

Net Loss

 

 $       1,200

 

 $      405

   
         

Basic and diluted loss per share (c)

 

 $         0.06

 

 $     0.03

   
         

Weighted average shares used to compute -

       

                  basic and diluted loss per share (c)

 

        21,550  

 

             14,854

   
         

Note

a: Certain prior year's amounts have been reclassified and corrected to conform with current year presentation

b: Includes taxes, equity losses, minority interest and capital losses due to repurchase of debentures.

c: Due to the net loss in the three month period ended March 31, 2007 and 2008 the inclusion of dilutive securities would be antidilutive.


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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

 
  

03/31/2008

 

03/31/2007

 
  

(Unaudited)

 

(Unaudited)

 

GAAP operating profit

 

            423

 

              149

 

Amortization of intangibles

 

            960

 

           1,183

 

Capitalization of software development

 

         (876)

 

         (1,341)

 

Stock-based compensation

 

              15

 

                  7

 

Total adjustments to GAAP

 

              99

 

            (151)

 

Non-GAAP operating profit (loss)

 

            522

 

                (2)

 
      

GAAP net loss

 

      (1,200)

 

            (405)

 

Total adjustments to GAAP as above

 

             99

 

            (151)

 

Non-GAAP net loss

 

      (1,101)

 

            (556)

 
      

Non-GAAP basic loss per share

 

        (0.05)

 

           (0.04)

 

Weighted average number of ordinary shares used in computing basic net loss per ordinary share

 

       21,550

 

          14,854

 





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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:  May 20, 2008

By:

/s/  Andrew Treitel


Andrew Treitel

General Counsel and Corporate Secretary