Sapiens announces first quarter 2005 results
Reports losses on its way to return to profitability
May 10, 2005
Research Triangle Park, N.C. — May 10, 2005 — Sapiens International Corporation N.V. (NASDAQ
and TASE: SPNS) announced today unaudited financial results for its fiscal 2005 first quarter ended
March 31, 2005. For the quarter, the company posted revenues of $10.1 million compared with $12.0
million in the fourth quarter of 2004. Gross profit was $3.5 million, with gross profit margin of 34.6%,
compared with 36.4% in the fourth quarter of 2004. The Company reported an operating loss of $2.3
million, compared with an operating loss of $0.8 million in the fourth quarter of 2004. Net loss for the
quarter was $2.6 million, compared with a net loss of $1.7 million in the fourth quarter of 2004.
Itzick Sharir, President and Chief Executive Officer of Sapiens, commented: "As we had projected at
the end of 2004, the first quarter of 2005 represents low revenues as a result of the long sale-cycle in the
insurance industry and seasonally low first quarter revenues. In addition, we recorded a one-time
expense of $0.76 million relating to previously announced restructuring costs.
"We continue to believe in our financial projections and our plans to return to operational profitability in
the coming quarters, as a result of growing revenues coupled with reduced expenses, highlighted by the
recent restructuring.
"Our Sapiens INSIGHT™ suite of insurance solutions continues to gain market recognition. Sapiens
INSIGHT™ has been praised by analysts for its innovation and has been categorized as a leading
solution for the insurance industry. We believe that we are finally seeing the early signs of market
penetration, as we gain access to new customers in the industry. We continue to make progress in our
long-term business turn-around and we thank our customers, shareholders, investors and employees for
their continued confidence and support, in spite of the short term complexity."
Click here to download Sapiens Q1 05 Results
Sapiens’ management will host a teleconference at 8:45 a.m. EST on May 10, 2005, to discuss the
results and the company's outlook.
Please call the following dial-in numbers to participate:
United States 1-866-860-9642
United Kingdom 0-800-917-5108
International +972-3-918-0600
Israel 03-918-0600
Please call 10 minutes prior to the start time
About Sapiens
Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a member of the Formula Group
(NASDAQ: FORTY and TASE: FORT), 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 AXA, Liverpool Victoria, Menora, Norwich Union,
OneBeacon, Principal Financial Group, Abbey National, ING and Occidental Fire & Casualty, among
others.
For more information, please visit 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 and other risk factors detailed in the Company's SEC filings.
Contact:
Elior Brin
Chief Financial Officer
Sapiens International
Tel: +1-877-554-2426, +972-8-938-2721
E-mail:
IR.Sapiens@sapiens.com
Itzick Sharir
Chief Executive Officer
Sapiens International
Tel: +1-877-554-2426, +972-8-938-2721
E-mail:
IR.Sapiens@sapiens.com
 
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