Growing Demand in Financial Services Market Key to Sapiens Record Revenue Growth
Sapiens International Corporation, (Holon, Israel), a global provider of innovative software solutions for the financial services industry and a member of the Formula Group, have announced its financial results for the first quarter ended March 31, 2013.
First Quarter 2013 Highlights include:
- Revenue increased 21% to $31.5 million, compared to $26.0 million in the first quarter of 2012.
- Non-GAAP operating profit totaled $3.4 million, compared to $3.3 million in the first quarter of 2012.
- Non-GAAP net income attributable to Sapiens’ shareholders increased 5% to $3.4 million, compared to $3.2 million for the first quarter of 2012.
- Balance Sheet and Cash Flow:
- Cash and cash equivalents totaled $25.6 million, after distribution of dividend in the amount of $5.8 million in February 2013. The company maintains its strong balance sheet with no debt.
- Total equity from total assets was 70%.
Roni Al-Dor, President and CEO of Sapiens, commented: “The first quarter was a strong start for Sapiens for the year 2013. We experience a growing demand for our solutions in our major markets and across all of our products: L&P, P&C, and Decision. The huge insurance market we operate in is actively looking for modern platforms to help carriers grow and better compete. Our business decision management solution is gaining traction with top-tier financial services, and we experienced growing interest in this market as well.”
Mr. Al-Dor continued: “We have made a strategic decision to increase our investments across our R&D, sales & marketing, and delivery. We believe that these investments will allow us to maintain our products’ excellence and further enrich their functionality; extend our market reach and visibility; and increase our delivery team to help meet the growing needs of our customers. In the short term, this will impact our gross and operating margins, but we believe it will also support our growth plans to become a market leader and achieve higher margins in the long term.”
Mr. Al-Dor concluded: “We reiterate our revenue guidance of $135 million for the year 2013.”
Sapiens International Corporation is a global provider of innovative software solutions for the financial services industry. We offer core, end-to-end solutions for the general insurance, property & casualty, life, pension and annuities markets, and business decision management software, globally. We have a track record of over 30 years in delivering superior software solutions to more than 100 financial services organizations. Our team operates through our fully-owned subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific.