Sapiens International Corporation N.V. (SPNS)

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Sapiens admits to another disappointing quarter
10.11.2005 | 17:03
Omri Cohen

Itzick Sharir today ends a five-year stint as president and CEO of Sapiens International (Nasdaq:SPNS), which today published third-quarter results that should put a damper on any toasts.

The North Carolina-based Israeli-American firm, which develops software for financing houses, recorded revenues of $9.9 million, up 3% from the $9.6 million posted for the previous quarter. But against the parallel quarter, revenue fell 13%.

Gross profit also slipped against the parallel quarter, by 22%, to $3.8 million or 38% of turnover.

Its operating loss quintupled to $942,000, even though marketing costs were trimmed by 14% to $3.6 million.

Sapiens stock in the last year




Roni Al-Dor will assume today the position of President and CEO, replacing Itzick Sharir who served Sapiens for the last five years. Mr. Al-Dor also joins the company's Board of Directors as a new additional member. Net loss for the third quarter contracted to $1.6 million, versus a net loss of $1.7 million in the second quarter of 2005, an improvement of 6%. But in the parallel quarter of 2004 it had lost a lesser $954,000 in net terms.

On his last day Sharir chose to address the improvement against the second quarter, not dwell on the slide against the parallel. "Although still losing, we see for the first time a significant improvement of 50% over the previous quarter in new signed contracts, a small change for the better in our top-line, and a significant continued reduction of 30% over the previous quarter in our operational losses," he said, in his requiem to investors.

"I personally believe that this is the beginning of a change in trend, where hopefully the worse is behind us and the quarters to come will continue to improve," he added.

Sharir welcomed Roni Al-Dor as the new president and CEO with the hope and belief "that he will continue the mission and lead Sapiens back to success and prosperity."

From the start of 2005, Sapiens' sales have slid 17% against the same period of 2004 to $29.6 million, while its net loss soared 74% to $6 million, or 51 cents per share.

In nine months Sapiens burned up $9 million and is left, at the end of September, with $13.25 million. It owes the banks $13.6 million.

This year Sapiens stock fell 39%, dropping to $1.74 per share last night on Nasdaq, which depressed the company's market capitalization to $20.6 million.

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