Sapiens International Corporation N.V. (SPNS)

[midastouch017]

Sapiens reports improved Q2 results

CEO Itzick Sharir: Revenue increased from the insurance industry, our strategic focus.

Globes correspondent 11 Aug 05 13:55

Sapiens International NV (Nasdaq: SPNS; TASE: SPNS) announced today its unaudited financial results for the second quarter ended June 30, 2005.
Net loss for the second quarter was reduced to $1.7 million, compared with a net loss of $2.6 million in the first quarter of 2005.

For the quarter, the company recorded revenue of $9.6 million compared with revenue of $10.1 million in the first quarter of 2005, a decrease of 5.0%.

Gross profit increased to $3.8 million from $3.5 million, with gross profit margins increasing to 39.9% from 34.6% in the previous quarter.

The company reduced its operating loss to$1.3 million from $2.3 million in the first quarter, an improvement of 43.5%.

Sapiens president and CEO Itzick Sharir said, "Though we report a decline in our overall revenues, it relates primarily to our traditional line of business, where long term projects have been successfully implemented and, as a result, we face reduced revenue streams. On the other hand, we are glad to announce that there was an increase in revenue this quarter from our customers in the insurance industry, our strategic focus.

"We are also glad to report that we have increased our gross profit and gross profit margin and have significantly reduced both our operating and net losses. Most importantly, we were able to achieve positive operational cash-flow for the quarter.

"We continue to make progress in penetrating the global insurance marketplace and hope we will soon announce several important wins."

Published by Globes [online], Israel business news - www.globes.co.il - on Thursday, August 11, 2005

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