Sapiens Reports Year-Over-Year Organic Non-GAAP Revenue Growth of 18.6% for 2013

HOLON, Israel, Feb. 26, 2014 /PRNewswire/ -- Sapiens International Corporation, (NASDAQ and TASE: SPNS), a leading global provider of software solutions for the insurance industry, with an emerging focus on the broader financial services sector, and a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), announced today its financial results for the fourth quarter and year ended December 31, 2013.

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Fourth Quarter Financial and Business highlights include:

• Non-GAAP Revenue increased by 16.2% to $36.2 million from the fourth quarter of 2012
• Non- GAAP operating profit was $3.8 million compared to $4.0 million in the fourth quarter of 2012, a decrease of 6.3%.
• Non-GAAP net income attributable to Sapiens' shareholders reached $3.4 million, compared to $3.7 million in the fourth quarter of 2012.
• During the fourth quarter, we successfully raised net proceeds of $37.8 million in a secondary offering. As of December 31, 2013, we had cash and cash equivalents of approximately $70.3 million, and we have no outstanding financial debt.

Full Year Financial and Business highlights include:

• Non-GAAP Revenue increased by 18.6% to $135.4 million from $114.2 million in 2012
• Non- GAAP operating profit reached $14.0 million compared to $15.2 million in 2012
• Non-GAAP net income attributable to Sapiens' shareholders reached $14.0 million, compared to $14.7 million in 2012.
• Sapiens ALIS for L&P and Sapiens IDIT for P&C were both recognized in Celent industry research reports winning XCelent Awards in categories of advanced technology and breadth of functionality.

Roni Al-Dor, President and CEO of Sapiens, commented: "Our year ended with record top line results, representing year-over-year revenue growth of 18.6% over 2012. We increased our pipeline and signed several new agreements, across all product lines: L&P, P&C, and Decision."

Mr. Al-Dor added: "During the year, we continued to be focused on growing the business by winning new customers accounts and selling deeper into our existing client base.  During the fourth quarter we expanded our sales force and account management team in order to support our growth strategy. We are confident in our organic growth and are establishing revenue guidance in the range of $154 million to $158 million for the full-year 2014."  

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: Non-GAAP revenue, Non-GAAP gross profit, Non-GAAP operating income, Non-GAAP net income attributed to Sapiens shareholders, Non-GAAP basic and diluted earnings per share.

Sapiens believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Sapiens' financial condition and results of operations. The Company's management uses these non-GAAP measures to compare the Company's performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company's board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. Sapiens urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company's business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables of this release.

About Sapiens
Sapiens International Corporation (NASDAQ and TASE: SPNS) is a leading global provider of software solutions for the insurance industry, with an emerging focus on the broader financial services sector. 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 130 financial services organizations. Our team of more than 900 professionals operates through our fully-owned subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific. For more information: www.sapiens.com

Forward Looking Statement
Some of the statements in this press release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. Words such as "will," "expects," "believes" and similar expressions are used to identify these forward-looking statements (although not all forward-looking statements include such words). These forward-looking statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management's current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 3 of Part III of our Annual Report on Form 20-F for the year ended December 31, 2012 and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.

SOURCE Sapiens International Corporation