SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF AUGUST 2003
SAPIENS INTERNATIONAL CORPORATION N.V.
(translation of registrant's name into English)
C/O LANDHUIS JOONCHI
KAYA RICHARD J. BEAUJON Z/N
P.O. BOX 837
WILLEMSTAD
CURACAO, NETHERLANDS ANTILLES
(599) (9) 7366277
(address of principal executive offices)
[Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F]
Form 20-F X Form 40-F
--- ---
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2 (b) under the Securities Exchange Act of
1934]
Yes No X
--- ---
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SAPIENS INTERNATIONAL CORPORATION N.V.
(Registrant)
Date: September 2nd, 2003 By: /s/ Norman Kotler
--------------------------
Norman Kotler
General Counsel and
Corporate Secretary
[Graphic Omitted]
SAPIENS INTERNATIONAL ANNOUNCES Q2 RESULTS
MARGINAL OPERATIONAL LOSS ($0.2M) FOR THE QUARTER.
IMPROVED RESULTS OVER FIRST QUARTER OF 2003.
Research Triangle Park, N.C.--August 5, 2003 --Sapiens International Corporation
N.V. (NASDAQ and TASE: SPNS) today announced its unaudited results of operations
for the second quarter and six-months ended June 30, 2003.
The Company reported overall improvement compared to the first quarter of 2003.
Revenues increased 10.7% from $12.1 million to $13.4 million, gross profit
increased 27.7% from $4.7 million to $6.0 million and the gross profit margin
improved 15.5% from 38.8% to 44.8%. At the same time, the Company's operating
loss declined 90.9% from $2.2 million to $0.2 million and the net loss dropped
80% from $2.0 million to $0.4.
Revenues in the second quarter of 2003 were $13.4 million and $16.3 million in
the same period in 2002. Gross profit was $6.0 million versus $7.6 million in
the same period last year. The gross profit margin was 44.8% while in the second
quarter of 2002 it was 46.6%. The Company reported an operating loss of $0.2
million compared with an operating profit of $0.6 million in the same period
last year. The net loss for the quarter was $0.4 million compared with a net
profit of $0.1 million in the second quarter of 2002.
Revenues for the six months ended June 30, 2003 were $25.4 million compared with
$32.4 million in the same period last year. Gross profit was $10.6 million while
in the comparable period last year it was $14.5 million. The gross profit margin
was 41.7% for the first six months of 2003 versus 44.8% in the same period in
2002. The operating loss for the first six months of 2003 was $2.4 million
compared with operating income of $1.0 million in the first six months of 2002.
The net loss for the period was $2.4 million compared with a net income of $0.3
million in the first six months of 2002.
Commenting on the results, Mr. Itzick Sharir, President and Chief Executive
Officer, said: "We are committed to continue our efforts to return to
profitability. We expect the third and fourth quarters to reflect continued
improvement in results.
"I am excited by the very positive market feedback and increased interest in our
new offering to the Insurance Industry - Sapiens INSIGHT(TM) Solutions suite. We
are intensifying our sales and marketing efforts while gaining
thought-leadership position, primarily in the US, UK, and Israel. Our value
offering of working, cost saving and effective solutions that are demonstrating
their value to customers day by day, makes Sapiens a supplier of choice in the
Insurance Domain."
PAGE 2
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Q2 2003 CONFERENCE CALL:
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Sapiens International will hold a CONFERENCE CALL to discuss the results on
TUESDAY, AUGUST 5TH, 2003, AT 09:00AM (EST)
To participate, please call:
From the US and Canada: 1-866-485 2399
From the UK: 0-800-917 4613
International callers: + 972-3-9180610
10 minutes prior to start time
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FOR ADDITIONAL INFORMATION:
--------------------------------------------------------------------------------
Yuval Hadari Itzick Sharir
Chief Financial Officer Chief Executive Officer
Sapiens International Sapiens International
Tel: +1-877-554-2426 Tel: +44-1895-464 265
+972-8-938-2721
E-mail: yuval.h@sapiens.com E-mail: itzick.s@sapiens.com
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ABOUT SAPIENS
Sapiens International Corporation (NASDAQ and TASE: SPNS), a member of the
Formula Group of companies, 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 Allianz Group, AXA,
Liverpool Victoria, Menora, Norwich Union, OneBeacon, Principal Financial,
Prudential, Abbey National, ING, Occidental Fire & Casualty among others. For
more information, please visit http://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.
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PAGE 3
SAPIENS INTERNATIONAL CORPORATION N.V.
Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except per share amounts)
For the three months ended For the six months ended
---------------------------------- -----------------------------------
6/30/2003 6/30/2002 6/30/2003 6/30/2002
--------------- --------------- --------------- -----------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
REVENUES
Products $ 8,321 $ 10,622 $ 14,645 $ 20,793
Consulting and other services 5,060 5,694 $ 10,792 11,559
--------------- --------------- --------------- -----------------
Total revenues 13,381 16,316 25,437 32,352
--------------- --------------- --------------- -----------------
COST OF REVENUES
Products 4,651 5,325 8,502 10,459
Consulting and other services 2,749 3,374 6,299 7,363
--------------- --------------- --------------- -----------------
Total cost of revenues 7,400 8,699 14,801 17,822
--------------- --------------- --------------- -----------------
GROSS PROFIT 5,981 7,617 10,636 14,530
EXPENSES
Research and development, net 1,020 1,473 2,421 2,795
Selling, marketing, general and administrative 5,160 5,509 10,567 10,734
--------------- --------------- --------------- -----------------
OPERATING INCOME/(LOSS) (199) 635 (2,352) 1,001
Financial expenses, net (140) (191) (310) (354)
Other income/(expenses), net (a) (48) (320) 288 (360)
--------------- --------------- --------------- -----------------
NET INCOME/(LOSS) $ (387) $ 124 $ (2,374) $ 287
=============== =============== =============== =================
Basic earnings/(loss) per share $ (0.04) $ 0.02 $ (0.22) $ 0.04
=============== =============== =============== =================
Diluted earnings/(loss) per share (b) $ (0.04) $ 0.01 $ (0.22) $ 0.03
=============== =============== =============== =================
Weighted average shares used to compute:
Basic earnings/(loss) per share 10,693 7,266 10,692 7,249
Diluted earnings/(loss) per share (b) 10,693 9,427 10,692 9,241
Notes a: Includes taxes and minority interest
b: Due to the net loss in 2003 the inclusion of dilutive securities
would be antidilutive.
PAGE 4
SAPIENS INTERNATIONAL CORPORATION N.V.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
6/30/2003 12/31/2002
------------------ ------------
(Unaudited) (Audited)
ASSETS
Cash $ 20,262 $ 22,001
Short-term investments 4,330 1,652
------------------ ------------
24,592 23,653
Trade receivables 8,739 10,405
Other current assets 7,184 5,842
------------------ ------------
TOTAL CURRENT ASSETS 40,515 39,900
------------------ ------------
Property and equipment, net 3,318 3,426
Other assets 22,600 21,826
------------------ ------------
TOTAL ASSETS $ 66,433 $ 65,152
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LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term loans and current maturities
of long-term debt $ 13,105 $ 9,483
Trade payables 2,943 2,578
Other liabilities and accrued expenses 13,404 14,541
Deferred revenue 3,870 3,683
------------------ ------------
TOTAL CURRENT LIABILITIES 33,322 30,285
------------------ ------------
Long-term debt and other liabilities 7,715 7,787
Redeemable shares in a subsidiary 11,342 11,185
Shareholders' equity 14,054 15,895
------------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 66,433 $ 65,152
================== ============
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