Sapiens Reports Strong Q3 2009 Results

Q3/2009 Net Income of $1 Million or $0.05 per Share

CARY, North Carolina, November 12 /PRNewswire-FirstCall/ -- Sapiens
International Corporation N.V. (NASDAQ and TASE: SPNS) ("Sapiens" or
"Company"), a leading global provider of innovative insurance software
solutions and enterprise platform that allow immediate response in
rapidly-changing markets, and a member of the Formula (NASDAQ: FORTY and
TASE: FORT) Group, today announced its results of operations for the third
quarter of 2009.
Highlights for Q3 2009

- Revenues reached $12.9 million, an increase of 17% compared with $11.0
million in Q3 2008.
- Operating profit reached $1.5 million, reflecting growth of 114%
compared with $0.7 million in Q3 2008
- Net Income reached $1.2 million on a non GAAP basis, compared with $0.8
million net income in Q3 2008.
- Twelve consecutive quarters of operational profit and fifth consecutive
quarter of Net income.
- Total equity of $25.2 million, which represents 47% of balance sheet.
- Earnings per share for this quarter were $0.05 (fully diluted), a
significant increase from $0.02 (fully diluted) earnings per share
reported in Q3 08.

Roni Al-Dor, President and CEO of Sapiens, commented, "In the third
quarter of 2009, we continued to improve our results and leveraged the
positive trends in the market. During the third quarter of 2009, we increased
our operational profit to $1.5 million and tripled our net income to $1.0
million compared to net income of $0.4 million in third quarter of 2008.
Revenues in Q3 of 2009 reached $12.9 million, an increase of 17% compared to
Q3 of 2008. During the first nine months of 2009, the Company reached $2.9
million net income which is a significant increase compared to the net loss
of $1.3 million in the comparable period in 2008.
Mr. Al-Dor continued, "We are very proud of our performance in the third
quarter as our performance in all financial measures reached record levels
for the year. As the industry shows initial signs of recovery, we continue to
find more opportunities to support the organic and non-organic growth of our
customers and prospects.
Looking forward, we will intend to continue to expand our market reach
with growing focus on the insurance industry, and enhance our investment in
INSIGHT - our Insurance Solutions suite. We are cautiously optimistic that
the market trends will continue to generate new business opportunities in the
future."
Reconciliation between U.S. GAAP and Non-GAAP results is summarized in
the following table. For a complete reconciliation, please refer to the
tables at the end of this release.
U.S. Dollars in thousands, except per share amounts

For the three months For the nine months
ended ended

U.S GAAP basis 09/30/2009 09/30/2008 09/30/2009 09/30/2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues 12,951 11,024 33,928 32,527
Operating profit 1,489 709 3,829 1,711
Net income (loss) 1,035 375 2,939 (1,351)
Basic earning (loss)
per share 0.05 0.02 0.14 (0.06)
Diluted earning (loss)
per share 0.05 0.02 0.14 (0.06)

Non-GAAP
Revenues 12,951 11,024 33,928 32,527
Operating profit 1,680 1,137 4,413 2,348
Net income (loss) 1,226 803 3,523 (714)
Basic earning (loss)
per share 0.06 0.04 0.16 (0.03)
Diluted earning (loss)
per share 0.06 0.04 0.16 (0.03)

U.S. GAAP results include amortization of capitalized software
developments, capitalization of software development costs, and stock-based
compensation expenses.
Comment Regarding Non-GAAP
Sapiens' management believes that the presentation of non-GAAP measures
can enhance the understanding of the company's ongoing economic performance,
and provides useful information to investors regarding financial and business
trends relating to the company's financial condition and results of
operations. Sapiens therefore uses internally the non-GAAP information to
evaluate and manage the Company's operations.
This non-GAAP financial measures are not in accordance with, or an
alternative for, generally accepted accounting principles and may be
different from non-GAAP financial measures used by other companies. In
addition, these non-GAAP financial measures are not based on any
comprehensive set of accounting rules or principles. Sapiens believes that
non-GAAP financial measures have limitations in that they do not reflect all
of the amounts associated with Sapiens' results of operations as determined
in accordance with GAAP and that these measures should only be used to
evaluate Sapiens' results of operations in conjunction with the corresponding
GAAP measures.
Please refer to the Reconciliation of GAAP to Non-GAAP Results at the end
of this release.
About Sapiens International
Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a member
of Formula Group (NASDAQ: FORTY and TASE: FORT), which is a member of the
Emblaze Group (LSE: BLZ.L) 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, the United Kingdom, EMEA and Asia
Pacific, and has partnerships with market leaders such as IBM and EDS.
Sapiens' clients include AXA, ING, Liverpool Victoria, Menora Mivtachim,
Norwich Union, Occidental Fire & Casualty, OneBeacon, Principal Financial
Group, Santam and Texas Farm Bureau 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, specific system configurations and
software needs of individual customers and other risk factors detailed in the
Company's SEC filings.
SAPIENS INTERNATIONAL CORPORATION N.V.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)

9/30/2009 12/31/2008

(Unaudited) (Audited)
Assets

Cash and cash equivalents $ 15,831 $ 7,938
Trade receivables, net 7,274 6,860
Other current assets 2,838 2,565
Total current assets 25,943 17,363

Property and equipment, net 936 1,055
Other assets, net 26,416 26,759

Total assets $ 53,295 $ 45,177

Liabilities and shareholders'
equity

Current maturities of long-term
debt and convertible debentures $ 5,071 $ 5,745

Trade payables 983 1,500
Other liabilities and accrued expenses 11,060 9,716
Deferred revenue 9,625 4,908
Total current liabilities 26,739 21,869

Long-term debt and other long-term liabilities 1,342 1,432
Shareholders' equity 25,214 21,876

Total liabilities and shareholders'
equity $ 53,295 $ 45,177

SAPIENS INTERNATIONAL CORPORATION N.V.
Condensed Consolidated Statements of Operations
(U.S. Dollars in thousands, except per share amounts)

For the three months For the nine months
ended ended
09/30/2009 09/30/2008 09/30/2009 09/30/2008

Unaudited Unaudited Unaudited Unaudited

Revenues $ 12,951 $ 11,024 $ 33,928 $ 32,527

Cost of revenues $ 7,576 $ 6,649 $ 18,762 $ 19,447

Gross Profit 5,375 4,375 15,166 13,080

Operating expenses
Research and
development, net $ 758 $ 885 $ 2,206 $ 2,532
Selling, marketing,
general and
administrative $ 3,128 $ 2,781 $ 9,131 $ 8,837

Operating Profit 1,489 709 3,829 1,711

Financial expenses, net $ 385 $ 299 $ 748 $ 2,762
Taxes on income $ 69 $ 22 $ 142 $ 253

Net Income (Loss) $ 1,035 $ 388 $ 2,939 $ (1,304)

Attributetable to
non-controlling interest $ - $ 13 $ - $ 47

Net income (Loss)
attributable to Sapiens $ 1,035 $ 375 $ 2,939 $ (1,351)

Earning (loss) per share
Basic $ 0.05 $ 0.02 $ 0.14 $ (0.06)
Diluted $ 0.05 $ 0.02 $ 0.14 $ (0.06)

Weighted average number
of shares used to
computation of earning
(loss) per share

Basic 21,591 21,541 21,591 21,541
Diluted 21,591 21,545 21,591 21,541

SAPIENS INTERNATIONAL CORPORATION N.V.
Reconciliation of GAAP to Non-GAAP results

(U.S. Dollars in thousands, except per share amounts)

For the three months For the nine months
ended ended

09/30/2009 09/30/2008 09/30/2009 09/30/2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)

GAAP operating profit 1,489 709 3,829 1,711
Amortization of
intangibles 1,203 1,233 3,271 3,235
Capitalization of
software development (1,067) (855) (2,841) (2,713)
Stock-based
compensation 55 50 154 115
Total adjustments
to GAAP 191 428 584 637
Non-GAAP
operating profit 1,680 1,137 4,413 2,348

GAAP net income (loss) 1,035 375 2,939 (1,351)
Total adjustments
to GAAP as above 191 428 584 637
Non-GAAP net
income (loss) 1,226 803 3,523 (714)

Non-GAAP basic
earnings (loss) per
share 0.06 0.04 0.16 (0.03)

Non-GAAP diluted
earnings (loss) per
share 0.06 0.04 0.16 (0.03)

Weighted average
number of shares used
to computation of
earning (loss) per
share
Basic 21,591 21,541 21,591 21,541

Diluted 21,591 21,545 21,591 21,541

FOR ADDITIONAL INFORMATION:

Roni Giladi Roni Al-Dor
Chief Financial Officer Chief Executive Officer
Sapiens International Sapiens International
Tel: +972-8-938-2721 Tel: +972-8-938-2721
E-mail: IR.Sapiens@sapiens.com E-mail: IR.Sapiens@sapiens.com

SOURCE Sapiens International Corporation N.V

FOR ADDITIONAL INFORMATION: Roni Giladi, Chief Financial Officer, Sapiens
International, Tel: +972-8-938-2721, E-mail: IR.Sapiens@sapiens.com; Roni
Al-Dor, Chief Executive Officer, Sapiens International, Tel: +972-8-938-2721,
E-mail: IR.Sapiens@sapiens.com