Insurance software solutions developer Sapiens International NV (Nasdaq: SPNS; TASE: SPNS) swung to GAAP-based net profit on a 5% increase in revenue in 2009.
Sapiens' revenue rose to $45.7 million 2009 from $43.5 million in 2008. The company posted a GAAP-based net profit of $4.2 million ($0.19 per share) in 2009, compared with a GAAP-based net loss of $344,000 in 2008.
Non-GAAP net profit rose ten-fold to $5.4 million ($0.25 per share) from $549,000 in 2008.
Sapiens' revenue rose to $11.8 million for the fourth quarter from $11 million for the corresponding quarter. GAAP-based net profit rose to $1.3 million ($0.06 per share) from $1 million for the corresponding quarter, while non-GAAP net profit rose to $1.9 million ($0.09 per share) from $1.3 million.
The company made the final payment on its bonds in 2009.
Sapiens president and CEO Roni Al-Dor said, "I am pleased to report that we have brought the company back to the growth path, with zero debt and a relatively strong cash position." He added, "In 2010, we intend to focus on growing our client base, while maintaining our strong relations with our existing ones. We expect that these achievements, coupled with our technology, products, and excellent team, will drive our future growth. We'll make new investments in view of growing demand for our products and services for the insurance industry."
Sapiens has said in the past that it intends to grow through mergers and acquisitions. The company is a subsidiary of Emblaze Ltd. (LSE: BLZ) unit Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT).
Sapiens' share closed at $1.60 on Nasdaq yesterday, giving a market cap of $34.6 million. The share rose 10% by mid-afternoon on the TASE today to NIS 6.61.
Published by Globes [online], Israel business news - www.globes-online.com - on March 10, 2010
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