The acquisition of FIS Solutions Ltd. and IDIT Technologies by financial services software developer Sapiens International NV (Nasdaq: SPNS; TASE: SPNS) earlier this year boosted its third quarter revenue 35% to $17.8 million from $13.1 million for the corresponding quarter of 2010.
GAAP-based net profit rose slightly to $1.55 million for the third quarter from $1.5 million for the corresponding quarter, and non-GAAP net profit rose 19% to $2.3 million $1.9 million. However, since Sapiens acquired FIS and IDIT for $70 million, mostly in shares, the increase in the number of shares, the earnings per share fell to $0.07 for the third quarter from $0.08 for the corresponding quarter.
Sapiens had $19.5 million in cash and cash equivalents at the end of September.
Sapiens president and CEO Roni Al-Dor said, "We continue to see growth in Sapiens’ existing and new businesses. Our customers express their confidence in our company and show interest in our growing product portfolio. We are encouraged by the overall positive feedback we have received from the market since the formal closing of the merger. The integration is well underway, and we expect to see its fruits during 2012. We are focusing on maximizing the synergies between the companies in all aspects products, territories, teams and operations. We are now finalizing our 2012 plans to support our future growth."
Sapiens is a subsidiary of Asseco Poland SA (WSE: ACP) through Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT), and a sister company of Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC). Sapiens' share price rose 8.5% on Nasdaq yesterday to $4.20, giving a market cap of $166 million, and rose 15.2% by mid-afternoon on the TASE today to NIS 15.54.
Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2011
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