IT solutions company Sapiens International NV (Nasdaq: SPNS) today announced that its eMerge rules-based technology was selected to help modernize the US Internal Revenue Service's business systems.
The lucrative contract will incorporate software license, consulting and education services around Sapiens technology, the company said.
Sapiens did not disclose the value of the deal, but said it had additional growth opportunities in 2003 and beyond.
Sapiens was selected by Computer Sciences Corporation (NYSE:CSC), which entered an agreement to modernize the IRS’s business systems in 1998.
Founded in 1959, Computer Sciences Corporation is one of the world's leading information technology services companies. Headquartered in El Segundo, California, CSC reported revenue of $11.4 billion for the 12 months ended Sept. 27, 2002.
Some of the world's largest companies are involved in the CSC-led modernization program, including SAIC, IBM, BearingPoint, Northrop Grumman IT, and Unisys. Together they are called the PRIME Alliance.
CSC Federal Sector vice president and PRIME Program executive Michael Plett said, “Sapiens' track record for providing mission-critical solutions makes them a logical choice for adding their technology to the CSC PRIME initiative. Sapiens was chosen for the critical rules engine role after extensive evaluation and testing in the automated processing system.”
Sapiens says its eMerge solution will provide the rule processing capability to power the IRS’s customer account data engine (CADE). CADE will provide authoritative data stores for tax accounts and return information for tax administration in the future.
Nasdaq-listed Sapiens was established in 1982, and is an affiliate of Formula Systems (Nasdaq: FORTY), an investor in information technology solutions.
Last week, Sapiens reported a net loss of $4.9 million in the fourth quarter, compared with a net profit of $176,000 in the same period in 2001.
The company’s revenue decreased by 9% to $15.9 million in the fourth quarter of 2002, from $17.5 million a year earlier, reflecting both the overall slowdown in the software industry and the structural changes that the insurance industry was undergoing, the company said.
Sapiens shares closed on Nasdaq on Monday at $0.79, reflecting a $19.4 million company value. Two months ago, the company admitted its shares were subject to delisting from the Nasdaq National Market, because they had fallen below the $1 minimum bid price requirement.
The company announced on Monday that its shares would be listed on the Tel-Aviv Stock Exchange from this Thursday. Sapiens joins a group of about twenty other publicly traded companies whose shares have been approved for dual-listing on the TASE.
Published by Globes [online] - www.globes.co.il - on 4 March, 2003