BSD.L Regulatory News (BSD)

14 Nov 2007 14:20

Emblaze Ltd14 November 2007 SAPIENS ANNOUNCES Q3 2007 RESULTS Company Reports Fourth Consecutive Quarter of Operational Profit Ra'anana, Israel, November 14, 2007 - Emblaze Ltd ("Emblaze" or "the Group")announces that Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), amember of the Emblaze/Formula Group (LSE:BLZ.L) (NASDAQ: FORTY and TASE: FORT),announces today its results of operations for the third quarter of 2007. Financial Highlights• Fourth consecutive quarter of Operational Profit• Completion of final proceeds of $20 million private placement U.S. GAAP • Q3 2007 Operating Profit increased to $185,000, up from Q3 2006 Operating Loss of $210,000• Q3 2007 Net Loss reduced significantly to $288,000, down fromQ3 2006 Net Loss of $623,000, the Company's net results of operations would have been break-even, absent the devaluation of the US Dollar against the New Israeli Shekel Non-GAAP• Q3 2007 Operating Profit of $445,000, a significant improvement over the Q2 2007 Operating Loss of $57,000• Net results of operations in Q3 2007 are break-even, an improvement of over $900,000 from Q2 2007 U.S. GAAP results include amortization of capitalized software developments,capitalization of software development costs, and stock-based compensationexpenses. Reconciliation between U.S. GAAP and Non-GAAP results is summarized in thefollowing table. For a complete reconciliation, please refer to the tables atthe end of this release. U.S. Dollars in thousands, except per share amounts U.S. GAAP Q3 2007 Q2 2007 Q3 2006 Revenues 10,532 10,680 11,302Operating profit (loss) 185 162 (210)Net loss (288) (715) (623)Basic and diluted profit (loss) per share (0.01) (0.05) (0.05) Non-GAAP Q3 2007 Q2 2007 Q3 2006Revenues 10,532 10,680 11,302Operating profit (loss) 445 (57) (162)Net loss (28) (934) (575)Basic and diluted profit (loss) per share 0.00 (0.06) (0.04) Operational Highlights• Launch of solution for Israeli pension funds, first customer to be Helman Aldubi• Signed approximately $2.0 million with an existing UK customer for license and migration services• Alliances with new partners in the US to increase sales• Improvement of internal processes and utilization worldwide, at all offices, to streamline with new focus Roni Al-Dor, President and CEO, commented "We proudly report our fourthconsecutive quarter of operational profit. With the $20 million privateplacement behind us, and our new CFO and new VP of R&D firmly in place, we areready to expand and grow. I am particularly excited by, and proud of, ourexisting customers who have entered into new agreements with us for the portingand migration of the Sapiens solution to new platforms. We will capitalize onour unique position to grow with our existing customers and to capture newcustomers in the multi-billion dollar insurance markets." Comment Regarding Non-GAAP Sapiens' management believes that the presentation of Non-GAAP measures canenhance the understanding of the company's ongoing economic performance, andprovides useful information to investors regarding financial and business trendsrelating to the company's financial condition and results of operations. Sapienstherefore uses internally the Non-GAAP information to evaluate and manage theCompany's operations. These non-GAAP financial measures are not in accordance with, or an alternativefor, generally accepted accounting principles and may be different from non-GAAPfinancial measures used by other companies. In addition, these non-GAAPfinancial measures are not based on any comprehensive set of accounting rules orprinciples. Sapiens believes that non-GAAP financial measures have limitationsin that they do not reflect all of the amounts associated with Sapiens' resultsof operations as determined in accordance with GAAP and that these measuresshould only be used to evaluate Sapiens' results of operations in conjunctionwith the corresponding GAAP measures. Please refer to the Reconciliation of GAAP to Non-GAAP Results at the end ofthis release. About Sapiens International Sapiens International Corporation N.V. (Nasdaq and TASE: SPNS), a member ofFormula Group (Nasdaq: FORTY and TASE: FORT), which is a member of the EmblazeGroup (LSE: BLZ.L) is a leading global provider of proven IT solutions thatmodernize business processes and enable insurance organizations to adapt quicklyto change. Sapiens' innovative solutions are widely recognized for their abilityto cost-effectively align IT with the business demands for speed, flexibilityand efficiency. Sapiens operates through its subsidiaries in North America, theUnited Kingdom, EMEA and Asia Pacific, and has partnerships with market leaderssuch as IBM and EDS. Sapiens' clients include AXA, ING, Liverpool Victoria,Menora Mivtachim, Norwich Union, Occidental Fire & Casualty, OneBeacon,Principal Financial Group, Prudential, Santam and Texas Farm Bureau amongothers. For more information, please visit http://www.sapiens.com. Except for historical information contained herein, the matters set forth inthis release are forward-looking statements that are dependent on certain risksand uncertainties, including such factors, among others, as market acceptance,market demand, pricing, changing regulatory environment, changing economicconditions, risks in new product and service development, the effect of theCompany's accounting policies, specific system configurations and software needsof individual customers and other risk factors detailed in the Company's SECfilings. About Emblaze Emblaze Ltd is a group of technology companies addressing both growth andinnovation activities thus combining the stability of "bread and butter" maturetechnology enterprises with "high-risk / high-reward" investments in innovation. Growth activities Formula Systems, which includes: * Magic Software Enterprises Ltd. (NASDAQ & TASE: MGIC) develops, markets and supports composite application development and deployment platforms with a service-oriented architecture (SOA), including application integration and business process management (BPM), with existing and legacy systems; * Matrix IT Ltd. (TASE: MTRX) is one of Israel's leading integration and information technology services companies, active in four principal areas: software solutions and services, software products, infrastructure solutions and hardware products, and training and assimilation. * Sapiens International Corporation N.V. (NASDAQ & TASE: SPNS) is a provider of IT solutions that modernize business processes to enable insurance and other companies to quickly adapt to changes. * nextSource Inc., designs, develops and implements web-based, high quality, innovative human capital management solutions. Innovation activities * Emblaze Mobile, an designer of advanced mobile devices; * emoze, a free global Push Email technology for mobile devices * ZONE-IP (Emblaze V CON), a provider of wireless video communications technologies and conferencing solutions for operators and enterprise markets over IP networks * Orca Interactive (LSE: ORCA), provider of Interactive Television IPTV middleware for Video On Demand (VOD) and broadcast services ; and * Visual Defence (LSE: VDI), (minority stake) a wireless and IP video solutions provider for military and homeland security markets. Emblaze Group is traded on the London Stock Exchange (LSE: BLZ) since 1996.www.Emblaze.com SAPIENS INTERNATIONAL CORPORATION N.V. Condensed Consolidated Balance Sheets (U.S. Dollars in thousands) 9/30/2007 12/31/2006 (Unaudited) (Audited)Assets Cash and cash equivalents $ 16,624 $ 3,108 Short-term investments 42 32 Trade receivables, net 10,228 11,010 Other current assets 1,913 1,689 Total current assets 28,807 15,839 Property and equipment, net 1,279 1,495 Other assets, net 28,557 28,285 Total assets $ 58,643 $ 45,619 Liabilities and shareholders' equity Short-term bank credit and current maturities of long-term debt and convertible debentures $ 9,695 $ 15,603 Trade payables 1,134 2,019 Other liabilities and accrued expenses 8,770 7,370 Deferred revenue 5,591 3,463 Total current liabilities 25,190 28,455 Long-term debt and other long-term liabilities 1,808 1,439 Convertible debentures and warrants 9,148 11,796 Shareholders' equity 22,497 3,929 Total liabilities and shareholders' equity 58,643 $ 45,619 SAPIENS INTERNATIONAL CORPORATION N.V. Condensed Consolidated Statements of Operations (U.S. Dollars in thousands, except per share amounts) For the three months ended For the nine months ended 9/30/2007 9/30/2006 9/30/2007 9/30/2006 (Unaudited) (Unaudited) (Unaudited) (Unaudited)RevenuesProducts $ 1,137 $ 2,179 $ 5,036 $ 8,030Consulting and other services $ 9,395 9,123 27,183 25,068Total revenues 10,532 11,302 32,219 33,098 Cost of revenuesProducts $ 519 1,471 3,052 4,993Consulting and other services $ 6,054 5,799 17,446 16,489Total cost of revenues 6,573 7,270 20,498 21,482 Gross Profit 3,959 4,032 11,721 11,616 Operating expensesResearch and development, net $ 703 682 1,679 1,968Selling, marketing, general $ 3,071 3,535 9,336 10,304and administrativeRestructuring expenses $ - 25 210 681 Operating Profit (Loss) 185 (210) 496 (1,337) Financial expenses, net $ (515) (372) (1,631) (1,586)Other income (expenses), net b) $ 42 (41) (273) (135) Net Loss $ 288 $ 623 $ 1,408 $ 3,058 Basic and diluted loss per share (c) $ 0.01 $ 0.05 $ 0.08 $ 0.24 Weighted average shares used to compute basic and dilutedloss per share (c) 20,853 13,707 17,095 12,909 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 9/30/2007 9/30/2006 9/30/2007 9/30/2006 (Unaudited) (Unaudited) (Unaudited) (Unaudited)GAAP operating profit (loss) 185 (210) 496 (1,337)Amortization of capitalized software developments 1,059 1,172 3,127 3,404Capitalization of software developments (849) (1,124) (3,324) (3,553)Stock-based compensation 50 - 87 -Total adjustments to GAAP 260 48 (110) (149)Non-GAAP operating profit (loss) 445 (162) 386 (1,486)GAAP net income (loss) (288) (623) (1,408) (3,058)Total adjustments to GAAP as above 260 48 (110) (149)Non-GAAP net income (loss) (28) (575) (1,518) (3,207) Non-GAAP basic and diluted profit (loss) per share (c) 0.00 (0.04) (0.09) (0.25)Weighted average shares compute basic and diluted profit (loss) per share (c) 20,853 13,707 17,095 12,909 Reconciliation of GAAP to Non-GAAP Results for First Three Quarters of 2007 For the three months ended 9/30/2007 6/30/2007 3/31/2007 (Unaudited) (Unaudited) (Unaudited)GAAP operating profit (loss) 185 162 149Amortization of capitalized software developments 1,059 885 1,183Capitalization of software developments (849) (1,134) (1,341)Stock-based compensation 50 30 7Total adjustments to GAAP 260 (219) (151) Non-GAAP operating profit (loss) 445 (57) (2) GAAP net income (loss) (288) (715) (405)Total adjustments to GAAP as above 260 (219) (151) Non-GAAP net income (loss) (28) (934) (556)Non-GAAP basic and diluted profit (loss) per share (c) 0.00 (0.06) (0.04) Weighted average shares used to compute basic and diluted profit(loss) per share (c) 20,853 15,514 14,854 Note a: Certain prior year's amounts have been reclassified and corrected to conform with current year presentation b: Includes taxes, equity losses and minority interest c: Due to the net loss in 2006 and 2007 the inclusion of dilutive securities would be antidilutive. 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