<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of
July 2000
Sapiens International Corporation N.V.
(translation of registrant's name into English)
c/o Landhuis Joonchi
Kaya Richard J. Beaujon z/n
P.O. Box 837
Willemstad
Curacao, Netherlands Antilles
(599) (9) 7366277
(address of principal executive offices)
[Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F]
Form 20-F X Form 40-F
--- ---
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2 (b) under the Securities Exchange Act of
1934]
Yes No X
--- ---
<PAGE>
July 31, 2000
The Nasdaq Stock Market
1735 K Street, N.W.
Washington, DC 20006
USA
Dear Sirs:
Enclosed please find the following press releases filed herewith under cover of
Form 6-K (one manually signed and seven conformed copies) for Sapiens
International Corporation N.V.
Sapiens' eZoneXchange.com and Emptoris Form Strategic Relationship to Provide
Integrated B2B Solutions
Sapiens to Conduct Comprehensive Euro Impact Analysis for Prudential
Ge-BE and Sapiens Sign Broad Partnership Agreement
Air France and Sapiens Sign Multi-Year Master Services Agreement
Liverpool Victoria Chooses Sapiens to Develop Web-Enabled Life Insurance
Administration Solution Valued at $8 Million
Sapiens International Announces Second Quarter Results Including Record Project
Order Entry of $24 Million
These documents have been filed simultaneously with the Securities and Exchange
Commission.
Respectfully,
Steve Kronengold
General Counsel
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Sapiens International Corporation N.V.
(Registrant)
Date: July 31, 2000 By: /s/ Steve Kronengold
---------------------------
Steve Kronengold
General Counsel
<PAGE>
[LOGO]
FOR ADDITIONAL INFORMATION
Lauri Hanover John W. Heilshorn, Jr./Jody Burfening
Chief Financial Officer Lippert/Heilshorn &
Sapiens International Associates Inc.
Tel: +1-877-554-2426 Tel: +1-212- 838-3777
+972-8-938-2701
E-mail: [email protected] E-mail: [email protected]
------------------- -------------
SAPIENS TO CONDUCT COMPREHENSIVE EURO IMPACT ANALYSIS
FOR PRUDENTIAL
Research Triangle Park, NC--July 10, 2000--Sapiens International Corporation N.V
(NASDAQ: SPNS), a global e-business solutions provider, today announced that
Prudential Retail Financial Services, the UK financial services giant, has
selected Sapiens to implement a comprehensive euro impact analysis project. At
the customer's request, terms of the agreement were not disclosed.
This project follows the successful implementation of a pilot phase in which
Sapiens demonstrated its EuroMigration(TM) solution's capabilities within the
Prudential operating environment. The project, which is aimed at preparing
Prudential for future transition to the euro, will enable the company to react
quickly and cost-effectively should the UK government join the EMU.
Commenting on the project, Mr. Oliver Tunstall, Euro Programme Manager at
Prudential, said: "We chose Sapiens because they were able to demonstrate that
they have a comprehensive, end-to-end solution that meets the conversion
requirements of a large and complex business."
Mr. Yair Spitzer, Vice President, Sapiens UK, added: "We are delighted that a
company of Prudential's stature has joined our growing list of EuroMigration
clients. This project demonstrates that UK companies, along with their European
counterparts, are evaluating the implications of the euro more aggressively than
in the past. We are committed to providing our clients with leading-edge
solutions in the field of euro conversion and e-business."
<PAGE>
Page 2
About Prudential
Prudential's UK Retail insurance operations comprise three businesses:
Prudential Retail Financial Services (PRFS), Prudential Annuities and Retail
IFA. It provides high quality advice to customers requiring a broad range of
financial products including life insurance, pensions and savings plans.
KEY FACTS
o Prudential RFS employs around 10,000 people in the UK, including a
1,900 strong direct sales force.
o Prudential RFS has six million customers in the UK, one in six of
the adult population.
o Prudential Annuities is the market leader in the UK pension
annuity industry with over 700,000 customers and sales in excess
of (pound)2 billion.
o There are 7.1 million Prudential life policies in force in the UK.
o Prudential RFS is one of Britain's biggest pensions provider with
1.6 million personal pension contracts.
o Prudential RFS provides retail general insurance cover for around
1.7 million homes.
o Prudential RFS also sells banking products for Prudential Banking
and mortgage sales exceeded (pound)600 million in 1999.
About Sapiens
Sapiens International (NASDAQ: SPNS) is a global e-business solutions provider.
Sapiens delivers strategic end-to-end solutions that enable customers to
capitalize on their IT assets in the transition to e-business. Sapiens'
e-commerce solutions, such as eMerge Loan, eMerge Insure and eMerge Supply
Chain, as well as its cross-industry offerings, such as eMerge and
EuroMigration, apply new business models and processes in the emerging, dynamic
world of e-business and help clients meet the challenges of euro migration and
reengineering. Applying proven technologies, Sapiens ensures fast time-to-market
and responsiveness to change.
Sapiens serves its growing customer base directly and through partnerships with
such industry leaders as Cap Gemini, CSC, IBM and KPMG. The Company's installed
base of customers includes 3M, Air France, Argos, Bosch, Groupe Andre, Honda,
IBM, International Paper, Principal Financial and Siemens Energy and Automation
and other multinational corporations.
You are invited to visit us on the World Wide Web at 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 and other risk factors detailed in the Company's
SEC filings.
<PAGE>
[LOGO]
FOR ADDITIONAL INFORMATION
Lauri Hanover John W. Heilshorn, Jr./Jody Burfening
Chief Financial Officer Lippert/Heilshorn &
Sapiens International Associates Inc.
Tel: +1-877-554-2426 Tel: +1-212- 838-3777
+972-8-938-2701
E-mail: [email protected] E-mail: [email protected]
------------------- -------------
AIR FRANCE AND SAPIENS SIGN MULTI-YEAR MASTER SERVICES AGREEMENT
Agreement Automatically Renewed Annually
Research Triangle Park, NC--July 19, 2000--Sapiens International Corporation
N.V. (NASDAQ: SPNS), a global e-business solutions provider, today announced the
signing of a multi-year "preferred provider" contract with Air France. This
contract was awarded following three successful euro migration projects in which
Sapiens demonstrated its EuroMigration(TM) capabilities.
Renewed automatically on an annual basis, the scope of the contract is extensive
with a comprehensive list of services for large-scale, mission-critical project
implementation such as technical support and consulting, maintenance, as well as
project management, application development and re-engineering.
In its trademark strategy of "establishing partnerships to build sustainable
competitive advantage with its clients," Sapiens has aligned its resources with
Air France's IT and Telecommunication General Management. Two full-time
consultants were installed - one to address operational and strategic issues,
the other to handle various IT needs -- and in addition, a joint IT Planning
Committee was established to review, on a monthly basis, the strategic and
tactical deployment of IT solutions and services. Presentations of Sapiens'
eMerge(TM) solution - Sapiens' comprehensive e-business transitioning solution -
to provide Air France with e-business capabilities have already been planned.
Commenting on this contract, Mr. Andre Gigandet, IT Purchasing Manager of Air
France, said: "We chose Sapiens as a privileged contractor due to their ability
to understand and answer quickly Air France's IT needs"
Mr. Saadia Essoudry, Vice President, Sapiens France, added: "We are proud of and
honored by Air France's confidence in us, and are committed to developing our
relationship to ensure Air France's continued business success. Instead of a
"project-by-project" approach, we prefer to develop relationships and get
immersed in our client's technical and business strategy. This contract provides
us that opportunity. And as the Internet becomes increasingly strategic, we can
engage early, reduce uncertainty and risk, and thereby assist Air France in
responding quickly to the evolving e-business environment."
<PAGE>
About Sapiens
Sapiens International (NASDAQ: SPNS) is a global e-business solutions provider.
Sapiens delivers strategic end-to-end solutions that enable customers to
capitalize on their IT assets in the transition to e-business. Sapiens'
e-commerce solutions, such as eMerge Loan, eMerge Insure and eMerge Supply
Chain, as well as its cross-industry offerings, such as eMerge and
EuroMigration, apply new business models and processes in the emerging, dynamic
world of e-business and help clients meet the challenges of euro migration and
reengineering. Applying proven technologies, Sapiens ensures fast time-to-market
and responsiveness to change.
Sapiens serves its growing customer base directly and through partnerships with
such industry leaders as Cap Gemini, CSC, IBM and KPMG. The Company's installed
base of customers includes 3M, Air France, Argos, Bosch, Groupe Andre, Honda,
IBM, International Paper, Principal Financial and Siemens Energy and Automation
and other multinational corporations.
You are invited to visit us on the World Wide Web at 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 and other risk factors detailed in the Company's
SEC filings.
<PAGE>
[LOGO]
<TABLE>
<CAPTION>
FOR ADDITIONAL INFORMATION
<S> <C> <C> <C>
Tedd Rodman Rob Morton for Emptoris Lauri Hanover John W. Heilshorn, Jr./Jody
Burfening
Chief Financial Officer Lippert/Heilshorn &
Emptoris, Inc PAN Communications Sapiens International Associates Inc.
Tel: +781-993-9212 Tel: +978-474-1900 Tel: +1-877-554-2426 Tel: +1-212- 838-3777
+972-8-938-2701
E-mail: [email protected] E-mail: [email protected] E-mail: [email protected] E-mail: [email protected]
-------------------- ------------------- ------------------- -------------
</TABLE>
SAPIENS' EZONEXCHANGE.COM AND EMPTORIS FORM STRATEGIC
RELATIONSHIP TO PROVIDE INTEGRATED B2B SOLUTIONS
Companies to Jointly Market Emptoris' ePASS and eZoneXchange.com's
eFulfillment and Integration Solutions
Research Triangle Park, NC and Burlington, Mass.--July 10, 2000-- Sapiens
International Corporation (NASDAQ: SPNS) and its subsidiary, eZoneXchange.com, a
provider of eFulfillment and integration solutions to B2B eMarketplaces, and
Emptoris, Inc., the leading provider of strategic B2B e-commerce solutions for
net market makers and the Global 2000, today announced the formation of a
strategic relationship. The companies will jointly market and sell integrated
solutions designed to automate and optimize the procurement and fulfillment
processes for sophisticated B2B exchanges.
Under the terms of the agreement, Emptoris will provide Sapiens'
eZoneXchange.com customers with access to ePASS, a web-based procurement
software solution that extends beyond single item simplistic transactions to
enable strategic sourcing of direct materials and services over the Internet. In
return, eZoneXchange.com's eFulfillment Logistics Commerce Hub and integration
solutions will be offered to Emptoris' Global 2000 customers who require full In
Transit Visibility through the supply chain process.
"Offering our eMarketplace customers the power to process complex RFPs and RFQs
via Emptoris ePASS, integrated with eZoneXchange.com's eFulfillment Logistics
Commerce Hub, provides one of the most complete B2B e-commerce platforms
available today," said Yuda Doron, CEO of eZoneXchange.com. "The relationship
between eZoneXchange.com and Emptoris will redefine the functionalities of
today's net markets."
"Software integration is a major concern for net market makers deploying B2B
initiatives," said Avner Schneur, President and CEO, Emptoris. "ePASS is
designed to be easily integrated with other software solutions to provide B2B
exchanges with the most advanced e-procurement technology. The combination of
ePASS and eZoneXchange.com's eFulfillment Logistics CommerceHub and integration
solutions will provide our customers with a total B2B platform, and give them
the confidence that the solutions they are buying will be seamlessly integrated
and supported by dedicated organizations."
As transactions conducted through B2B e-marketplaces increase, and as
participants require greater complexity in RFQ/RFP processing, organizations are
seeking sophisticated optimization engines which fully integrate with their
existing software systems. To answer these demands, Emptoris' ePASS provides
both buying and selling professionals with the information and
<PAGE>
decision support they need to carry out sophisticated strategic sourcing
activities online. Utilizing mathematical algorithms and highly customizable
business rules, ePASS is able to effectively match buyers with the suppliers
best able to meet the requirements of the RFQ/RFP. The combination of Emptoris'
ePASS and eZoneXchange.com will offer e-marketplace users full visibility of
purchasing data throughout the supply chain execution process and will fulfill
the increasingly complex needs of today's net markets.
About eZoneXchange.com/Sapiens International Corporation
eZoneXchange.com is a subsidiary of Sapiens International Corporation N.V.
eZoneXchange.com is an eNet Market Technology Company, which focuses on
eFulfillment for B2B eMarketplaces. The company specializes in two areas: "hard
eFulfillment", by providing the technological infrastructure and services to
solve inefficiencies in the transportation and logistics processes, as well as
"soft eFulfillment," which enables financial institutions to support their
communities/markets.
Sapiens International (NASDAQ: SPNS) is a global e-business solutions provider.
Sapiens delivers strategic end-to-end solutions that enable customers to
capitalize on their IT assets in the transition to e-business. Sapiens'
e-commerce solutions, such as eMerge Loan, eMerge Insure and eMerge Supply
Chain, as well as its cross-industry offerings, such as eMerge and
EuroMigration, apply new business models and processes in the emerging, dynamic
world of e-business and help clients meet the challenges of euro migration and
reengineering. Applying proven technologies, Sapiens ensures fast time-to-market
and responsiveness to change.
You are invited to visit us on the World Wide Web at www.sapiens.com.
About Emptoris, Inc.
Emptoris, Inc. is the leader in strategic B2B e-commerce solutions for net
markets and Global 2000 companies. Emptoris' real world procurement platform,
ePASS(TM), extends beyond single item simplistic transactions to enable
strategic sourcing of direct materials and services over the Internet. ePASS'
customizable business rules, intelligent workflow and advanced decision support
technology allows Emptoris' partners and customers to rapidly deploy industry
specific e-marketplace solutions, build collaborative buyer-seller relationships
and quickly optimize multifaceted purchasing decisions.
Emptoris is a privately held company and is an Internet Capital Group (Nasdaq:
ICGE) Partner Company. The Company is headquartered in Burlington,
Massachusetts. For additional information, please visit the Company's Web site
at www.emptoris.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 and other risk factors detailed in the Company's
SEC filings
<PAGE>
[LOGO] [LOGO]
FOR ADDITIONAL INFORMATION
Lauri Hanover John W. Heilshorn, Jr./Jody Burfening
Chief Financial Officer Lippert/Heilshorn &
Sapiens International Associates Inc.
Tel: +1-877-554-2426 Tel: +1-212- 838-3777
+972-8-938-2701
E-mail: [email protected] E-mail: [email protected]
Ge-BE AND SAPIENS SIGN BROAD PARTNERSHIP AGREEMENT
To Jointly Market e-Business and Insurance Solutions
North Point, Hong Kong and Research Triangle Park, NC--July 18, 2000--Global
e-Business Enabler Ltd. ("Ge-BE") and Sapiens International Corporation N.V.
(NASDAQ: SPNS), a global e-business solutions provider, today announced an
agreement to jointly market their combined skills to implement comprehensive
e-business and insurance solutions.
With the rapidly emerging Asia-Pacific e-business market, the agreement between
Ge-BE and Sapiens is well-timed in offering significant advantages to e-business
enterprises in the region. The combination of Ge-BE's consulting expertise and
Sapiens' quality eMerge solutions, such as eMerge Insure, creates powerful
capabilities that span from strategic planning and management consulting to the
functional as well as technical implementation of e-business and web-enabled
insurance projects. The partnership's joint expertise will offer a comprehensive
suite of strategy and business transformation, methodology, technologies and IT
experience to address the needs of the emerging e-marketplace.
E-business and insurance projects are typically implemented on an
enterprise-wide basis and demand flexibility and fast time-to-market in order to
preserve--or enhance--the client's competitive advantage. These projects, which
involve functional modifications to business and economic models, as well as
technical changes to IT systems, require strong IT management and solution
methodologies and technologies. The joint Ge-BE-Sapiens offering addresses each
of these needs in compelling fashion.
Commenting on the alliance, Mr. Andrew So, Ge-BE's Chief Executive Officer,
stated: "In today's dynamic e-marketplace, there is a need to integrate numerous
systems to work harmoniously. Sapiens eMerge, a comprehensive solution for the
transition to e-business, is ideal for building complex e-business systems and
leveraging organizations' IT systems to the web. This ensures that systems with
different information flows will work reliably and effectively in full
synchronicity, while maintaining system flexibility and facilitating rapid
changes as required by today's business market." Ge-BE's Chief Operating
Officer, Mr. Stephen Tam, added: "The partnership between Ge-BE and Sapiens will
enable us to offer high-quality, comprehensive solutions to meet the e-business
and insurance markets' needs."
Arie Rochman, Vice President, Sapiens Asia-Pacific, added: "We are delighted to
join forces with Ge-BE with the common goal of offering enhanced e-business
solutions and services to the Asia-Pacific region. Sapiens views Ge-BE as a
strategic partner in the expanding Asia-Pacific market. This partnership greatly
broadens our project capabilities and market reach in the region and enables us
to increase the benefits we provide to our customers. We look forward to a long
and productive relationship with Ge-BE."
<PAGE>
Page 2
About Global e-Business Enabler Ltd.
Global e-Business Enabler Limited (Ge-BE) is a subsidiary of Hong Kong-listed
Computer And Technologies Holdings Limited (C&T). Ge-BE's core business is the
development and delivery of advanced, integrated e-business solutions. Ge-BE's
main thrust is to provide project implementation, consulting and professional
services to transform our customers into full- fledged e-business organizations.
Working in collaboration with leading international technology partners, Ge-BE
delivers high-quality applications implementation services focusing on e-
Business enablement for large corporations. With strong technical expertise and
extensive experience in e-business enabling technologies, Ge-BE will continue to
develop and operate IT services through various levels of e-commerce solutions.
You are invited to visit us on the World Wide Web at http://www.ge-be.com.
About Sapiens
Sapiens International (NASDAQ: SPNS) is a global e-business solutions provider.
Sapiens delivers strategic end-to-end solutions that enable customers to
capitalize on their IT assets in the transition to e-business. Sapiens'
e-commerce solutions, such as eMerge Loan, eMerge Insure and eMerge Supply
Chain, as well as its cross-industry offerings, such as eMerge and
EuroMigration, apply new business models and processes in the emerging, dynamic
world of e-business and help clients meet the challenges of euro migration and
reengineering. Applying proven technologies, Sapiens ensures fast time-to-market
and responsiveness to change.
Sapiens serves its growing customer base directly and through partnerships with
such industry leaders as Cap Gemini, CSC, IBM and KPMG. The Company's installed
base of customers includes 3M, Air France, Argos, Bosch, Groupe Andre, Honda,
IBM, International Paper, Principal Financial and Siemens Energy and Automation
and other multinational corporations.
You are invited to visit us on the World Wide Web at 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 and other risk factors detailed in the Company's
SEC filings.
<PAGE>
[LOGO]
FOR ADDITIONAL INFORMATION
Lauri Hanover John W. Heilshorn, Jr./Jody Burfening
Chief Financial Officer Lippert/Heilshorn &
Sapiens International Associates Inc.
Tel: +1-877-554-2426 Tel: +1-212- 838-3777
+972-8-938-2701
E-mail: [email protected] E-mail: [email protected]
------------------- -------------
LIVERPOOL VICTORIA CHOOSES SAPIENS TO DEVELOP WEB-ENABLED LIFE
INSURANCE ADMINISTRATION SOLUTION VALUED AT $8 MILLION
Sapiens eMerge-Based Solution to Dramatically Improve Administrative
Efficiencies While Migrating Existing Data to a Web-Enabled Environment
Research Triangle Park, NC--July 26, 2000--Sapiens International Corporation
N.V. (NASDAQ: SPNS), a global e-business solutions provider, today announced
that Liverpool Victoria Friendly Society, one of the United Kingdom's leading
suppliers of insurance and financial services, has selected Sapiens to implement
a web-enabled insurance administration solution valued at $8 million. This
project is an extension of the IT relationship between Liverpool Victoria and
Sapiens UK, which already implemented a successful, mission-critical solution
for Liverpool Victoria in an unrelated business area.
The purpose of the current project is to replace an outdated suite of life
insurance administration systems involving over 3.5 million life insurance
policies. The existing systems are expensive to maintain, induce operational
inefficiencies and are unable to support Liverpool Victoria's desired levels of
customer service. The Sapiens two-step solution involves the migration of all
existing data to an IBM, web-enabled environment, and the development of a fully
integrated, dynamic life insurance administration application known as Life
Lite. The entire project is scheduled for completion within a short time scale
of twenty-one months due to Sapiens's rapid application development technologies
and methodologies.
Sapiens's eMerge solution, coupled with its expert IT consultants, will enable
Liverpool Victoria to streamline its business processes. The new solution will
offer one-stop process execution, reduced training needs and costs, greater
transactional throughput, better management information, improved reliability
and improved financial control. During the entire project, Sapiens' consultants
will be working hand-in-hand with Liverpool Victoria's business management to
review current administrative practices and redefine processes in order to take
full advantage of the new web-enabled environment.
Commenting on the project, Mr. Peter Munday, Head of Customer Services (Life)
and Project Sponsor, said: "We selected Sapiens for this mission-critical
project because of its proven ability to develop the highest caliber of large
scale, web-enabled systems quickly and cost-effectively. We are equally
impressed with the expertise and dedication of the Sapiens project team, and
their understanding of our critical business needs."
Mr.Yair Spitzer, Vice President, Sapiens UK, added: "We are delighted to expand
our relationship with Liverpool Victoria through this cutting-edge project. This
is a classic example of the operational efficiencies and cost reduction that we
can help our customers achieve with
<PAGE>
Page 2
our eMerge solution. We are dedicated to the success of this project and will
expend every energy to help Liverpool Victoria achieve competitive advantage."
About Liverpool Victoria
Liverpool Victoria is the UK's largest Friendly Society. It manages over $8.1B
of assets for its 2 million members and customers. It provides a wide range of
products and services in Life, General Insurance and Banking Credit.
It is one of the largest direct insurers in the country. Also it is one of the
financially strongest life offices in the country and consistently tops
performance tables covering all terms of life cover up to 25 years.
About Sapiens
Sapiens International (NASDAQ: SPNS) is a global e-business solutions provider.
Sapiens delivers strategic end-to-end solutions that enable customers to
capitalize on their IT assets in the transition to e-business. Sapiens'
e-commerce solutions, such as eMerge Loan, eMerge Insure and eMerge Supply
Chain, as well as its cross-industry offerings, such as eMerge and
EuroMigration, apply new business models and processes in the emerging, dynamic
world of e-business and help clients meet the challenges of euro migration and
reengineering. Applying proven technologies, Sapiens ensures fast time-to-market
and responsiveness to change.
Sapiens serves its growing customer base directly and through partnerships with
such industry leaders as Cap Gemini, CSC, IBM and KPMG. The Company's installed
base of customers includes 3M, Air France, Argos, Bosch, Groupe Andre, Honda,
IBM, International Paper, Principal Financial and Siemens Energy and Automation
and other multinational corporations.
You are invited to visit us on the World Wide Web at 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 and other risk factors detailed in the Company's
SEC filings.
<PAGE>
[LOGO]
FOR ADDITIONAL INFORMATION
Lauri Hanover John W. Heilshorn, Jr./Jody Burfening
Chief Financial Officer Lippert/Heilshorn &
Sapiens International Associates Inc.
Tel: +1-877-554-2426 Tel: +1-212- 838-3777
+972-8-938-2701
E-mail: [email protected] E-mail: [email protected]
------------------- -------------
SAPIENS INTERNATIONAL ANNOUNCES SECOND QUARTER RESULTS
INCLUDING RECORD PROJECT ORDER ENTRY OF $24 MILLION
Order Entry Mix Includes eMerge and euroMigration Projects
Research Triangle Park, N.C.--July 26, 2000 --Sapiens International Corporation
N.V. (Nasdaq NM: SPNS), a global e-business solution provider, today announced
unaudited results of operations for the second quarter and six months ended June
30, 2000.
Revenues in the second quarter of 2000 rose to $22.7 million from $22.1 million
in the second quarter of 1999. Year-to-date revenues were $44.1 million compared
with $43.6 million for the same period last year. Product revenues in the second
quarter climbed 36% to $14.5 million from $10.7 million a year ago. Consulting
and other services revenue declined 29% to $8.2 million from $11.5 million in
the second quarter of last year. Revenues in Europe rose 17% to $17.1 million
and sales in Asia-Pacific doubled to reach $2.3 million while sales in North
America declined 47% from the second quarter of last year.
Consolidated operating loss in the second quarter was $1.5 million compared with
an operating profit of $3.4 million in the second quarter of 1999. For the first
six months of the year, operating loss was $3.8 million compared with an
operating profit of $6.6 million in the same period last year. Consolidated net
loss in the second quarter was $1.2 million, or $0.05 per share on a diluted
basis, compared with net income of $3.6 million, or $0.15 per share on a diluted
basis, in the second quarter of 1999. Net loss for the first six months was $3.4
million, or $0.16 per share on a diluted basis, compared with a net income of
$6.8 million, or $0.28 per share on a diluted basis, in the same period last
year.
Commenting on the results, Dani Falk, Chief Executive Officer said, "We are very
encouraged by the results of the second quarter which included new project order
entry at an all-time high of $24 million. Orders with new and existing customers
included several large euro projects and Web-enablement solution projects based
on our eMerge offering. In this line of business, we closed three new projects
in the United States and, in the United Kingdom, we were awarded our largest
development project in the history of the Company. This project involves the
implementation of a Web-based life insurance administration solution.
"Naturally, record levels of new order entry brings with it delivery challenges.
We are in the process of implementing over 30 large-scale projects concurrently,
which has demanded a shifting of consulting personnel to these projects. This
has resulted in a drop-off in our traditional time and material consulting
revenues this quarter. We plan to continue investing in the recruitment and
training of our very talented professional team. In the long run, today's
investment will lead to future growth and enhanced project expertise.
<PAGE>
Page 2
"As we have stated, this is a year of investment in our long term future. The
record level of new orders shows that our strategy is right on target. It is
also important to note that our existing customers have awarded us follow-on
projects in different business areas. These customers include Air France,
Liverpool Victoria, Axa and National Australia Group. This fits with our long
term strategy of gaining the confidence of our customers and expanding our
relationships into new business areas. New customers that have awarded us
business this quarter include Prudential, Barclays, ATP, Fun-Tees and Surplus
Line Association."
About Sapiens:
Sapiens International (NASDAQ: SPNS) is a global e-business solutions provider.
Sapiens delivers strategic end-to-end solutions that enable customers to
capitalize on their IT assets in the transition to e-business. Sapiens'
e-commerce solutions, such as eMerge Loan, eMerge Insure and eMerge Supply
Chain, as well as its cross-industry offerings, such as eMerge and
EuroMigration, apply new business models and processes in the emerging, dynamic
world of e-business and help clients meet the challenges of euro migration and
reengineering. Applying proven technologies, Sapiens ensures fast time-to-market
and responsiveness to change.
Sapiens serves its growing customer base directly and through partnerships with
such industry leaders as Cap Gemini, CSC, IBM and KPMG. The Company's installed
base of customers includes 3M, Air France, Argos, Bosch, Groupe Andre, Honda,
IBM, International Paper, Principal Financial and Siemens Energy and Automation
and other multinational corporations
You are invited to visit us on the World Wide Web at 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 and other risk factors detailed in the Company's
SEC filings.
<PAGE>
Page 3
SAPIENS INTERNATIONAL CORPORATION N.V.
Condensed Consolidated Statements of Income
(U.S. Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
For the three months ended For the six months ended
---------------------------------- --------------------------------
6/30/2000 6/30/1999 6/30/2000 6/30/1999
---------------- -------------- --------------- --------------
<S> <C> <C> <C> <C>
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues
Products $ 14,506 $10,673 $ 25,646 $21,210
Consulting and other services 8,199 11,469 18,481 22,418
---------------- -------------- --------------- --------------
Total revenues 22,705 22,142 44,127 43,628
---------------- -------------- --------------- --------------
Cost of revenues
Products 5,607 3,904 10,147 7,618
Consulting and other services 6,184 6,989 13,316 13,489
---------------- -------------- --------------- --------------
Total cost of revenues 11,791 10,893 23,463 21,107
---------------- -------------- --------------- --------------
Gross Profit 10,914 11,249 20,664 22,521
Expenses
Research and development, net 2,168 1,057 4,394 2,476
Selling, general and administrative 9,928 6,572 19,559 13,176
Amortization of goodwill 272 212 546 289
---------------- -------------- --------------------------------
Operating Income/(Loss) (1,454) 3,408 (3,835) 6,580
Financial income/(expenses), net 120 105 (222) 361
Other income/(expenses), net (a) 131 71 625 (188)
---------------- -------------- --------------- --------------
Net Income/(Loss) $ (1,203) $ 3,584 $ (3,432) $ 6,753
================ ============== =============== ==============
Preferred stock dividend (26) (105) (90) (210)
---------------- -------------- --------------- --------------
Net income/(loss) to common shareholders $ (1,229) $ 3,479 $ (3,522) $ 6,543
================ ============== =============== ==============
Basic earnings/(loss) per share $ (0.05) $ 0.17 $ (0.16) $ 0.32
================ ============== =============== ==============
Diluted earnings/(loss) per share (b,c) $ (0.05) $ 0.15 $ (0.16) $ 0.28
================ ============== =============== ==============
Weighted average shares used to compute:
Basic earnings/(loss) per share 22,536 20,741 22,226 20,543
Diluted earnings/(loss) per share (b) 22,536 24,442 22,226 24,208
</TABLE>
Note a: Includes other expenses, taxes and minority interest
b: Due to the net loss in 2000 the inclusion of dilutive securities
would be antidilutive.
c: For the computation of diluted earnings per share in 1999, net
income is reduced by the preferred stock dividend only when
inclusion would be antidilutive.
<PAGE>
Page 4
SAPIENS INTERNATIONAL CORPORATION N.V.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
<TABLE>
<CAPTION>
6/30/2000 12/31/1999
---------------- -------------------
<S> <C> <C>
(Unaudited) (Audited)
Assets
Cash $ 17,943 $ 8,735
Short-term investments 8,128 8,055
---------------- -------------------
26,071 16,790
Trade receivables 33,175 31,943
Other current assets 7,200 7,118
---------------- -------------------
Total current assets 66,446 55,851
---------------- -------------------
Property and equipment, net 5,363 5,207
Other assets 29,947 24,047
---------------- -------------------
Total assets $101,756 $85,105
================ ===================
Liabilities and shareholders' equity
Short-term loans and current maturities
of long-term debt $ 11,222 $ 3,657
Trade payables 2,929 3,495
Other liabilities and accrued expenses 14,153 15,988
Deferred revenue 3,169 2,392
---------------- -------------------
Total current liabilities 31,473 25,532
---------------- -------------------
Long-term debt and other liabilities 16,010 8,159
Shareholders' equity 54,273 51,414
---------------- -------------------
Total liabilities and shareholders' equity $101,756 $85,105
================ ===================
</TABLE>
Note: Certain prior year's amounts have been reclassified to conform with
current year presentation
