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11th March 2018
Sapiens had a mixed year in 2017 from a growth and profitability perspective says CEO
Sapiens International Corporation has announced its financial results for the fourth quarter and full year ended
31st December 2017.
Fourth Quarter 2017 highlights are:
-Revenue increased 25.4% to $71.6m. Non-GAAP revenue increased 26.9% from the same period in the prior year to $72.4m.
-Operating income totaled $1.1m, down 79.8% compared to last year. Non-GAAP operating income totaled $9.1m, up 20.9%.
-Operating margin of 1.6%, compared to 9.8% last year. Non-GAAP operating margin of 12.5%, compared to 13.1% last year.
-Net income attributable to Sapiens' shareholders totaled $3.2m. Non-GAAP net income attributable to Sapiens' shareholders totaled $6.1m, compared to $6m.
Full year 2017 highlights are
-Revenue increased 24.5% to $269.2m. Non-GAAP revenue increased 25.8% from the same period in the prior year to $272m.
-Operating income totaled $1m, down 960%. Non-GAAP operating profit totaled $23.1m, a decrease of 22%.
-Operating margin of 0.4%, compared to 11.5%. Non-GAAP operating margin of 8.5%, compared to 13.7%.
-Net income attributable to Sapiens' shareholders totaled $0.4 million. Non-GAAP net income attributable to Sapiens' shareholders totaled $15.5m, a decrease of 35.8%.
"We made progress in 2017 executing to our long-term strategy of becoming a leading global provider of insurance software solutions and services. We invested in acquisitions to gain rapid entrance into the US market where we acquired products and solutions, clients, personnel and resources, and strong brands in focused geographies and market segments, as well as R&D to improve our competitive advantages through internal development of products and solutions," said Roni Al-Dor, president and ceo, Sapiens. "From a growth and profitability perspective 2017 was a mixed year. We reported full year Non-GAAP revenue of $272m, near the top of our revised 2017 guidance range, a year-over-year increase of 25.8%, primarily due to the acquisition of StoneRiver. However, we did not fully meet our 2017 expectations for profitability, with adjusted non-GAAP operating margin for the year of 8.5%.
Sapiens is reiterating prior guidance for 2018 full-year revenues in the range of $280-$285m(on a non-GAAP basis), an increase of approximately 3% to 5%. Growth is anticipated to be below prior year levels due to the elimination of certain non-core revenue, extension of the rollout time-line for a large client, certain projects that came through an acquisition that will not renew, and the loss of some revenue due to product duplication between StoneRiver and Adaptik. We are also maintaining expectations for adjusted operating margin a range of 12% to 13% (on a non-GAAP basis), based on integration, restructuring benefits, and maximizing our acquired talent."
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