28th Aug 2007 09:05
Emblaze Ltd28 August 2007 SAPIENS ANNOUNCES Q1 2007 RESULTS Company Reports Third Consecutive Quarter of Operational Profit Ra'anana, Israel, 28 August 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),announced its results of operations for the second quarter of 2007. Financial Highlights • Third consecutive quarter of Operational Profit • Completion of $20 million private placement from institutional investors, at a 12% premium to market; significantly improves Company's equity • Q2 2007 Gross Margin increased 5.1% from Q2 2006 Gross Margin • Q2 2007 Operational Profit increased to $162,000, up from Q2 2006 Operational Profit of $23,000 • Repayment of debt to institutional investors of approximately $3.5 million Operational Highlights • Win of new customer - a leading South African insurance carrier • Released Version 3.0 of Sapiens INSIGHTTM for Policy; Version includes multi-lingual support, data warehouse extraction and other major enhancements • Appointment of new Chief Financial Officer and VP R&D to management team. Guy Bernstein, Chief Executive Officer of Emblaze Ltd said: "We are delightedthat the Company is reporting the third consecutive quarter of operationalprofit. This demonstrates the success of the short term efficiency measured weimplemented into the Company. Sapiens has still a way to go but it has all theright ingredients to continue and improve going forward. It has financialstability after recently raising $20 million, it has strengthened its managementteams to take them to the next level and most importantly its Sapiens INISGHTTMsolutions and Sapiens eMergeTM technology, are well positioned to become amarket player and capture new customers in the multi-billion dollar insurancemarkets." (Tables Follow) 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) 6/30/2007 12/31/2006 (Unaudited) Assets Cash and cash equivalents $ 17,469 $ 3,108 Short-term investments 44 32 Trade receivables, net 9,958 11,010 Other current assets 1,975 1,689 Total current assets 29,446 15,839 Property and equipment, net 1,311 1,495 Other assets, net 28,064 28,285 Total assets $ 58,821 $ 45,619 Liabilities and shareholders' equity Short-term bank credit and current maturities of long-term debt and convertible debentures $ 12,944 $ 15,603 Trade payables 1,417 2,019 Other liabilities and accrued expenses 8,243 7,370 Deferred revenue 5,661 3,463 Total current liabilities 28,265 28,455 Long-term debt and other long-term liabilities 1,740 1,439 Convertible debentures and warrants 9,434 11,796 Shareholders' equity 19,382 3,929 Total liabilities and shareholders' equity $ 58,821 $ 45,619 SAPIENS INTERNATIONAL CORPORATION N.V. Unaudited Condensed Consolidated Statements of Operations (U.S. Dollars in thousands, except per share amounts) For the three months For the six months ended ended 6/30/2007 6/30/2006 6/30/2007 6/30/2006 (Unaudited) (Unaudited) (Unaudited) (Unaudited)RevenuesProducts $ 1,941 $ 3,128 $ 3,899 $ 5,851Consulting and other services 8,739 8,536 17,788 15,945Total revenues 10,680 11,664 21,687 21,796 Cost of revenuesProducts 1,451 1,707 2,533 3,522Consulting and other services 5,398 5,975 11,392 10,690Total cost of revenues 6,849 7,682 13,925 14,212 Gross Profit 3,831 3,982 7,762 7,584 Operating expensesResearch and development, net 486 560 976 1,286Selling, marketing, general and administrative 3,102 3,378 6,265 6,769Restructuring expenses 81 21 210 656 Operating Profit (Loss) 162 23 311 (1,127) Financial expenses, net 692 639 1,116 1,214Other expenses, net (b) 185 41 315 94 Net Loss $ 715 $ 657 $ 1,120 $ 2,435 Basic and diluted loss $ 0.05 $ 0.05 $ 0.07 $ 0.19per share (c) Weighted average shares used to compute basic anddiluted loss per share (c) 15,514 12,510 15,184 12,510 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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