16th May 2007 11:13
Emblaze Ltd16 May 2007 SAPIENS ANNOUNCES Q1 2007 RESULTS Reports Continued Success of its Turnaround Program as the Company Reports Second Consecutive Quarter of Operational Profit Ra'anana, Israel, 16 May 2007 - Emblaze Ltd ("Emblaze or "the Group") (LSE: BLZ)announces that Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), asubsidiary of its Formula Group, today announces its results of operations forthe first quarter of 2007. Financial Highlights • Q1 revenues increased 8.9% to $11.0 million, up from $10.1 million in Q1 2006 • Second consecutive quarter of operational profit • The Company increased its operational profit to $0.15 million in Q1 2007, compared with an operational loss of $1.2 million in Q1 2006 • Significant reduction in Q1 net loss by 77.2% to $0.41 million, down from $1.8 million in Q1 2006 Operational Highlights • The Company sees the further success of its turnaround plan • Recent release of version 3.5 of Sapiens INSIGHT(TM) for Reinsurance, yet another solution for the global insurance industry • Further enhancements of Sapiens' core technology, eMerge(TM), to maintain the Company's competitive edge in the insurance IT management systems market • Sapiens continues to pursue its long term vision of becoming the de-facto industry standard Guy Bernstein, Chief Executive Officer of Emblaze Ltd said: "Sapiens has joinedthe other companies in the Formula Group that have responded well to therestructuring implemented over the past six months and delivered solid growth.It is another affirmation for out strategy in investing in Companies that willdeliver value for our shareholders." Roni Al-Dor, President and CEO, commented "This is our second consecutivequarter of operational profit, which demonstrates our progress in theimplementation of our turnaround strategy. We intend to continue and pursue suchstrategy in the near future in order to achieve full recovery. The progress wemade in this quarter is further shown by the improvement in operational profitand the significant reduction in net loss. While implementing our strategy, wecontinue to position ourselves as a global player and focus on increasingrevenue and profitability." 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, Liverpool Victoria, NorwichUnion, OneBeacon, Principal Financial Group, Prudential, ING, Menora Mivtachimand Occidental Fire & Casualty among others. For more information, please visithttp://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 companies sharing a common mission to provide telecomoperators with technologies, products and solutions for next generationservices: Emblaze Mobile, a new breed in handsets design and manufacturing;ZONE-IP a provider of IP technologies and owner of Emblaze VCON, a leadingprovider of wireless video communications technologies and conferencingsolutions for operators and enterprise markets over IP networks; OrcaInteractive (LSE: ORCA), provider of Interactive Television IPTV middleware forVideo On Demand (VOD) and broadcast services, aimed at Telecom, cable and xDSLoperators; Emblaze SmartContent, developer of highly advanced technology forContent-Push over wireless and IP networks to mobile devices and personalcomputers; emoze, a free global Push Email service for mobile devices that willpush send your Emails and PIM data to you anywhere and to any device and VisualDefence (LSE: VDI), a provider of wireless and IP video solutions for militaryand homeland security markets; Formula Systems Ltd (NASDAQ:FORTY), is a globalsolutions provider of technology, software and IT solutions fortelecommunications companies, operators and a wide range of sectors. The FormulaSystems companies are trading on NASAQ: Magic Software Enterprises (MGIC),Sapiens International Corporation N.V. (SPNS), BluePhoenix Solutions (BPHX). Thefollowing companies are dually trading also on the Tel Aviv Stock Exchange(TASE): Formula Systems, Magic, Sapiens, BluePhoenix and Matrix 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) 3/31/2007 12/31/2006 (Unaudited) (Unaudited) Assets Cash and cash equivalents $ 3,537 $ 3,108 Short-term investments 36 32 Trade receivables, net 12,240 11,010 Other current assets 2,173 1,689 Total current assets 17,986 15,839 Property and equipment, net 1,420 1,495 Other assets, net 28,474 28,285 Total assets $ 47,880 $ 45,619 Liabilities and shareholders' equity Short-term bank credit and current maturities of long-term debt and convertible deben tures $ 13,666 $ 15,603 Trade payables 2,069 2,019 Other liabilities and accrued expenses 8,874 7,370 Deferred revenue 5,939 3,463 Total current liabilities 30,548 28,455 Long-term debt and other long-term liabilities 1,764 1,439 Convertible debentures and warrants 11,888 11,796 Shareholders' equity 3,680 3,929 Total liabilities and shareholders' equity $ 47,880 $ 45,619 Note Certain prior year's amounts have been reclassified to conform with current year presentation SAPIENS INTERNATIONAL CORPORATION N.V. Condensed Consolidated Statements of Income (U.S. Dollars in thousands, except per share amounts) For the three months ended 03/31/2007 03/31/2006 (Unaudited) (Unaudited)RevenuesProducts $ 1,958 $ 2,723Consulting and other services 9,049 7,409Total revenues 11,007 10,132 Cost of revenuesProducts 1,082 1,814Consulting and other services 5,994 4,716Total cost of revenues 7,076 6,530 Gross Profit 3,931 3,602 Operating expensesResearch and development, net 490 726Selling, marketing, general and 3,163 3,391administrativeRestructuring expenses 129 635 Operating Profit (Loss) 149 (1,150) Financial expenses, net 424 575Other expenses, net (b) 130 53 Net Loss $ 405 $ 1,778 Basic and diluted loss per share (c) $ 0.03 $ 0.14 Weighted average shares used to compute -basic and diluted loss per share (c) 14,854 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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