Sapiens Announces Q3 2004 Results; The Company reports marginally reduced net loss for the quarter

Business Wire,  Nov 9, 2004  

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RESEARCH TRIANGLE PARK, N.C. -- Sapiens International Corporation N.V. (Nasdaq:SPNS) and (TASE:SPNS) today announced its unaudited results of operations for the third quarter ended September 30, 2004.

Third quarter revenues were $11.4 million, compared with $11.8 million in the second quarter of 2004. Gross profit was $4.8 million, compared with $5.2 million in the second quarter, and gross profit margin was 42.3%, compared with 44.0% in the second quarter. The Company reported an operating loss of $0.2 million and a net loss of $0.95 million in the third quarter of 2004, a minor improvement over an operating loss of $0.3 million and a net loss of $1.1 million in the previous quarter.

Third quarter revenues were $11.4 million, compared with $13.4 million in the third quarter of 2003. Gross profit was $4.8 million compared with $6.4 in the third quarter of 2003. Gross profit margin was 42.3%, compared with 47.7% in the third quarter of 2003. The Company reported an operating loss of $0.2 million, compared with an operating income of $0.3 million in Q3 2003. Net loss for the quarter was $0.95 million, compared with a net income of $0.04 million in the third quarter of 2003.

Itzick Sharir, President and Chief Executive Officer of Sapiens, commented:

"The results of the third quarter do not yet show a positive trend in revenue and we face further delays in penetrating the insurance industry, mainly due to a seasonal summer quarter. However, we have effectively succeeded in reducing costs and thus slightly improved our bottom line results. We expect to achieve further improvements in the fourth quarter of 2004 and continue to believe that we can return to profitability as a result of growing revenues and further cost cutting. Our pipeline for insurance applications continues to develop, in both the life & pension and property & casualty sectors, while we continue to service our customers in all sectors of industry."

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Q3 04 CONFERENCE CALL:
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Sapiens International will hold a Conference Call to discuss the
results on Tuesday, November 9th, 2004, at 08:45AM (EST)

To participate, please call:
From the US and Canada: 1-866-860-9642
From the UK: 0-800-917 5108
International callers: + 972-3-918-0600
10 minutes prior to start time
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FOR ADDITIONAL INFORMATION:
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Yuval Hadari                     Itzick Sharir
Chief Financial Officer          Chief Executive Officer
Sapiens International            Sapiens International
Tel: +1-877-554-2426             Tel:   +44-1895-464 265
     +972-8-938-2721
E-mail: yuval.h@sapiens.com      E-mail: itzick.s@sapiens.com
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About Sapiens

Sapiens International Corporation (Nasdaq:SPNS) and (TASE:SPNS), a member of the Formula Group of companies, is a leading global provider of proven IT solutions that modernize business processes and enable insurance organizations to adapt quickly to change. Sapiens' innovative solutions are widely recognized for their ability to cost-effectively align IT with the business demands for speed, flexibility and efficiency. Sapiens operates through its subsidiaries in North America, United Kingdom, EMEA and Asia Pacific and has partnerships with market leaders such as IBM and EDS. Sapiens' clients include Allianz Group, AXA, Liverpool Victoria, Menora, Norwich Union, OneBeacon, Principal Financial, Prudential, Abbey National, ING and Occidental Fire & Casualty, among others.

For more information, please visit 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.