Form 6-K SAPIENS INTERNATIONAL For: Nov 12
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
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REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
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For the month of November, 2014
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Commission File Number 000-20181
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SAPIENS INTERNATIONAL CORPORATION N.V.
(Translation of Registrant’s name into English)
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c/o Landhuis Joonchi
Kaya Richard J. Beaujon z/n
P.O. Box 837
Willemstad,
Cura�ao
(Address of Principal Executive Office)
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Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F�x Form 40-F �
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): �
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): �
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SIGNATURES
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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.
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| � | Sapiens International Corporation N.V. |
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| � | By: /s/ Roni Giladi |
| � | Roni Giladi |
| � | Chief Financial Officer |
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Dated: November 12, 2014
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Exhibit 99.1
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Sapiens Reports 16.7% Year-Over-Year Increase in
Quarterly Revenue to $40.4 Million
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Non-GAAP Quarterly Operating Profit Increased by 22.6% Year-Over-Year;
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Company Expects Full-Year Revenues to be at the High-End of the Guidance
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Holon, Israel, November 12, 2014 – Sapiens International Corporation, (NASDAQ and TASE: SPNS), a leading global provider of software solutions for the insurance industry, with an emerging focus on the broader financial services sector, and a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), announced today its financial results for the third quarter ended September 30, 2014.
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Third Quarter Highlights:
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| � | Non-GAAP revenue of $40.4 million, up 16.7% compared to $34.6 million in the third quarter of 2013 |
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| � | Non-GAAP operating profit was $4.4 million compared to $3.6 million in the third quarter of 2013, an increase of 22.6%. |
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| � | Non-GAAP net income attributable to Sapiens' shareholders totaled $4.1 million or $0.08 per diluted share compared to $4.1 million, or $0.10 per share in the third quarter last year. Net income this quarter was same as last year due to one-time tax saving in the third quarter of 2013. |
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| � | Cash, cash equivalents and securities investments as of September 30, 2014 was $78.4 million, with no debt. |
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Year-to-Date Financial Highlights:
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| � | Non-GAAP revenue increased by 16.6% to $115.7 million from $99.2 million in the same period of 2013. |
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| � | Non-GAAP operating profit was $12.1 million compared to $10.3 million in the first nine months of 2013, an increase of 17.2%. |
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| � | Non-GAAP net income attributable to Sapiens' shareholders reached $11.1 million, compared to $10.3 million in the year ago period, an increase of 7.8%. |
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Roni Al-Dor, President and CEO of Sapiens, commented: "Sapiens continues to deliver strong revenue growth, improved profitability, and cash flow, we remain optimistic about our ability to continue our growth in the near-term and long-term future. The enhancements we completed in our software offerings has broadened our addressable market, in terms of customer lines of business.
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We have been investing in sales and marketing, especially in our key geographies, North America and Europe, and these investments are producing accelerated growth and sustained profitability, bolstering our confidence for 2015. Our pipeline of opportunities continues to expand, and we now believe our revenue will come in at the high end of our guidance of $154 to $158 million for the full-year, and we look forward to building on this success in the coming year.”
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Quarterly Results Conference Call
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Sapiens management will host its earnings conference call today, November 12th, 2014 at 9:00 am EDT, 4:00 pm Israel, to discuss the results. To participate in the call, please dial in to the following numbers: United States + 1.866.860.9642; International: +972.3. 918.0650; UK: 0.800.051.8913.
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The live webcast of the call will also be accessible on Sapiens Website at: http://www.sapiens.com/webcasts-presentations.htm
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An online replay will also be available approximately two hours following the call, the replay will be accessible until November 19th, 2014, and may be accessed by dialing:
United States: +1.888.269.0005; International: +972.3.925.5928
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A recorded version of the webcast will also be available via the Company website, for three months at the same location.
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Non-GAAP Financial Measures
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This press release contains the following non-GAAP financial measures: Non-GAAP revenue, Non-GAAP gross profit, Non-GAAP operating income, Non-GAAP net income attributed to Sapiens shareholders, Non-GAAP basic and diluted earnings per share.
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Sapiens believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Sapiens' financial condition and results of operations. The Company's management uses these non-GAAP measures to compare the Company's performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company's board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.
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Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. Sapiens urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company's business.
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Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables of this release.
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The Company defines Adjusted EBITDA as net Profit, adjusted for stock-based compensation expense, depreciation and amortization, capitalized internal-use software development costs, Amortization of internal-use software development costs interest expense, provision for income taxes and other income (expenses). These amounts are often excluded by other companies to help investors understand the operational performance of their business. The Company uses Adjusted EBITDA as a measurement of its operating performance because it assists in comparing the operating performance on a consistent basis by removing the impact of certain non-cash and non-operating items. Adjusted EBITDA reflect an additional way of viewing aspects of the operations that the Company believes, when viewed with the GAAP results and the accompanying reconciliations to corresponding GAAP financial measures provide a more complete understanding of factors and trends affecting its business.
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About Sapiens
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Sapiens International Corporation (NASDAQ and TASE: SPNS) is a leading global provider of software solutions for the insurance industry, with an emerging focus on the broader financial services sector. We offer core, end-to-end solutions to the global general insurance, property and casualty, life, pension and annuities, and retirement markets, as well as business decision management software. We have a track record of over 30 years in delivering superior software solutions to more than 130 financial services organizations. Our team of about 1,000 professionals operates through our fully-owned subsidiaries in North America, the United Kingdom, EMEA and Asia Pacific. For more information: www.sapiens.com.
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Forward Looking Statement
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Some of the statements in this press release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. Words such as "will," "expects," "believes" and similar expressions are used to identify these forward-looking statements (although not all forward-looking statements include such words). These forward-looking statements, which may include, without limitation, projections regarding our future performance and financial condition, are made on the basis of management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in Item 3 of Part III of our Annual Report on Form 20-F for the year ended December 31, 2013 and subsequent reports and registration statements filed from time to time with the Securities and Exchange Commission.
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Investors and Media Contact:
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Yaffa Cohen-Ifrah
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Vice President Corporate Marketing and Communications
Sapiens International
US Mobile: +1 201-250-9414
Mobile: +972 54-9099039
Email: [email protected]
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Summary of Non-GAAP financial Information
U.S. dollars in thousands (except per share amounts)
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| � | � | Three months ended | � | � | Nine months ended | � | ||||||||||
| � | � | September 30, | � | � | September 30, | � | ||||||||||
| � | � | 2014 | � | � | 2013 | � | � | 2014 | � | � | 2013 | � | ||||
| � | � | (unaudited) | � | � | (unaudited) | � | � | (unaudited) | � | � | (unaudited) | � | ||||
| � | � | � | � | � | � | � | � | � | � | � | � | � | ||||
| Revenues | � | � | 40,398 | � | � | � | 34,613 | � | � | � | 115,677 | � | � | � | 99,185 | � |
| Gross profit | � | � | 16,392 | � | � | � | 13,868 | � | � | � | 46,715 | � | � | � | 40,936 | � |
| Operating profit | � | � | 4,403 | � | � | � | 3,592 | � | � | � | 12,056 | � | � | � | 10,291 | � |
| Net income attributable to Sapiens' shareholders | � | � | 4,084 | � | � | � | 4,076 | � | � | � | 11,060 | � | � | � | 10,259 | � |
| Adjusted EBITDA | � | � | 4,796 | � | � | � | 3,848 | � | � | � | 13,233 | � | � | � | 11,081 | � |
| Basic earnings per share | � | � | 0.09 | � | � | � | 0.10 | � | � | � | 0.24 | � | � | � | 0.26 | � |
| Diluted earnings per share | � | � | 0.08 | � | � | � | 0.10 | � | � | � | 0.23 | � | � | � | 0.25 | � |
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Revenues by category
U.S. dollars in thousands
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| � | � | Three months ended September 30, 2014 | � | � | Nine months ended �September 30, 2014 | � | ||||||||||
| � | � | Revenues | � | � | Percentage | � | � | Revenues | � | � | Percentage | � | ||||
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| License | � | � | 2,875 | � | � | � | 7.1 | % | � | � | 10,765 | � | � | � | 9.3 | % |
| Services and Maintenance | � | � | 37,523 | � | � | � | 92.9 | % | � | � | 104,912 | � | � | � | 90.7 | % |
| Total | � | � | 40,398 | � | � | � | 100.0 | % | � | � | 115,677 | � | � | � | 100.0 | % |
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Revenues by geographic breakdown
U.S. dollars in thousands
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| � | � | Three months ended September 30, 2014 | � | � | Nine months ended September 30, 2014 | � | ||||||||||
| � | � | Revenues | � | � | Percentage | � | � | Revenues | � | � | Percentage | � | ||||
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| North America | � | � | 13,404 | � | � | � | 33.2 | % | � | � | 36,025 | � | � | � | 31.1 | % |
| Europe | � | � | 22,247 | � | � | � | 55.1 | % | � | � | 69,014 | � | � | � | 59.7 | % |
| APAC | � | � | 4,747 | � | � | � | 11.7 | % | � | � | 10,638 | � | � | � | 9.2 | % |
| Total | � | � | 40,398 | � | � | � | 100 | % | � | � | 115,677 | � | � | � | 100 | % |
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SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)
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| � | � | September 30, | � | � | September 30, | � | ||||||||||
| � | � | 2014 | � | � | 2013 | � | � | 2014 | � | � | 2013 | � | ||||
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| Revenue | � | � | 40,398 | � | � | � | 34,613 | � | � | � | 115,677 | � | � | � | 99,185 | � |
| Cost of revenue | � | � | 25,460 | � | � | � | 22,076 | � | � | � | 73,364 | � | � | � | 62,279 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Gross profit | � | � | 14,938 | � | � | � | 12,537 | � | � | � | 42,313 | � | � | � | 36,906 | � |
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| Operating Expenses: | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Research and development, net | � | � | 2,856 | � | � | � | 2,900 | � | � | � | 8,600 | � | � | � | 9,078 | � |
| Selling, marketing, general and administrative | � | � | 8,283 | � | � | � | 6,521 | � | � | � | 23,357 | � | � | � | 19,270 | � |
| Total operating expenses | � | � | 11,139 | � | � | � | 9,421 | � | � | � | 31,957 | � | � | � | 28,348 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Operating income | � | � | 3,799 | � | � | � | 3,116 | � | � | � | 10,356 | � | � | � | 8,558 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Financial income, net | � | � | (93 | ) | � | � | (2 | ) | � | � | (150 | ) | � | � | (308 | ) |
| Taxes and other expenses, net | � | � | 80 | � | � | � | 227 | � | � | � | 542 | � | � | � | 654 | � |
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| Net income | � | � | 3,812 | � | � | � | 2,891 | � | � | � | 9,964 | � | � | � | 8,212 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Attributable to non-controlling interest | � | � | 100 | � | � | � | 18 | � | � | � | 125 | � | � | � | 29 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Net income attributable to Sapiens' shareholders | � | � | 3,712 | � | � | � | 2,873 | � | � | � | 9,839 | � | � | � | 8,183 | � |
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| Basic earnings per share | � | � | 0.08 | � | � | � | 0.07 | � | � | � | 0.21 | � | � | � | 0.21 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Diluted earnings per share | � | � | 0.08 | � | � | � | 0.07 | � | � | � | 0.20 | � | � | � | 0.20 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Weighted average number of shares | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| outstanding used to compute: | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Basic earnings per share | � | � | 47,607 | � | � | � | 39,302 | � | � | � | 46,841 | � | � | � | 39,043 | � |
| Diluted earnings per share | � | � | 49,006 | � | � | � | 41,729 | � | � | � | 48,235 | � | � | � | 41,297 | � |
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SAPIENS INTERNATIONAL CORPORATION N.V. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share amounts)
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| � | � | Three months ended | � | � | ine months ended | � | ||||||||||
| � | � | September 30, | � | � | September 30, | � | ||||||||||
| � | � | 2014 | � | � | 2013 | � | � | 2014 | � | � | 2013 | � | ||||
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| Non-GAAP revenue | � | � | 40,398 | � | � | � | 34,613 | � | � | � | 115,677 | � | � | � | 99,185 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| GAAP gross profit | � | � | 14,938 | � | � | � | 12,537 | � | � | � | 42,313 | � | � | � | 36,906 | � |
| Amortization of capitalized software | � | � | 1,226 | � | � | � | 1,108 | � | � | � | 3,732 | � | � | � | 3,370 | � |
| Amortization of other intangible assets | � | � | 228 | � | � | � | 223 | � | � | � | 670 | � | � | � | 660 | � |
| Non-GAAP gross profit | � | � | 16,392 | � | � | � | 13,868 | � | � | � | 46,715 | � | � | � | 40,936 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| GAAP operating income | � | � | 3,799 | � | � | � | 3,116 | � | � | � | 10,356 | � | � | � | 8,558 | � |
| Gross profit adjustments | � | � | 1,454 | � | � | � | 1,331 | � | � | � | 4,402 | � | � | � | 4,030 | � |
| Capitalization of software development | � | � | (1,451 | ) | � | � | (1,398 | ) | � | � | (4,538 | ) | � | � | (3,936 | ) |
| Amortization of other intangible assets | � | � | 319 | � | � | � | 298 | � | � | � | 995 | � | � | � | 940 | � |
| Stock-based compensation | � | � | 282 | � | � | � | 245 | � | � | � | 841 | � | � | � | 699 | � |
| Non-GAAP operating income | � | � | 4,403 | � | � | � | 3,592 | � | � | � | 12,056 | � | � | � | 10,291 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| GAAP net income attributable to Sapiens' shareholders | � | � | 3,712 | � | � | � | 2,873 | � | � | � | 9,839 | � | � | � | 8,183 | � |
| Operating income adjustments | � | � | 604 | � | � | � | 476 | � | � | � | 1,700 | � | � | � | 1,733 | � |
| Other | � | � | (232 | ) | � | � | 727 | � | � | � | (479 | ) | � | � | 343 | � |
| Non-GAAP net income attributable to Sapiens' shareholders | � | � | 4,084 | � | � | � | 4,076 | � | � | � | 11,060 | � | � | � | 10,259 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Non-GAAP basic earnings per share | � | � | 0.09 | � | � | � | 0.10 | � | � | � | 0.24 | � | � | � | 0.26 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Non-GAAP diluted earnings per share | � | � | 0.08 | � | � | � | 0.10 | � | � | � | 0.23 | � | � | � | 0.25 | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � | � |
| Shares used in computing US NON GAAP basic earnings per share (in thousands) | � | � | 47,607 | � | � | � | 39,302 | � | � | � | 46,841 | � | � | � | 39,043 | � |
| Shares used in computing US NON GAAP diluted earnings per share (in thousands) | � | � | 49,006 | � | � | � | 41,729 | � | � | � | 48,235 | � | � | � | 41,297 | � |
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SAPIENS INTERNATIONAL CORPORATION N.V. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. Dollars in thousands
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| � | � | September 30, | � | � | December 31, | � | ||
| � | � | 2014 | � | � | 2013 | � | ||
| � | � | (unaudited) | � | � | (unaudited) | � | ||
| � | � | � | � | � | � | � | ||
| ASSETS | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � |
| CURRENT ASSETS: | � | � | � | � | � | � | � | � |
| Cash and cash equivalents | � | � | 45,125 | � | � | � | 70,313 | � |
| Trade receivables, net | � | � | 26,401 | � | � | � | 23,669 | � |
| Other receivables and prepaid expenses | � | � | 4,101 | � | � | � | 4,126 | � |
| Deferred Taxes | � | � | 1,863 | � | � | � | 2,420 | � |
| � | � | � | � | � | � | � | � | � |
| Total current assets | � | � | 77,490 | � | � | � | 100,528 | � |
| � | � | � | � | � | � | � | � | � |
| LONG-TERM ASSETS: | � | � | � | � | � | � | � | � |
| Marketable Securities | � | � | 33,272 | � | � | � | - | � |
| Property and equipment, net | � | � | 5,269 | � | � | � | 5,263 | � |
| Severance pay fund | � | � | 10,917 | � | � | � | 11,228 | � |
| Other intangible assets, net | � | � | 28,669 | � | � | � | 30,014 | � |
| Other long-term assets | � | � | 3,098 | � | � | � | 2,957 | � |
| Goodwill | � | � | 69,999 | � | � | � | 72,438 | � |
| � | � | � | � | � | � | � | � | � |
| Total long-term assets | � | � | 151,224 | � | � | � | 121,900 | � |
| � | � | � | � | � | � | � | � | � |
| TOTAL ASSETS | � | � | 228,714 | � | � | � | 222,428 | � |
| � | � | � | � | � | � | � | � | � |
| LIABILITIES AND EQUITY | � | � | � | � | � | � | � | � |
| � | � | � | � | � | � | � | � | � |
| CURRENT LIABILITIES: | � | � | � | � | � | � | � | � |
| Trade payables | � | � | 4,878 | � | � | � | 6,517 | � |
| Accrued expenses and other liabilities | � | � | 23,824 | � | � | � | 21,248 | � |
| Deferred revenue | � | � | 10,009 | � | � | � | 9,928 | � |
| � | � | � | � | � | � | � | � | � |
| Total current liabilities | � | � | 38,711 | � | � | � | 37,693 | � |
| � | � | � | � | � | � | � | � | � |
| LONG-TERM LIABILITIES: | � | � | � | � | � | � | � | � |
| Other long-term liabilities | � | � | 1,175 | � | � | � | 1,712 | � |
| Accrued severance pay | � | � | 12,324 | � | � | � | 12,615 | � |
| � | � | � | � | � | � | � | � | � |
| Total long-term liabilities | � | � | 13,499 | � | � | � | 14,327 | � |
| � | � | � | � | � | � | � | � | � |
| EQUITY | � | � | 176,504 | � | � | � | 170,408 | � |
| � | � | � | � | � | � | � | � | � |
| TOTAL LIABILITIES AND EQUITY | � | � | 228,714 | � | � | � | 222,428 | � |
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SAPIENS INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOW
U.S. Dollars in thousands
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| � | � | For the Nine months ended | � | |||||
| � | � | 30/09/2014 | � | � | 30/09/2013 | � | ||
| � | � | (unaudited) | � | � | (unaudited) | � | ||
| Cash flows from operating activities: | � | � | � | � | � | � | � | � |
| Net profit | � | � | 9,964 | � | � | � | 8,212 | � |
| Adjustments to reconcile net loss to net cash provided by operating activities: | � | � | � | � | � | � | � | � |
| Depreciation | � | � | 1,177 | � | � | � | 790 | � |
| Amortization | � | � | 5,397 | � | � | � | 4,970 | � |
| Amortization of premium and accrued interest on marketable securities | � | � | (126 | ) | � | � | - | � |
| Stock-based compensation related to options issued employees | � | � | 841 | � | � | � | 699 | � |
| Increase in trade receivables | � | � | (3,503 | ) | � | � | (8,427 | ) |
| Deferred tax assets | � | � | 54 | � | � | � | 614 | � |
| Increase in other operating assets | � | � | (492 | ) | � | � | (1,044 | ) |
| Increase (Decrease)��in trade payables | � | � | (1,470 | ) | � | � | 2,986 | � |
| Increase (Decrease) in Other operating liabilities | � | � | 3,799 | � | � | � | (465 | ) |
| Increase��in Deferred revenues | � | � | 435 | � | � | � | 1,073 | � |
| Severance pay | � | � | 110 | � | � | � | 198 | � |
| � | � | � | � | � | � | � | � | � |
| Net cash provided by operating activities | � | � | 16,186 | � | � | � | 9,606 | � |
| � | � | � | � | � | � | � | � | � |
| Cash flows from investing activities: | � | � | � | � | � | � | � | � |
| Purchase of property and equipment | � | � | (1,377 | ) | � | � | (2,782 | ) |
| Purchase of marketable securities | � | � | (34,623 | ) | � | � | - | � |
| Proceeds from sales of marketable securities | � | � | 1,014 | � | � | � | - | � |
| Payments for business acquisition, net of cash acquired | � | � | (2,064 | ) | � | � | - | � |
| Increase in capitalized software development costs | � | � | (4,538 | ) | � | � | (3,938 | ) |
| Decrease in Restricted Cash | � | � | 538 | � | � | � | 225 | � |
| Net cash used in investing activities | � | � | (41,050 | ) | � | � | (6,495 | ) |
| � | � | � | � | � | � | � | � | � |
| Cash flows from financing activities: | � | � | � | � | � | � | � | � |
| Distribution of dividend | � | � | - | � | � | � | (5,795 | ) |
| Proceeds from employee stock options exercised | � | � | 1,508 | � | � | � | 1,574 | � |
| Net cash provided by (used in) financing activities | � | � | 1,508 | � | � | � | (4,221 | ) |
| � | � | � | � | � | � | � | � | � |
| Effect of exchange rate changes on cash and cash equivalents | � | � | (1,832 | ) | � | � | 171 | � |
| � | � | � | � | � | � | � | � | � |
| Decrease in cash and cash equivalents | � | � | (25,188 | ) | � | � | (939 | ) |
| Cash and cash equivalents at the beginning of period | � | � | 70,313 | � | � | � | 29,050 | � |
| � | � | � | � | � | � | � | � | � |
| Cash and cash equivalents at the end of period | � | � | 45,125 | � | � | � | 28,111 | � |
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