Sapiens International Corporation, (NASDAQ: SPNS), a leading global provider of software solutions for the insurance industry, with a growing presence in the financial services sector, and a member of the Formula Group (NASDAQ: FORTY and TASE: FORT), today announced preliminary results for full-year 2017 and financial guidance for full-year 2018.

Full-Year 2017 Preliminary Results*:

• Non-GAAP revenue of $271-$273 million
• Non-GAAP operating margin between 8.3%-8.6%

*Ranges reflect unaudited financial results for full-year 2017.

"While the outcome for 2017 will meet our revenue guidance, we are slightly below our operating profit expectations," said Roni Al-Dor, president and CEO of Sapiens. "This is mainly due to a non-core project loss in Japan and cost reduction initiatives to support profitability in 2018."

Al-Dor added: "We have aligned our resources and infrastructure with the business lines that represent the greatest potential growth opportunities to help us gain global market share and improve profitability, which reflected in restructuring charges of approximately $8 million dollars in 2017."

Full-Year 2018 Outlook

Sapiens' financial guidance for the full-year 2018:

• Non-GAAP revenue in the range of $280-$285 million
• Non-GAAP operating margin of 12%-13%

"Our full-year 2018 revenue outlook reflects Sapiens' deliberate move away from non-core business, the extension of the roll-out of a large, multi-year contract over a longer period of time, the anticipated reduction in our off-shore local market activities in an effort to support our main focus markets, and the near-term impact of product overlap from the Adaptik acquisition," continued Al-Dor. "Sapiens anticipates growth in 2018 in property and casualty activities in North America and EMEA. This growth will be driven by the strong pipeline of business in Europe, our improved competitive position with our new North American P&C platform from the combination of StoneRiver and Adaptik, and the potential to cross-sell to existing customers."

Al-Dor concluded: "Sapiens management's attention is focused on raising operating profit and margins, and we anticipate improving profitability throughout the year."

Sapiens management will host a conference call and webcast today, February 12 at 9:00 a.m. Eastern Time (4:00 p.m. in Israel), to review and discuss the Adaptik acquisition, along with preliminary results for full-year 2017 and financial guidance for full-year 2018.