Sapiens (SPNS) Misses Q1 EPS by 6c, Miss Revenues; Maintains FY Revenues Guidance

Sapiens (NASDAQ: SPNS) reported Q1 EPS of $0.02, $0.06 worse than the analyst estimate of $0.08. Revenue for the quarter came in at $56.5 million versus the consensus estimate of $57.9 million.

GUIDANCE:

Sapiens sees FY2017 revenue of $265-275 million, versus the consensus of $271.49 million.

Sapiens maintains its recently revised guidance for 2017 full year revenues of $265 to $275 million (on a non-GAAP basis) and maintains expectations for between 3-4% operating profit margin for the first half of 2017, increasing to 13.5-14.5% in the second half of the year (in each case, on a non-GAAP basis). Sapiens also maintains expectations for a full-year operating profit margin between 9-10% (on a non-GAAP basis).

First Quarter Highlights:

• GAAP and non-GAAP revenue of $56.5 million, up 14.1% compared to $49.6 million in the first quarter of 2016.
• GAAP operating loss totaled $(1.6 million), compared to operating income of $6.2 million in the first quarter of 2016.
• Non-GAAP operating profit totaled $1.7 million (3.0% operating margin), compared to $7.3 million (14.8% operating margin) in the first quarter of 2016.
• GAAP net loss attributable to Sapiens\' shareholders totaled $(2.2 million) or $(0.05) per diluted share, compared to net income attributable to Sapiens\' shareholders of $4.9 million, or $0.10 per diluted share in the first quarter last year.
• Non-GAAP net income attributable to Sapiens\' shareholders totaled $1.2 or $0.02 per diluted share, compared to net income attributable to Sapiens\' shareholders of $6.0 million, or $0.12 per diluted share, in the first quarter last year.
• Cash and cash equivalents as of March 31, 2017 were $35.1 million. This amount is post cash payment for the $100 million acquisition of StoneRiver, Inc. in the first quarter. Sapiens also raised $40 million in new bank debt during the first quarter to finance the remainder of the StoneRiver acquisition and working capital.

For earnings history and earnings-related data on Sapiens (SPNS) click here.

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