DURHAM …Â Sapiens International (Nasdaq:SPNS) reported a first-quarter loss of $2 million, or 4 cents a share, on $12.1 million in revenue. Those results compare with a $163,000 profit on $16 million in revenue during the same period a year ago.
“These disappointing results are the outcome of the company pursuing fewer non-strategic opportunities as well as delayed and slowed down projects,” President and Chief Executive Itzick Sharir said in a statement. “The results should be viewed in light of the current difficulties in both the IT and insurance industries, together with the uncertainties besetting the global economy. We see this as a short-term trend and, as our backlog remains strong, we believe in our ability to return to profitability in the near future, through both increased revenues and already accomplished cost realignment.”
Separately, Sapiens’ U.S. subsidiary has formed a strategic partnership with Texas-based CastleBay Consulting. The alliance will help Sapiens deploy its Policy INSIGHT solution among insurance company customers. Sapiens also plans to leverage CastleBay’s resources for project management and business analysis.
“We have been very impressed with the maturity of Sapiens technology, their track record of successful delivery in the insurance industry and the functionality of their Policy INSIGHT solution,” CastleBay President George Grieve said in a statement. “The timing is also perfect since there is a pent-up demand for solutions in this space.”
Sapiens International: www.sapiens.com