IT solutions provider Sapiens (Nasdaq: SPNS) has reported a small profit for the third quarter of 2003, but not for the first nine months of the year.

The Israeli-based company, with U.S. headquarters in RTP, posted 2003 third quarter net income of $42,000, compared to a net loss of $579,000 for the same period a year ago.

“I am proud that the company has been able to regain profitability on the strength of continued quarterly improvement in results,” said Itzick Sharir, president and CEO. “We expect to demonstrate continued improvement in revenues and profitability in the fourth quarter of this year. At the same time, we are starting to see the fruits of our long-term strategy.”

Sharir says the company’s new offering to the insurance industry, the Insight Solutions suite, is generating a “high degree of interest.” He says Sapiens is gaining market awareness and recognition, expanding its offering and beginning to see new customers.

Sapiens had 2003 third quarter revenue of $13.4 million, down from $16.6 million in the 2002 third quarter.

In the first three quarters of 2003, Sapiens posted a net loss of $2.3 million, or 22 cents per share, compared to a net loss of $292,000, or 4 cents per share, in the same period a year ago.

Total revenue during the first three quarters of 2003 was $38.8 million, down from $48.9 million in the same period a year ago.

In midday trading, shares of SPNS were up 19 cents to $4.40, an increase of 4.5 percent over the previous day’s close of $4.21. Earlier in the day, SPNS was priced as high as $4.50. The stock’s 52-week range is from $1.50 to $5.55.

Sapiens: www.sapiens.com