Sapiens is still in the black after posting a net income of $150,000 in the fourth quarter of 2003, compared with a net loss of $4.9 million in the same period of 2002.
But revenues for the Israeli IT solutions provider (Nasdaq: SPNS), which has its U.S. base in RTP, decreased to $13.5 million from $15.9 million in 2002.
For the year, Sapiens showed a net loss of $2.2 million, compared to a loss of $5.2 million a year earlier. Revenues, however, decreased to $52.3 million from $64.8 million in 2002.
“2003 was a tough year for Sapiens and I am pleased that we have come out stronger and better prepared for the road ahead,” said president and CEO Itzick Sharir. “The fourth quarter is our second consecutive profitable quarter, with an improvement of 65 percent in operating income compared with the previous quarter. Year over year, we have succeeded in significantly reducing our net loss by 58 percent despite a sharp decline in revenues, primarily as part of the company’s decision to abandon non-strategic lines of business.”
Sharir also noted that Sapiens has improved its cash position and liquidity, $31.8 million compared with $22 million, due primarily to an offering of convertible debentures on the Tel Aviv Stock Exchange, resulting in gross proceeds to the company of approximately $17 million in the fourth quarter.
“Entering 2004, we continue with our strategic plan in servicing the insurance market,” said Sharir. “We are launching new solutions under our Insight suite of products while strengthening our working relations with strategic partners at all levels, primarily IBM–.”