HOLON, Israel, April 27, 2017 /PRNewswire/ --
Sapiens International Corporation (NASDAQ and TASE: SPNS), a
leading global provider of software solutions for the insurance
industry, with a growing presence in the financial services sector,
today announced that work on a software development project with a
significant customer has been halted due to a dispute with the
customer.
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Several years ago, Sapiens entered into a software development
project agreement with the customer to customize, enhance and
implement a new product.
Recently, Sapiens received a letter from the customer, in which
the customer alleged that Sapiens has materially breached its
agreement with the customer. After carefully examining the
customer's allegations, Sapiens informed the customer that it has
not materially breached any of its obligations under the agreement
and that the customer itself has materially breached the agreement.
The parties are currently engaged in discussions relating to the
foregoing.
As a result of the foregoing, the project has been halted
and Sapiens currently does not expect to generate any further
revenues from such customer in 2017.
As a result, Sapiens is revising its guidance for its 2017
revenues, which it now expects to be between $265 million and $275 million (on a non-GAAP
basis).
Sapiens now expects its operating profit margin for the first
half of 2017 to be between 3%-4%, increasing to 13.5%-14.5% in the
second half of the year (in each case, on a non-GAAP basis).
Sapiens also expects its full-year operating profit margin to be
between 9% and 10% (on a non-GAAP basis).
"We are disappointed that this project has been halted, and we
are working to resolve this matter with the customer," commented
Roni Al-Dor, President and Chief
Executive Officer of Sapiens. "To be clear, the disagreement is
related to a jointly developed product, which is unrelated to the
other solutions currently sold by Sapiens. This relatively limited
impact on the previously announced revenue outlook for 2017
(despite the halt of the project described above) derives from the
Company's success in various other existing and new projects."
Al-Dor added: "Sapiens has taken and will continue taking, in
the first and second quarters of 2017, non-operational
restructuring steps intended to address the foregoing developments
with the customer and the integration of the recently acquired
StoneRiver, Inc., in order to be on track in the second half of
2017."
About Sapiens
Sapiens International Corporation (NASDAQ and TASE: SPNS) is a
leading global provider of software solutions for the insurance
industry, with a growing presence in the financial services sector.
Sapiens offers core, end-to-end solutions to the global general
insurance, property and casualty, life, pension and annuities,
reinsurance and retirement markets, as well as business decision
management software. The company has a track record of over 30
years in delivering superior software solutions to more than 400
financial services organizations. The Sapiens team of over 2,500
professionals operates through our fully-owned subsidiaries in
North America, the United Kingdom, EMEA and Asia Pacific. For more information:
http://www.sapiens.com.
Forward Looking Statement
Some of the statements in this press release may constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities and
Exchange Act of 1934 and the United States Private Securities
Litigation Reform Act of 1995. Words such as "will," "expects,"
"believes" and similar expressions are used to identify these
forward-looking statements (although not all forward-looking
statements include such words). These forward-looking statements,
which may include, without limitation, projections regarding our
future performance and financial condition, are made on the basis
of management's current views and assumptions with respect to
future events. Any forward-looking statement is not a guarantee of
future performance and actual results could differ materially from
those contained in the forward-looking statement.
These statements speak only as of the date they were made, and
we undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. We operate in a changing environment. New risks
emerge from time to time and it is not possible for us to predict
all risks that may affect us. For more information regarding these
risks and uncertainties, as well as certain additional risks that
we face, please refer to the Risk Factors detailed in Item 3 of
Part III of our Annual Report on Form 20-F for the year ended
December 31, 2014, and subsequent
reports and registration statements filed from time to time with
the Securities and Exchange Commission.
Investors and Media Contact:
Yaffa Cohen-Ifrah
Chief Marketing Officer and Head of Corporate Communications
Sapiens International
US Mobile: +1-201-250-9414
Mobile: +972-54-9099039
Email: yaffa.cohen-ifrah@sapiens.com
SOURCE Sapiens International Corporation