Sapiens International Corporation (SPNS) has reported a 13.14 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $5.30 million, or $0.11 a share in the quarter, compared with $4.69 million, or $0.09 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6 million, or $0.12 a share compared with $5.82 million or $0.12 a share, a year ago.
Revenue during the quarter grew 20.08 percent to $56.48 million from $47.04 million in the previous year period. Gross margin for the quarter contracted 144 basis points over the previous year period to 39.15 percent. Total expenses were 88.33 percent of quarterly revenues, up from 87.83 percent for the same period last year. That has resulted in a contraction of 50 basis points in operating margin to 11.67 percent.
Operating income for the quarter was $6.59 million, compared with $5.73 million in the previous year period.
However, the adjusted operating income for the quarter stood at $7.35 million compared to $6.96 million in the prior year period. At the same time, adjusted operating margin contracted 179 basis points in the quarter to 13.01 percent from 14.80 percent in the last year period.
"We saw strong double-digit growth and improved performance across all of our offerings and across all of our territories, driven by strong demand from existing customers and from ramping sales from new customers. As in recent quarters, the demand for our products and services remained strong," said Roni Al-Dor, president and chief executive officer of Sapiens. "I remain very encouraged by our geographic expansion, our organic growth with both new and existing customers and the potential for ongoing M&A opportunities to enhance our growth and profitability."
Sapiens International Corp forecasts revenue to be in the range of $211 million to $215 million for fiscal year 2016. For financial year 2016, the company forecasts adjusted operating income to grow in the range of 13.50 percent to 14 percent.
Operating cash flow declines
Sapiens International Corporation has generated cash of $24.04 million from operating activities during the nine month period, down 16.04 percent or $4.59 million, when compared with the last year period.
The company has spent $13.25 million cash to meet investing activities during the nine month period as against cash outgo of $17.15 million in the last year period.
The company has spent $11.06 million cash to carry out financing activities during the nine month period as against cash outgo of $11.98 million in the last year period.
Cash and cash equivalents stood at $56.23 million as on Sep. 30, 2016, up 24.50 percent or $11.06 million from $45.16 million on Sep. 30, 2015.
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