2008-08-25 00:29:00
HERZLIYA, Israel, August 25 /EMWNews/ -- Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, announced today results for the six months and second quarter of 2008. Revenues for the second quarter totaled $151.5 million an increase of 24% compared to $122.2 million in the second quarter of 2008. Revenues for the six months ended June 30, 2008 totaled $287.3 million compared to $235.7 million in the same period of 2007, an increase of 22%. Operating income in the second quarter of 2008 increased 47% to $9.0 million compared to $6.1 million in the same quarter of 2007. Operating income in the first half of 2008 was $15.5 million compared to $12.3 million in the first half of 2008, an increase of 26%. Net income generated from continuing operation in the six months ended June 30, 2008 was $7.3 million compared to $6.4 million in the same period of 2007. Our cash and short term investments totaled approximately $203 million as of June 30, 2008 and our current ratio was 2.4. Shareholder's equity on June 30, 2008 totaled $207 million, reflecting $15.7 per share. In April 2008, Formula distributed a cash dividend of approximately $10 million, or $0.76 per share. Guy Bernstein, CEO of Formula, commented: "In the second quarter we continued the constant growth trend in the group's activity. All our subsidiaries contributed positively to our increasing operational results: Magic moved from operating loss in the first quarter to an impressive operating profit in the second quarter, Sapiens reported a seventh consecutive quarter of operational profit and our primary asset, Matrix, continued to grow both in revenues and in operating profit. Mr. Bernstein concluded: I can state with confidence that the Formula group is well equipped with the resources to explore new acquisitions, compatible with our strategy and current portfolio of companies."
About Formula
Formula Systems Ltd. is a global information technology company
principally engaged, through its subsidiaries and affiliates, in providing
software consulting services, developing proprietary software products and
providing computer-based business solutions.
Statements made in this press release that are not historical facts are
forward-looking statements. Such statements involve various risks that may
cause actual results to differ materially. These risks and uncertainties
include, but are not limited to: market demand for the company's products,
dependence on strategic partners, integration of new business, successful
implementation of Formula's products, economic and competitive factors,
international market conditions, management of growth, technological
developments, the ability to finance operations and other factors which are
detailed in Formula's Securities and Exchange Commission filings, including
its most recent report on Form 20-F. Formula undertakes no obligation to
publicly release any revision to any forward-looking statement.
FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
CONSOLIDATED BALANCE SHEETS
December
June 30, 31,
2008 2007
(Unaudited) (Audited)
U.S. $
(in thousands)
CURRENT ASSETS:
Cash and cash
equivalents.................................. 146,522 161,504
Short-term
investments.................................. 56,974 40,276
Trade
receivables.................................. 153,550 139,478
Other accounts
receivable................................... 26,919 34,822
Inventories.................................. 2,890 3,157
386,855 379,237
LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES:
Loans and other
investments.................................. 11,371 14,849
Investments in
affiliates................................... 3,794 3,792
15,165 18,641
SEVERANCE PAY
FUND......................................... 44,503 36,851
FIXED ASSETS,
NET.......................................... 16,923 15,794
OTHER ASSETS,
NET.......................................... 189,176 162,060
TOTAL ASSETS ATTRIBUTED TO DISCONTINUED
OPERATIONS................................... 35 41
652,657 612,624
CURRENT LIABILITIES:
Liabilities to banks and
others....................................... 16,358 26,954
Trade
payables..................................... 51,661 57,099
Other accounts
payable...................................... 90,995 73,072
Debentures................................... 3,924 3,524
162,938 160,649
LONG-TERM LIABILITIES:
Debentures................................... 82,700 71,880
Deferred
taxes........................................ 3,617 3,276
Customer
advances..................................... 1,963 2,181
Liabilities to banks and
others....................................... 22,802 23,685
Liability in respect of the acquisition of
activities................................... 1,195 1,373
Accrued severance
pay.......................................... 54,197 42,774
166,474 145,169
TOTAL LIABILITIES ATTRIBUTED TO DISCONTINUED
OPERATIONS................................... 438 503
MINORITY
INTEREST..................................... 115,767 107,915
SHAREHOLDERS'
EQUITY....................................... 207,040 198,388
652,657 612,624
FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Six months Three months
ended ended
June 30, June 30,
2008 2007 2008 2007
U.S.$ U.S.$
(in thousands, except per share data)
Revenues............................. 287,264 235,720 151,479 122,170
Cost of
revenues............................. 217,200 177,522 115,451 92,784
Gross
profit............................... 70,064 58,198 36,028 29,386
Research and development costs, net.. 2,838 2,367 1,404 1,156
Selling, general and administrative
expenses............................. 49,942 41,881 24,751 21,211
Depreciation and amortization........ 1,792 1,622 871 892
Operating
income............................... 15,492 12,328 9,002 6,127
Financial expenses,
net.................................. 541 1,268 566 717
14,951 11,060 8,436 5,410
Gain on realization of investments... (292) 1,965 (18) 1,866
Other expenses,
net.................................. 421 435 377 178
Income before taxes on income........ 14,238 12,590 8,041 7,098
Taxes on
income............................... 1,082 968 611 260
13,156 11,622 7,430 6,838
Equity in losses of affiliated
companies, net....................... 390 364 115 213
Minority interest in profits,
net.................................. 5,484 4,816 3,078 2,465
Income from continuing operation..... 7,282 6,442 4,237 4,160
Income from discontinued operations - 19,063 - 18,381
Net income 7,282 25,505 4,237 22,541
Earnings per share generated from continued operation :
Basic................................ 0.55 0.49 0.32 0.32
Diluted.............................. 0.54 0.49 0.32 0.31
Earnings per share generated from discontinuing operation :
Basic................................ - 1.44 - 1.39
Diluted.............................. - 1.44 - 1.39
Weighted average number of shares outstanding:
Basic................................ 13,200 13,200 13,200 13,200
Diluted.............................. 13,200 13,200 13,200 13,200
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