Formula Systems Reports First Quarter Results for 2010
Net Income Increased by 41% to Reach $4.8 Million
OR-YEUDA, Israel, May 17, 2010 /PRNewswire-FirstCall/ -- Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, today announced its results for the first quarter of 2010.
Financial Highlights for the First Quarter
- Revenues totaled $130.8 million (Q1 2009: $116.9 million), a
12% increase compared to the same quarter of 2009.
- Operating income increased by 40% to $11.0 million (Q1 2009:
$7.9 million)
- Net income attributable to Formula reached $4.8 million, an
increase of 41% compared to $3.4 million for the first quarter of 2009
- Formula's consolidated cash and short term investments
totaled approximately $159.6 million as of March 31, 2010.
- Total equity of $285.6 million at March 31, 2010
representing 49% of the total balance sheet.
- In March 2010 Formula announced a cash dividend, that was
paid on April 21, 2010, in the amount of US$1.47 per share and in the
aggregate amount of approximately US$20 million.
Guy Bernstein, CEO, Formula Systems, commented: "We are pleased to report strong results for the start of 2010. We have significantly improved our operating and net income, resulting from the positive performance of all our subsidiaries. With a strong cash position, we will continue to explore business growth opportunities, while maintaining our focus on profitability and growth".
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
March 31, December 31,
2010 2009
(Unaudited) (Audited)
___________ ____________
U.S. $
________________________
(in thousands)
CURRENT ASSETS:
Cash and cash equivalents..........................111,911 100,205
Short-term
investments........................................ 47,657 58,009
Trade receivables..................................133,573 130,23
Other accounts receivable.......................... 25,474 22,449
Inventories..........................................2,773 2,439
Total assets attributed to discontinued
operations..............................................26 27
_______ _______
321,414 313,365
_______ _______
LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES:
Long term investments...............................10,641 10,323
Investments in affiliates............................3,127 3,293
_______ _______
13,768 13,616
_______ _______
SEVERANCE PAY FUND..................................45,464 44,131
_______ _______
PROPERTY, PLANTS AND EQUIPMENT, NET.................10,226 9,989
_______ _______
OTHER ASSETS, NET..................................195,611 185,338
_______ _______
586,483 566,439
_______ _______
CURRENT LIABILITIES:
Liabilities to banks.................................9,962 10,055
Trade payables......................................41,671 43,77
Other accounts
payable.............................................93,381 84,230
Dividend
payable.............................................21,422 6,694
Liability in respect of business combinations........2,610 210
Debentures..........................................14,742 14,639
Total liabilities attributed to discontinued
operations.............................................294 314
_______ _______
184,082 159,918
_______ _______
LONG-TERM LIABILITIES:
Debentures..........................................44,227 43,918
Deferred
taxes................................................3,024 2,207
Customer
advances.............................................1,828 1,116
Liabilities to banks and others......................7,450 8,556
Liability in respect of business combinations........4,506 1,517
Accrued severance pay...............................55,751 53,893
_______ _______
116,786 111,207
_______ _______
TOTAL EQUITY.......................................285,615 295,314
_______ _______
586,483 566,439
_______ _______
FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Three months ended
March 31,
2010 2009
U.S.$
(in thousands, except per share data)
Revenues.................................130,842 116,888
Cost of revenues..........................98,398 88,577
_______ _______
Gross profit..............................32,444 28,311
Research and development costs, net........1,383 1,143
Selling, general and administrative
expenses..................................20,056 19,282
_______ _______
Operating income..........................11,005 7,886
Financial income (expenses), net.............522 1,787
_______ _______
11,527 9,673
Other income (expenses), net..................(7) (180)
_______ _______
Income before taxes on income.............11,520 9,493
Taxes on income............................2,158 2,933
9,362 6,560
Equity in gain (losses) of affiliated
companies, net..............................(238) 33
_______ _______
Income from continuing operation...........9,124 6,593
Net income from discontinued operation.........- 112
_______ _______
Net income.................................9,124 6,705
Net income attributable to non-controlling
interests..................................4,324 3,292
_______ _______
Net income attributable to Formula's
shareholders...............................4,800 3,413
_______ _______
Amount attributable to Formula's
shareholders
Income from continuing operation...........4,800 3,301
Income from discontinued operation......... - 112
_______ _______
4,800 3,413
_______ _______
Earnings per share generated from
continuing operation:
Basic.......................................0.36 0.25
Diluted.....................................0.35 0.25
Earnings per share generated from
discontinued operations:
Basic..........................................- 0.01
Diluted........................................- 0.01
Total Earnings per share:
Basic.......................................0.36 0.26
Diluted.....................................0.35 0.26
Weighted average number of shares
outstanding:
Basic.....................................13,365 13,200
Diluted...................................13,548 13,398
Contact: Nir Feller, Formula Systems (1985) Ltd. +972-3-5389487
SOURCE Formula Systems Ltd.
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