Formula Systems Reports Second Quarter Results; Revenues Increased by 19% Year-Over-Year to Reach $131.7 Million and Operating Income Increased by 35% to $11.3 Million
OR-YEHUDA, Israel, August 17, 2010 /PRNewswire-FirstCall/ -- Formula Systems (1985) Ltd. (NASDAQ: FORTY) a provider of information technology products, solutions and services, announced today its results for the Second quarter and six months period ended June 30, 2010.
Financial Highlights for the Second Quarter and for the Six Months Period Ended June 30, 2010
- Revenues increased by 19% to $131.7 million (Q2 2009: $111.0 million).
- Operating income increased by 35% to $11.3 million (Q2 2009: $8.4
million).
- Net income attributable to Formula shareholders reached $ 3.8 million
(Q2 2009: $3.7 million).
- Formula's consolidated cash and short term investments totaled
approximately $133.5 million as at 30 June 2010.
Financial Highlights for the Six Months Period Ended June 30, 2010
- Revenues totaled $262.6 million compare to 227.9 in the same
period last year.
- Operating income increased by 37% to $22.3 million up from
$16.3 million in the same period last year.
- Net income attributable to Formula shareholders reached $8.6
million compare to $7.1 million in the same period in 2009.
Comments of Management
Guy Bernstein, Chief Executive Officer of Formula Systems, said: "I am pleased to report the constant improvement in Formula's profitability, demonstrating the continuous demand for the products and services offered by the group's subsidiaries, as well as the cost-saving measures implemented throughout the group. We will strive to maintain the growth momentum going forward."
About Formula Systems
Formula Systems (1985) Ltd. (NASDAQ: FORTY) 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,
2010 2009
(Unaudited) (Audited)
___________ _________
U.S. $
_____________________
(in thousands)
CURRENT ASSETS:
Cash and cash equivalents.............................86,850 100,205
Short-term investments................................46,621 58,009
Trade receivables....................................121,690 130,236
Other accounts receivable.............................25,705 22,449
3,070 2,439
Inventories..........................................
Total assets attributed to discontinued
operations.................................. - 27
_______ _______
283,936 313,365
_______ _______
LONG-TERM INVESTMENTS:
Long term investments..................................7,446 10,323
Investments in affiliates..............................2,861 3,293
_______ _______
10,307 13,616
_______ _______
SEVERANCE PAY FUND....................................44,387 44,131
_______ _______
PROPERTY, PLANTS AND EQUIPMENT, NET......... 10,474 9,989
_______ _______
OTHER ASSETS AND GOODWILL, NET................... 197,800 185,338
_______ _______
_______ _______
546,904 566,439
======= =======
CURRENT LIABILITIES:
Liabilities to banks ..................................9,187 10,055
Trade payables........................................35,315 43,776
Deferred revenue 30,331 25,206
Employees and payroll accrual 35,041 32,029
Other accounts payable................................21,445 26,995
Dividend payable.......................................... - 6,694
Liability in respect of the business combination..... 3,287 210
Debentures............................................14,316 14,639
Total liabilities attributed to discontinued
operations.................................. - 314
_______ _______
148,922 159,918
_______ _______
LONG-TERM LIABILITIES:
Debentures............................................42,947 43,918
Deferred taxes.........................................3,386 2,207
Deferred revenues......................................1,594 1,116
Liabilities to banks and others........................5,618 8,556
Liability in respect of the acquisition of activity....4,753 1,517
Accrued severance pay.................................54,915 53,893
_______ _______
113,213 111,207
_______ _______
TOTAL EQUITY.........................................284,769 295,314
_______ _______
546,904 566,439
======= =======
FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Six months ended Three months
ended
June 30,
June 30,
__________________ __________________
2010 2009 2010 2009
__________________ __________________
U.S.$ U.S.$
__________________ __________________
(in thousands, except per share data)
Revenues.....................262,566 227,884 131,724 110,996
Cost of revenues.............197,048 170,764 98,650 82,187
_______ _______ _______ _______
Gross profit..................65,518 57,120 33,074 28,809
Research and development
costs, net.....................2,594 2,193 1,211 1,050
Selling, general and
administrative expenses.......40,624 38,653 20,568 19,371
_______ _______ _______ _______
Operating income..............22,300 16,274 11,295 8,388
Financial income
(expenses), net...............(1,721) 2,056 (2,243) 269
_______ _______ _______ _______
20,579 18,330 9,052 8,657
Other income (expenses), net....(153) 61 (146) 241
_______ _______ _______ _______
Income before taxes on income.20,426 18,391 8,906 8,898
Taxes on income................3,371 4,896 1,213 1,963
_______ _______ _______ _______
17,055 13,495 7,693 6,935
Equity in gains (losses) of
affiliated companies, net.......(378) (1) (140) (34)
_______ _______ _______ ________
Income from continuing
operation 16,677 13,494 7,553 6,901
Net income from
discontinued operation - 341 - 229
Net Income....................16,677 13,835 7,553 7,130
Net income attributable to
non-controlling
interests..................... 8,044 6,697 3,720 3,405
_______ _______ _______ _______
Net income attributable to
Formula shareholders... 8,633 7,138 3,833 3,725
Amount attributable to
Formula's shareholders: .
Income from continuing
operation......................8,633 6,797 3,833 3,496
Income from discontinued
operation........................ - 341 - 229
_______ _______ _______ _______
8,633 7,138 3,833 3,725
Earnings per share generated
from continued operation :
Basic...........................0.65 0.51 0.29 0.26
Diluted.........................0.63 0.50 0.28 0.25
Earnings per share generated
from discontinued operation :
Basic........................... - 0.03 - 0.02
Diluted............................- 0.03 - 0.02
Total Earning per share:
Basic 0.65 0.54 0.29 0.28
Diluted 0.63 0.53 0.28 0.27
Weighted average number of
shares outstanding:
Basic.........................13,349 13,200 13,365 13,200
Diluted.......................13,518 13,403 13,524 13,432
======= ======= ======= =======
Contact:
Nir Feller, Formula Systems (1985) Ltd.
Tel. +972-3-5389487
Email. [email protected]
SOURCE Formula Systems Ltd.
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