Formula Systems Reports First Quarter Results for 2011
Operating Income Increased by 11% to Reach $12.2 Million
OR-YEUDA, Israel, May 12, 2011 /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 2011.
Financial Highlights for the First Quarter
- Revenues totaled $155.9 million (Q1 2010: $130.8 million), a 19% increase compared to the same quarter of 2010.
- Operating income increased by 11% to $12.2 million (Q1 2010: $11.0 million)
- Net Income attributable to Formula reached $4.2 million, a decrease of 13% compared to $4.8 million for the first quarter of 2010 due to decrease in financial income resulting from losses in one of our subsidiary's investment portfolio.
- Formula's consolidated cash and short term investments totaled approximately $153.0 million, as of 31 March, 2011.
- Total equity stood at $347.6 million on March 31, 2011, representing 53% of the total balance sheet.
Guy Bernstein, CEO of Formula Systems, commented: "We are pleased to report a positive start to 2011. with strong financial results for the first quarter. All our subsidiaries have continued to improve their performance, resulting in increased revenue and operating income, generating double-digit growth year over year. Looking forward, our strong cash position enables us to continue to explore new business opportunities, while we maintain our strategic 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, 2011 2010 (Unaudited) --------------- ------------ U.S. $ ----------------------------- ASSETS (in thousands) CURRENT ASSETS: Cash and cash equivalents................. 103,625 110,508 Marketable securities..................... 37,855 38,170 Short-term deposits....................... 11,500 24 Trade receivables......................... 155,517 154,366 Other accounts receivable................. 32,563 23,140 Inventories............................... 3,770 5,601 -------- -------- 344,830 331,809 -------- -------- LONG-TERM INVESTMENTS: Marketable securities..................... 3,034 2,828 Deferred Taxes............................ 13,596 13,135 Investments in affiliated company......... 3,171 3,209 Prepaid expenses and other assets......... 6,473 5,493 -------- -------- 26,274 24,665 -------- -------- SEVERANCE PAY FUND........................ 56,134 55,286 -------- -------- PROPERTY, PLANTS AND EQUIPMENT, NET....... 14,520 12,411 -------- -------- OTHER ASSETS, NET......................... 211,203 199,596 -------- -------- -------- -------- 652,961 623,767 ======== ======== CURRENT LIABILITIES: Liabilities to banks...................... 6,551 6,684 Trade payables............................ 49,610 53,177 Deferred revenues......................... 43,274 26,845 Employees and payroll accrual............. 42,088 40,704 Other accounts payable.................... 25,659 30,693 Dividend payable to non controlling interests................................. 2,405 - Liability in respect of business combinations.............................. 4,987 3,963 Debentures.............. 17,012 15,927 -------- -------- 191,586 177,993 -------- -------- LONG-TERM LIABILITIES: Debentures................................ 32,778 31,854 Deferred taxes............................ 3,360 2,654 Customer advances......................... 3,541 3,520 Liabilities to banks and others........... 1,571 3,154 Liability in respect of business combinations.............................. 5,123 4,758 Accrued severance pay..................... 67,403 65,450 -------- -------- 113,776 111,390 -------- -------- TOTAL EQUITY.............................. 347,599 334,384 -------- -------- 652,961 623,767 ======== ======== FORMULA SYSTEMS (1985) LTD. (An Israeli corporation) UNAUDITED CONSOLIDATED STATEMENTS OF INCOME Three months ended March 31, -------------------------------- 2011 2010 --------------- --------------- U.S.$ -------------------------------- (in thousands, except per share data) Revenues............................. 155,916 130,842 Cost of revenues..................... 119,716 98,398 ----------- ----------- Gross profit......................... 36,200 32,444 Research and development costs, net.. 1,685 1,383 Selling, general and administrative expenses............................. 22,272 20,056 ----------- ----------- Operating income..................... 12,243 11,005 Financial income (expenses), net..... (1,358) 522 ----------- ----------- 10,885 11,527 Other income (expenses), net......... 31 (7) ----------- ----------- Income before taxes on income........ 10,916 11,520 Taxes on income...................... 2,176 2,158 ----------- ----------- 8,740 9,362 Equity in losses of affiliated companies, net....................... (240) (238) ----------- ----------- Net income........................... 8,500 9,124 Net income attributable to non-controlling interests............ 4,323 4,324 Net income attributable to Formula's shareholders......................... 4,177 4,800 =========== =========== Earnings per share: Basic................................ 0.31 0.36 Diluted.............................. 0.30 0.35 Weighted average number of shares outstanding: Basic................................ 13,464 13,365 Diluted.............................. 13,646 13,548 Contact: Formula Systems (1985) Ltd. [email protected] +972-3-5389487
SOURCE Formula Systems
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article