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
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