Formula Systems Reports Third Quarter Results; Revenues Increased by 14% Year-Over-Year to Reach $133.8 Million and Net Income Increased by 24% to $4.9 Million
OR-YEHUDA, Israel, November 22, 2010 /PRNewswire-FirstCall/ -- Formula Systems (1985) Ltd. (NASDAQ: FORTY) a provider of information technology products, solutions and services, announced today its results for the Third quarter and nine months period ended September 30, 2010.
Financial Highlights for the Third Quarter Ended September 30, 2010
- Revenues increased by 14% to $133.8 million (Q3 2009: $117.8 million).
- Operating income increased by 26% to $12.0 million (Q3 2009: $9.5
million).
- Net income attributable to Formula shareholders reached $ 4.9 million
(Q3 2009: $3.9 million).
- Formula's consolidated cash and short term investments totaled
approximately $136.5 million as at 30 September 2010.
- Formula's stand-alone cash and other financial investments, net totaled
$14.7 million as at September 30, 2010.
Financial Highlights for the Nine Months Period Ended September 30, 2010
- Revenues totaled $396.4 million compare to 345.7 in the same
period last year.
- Operating income increased by 33% to $34.1 million up from
$25.7 million in the same period last year.
- Net income attributable to Formula shareholders reached
$13.5 million, an increase of 22% compare to $11.1 million in the same
period in 2009.
Comments of Management
Guy Bernstein, Chief Executive Officer of Formula Systems, said: "I am pleased with the group performance in both the third quarter and the nine months period. We continued to demonstrate growth and improved profitability driven by strong demand for the products and services offered by our subsidiaries. We feel well positioned to carry out our growth strategy and to continue seeking out ways to generate value for our shareholders."
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)
UNAUDITED CONSOLIDATED CONDESNSED BALANCE SHEETS
September December
30, 31,
2010 2009
U.S. $
(in thousands)
CURRENT ASSETS:
Cash and cash equivalents 81,741 100,205
Marketable securities 48,724 44,171
Short-term deposits 5,993 13,838
Trade receivables 128,207 130,237
Other accounts receivable 25,566 22,448
Inventories 4,081 2,439
Total assets attributed to discontinued
operations - 27
294,312 313,365
LONG-TERM ASSETS:
Marketable securities 2,791 7,781
Deferred taxes 12,641 9,499
Investments in companies 3,450 3,710
Prepaid expenses and other assets 5,541 3,023
24,423 24,013
SEVERANCE PAY FUND 48,254 44,131
PROPERTY, PLANTS AND EQUIPMENT, NET 11,136 9,989
NET INTANGIBLE ASSETS AND GOODWILL. 195,367 174,941
573,492 566,439
CURRENT LIABILITIES:
Liabilities to banks 9,812 10,056
Trade payables 39,998 43,776
Deferred revenue 24,271 25,206
Employees and payroll accrual 35,284 32,029
Other accounts payable 22,585 26,994
Dividend payable - 6,694
Liability due to acquisition of activities 4,029 210
Debentures 16,131 14,639
Total liabilities attributed to discontinued
operations - 314
152,110 159,918
LONG-TERM LIABILITIES:
Debentures 45,967 43,918
Deferred taxes 2,663 2,207
Deferred revenues 2,166 1,116
Liabilities to banks and others 4,527 8,556
Liability due to acquisition of activities 5,253 1,517
Accrued severance pay 59,626 53,893
120,202 111,207
TOTAL EQUITY
Formula shareholders' equity 183,232 188,041
Non -controlling interests 117,948 107,273
301,180 295,314
573,492 566,439
FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Nine months ended Three months ended
September 30, September 30,
2010 2009 2010 2009
U.S.$ U.S.$
(in thousands, except per share
data)
Revenues 396,357 345,677 133,791 117,793
Cost of revenues 297,330 258,284 100,282 87,519
Gross profit 99,027 87,393 33,509 30,274
Research and development
costs, net 3,993 3,382 1,399 1,189
Selling, general and
administrative expenses 60,944 58,323 20,087 19,536
Operating income 34,090 25,688 12,023 9,549
Financial income (expenses),
net (2,754) 1,173 (1,033) (883)
31,336 26,861 10,990 8,666
Other income (expenses), net 148 134 68 (63)
Income before taxes on income 31,484 26,995 11,058 8,603
Taxes on income 5,089 6,146 1,718 1,250
26,395 20,849 9,340 7,353
Equity in gains (losses) of
affiliated companies, net (649) 130 (271) 129
Net Income 25,746 20,719 9,069 7,224
Net income attributable to
non-controlling interests 12,237 10,243 4,193 3,546
Net income attributable to
Formula shareholders 13,509 10,476 4,876 3,678
Amount attributable to
Formula's shareholders:
Income from continuing
operation 13,509 10,476 4,876 3,678
Income from discontinued
operation - 594 - 254
13,509 11,070 4,876 3,932
Earnings per share generated
from continued operation :
Basic 1.01 0.79 0.36 0.28
Diluted 1.00 0.78 0.36 0.27
Earnings per share generated
from discontinued operation :
Basic - 0.05 - 0.02
Diluted - 0.04 - 0.02
Total Earning per share:
Basic 1.01 0.84 0.36 0.30
Diluted 1.00 0.82 0.36 0.29
Weighted average number of
shares outstanding:
Basic 13,365 13,200 13,398 13,200
Diluted 13,522 13,451 13,530 13,504
Contact:
Nir Feller, Formula Systems (1985) Ltd.
Tel. +972-3-5389487
Email. [email protected]
SOURCE Formula Systems
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