BSD.L Regulatory News (BSD)

28 Nov 2007 12:00

Emblaze Ltd28 November 2007 Emblaze Reports Third Quarter Results of Formula Systems Nine Months Net Income of $27.9 million Nine Months Operating Income of $21.2 million Ra'anana, Israel - November 28, 2007 - Formula Systems (1985) Ltd. (NASDAQ &TASE: FORTY), a group company of Emblaze Ltd. (LSE:BLZ) and a leading providerof information technology products, solutions and services, announced todayresults for the nine months and third quarter of 2007. • Revenues for the third quarter totaled $124.7million an increase of 14% compared to $109.7million in the third quarter of 2006. • Revenues for the nine months ended September 30, 2007 totaled $365.5 million compared to $311.7 million in the same period of 2006, an increase of17%. • Operating income in the third quarter of 2007 was $7.7 million compared to $1.1million in the same quarter of 2006, an increase of 603%. • Operating income in the first nine months of 2007 was $21.2 million compared to $6.3 million in the first nine months of 2006, an increase of 235%. • Net income in the third quarter of 2007 was $2.7 million compared to net loss of $1.0 million in the third quarter of 2006. Net income in the first nine months of 2007 totaled $27.9 million compared to $3.7 million in the same period of 2006. Guy Bernstein, CEO of Emblaze, commented: "These good results are a directoutcome of the strategy put in place by the new management team of focusing ontwo additional, substantial areas: improving the operational results of oursubsidiaries and creating financial resources to support the continuing growthof the Group. Looking ahead, completion of streamlining the group infrastructures will allowus to increase M&A activities and to focus on supporting the growth and furtherdevelopment of the Group." Enquiries: Emblaze LtdHadas Gazit, Hagit Gal +972 9 7699302/ 339 Corfin Communications - IR & PR (UK)Harry Chathli, Neil Thapar +44 (0)20 7977 0020 Eisenberg-Eliash LTD. - IR & PR (Israel)Amir Eisenberg +972 3 7538828 / +972 52 8260285 NOTES TO EDITOR About Formula Formula Systems Ltd. is a global information technology company principallyengaged, through its subsidiaries and affiliates, in providing softwareconsulting services, developing proprietary software products and providingcomputer-based business solutions. Statements made in this press release that are not historical facts areforward-looking statements. Such statements involve various risks that may causeactual results to differ materially. These risks and uncertainties include, butare not limited to: market demand for the company's products, dependence onstrategic partners, integration of new business, successful implementation ofFormula's products, economic and competitive factors, international marketconditions, management of growth, technological developments, the ability tofinance operations and other factors which are detailed in Formula's Securitiesand Exchange Commission filings, including its most recent report on Form 20-F.Formula undertakes no obligation to publicly release any revision to anyforward-looking statement. About Emblaze Emblaze Ltd is a group of technology companies addressing both growth andinnovation activities thus combining the stability of "bread and butter" maturetechnology enterprises with "high-risk / high-reward" investments in innovation. Growth activities Formula Systems, which includes: • Magic Software Enterprises Ltd. (NASDAQ & TASE: MGIC) develops, markets and supports composite application development and deployment platforms with a service-oriented architecture (SOA), including application integration and business process management (BPM), with existing and legacy systems; • Matrix IT Ltd. (TASE: MTRX) is one of Israel's leading integration and information technology services companies, active in four principal areas: software solutions and services, software products, infrastructure solutions and hardware products, and training and assimilation. • Sapiens International Corporation N.V. (NASDAQ & TASE: SPNS) is a provider of IT solutions that modernize business processes to enable insurance and other companies to quickly adapt to changes. • nextSource Inc., designs, develops and implements web-based, high quality, innovative human capital management solutions. Innovation activities • Emblaze Mobile, an designer of advanced mobile devices; • emoze, a free global Push Email technology for mobile devices • ZONE-IP (Emblaze V CON), a provider of wireless video communications technologies and conferencing solutions for operators and enterprise markets over IP networks • Orca Interactive (LSE: ORCA), provider of Interactive Television IPTV middleware for Video On Demand (VOD) and broadcast services ; and • Visual Defence (LSE: VDI), (minority stake) a wireless and IP video solutions provider for military and homeland security markets. Emblaze Group is traded on the London Stock Exchange (LSE: BLZ) since 1996.www.Emblaze.com CONSOLIDATED BALANCE SHEETS September 30, 2007 December 31, (Unaudited) 2006 U.S. $ (in thousands) CURRENT ASSETS:Cash and cash equivalents 181,690 104,775Short-term investments 18,516 11,385Marketable securities available for sale 2,714 3,646Trade receivables 130,206 120,939Other accounts receivable 19,076 17,997Inventories 3,349 3,080 355,551 261,822 LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES:Loans and other investments 2,435 3,915Investments in affiliates 4,690 720 7,125 4,635 SEVERANCE PAY FUND 32,773 29,962 FIXED ASSETS, NET 15,942 16,311 OTHER ASSETS, NET 160,688 147,753 TOTAL ASSETS ATTRIBUTED TO DISCONTINUED OPERATIONS - 135,021 572,079 595,504 CURRENT LIABILITIES:Liabilities to banks and others 23,464 40,414Trade payables 49,024 50,157Other accounts payable 69,184 59,056Debentures 4,225 4,450 145,897 154,077 LONG-TERM LIABILITIES: Debentures 72,284 10,802Unrealized Gain 82 -Deferred taxes 584 457Customer advances 1,398 449Liabilities to banks and others 24,715 59,268Liability in respect of the acquisition of activities 1,414 1,489 Accrued severance pay 39,575 35,340 140,052 107,805 TOTAL LIABILITIES ATTRIBUTED TO DISCONTINUED OPERATIONS - 95,266 MINORITY INTEREST 98,243 85,066 SHAREHOLDERS' EQUITY 187,887 153,290 572,079 595,504 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME Nine months ended Three months ended September 30, September 30, 2007 2006 2007 2006 U.S.$ U.S.$ (in thousands, except per share data) Revenues 365,488 311,672 124,679 109,686Cost of revenues 271,661 228,704 92,405 81,306Gross profit 93,827 82,968 32,274 28,380Research and development costs, net 5,204 5,600 1,939 2,218Selling, general and administrative expenses 64,594 65,005 21,706 21,756Depreciation and amortization 2,628 3,258 939 1,187Restructuring and non-recurring costs 210 2,781 - 2,125 Operating income 21,191 6,324 7,690 1,094Financial (expenses), net (3,885) (2,559) (3,501) (989) 17,306 3,765 4,189 105 Gain (loss) on realization of investments 1,946 2,116 746 (73)Other income (expenses), net (197) (864) 237 (134)Income before taxes on income 19,055 5,017 5,172 (102)Taxes on income 1,222 2,762 160 722 17,833 2,255 5,012 (824) Equity in losses (profits) of affiliated companies, net 546 (51) 182 (48) Minority interest in losses (profits), net (7,813) (2,092) (2,459) 76Income (loss) from continuing operation 9,474 214 2,371 (796)Income (loss) from discontinued operations 18,424 3,437 322 (192)Net (loss) income 27,898 3,651 2,693 (988) Earnings per share generated from continued operation :Basic 0.72 0.02 0.14 (0.06)Diluted 0.71 0.01 0.14 (0.07) Earnings per share generated from discontinuing operation :Basic 1.39 0.25 0.02 (0.01)Diluted 1.39 0.23 0.02 (0.01) Weighted average number of shares outstanding: Basic 13,200 13,200 13,200 13,200Diluted 13,200 13,200 13,200 13,200 ______ ______ ______ ______ This information is provided by RNS The company news service from the London Stock Exchange