26 Aug 2008 07:00
FORMULA SYSTEMS ANNOUNCES Q2 AND H1 2008 RESULTS
Ra'anana, Israel - 26 August 2008 - Emblaze Ltd ("Emblaze" or "the Group")) announces that its group company, Formula Systems (1985) Ltd. ("Formula" or "the Company") a provider of information technology products, solutions and services, announced its results for the six months and second quarter of 2008.
Highlights:
* Revenues for the second quarter totaled $151.5 million, an increase of 24% compared to $122.2 million in the second quarter of 2007. * Revenues for the six months ended June 30, 2008 totaled $287.3 million compared to $235.7 million in the same period of 2007, an increase of 22%. * Operating income in the second quarter of 2008 increased 47% to $9.0 million compared to $6.1 million in the same quarter of 2007. * Operating income in the first half of 2008 was $15.5 million compared to $12.3 million in the first half of 2007, an increase of 26%. * Net income generated from continuing operation in the six months ended June 30, 2008 was $7.3 million compared to $6.4 million in the same period of 2007. * Cash and short term investments totaled approximately $203 million as of June 30, 2008 and current ratio was 2.4. * Shareholder's equity on June 30, 2008 totaled $207 million, reflecting $15.7 per share. * In April 2008, Formula distributed a cash dividend of approximately $10 million, or $0.76 per share.
Guy Bernstein, CEO of Formula, commented: "In the second quarter we continued the constant growth trend in the group's activity. All our subsidiaries contributed positively to our increasing operational results: Magic moved from operating loss in the first quarter to an impressive operating profit in the second quarter, Sapiens reported a seventh consecutive quarter of operational profit and our primary asset, Matrix, continued to grow both in revenues and in operating profit. I can state with confidence that the Formula group is well equipped with the resources to explore new acquisitions, compatible with our strategy and current portfolio of companies."
Enquiries:Emblaze Hadas Gazit, Hagit Gal + 972 9 7699302/ 339 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.
About Emblaze
Emblaze Ltd is a group of technology companies addressing both growth and innovation activities thus combining the stability of "bread and butter" mature technology enterprises with "high-risk / high-reward" investments in innovation.
Our Growth arm includes Formula Systems , which harbors the following subsidiaries: Magic Software Enterprises Ltd. 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. is a provider of IT solutions that modernize business processes to enable insurance and other companies to quickly adapt to changes; and nextSource Inc., designs, develops and implements web-based, high quality, innovative human capital management solutions.
Our Innovation arm includes Emblaze Mobile, a designer of advanced mobile devices; EMOZE, a provider of Push Email and synchronisation technology for mobile devices; and ZONE-IP (Emblaze V CON), a provider of wireless video communications technologies and conferencing solutions for operators and enterprise markets over IP networks.
The Emblaze Group is traded on the London Stock Exchange since 1996.www.Emblaze.com FORMULA SYSTEMS (1985) LTD. (An Israeli corporation) CONSOLIDATED BALANCE SHEETS June 30, December 31, 2008 2007 (Unaudited) (Audited) U.S. $ (in thousands) CURRENT ASSETS: Cash and cash equivalents 146,522 161,504 Short-term investments 56,974 40,276 Trade receivables 153,550 139,478 Other accounts receivable 26,919 34,822 Inventories 2,890 3,157 386,855 379,237 LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES: Loans and other investments 11,371 14,849 Investments in affiliates 3,794 3,792 15,165 18,641 SEVERANCE PAY FUND 44,503 36,851 FIXED ASSETS, NET 16,923 15,794 OTHER ASSETS, NET 189,176 162,060 TOTAL ASSETS ATTRIBUTED TO DISCONTINUED OPERATIONS 35 41 652,657 612,624 CURRENT LIABILITIES: Liabilities to banks and others 16,358 26,954 Trade payables 51,661 57,099 Other accounts payable 90,995 73,072 Debentures 3,924 3,524 162,938 160,649 LONG-TERM LIABILITIES: Debentures 82,700 71,880 Deferred taxes 3,617 3,276 Customer advances 1,963 2,181 Liabilities to banks and others 22,802 23,685
Liability in respect of the acquisition of activities 1,195 1,373
Accrued severance pay 54,197 42,774 166,474 145,169 TOTAL LIABILITIES ATTRIBUTED TO DISCONTINUED 438 503OPERATIONS MINORITY INTEREST 115,767 107,915 SHAREHOLDERS' EQUITY 207,040 198,388 652,657 612,624 FORMULA SYSTEMS (1985) LTD. (An Israeli corporation) UNAUDITED CONSOLIDATED STATEMENTS OF INCOME Six months ended Three months ended June 30, June 30, 2008 2007 2008 2007 U.S.$ U.S.$ (in thousands, except per share data) Revenues 287,264 235,720 151,479 122,170 Cost of revenues 217,200 177,522 115,451 92,784 Gross profit 70,064 58,198 36,028 29,386
Research and development costs, net 2,838 2,367 1,404 1,156
Selling, general and administrative 49,942 41,881 24,751 21,211expenses Depreciation and amortization 1,792 1,622 871 892 Operating income 15,492 12,328 9,002 6,127 Financial expenses, net 541 1,268 566 717 14,951 11,060 8,436 5,410
Gain on realization of investments (292) 1,965 (18) 1,866
Other expenses, net 421 435 377 178
Income before taxes on income 14,238 12,590 8,041 7,098
Taxes on income 1,082 968 611 260 13,156 11,622 7,430 6,838 Equity in losses of affiliated 390 364 115 213companies, net
Minority interest in profits, net 5,484 4,816 3,078 2,465
Income from continuing operation 7,282 6,442 4,237 4,160
Income from discontinued operations - 19,063 - 18,381 Net income 7,282 25,505 4,237 22,541 Earnings per share generated from continued operation : Basic 0.55 0.49 0.32 0.32 Diluted 0.54 0.49 0.32 0.31 Earnings per share generated from discontinuing operation : Basic - 1.44 - 1.39 Diluted - 1.44 - 1.39 Weighted average number of shares outstanding: Basic 13,200 13,200 13,200 13,200 Diluted 13,200 13,200 13,200 13,200 ______ ______ ______ ______
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