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19 May 2010 08:00
Emblaze Ltd. ("Emblaze" or "the Group") Interim Management Statement
Ra'anana, Israel, 19 May 2010 - Emblaze is today announcing its Interim Management Statement for the period commencing 1 January 2010 to 31 March 2010 (the "Reported Period"):
Highlights
- The Group's performance during the Reported Period remains in line with
management expectations.
- The Group's growth arm, Formula Systems, reported significant improvement in
profitability with net income attributable to Formula of $4.8 million, an
increase of 41% compared to $3.4 million in first quarter of 2009.
- On 21 April 2010, Formula Systems paid a cash dividend in the amount of US$1.47
per share to its shareholders, with an aggregate total of approximately $20
million. OverviewGROWTH ARM - FORMULA
The table belowsummarises the Q1 2010 performance of Formula Systems in comparison to its Q1 2009 performance (selected items):
Formula - Financial Highlights Three months ended (unaudited consolidated results) March 31,
in $US million 2010 2009 % change Revenues 130.8 116.9 12% Operating income 11.0 7.9 40%
Net income attributable to Formula 4.8 3.4 41%
During the Reported Period, the Formula subsidiaries continued the growth momentum, as detailed below:
Matrix IT (TASE: MTRX) is one of Israel's leading integration and information technology services companies with expertise in banking, insurance, telecom, commerce and government IT solutions. In the period ending 31 March 2010, Matrix continued to improve its performance as shown below:
Revenues were $99.3 million (Q1 2009: $92.4 million).
Operating income was $8.5 million (Q1 2009: $6.6 million).
Net income reached $6.4 million (Q1 2009: $5.4 million).
Matrix's increase in operating income is due almost entirely to improved gross profitability in Matrix's core business operations in the software services sector. STKI ranked Matrix as a leader in the IT local market for the fifth consecutive year, as well as a leader in the market in most significant categories: software services, CRM, training and integration, software testing, integration and virtualization services, expert services and more. This year, Matrix was also awarded the title of leading partner of BMC in EMEA due to several large-scale projects conducted by Matrix in Israel.
Magic Software is a provider of multiple-mode application platform solutions. Magic reported increase in revenues and operating income for the quarter. Financial highlights for the period ending 31 March 2010 included:
Total revenues of $19.7 million compared with revenues of $13.8 million in the first quarter of 2009.
Operating income more than doubled to $1.8 million compared to the first quarter of 2009.
Net income increased twofold to $1.9 million compared to the first quarter of 2009.
Revenues reached $19.7 million; an increase of 43% compared to the first quarter of 2009.
Operating cash flow for the quarter amounted to $6.7 million.
Total cash and cash equivalents, short-term bank deposits and short term investments in marketable securities as of March 31, 2010 amounted to $24.6 million.
In addition to the above, Magic recently acquired the assets of a US-based IT services company (through its subsidiary CoreTech). The acquisition has positively contributed to both the top and bottom line of Magic's financial results for the quarter.
Sapiens International Corporation is provider of innovative insurance software solutions.
Sapiens's first quarter 2010 results reflect its continuous focus on the insurance market and include the following highlights:
Revenues increased 11% compared to Q1 2009, to $11.9 million.
Operating profit reached $1.6 million, a 50% growth compared to Q1 of 2009.
Non-GAAP net income amounted to $1.8 million compared to $1.2 million in Q1 2009.
As of March 31, 2010, cash and cash equivalents reached $14.2 million.
Total shareholders' equity on 31 March 2010 was $28.2 million, representing 57% of the total balance sheet.
INNOVATION ARM
ELSEâ„¢ Ltd. (previously Emblaze Mobile) is a design house for cutting-edge mobile technology.
ELSE is in various stages of negotiations with potential partners for the sale and license of its innovative First ELSEâ„¢ mobile device and the ELSE INTUITIONâ„¢ mobile platform.
The company's management believes that ELSE has a potential to positively contribute to the Group's revenues and profits.
EMOZE Ltd., a provider of transparent, synchronized mobile, push-messaging and push-content solutions for consumers, mobile operators and enterprises.
First quarter 2010 achievements include:
The launch byPelephone, one of Israel's largest mobile operators, of "Smart Mail" service - a mobile messaging solution powered by Emoze.
The partnership between Emoze and Globe Telecom [PSE:GLO], a member of the Singtel Group, for the introduction of the Globe Tattoo UNLIMAIL, a revolutionary unlimited mobile email service powered by Emoze. As one of the leading telecommunications service providers in the Philippines, Globe Telecom will be offering a potential subscriber base of over 20 million the ability to send and receive emails in real time from nearly any mobile handset.
The appointment of Hamburg-based Pretioso as the exclusive distributor of Emoze push-messaging solutions to the German, Austrian and Swiss (DACH) mobile market.
The release of the latest version of Emoze's industry leading push email platform for Symbian devices and the release of Dragon 555, a revolutionary new technology for delivering push web content to mobile devices in real time.
The Company's management believes that Emoze's proprietary push synchronization technology presents an excellent solution for end-users, as well as for enterprises seeking a secure and cost-efficient mobile messaging service, and that it will contribute to the Company's revenues and profits.
Outlook
Emblaze is pleased to report that during the first quarter of 2010 all of Formula's subsidiaries performed well, generating positive operating and net profits. The Group continues to invest efforts to bring the investment in its innovation activities to fruition.
Enquiries: Jonathan Shillington, Alistair Scott +44 (0) 20 7932 1850 Grayling jonathan.shillington@grayling.com 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.
Our Innovation arm includes ELSE Ltd. (formerly Emblaze Mobile), a design house for cutting-edge mobile technology; EMOZE, a provider of Push Email and synchronization 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
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