27 May 2008 07:00
MATRIX ANNOUNCES Q1 2008 RESULTS
Ra'anana, Israel, 27 May 2008 - Emblaze Ltd ("Emblaze or "the Group") announces that Matrix IT Ltd. (TASE: MTRX), a member of the Emblaze/ Formula Group announced its results of operations for the first quarter of 2008.
Financial Highlights(*)
* Q1 revenues increased to $US90 million, up from $72m in Q1 2006; * Operational profit increased to $US6.8 million, up from US$5.3 million in Q1 2006 and 7.6% of total income in Q1 2008; * Net profit increased to $5.7 million compared to $US4.4 million in Q1 2006; * Pursuant to Matrix dividend policy representing distribution of 50% of net profits, Matrix distributed dividends on 30 March 2008 in a total amount of approx. $US11.2 million in consideration of 2007 profits. * Cash and short term investments in Q1 2008 amounted to approx. $US110 million
Operational Highlights
* Matrix delivers on its strategy of focusing around its core competency as approx. 60% of total revenue stream in Q1 2008 was generated from software and value added services; * Matrix continues to maintain its leading position in the Israeli IT market as Schwarzkopf, The Knowledge Integrators ("STKI"), an IT analyst and advisory organization serving leading Israeli corporations and businesses, rated Matrix number one vendor of most of the important benchmarked parameters in its annual review of the Israeli IT market, namely: value added services, training and integration, outsourcing personnel & offshore and risk management projects & BCP services. * Matrix signed a NIS20 million agreement with Bezeq, Israel's largest telecommunications service provider, to continue the implementation of its CRM program. The project is expected to take up to 18 months until completion at the end of which, the CRM system will be deployed in all of Bezeq's sales and service centers * Further growth of "Matrix Global" , Matrix Off Shore development centers, with an intention to open additional centers during 2008 * Earlier this month, Matrix has announced that it has signed an agreement to acquire the TACT Group, an Israeli IT services provider, for NIS42.1 million. TACT focuses on the provision of software testing and QA services to customers. TACT, which employs approximately 470 people, posted an operating profit of NIS8.4 million on revenue of NIS114 million in 2007. Matrix may make a further payment for the acquisition based on TACT's financial results in 2008 and 2009. The acquisition of TACT allows Matrix further enhancement of its existing IT services as well as complementing the existing services with additional capabilities and penetration to additional sectors, primarily in the defense sector.
STATEMENTS OF OPERATIONS
U.S. dollars in thousands (USGAAP)
Three months ended March 31, 2008 2007 Revenues $ 89,922 $ 72,004 Costs of revenues 70,404 56,101 Gross profit 19,518 15,903 Operating expenses: Research and development 83 95 Selling and marketing 4,945 3,846 General and administrative 7,689 6,608 Total operating expenses 12,717 10,549 Operating income 6,801 5,354 Financial expenses (403) (38) Other expenses, net (44) (44) Income before taxes on income 6,351 5,272 Taxes on income 323 692
Income before equity gains and minority 6,031 4,580 interests
Equity gains (losses) of affiliates (267) (161)
Minority interests in gains of subsidiaries (27) ( 27)
Net Income $ 5,737 $ 4,392
(*) figures are translated from New Israeli Shekels to US Dollars based on average exchange rates for the applicable period
Enquiries:Emblaze Ltd Hadas Gazit, Hagit Gal +972 9 7699302/ 339 Notes to editor:About Matrix IT Ltd.
Matrix IT Ltd., traded on the Tel Aviv Stock Exchange, is one of the leading integration and information technology (IT) services providers in Israel. Matrix employs circa 3,500 employees, providing services for over 500 clients in the Israeli market. The company is active in four major sectors: software solutions and services, software products, infrastructure solutions and hardware products as well as training and assimilation. The company provides its products and solutions to a variety of customers in various sectors: banking and finance, insurance, communications and security, industry and trade for government institutions as well as for companies in the public sector.
For more information, please visit www.matrix.co.il
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
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