20 Aug 2008 08:38
MATRIX ANNOUNCES Q2 2008 RESULTS Net profit for Q2 2008 reached $4.8 million Operational Profit increased 31% vs. Q2 2007
Ra'anana, Israel, 20 August 2008 - Emblaze Ltd ("Emblaze or "the Group") announces that Matrix IT Ltd. (TASE: MTRX), a member of the Emblaze/ Formula Group , ("Matrix" or "the Company"), announced its results of operations for the second quarter of 2008.
Financial Highlights(*)
* Q2 revenues increased by 33% to $103.0 million, up from $77.6 million in Q2 2007. * Revenues for the interim period amounted to $193.0 million, up from $149.6 million in the interim period of 2007. * Operational profit for Q2 2008 increased by 31% to $6.95 million vs. $5.3 million in Q2 2007. * Operational profit for the interim period amounted to $13.8 million, up from $10.7 million in the interim period of 2007. * Net profit increased to $4.8 million, up from $4.7m in Q2 2007. The moderate increase in net profit is mainly the result of increase of financial expenses incurred during the reported period. * Solid cash flow from operations in Q2 2007 is $18.7 million, an increase of 156% compared to $7.3 million in Q2 2007. * Cash and short term investments in Q2 2007 amounted to approx. $111.5 million. * Pursuant to Matrix's dividend policy of distributing 50% of its net profits, Matrix distributed dividend of approx. $US11.2 million on 30 March 2008 in consideration of 2007 profits.
Operational Highlights
Matrix's revenue stream from sales of software increased in Q2 2008 by approximately 33%. Matrix has won several significant projects during this quarter, enhancing its professional leadership in the implementation and management of large scale projects with leading top tear customers. Amongst other contracts, Matrix won this quarter an important project, using its Microsoft Dynamics CRM, for computerizing the customer service system for Leumi Card, one of Israel's leading credit companies that is providing an array of issuing and acquiring services as well as payment and credit solutions.
Motti Gutman, CEO of Matrix said: "We continue our two-digit number growth alongside continuous growth in our revenue and operational profit generation from Matrix's core business of software products and services. Earlier this year, we have acquired TACT, an Israeli IT services provider specializing in software testing and QA services. The acquisition of TACT allows Matrix further enhancement of its existing IT services as well as complementing the existing services with additional capabilities and ability to penetrate into additional sectors. In the second quarter of 2008, Matrix continues to maintain its position as Israel's market leader in the financial and banking sectors, CRM, internet, ERP as well as provider of government and defense solutions".
STATEMENTS OF OPERATIONS
U.S. dollars in thousands (US GAAP)
Three months ended Six months ended June30, June30, 2008 2007 2008 2007 Revenues $ 103,098 $ 77,610 $ 193,020 $ 149,615 Costs of revenues 82,905 61,341 153,309 117,442 Gross profit 20,193 16,269 39,711 32,173 Operating expenses: Research and development 88 98 171 193 Selling and marketing General and 13,154 10,865 25,788 21,319 administrative Total operating expenses 13,242 10,963 25,959 21,512 Operating income 6,951 5,306 13,752 10,661 Financial expenses (1,085) (83) (1,488) (121) Other expenses, net (376) (55) (420) (99)
Income before taxes on income 5,490 5,168 11,843 10,441
Taxes on income 442 80 765 772 Income before equity gains and 5,048 5,088 11,078 9,669 minority interests Equity losses of affiliates (115) (183) (382) (344) Minority interests (180) ( 239) (207) (266) Net Income $ 4,753 $ 4,666 $ 10,489 $ 9,059
(*) figures are translated from New Israeli Shekels to US Dollars based on average exchange rates for the applicable period.
Enquiries:Emblaze Hadas Gazit, Hagit Gal + 972 9 7699302/ 339 Notes to editor:About Matrix IT Ltd.
Matrix IT Ltd. is trading on the Tel Aviv Stock Exchange index 100. Matrix is one of the leading integration and information technology (IT) services providers in Israel. The company has circa 3,300 employees which provide services for over 500 clients in the Israeli market. The company is active in four major sectors: software solutions and products, Integration solutions as well as operation of training centers in the hi-tech field and professional training courses in various sectors. The company provides its products and solutions to a variety of customers in various sectors: banking and finance, communications and security, industry and trade for government institutions and for different 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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