17th Mar 2008 07:11
Formula Systems Reports Fourth Quarter and Fiscal Year 2007 Results Annual Net Income of $37.3 million
Ra'anana, Israel - 17 March 2007 - Emblaze Ltd ("Emblaze or "the Group") announces that its group company, Formula Systems (1985) Ltd. , a leading provider of information technology products, solutions and services, announced today results for the fourth quarter and year ended 31 December 2007.
HIGHLIGHTS
* Revenues for the fourth quarter totaled $135.9 million an increase of 21%
compared to $111.9 million in the fourth quarter of 2006.
Revenues for the year ended 31 December 2007 totaled $493.4 million compared to $416.8 million in 2006.
* Operating income in the fourth quarter of 2007 was $8.1 million compared to $4.8 million in the same quarter of 2006, an increase of 67%. Operating income in 2007 was $27.2 million compared to $10.1 million in 2006, an increase of 170%. * Net income for the fourth quarter of 2007 was $6.5 million. In 2007 the company recorded a net income of $37.3 million compared to a net income of $10.0 million in 2006. * Cash and Short term investment at 31 December 2007 increased to $200.2 million from $115.0 million at 31 December 2006. * Current Ratio at 31 December 2007 significantly improved to 2.38 from 1.71 at 31 December 2006. * Shareholder's Equity at 31 December 2007 totaled $198.4 million. * During the year we sold our entire holdings in BluePhoenix Solutions Ltd for a consideration of approximately $64 million, which resulted in capital gain of approximately $18 million and our subsidiary Magic sold its wholly owned subsidiary Advanced Answer on Demand (AAOD) for the consideration of $17 million in cash.
Guy Berenstein, CEO of Formula, commented: "Formula has experienced an exceptional year both from the financial and the operational points of view. At the beginning of 2007 a new Formula was presented, comprising large and mostly publicly traded subsidiaries all of which contributed positively to our operational profit. During the year 2007 the Group's Financial resources increased significantly due to the issue of debentures in our subsidiary Matrix, a private placement in Sapiens, the sale of a subsidiary of Magic and the sale of the entire holdings in BluePhoenix. These financial activities resulted in over $150 million in cash to the Formula Group. Our strong balance sheet will enable us to consider and pursue new investments and mainly to react swiftly and efficiently to the market fluctuations in these turbulent times."
Enquiries:Emblaze Ltd Hadas Gazit, Hagit Gal +972 9 7699302/ 339 Notes to Editor: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.
Growth activities
Formula Systems, which includes:
* 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. * 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 , provider of Interactive Television IPTV middleware for Video On Demand (VOD) and broadcast services ; and * Visual Defence , (minority stake) a wireless and IP video solutions provider for military and homeland security markets.
Emblaze Group is traded on the London Stock Exchange since 1996. www.Emblaze.com CONSOLIDATED BALANCE SHEETS
December December 31, 31, 2006 2007 U.S. $ (in thousands) CURRENT ASSETS: Cash and cash equivalents 161,504 103,548 Short-term investments 38,731 11,385 Marketable securities available for sale 1,545 3,646 Trade receivables 139,676 119,505 Other accounts receivable 33,222 17,582 Inventories 3,157 2,752 377,835 258,418 LONG-TERM INVESTMENTS & DEPOSITES , LOANS AND RECEIVABLES: Loans and other investments 14,377 3,871 Investments in affiliates 3,682 710 18,059 4,581 SEVERANCE PAY FUND 36,851 29,962 FIXED ASSETS, NET 15,794 15,921 OTHER ASSETS, NET 162,653 141,229 TOTAL ASSETS ATTRIBUTED TO DISCONTINUED OPERATIONS 41 146,383 611,233 596,494 CURRENT LIABILITIES: Liabilities to banks and others 26,481 40,414 Trade payables 56,172 49,719 Other accounts payable 72,521 56,967 Debentures 3,725 4,450 158,899 151,550 LONG-TERM LIABILITIES: Debentures 71,679 10,802 Unrealized Gain 85 - Deferred taxes 3,276 458 Customer advances 2,181 449 Liabilities to banks and others 23,684 59,268 Liability in respect of the acquisition of 1,374 1,489activities Accrued severance pay 43,249 35,340 145,528 107,806 TOTAL LIABILITIES ATTRIBUTED TO DISCONTINUED 503 98,782OPERATIONS MINORITY INTEREST 107,915 85,066 SHAREHOLDERS' EQUITY 198,388 153,290 611,233 596,494 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME Twelve months ended Three months ended December 31, December 31, 2007 2006 2007 2006 U.S.$ U.S.$ (in thousands, except per share data) Revenues 493,350 416,807 135,917 111,926 Cost of revenues 369,110 309,447 100,041 83,034 Gross profit 124,240 107,360 35,876 28,892
Research and development costs, net 6,547 5,508 2,700 1,019
Selling, general and administrative 86,966 84,701 24,231 22,400 expenses
Depreciation and amortization 3,282 4,143 873 379 Restructuring and non-recurring 210 2,911 - 269costs Operating income 27,235 10,097 8,072 4,825 Financial income (expenses), net (3,700) (4,660) (2,257) (1,930) 23,535 5,437 5,815 2,895 Gain on realization of investments 2,039 3,755 53 1,639 Other income (expenses), net (898) (1,102) (715) (238) Income before taxes on income 24,676 8,090 5,153 4,296
Taxes on income 1,933 3,766 861 971 22,743 4,324 4,292 3,325
Equity in profits (losses) of (559) 47 (13) (5)affiliated companies, net Minority interest in profits, net 9,723 4,832 2,759 2,753 Income from continuing operation 12,461 (461) 1,520 567
Income (loss) from discontinued 24,798 10,476 4,995 5,796 operations
Net income 37,259 10,015 6,515 6,363 Earnings per share generated from
continued operation : Basic 0.95 0.07 0.12 0.05 Diluted 0.93 0.06 0.11 0.05
Earnings per share generated from
discontinuing operation : Basic 1.87 0.73 0.38 0.46 Diluted 1.86 0.67 0.37 0.45
Weighted average number of shares
outstanding: Basic 13,200 13,200 13,200 13,200 Diluted 13,200 13,200 13,200 13,200 ______ ______ ______ ______
EMBLAZE LTDRelated Shares:
BSD.L