30th Mar 2009 11:34
Formula Systems Reports Fourth Quarter and Fiscal Year 2008 Results
Ra'anana, Israel - 30 March 2009 - 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 2008.
Highlights:
- Revenues for the fourth quarter totaled $153.8 million, an increase of 13% compared to $135.9 million in the fourth quarter of 2008. - Revenues for the year ended 31 December 2008 totaled $590.8 million compared to $493.4 million in 2007, an increase of 20%. - Operating income in the fourth quarter of 2008 was $7.4 million compared to $8.1 million in the same quarter of 2007. - Operating income for the full year of 2008 was $33.4 million compared to $27.2 million in 2007, an increase of 22%. - Net income generated from continuing operation in the fourth quarter of 2008 was $1.7 million compared to $1.5 million in the fourth quarter of 2007. - Net income generated from continuing operation in 2008 was $11.9 million compared to $12.5 million in 2007, due to higher financial expenses. - Cash and short term investment at 31 December 2008 totaled approximately $157.0 and current ratio was 1.8. - Shareholder's Equity on 31 December 2008 totaled $170.0 million. - In January 2009, Formula distributed a cash dividend of $30 million, or $2.27 per share.
Guy Bernstein, CEO of Emblaze and Formula, commented: "I am pleased with the fourth quarter and year end results. Formula continued to increase its revenues and profits throughout the fourth quarter and 2008 as a whole and that is despite the current economic downturn. During 2008, all the Formula subsidiaries reported revenue growth together with positive cash flow and operating profits. We will continue to maintain tight controls over costs and remain focused on long term growth of the Formula Group. With over $150 million in Formula and its subsidiaries, our group is well prepared to navigate this turbulent period in the global environment and to continue to explore new acquisitions, compatible with our strategy and current portfolio companies."
Emblaze holds 50.1% of Formula Systems (1985) Ltd.
Enquiries:EmblazeHagit Gal/ Dafna Cohen + 972 9 7699636/ 339About 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 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 20â€"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 since1996. www.Emblaze.com FORMULA SYSTEMS (1985) LTD. (an Israeli corporation)CONSOLIDATED BALANCE SHEETS December 31, December 31, 2008 2007 (Unaudited) (Audited) U.S. $ (in thousands)CURRENT ASSETS:Cash and cash equivalents 110,602 161,504Short-term investments 46,158 40,276Trade receivables 158,166 139,478Other accounts receivable 16,104 34,822Inventories 2,772 3,157Total assets attributed to discontinued operations 31 - 333,833 379,237 LONG-TERM INVESTMENTS, LOANS ANDRECEIVABLES:Loans and other investments 15,844 14,849Investments in affiliates 3,694 3,792 19,538 18,641 SEVERANCE PAY FUND 38,105 36,851 FIXED ASSETS, NET 15,228 15,794 OTHER ASSETS, NET 189,918 162,060 TOTAL ASSETS ATTRIBUTED TO DISCONTINUED - 41OPERATIONS 596,622 612,624 CURRENT LIABILITIES:Liabilities to banks and others 10,731 26,954Trade payables 57,240 57,099Other accounts payable 109,732 73,072Liability in respect of the acquisition of subsidiaries 6,954 -Debentures 5,157 3,524Total liabilities attributed to discontinued operations 372 - 190,186 160,649 LONG-TERM LIABILITIES:Debentures 56,004 71,880Deferred taxes 4,502 3,276Customer advances 1,093 2,181Liabilities to banks and others 16,640 23,685Liability in respect of the acquisition of activity 1,010 1,373Accrued severance pay 49,817 42,774 129,066 145,169 TOTAL LIABILITIES ATTRIBUTED TODISCONTINUED OPERATIONS - 503 MINORITY INTEREST 107,433 107,915 SHAREHOLDERS' EQUITY 169,937 198,388 596,622 612,624 FORMULA SYSTEMS (1985) LTD. (An Israeli corporation) UNAUDITED CONSOLIDATED STATEMENTS OF INCOME Year months ended Three months ended December 31, December 31, 2008 2007 2008 2007 U.S.$ U.S.$ (in thousands, except per share data)Revenues 590,807 493,350 153,802 135,917Cost of revenues 452,263 369,110 122,096 100,041 Gross profit 138,544 124,240 31,706 35,876Research and development costs, net 6,564 6,547 2,080 2,700Selling, general and administrative 95,071 87,176 21,381 24,231expensesDepreciation and amortization 3,536 3,282 871 873 Operating income 33,373 27,235 7,374 8,072Financial expenses, net 6,008 3,810 748 2,367 27,365 23,425 6,626 5,705Gain (loss) on realization of (337) 2,039 67 53investmentsOther income (expenses), net (580) (750) (249) (567) Income before taxes on income 26,448 24,714 6,444 5,191Taxes on income 3,544 1,933 2,019 861 22,904 22,781 4,425 4,330
Equity in losses (gains) of affiliated 216 653 (80) 107 companies, net Minority interest in profits, net 10,819 9,667 2,797 2,703
Income from continuing operation 11,869 12,461 1,708 1,520 Income from discontinued operations
- 24,798 - 4,995 Net income 11,869 37,259 1,708 6,515 Earnings per share generated fromcontinuedoperation :Basic 0.88 0.95 0.13 0.12 Diluted 0.88 0.93 0.13 0.11 Earnings per share generated fromdiscontinuingoperation :Basic - 1.87 - 0.38Diluted - 1.86 - 0.37 Weighted average number of sharesoutstanding:Basic 13,200 13,200 13,200 13,200 Diluted 13,200 13,200 13,200 13,200 ______ ______ ______ ______
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