22nd Mar 2010 13:20
Formula Systems Reports Fourth Quarter and Fiscal Year 2009 Results Annual Net Income Increased by 61% to $19.1 million
Following the results, formula will distribute a dividend of $1.47 per share
Or-Yehuda, Israel - March 22, 2010 - Formula Systems (1985) Ltd. a provider of information technology products, solutions and services, and a subsidiary of Emblaze Ltd. , announced today its results for the fourth quarter and full year ended 31 December 2009.
Financial Highlights for the Full Year ended December 31, 2009
* Revenues totaled $469.4 million (2008: $503.2 million). The vast majority of Formula's revenues are generated in NIS (New Israeli Shekel). The decline is therefore mostly attributed to the negative impact of the NIS vs. US Dollar devaluation on translation of revenues from NIS to USD. * Operating income increased to $35.4 million (2008: $32.5 million). * Net income from continuing operations attributable to Formula increased by 25% to $14.2 million (2008: $11.3 million). * Net income attributable to Formula reached $19.1 million, an increase of 61% compared to $11.9 million in 2008. * Formula will distribute a dividend of $1.47 per share
Financial Highlights for the Fourth Quarter
* Revenues totaled $123.7 million (Q4 2008: $129.8 million). * Operating income increased by 22% to $9.5 million (Q4 2008: $7.7 million). * Net income from continuing operations attributable to Formula increased by 59% to $3.7 million (Q4 2008: $2.3 million). * Net income attributable to Formula reached $8.0 million, an almost three-fold increase compared to $1.7 million for the fourth quarter of 2008. * Formula's consolidated cash and short term investments totaled approximately $158.6 million as at 31 December 2009. * Formula sold its entire stake in nextSource Inc. for a total consideration of $12.0 million, comprised of cash and release of bank pledges. Formula recorded a capital gain in the discontinued operations of $4.3 million.
Guy Bernstein, Chief Executive Officer of Emblaze and Formula Systems, said: "I am pleased to report that despite the inevitable affects of the difficult global economic environment, we have continued to develop our group as a strong, profitable and cash generating business. All our subsidiaries have continued to generate positive operating and net profits, an impressive achievement considering the world wide recession. Going forward we will continue to focus on profitability and growth as well as examine merger and acquisition opportunities that are compatible with our strategy and current portfolio of companies."
Distribution of Dividend
Following the positive results and cash flow, and in accordance with the Formula's dividend policy, Formula's board of directors have approved the distribution of a cash dividend to the holders of Formula ordinary shares, payable on 21 April 2010 (the "Distribution Date") with respect to each outstanding Formula ordinary share held as of the close of business day on 6 April 2010, (the "Record Date") subject to withholding tax as described below. The cash distribution will be in the amount of $1.47 per share, or $20 million in the aggregate. The calculation of the cash distribution per share is based on the assumption that all of the outstanding options under Formula's option plan will be exercised in full, prior to the Record Date, in accordance with the terms of the option grant.
On the Distribution Date, each Formula shareholder will receive a cash amount, net of Israeli withholding tax at a rate of 20%, unless such holder has presented to Formula sufficient evidence of its exemption from withholding tax in accordance with the requirements of Israeli law.
The dividend to be distributed to holders of Formula ADSs will be released to Formula's depositary, The Bank of New York, net of Israeli withholding tax as described above. As contemplated by the agreement among the Bank of New York, Formula and the holders of Formula ADSs, the Bank of New York will distribute the cash dividend (net of depositary fees) to the holders of Formula ADSs.
Enquiries:Formula Systems (1985) Ltd Nir Feller +972 (0)3.538.9487 [email protected] Grayling +44 (0)20.7932.1871 Alistair Scott Notes to Editors:About Formula Systems
Formula Systems (1985) 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.
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 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 FORMULA SYSTEMS (1985) LTD. (An Israeli corporation) CONSOLIDATED BALANCE SHEETS December December 31, 31, 2009 2008 (Unaudited) (Audited) U.S. $ (in thousands) CURRENT ASSETS: Cash and cash equivalents 100,205 107,847 Short-term investments 58,410 46,158 Trade receivables 130,236 136,353 Other accounts receivable 22,062 15,425 Inventories 2,439 2,772 Total assets attributed to discontinued operations 27 27,614 313,379 336,169 LONG-TERM INVESTMENTS: Long term investments 9,922 15,844 Investments in affiliates 3,293 3,694 13,215 19,538 SEVERANCE PAY FUND 44,131 38,105 FIXED ASSETS, NET 9,989 15,009 OTHER ASSETS, NET 185,725 187,801 566,439 596,622 CURRENT LIABILITIES: Liabilities to banks 9,845 8,481 Trade payables 43,776 39,475 Other accounts payable 91,134 75,252 Dividend payable - 29,964 Liability in respect of the acquisition of 210 6,954subsidiaries Debentures 14,639 5,157 Total liabilities attributed to discontinued 314 24,903operation 159,918 190,186 LONG-TERM LIABILITIES: Debentures 43,918 56,004 Deferred taxes 2,207 4,502 Customer advances 1,116 1,093 Liabilities to banks 8,556 16,640
Liability in respect of the acquisition of activity 1,517 1,010
Accrued severance pay 53,893 49,817 111,207 129,066 EQUITY 295,314 277,370 566,439 596,622 FORMULA SYSTEMS (1985) LTD. (An Israeli corporation) UNAUDITED CONSOLIDATED STATEMENTS OF INCOME Year months ended Three months ended December 31, December 31, 2009 2008 2009 2008 U.S.$ U.S.$ (in thousands, except per share data) Revenues 469,390 503,243 123,713 129,780 Cost of revenues 352,283 373,775 93,578 100,503 Gross profit 117,107 129,468 30,135 29,277
Research and development costs, net 4,430 6,564 1,469 2,080
Selling, general and administrative 77,322 90,451 19,194 19,459expenses Operating income 35,355 32,453 9,472 7,738 Financial expenses, net (231) (5,908) (1,404) (722) 35,124 26,545 8,068 7,016 Gain (loss) on realization of - (337) - 67investments Other income (expenses), net 1,668 (580) 1,729 (249) Income before taxes on income 36,792 25,628 9,797 6,834 Taxes on income 8,305 3,279 2,159 1,779 28,487 22,349 7,638 5,055 Share in gains (losses) of (335) (216) (205) 80associated companies, net Net Income 28,152 22,133 7,433 5,135
Attributable to non-controlling 13,954 10,819 3,711 2,797 interest
Net income attributable to Formula's 14,198 11,314 3,722 2,338 common shareholders from continuing
operation Net income from discontinued 4,878 555 4,284 (630)operation
Net income attributable to Formula's 19,076 11,869 8,006 1,708 common shareholders
Earnings per share generated from continuing operation : Basic 1.03 0.84 0.35 0.18 Diluted 1.00 0.84 0.33 0.18 Earnings per share generated from discontinued operation : Basic 0.37 0.04 0.32 (0.05) Diluted 0.36 0.04 0.32 (0.05) Weighted average number of shares outstanding: Basic 13,200 13,200 13,200 13,200 Diluted 13,564 13,200 13,573 13,200 ______ ______ ______ ______
vendorRelated Shares:
BSD.L