9th Aug 2007 10:51
Emblaze Ltd09 August 2007 Magic Software Reports Second Quarter Results (Magic or "the Company") Company Reports Net Income of $0.8 Million, Demonstrating Sustainable Profitability Ra'anana, Israel, August 9, 2007 - Emblaze Ltd ("Emblaze or "the Group") (LSE:BLZ) announces that Magic Software Enterprises Ltd. (NASDAQ: MGIC), a subsidiaryof its Formula Group and a leading provider of state-of-the-art businessintegration and application development technology, reported today its resultsfor the quarter ended June 30, 2007. Financial Highlights •Total revenues were $16.8 million, an 11% increase over Q2 2006 •Net income was $0.8 million compared to a $1.3 million net loss in Q2 2006 •In Q2 2007, the company reported positive free cash flow of $0.6 million •Cash and cash equivalents, including short-term marketable securities, reached $17 million at June 30, 2007 Second Quarter ResultsSecond quarter of 2007 results reflect the company's sustained profitability fora third consecutive quarter and continued revenue growth. Total revenue for the second quarter ended June 30, 2007 was $16.8 million, an11% increase compared to the $15.2 million reported in the second quarter of2006 and an increase of 2% from the $16.4 million reported in the first quarterof 2007. Gross profit for the second quarter of 2007 was $9.1 million, compared to $8.1million in the second quarter of 2006 and $8.7 million in the first quarter of2007. Net income for the second quarter of 2007 amounted to $0.8 million, compared toa net loss of $1.3 million reported in the comparable quarter of 2006 and a netincome of $1.0 million in the first quarter of 2007. In addition, Magic has appointed two new members to its board of directors:Eitan Naor, CEO and President of Magic and Hadas Gazit-Kaiser, CFO of Emblaze.The appointments will be in effect until the next annual shareholders' meeting. Eitan Naor, President and CEO of Magic Software, commented, "During the secondquarter we began carrying out steps intended to reinforce our executioncapabilities. As our first step towards rebuilding Magic Software's managementteam, we've recently appointed two new senior management members. David Zigdon,who has extensive experience in senior financial management roles ininternational public companies, will assume the position of Chief FinancialOfficer as of October 15th. We've also appointed Arita Mattsoff as our newvice-president of global marketing. Arita brings with her extensive experiencein global marketing in enterprise software companies. She will be joining us inSeptember." "We're currently turning the Company's focus to sales execution and customersupport, with an emphasis on improving existing customer relationships,expanding the sales pipeline and closing pending deals," added Naor. Enquiries: Emblaze LtdHadas Gazit, Hagit Gal +972 9 7699302/ 339 Corfin CommunicationsHarry Chathli, Neil Thapar +44 (0)20 7929 8989 About Magic Software EnterprisesMagic Software Enterprises (NASDAQ: MGIC) has been a leader in enterpriseapplication development, deployment and integration technology for more than twodecades. The company's service-oriented (SOA) platforms are used by companiesworldwide to develop, maintain, and deploy both legacy and new businesssolutions, while integrating these applications across both internal andexternal, heterogeneous environments. Magic Software's platform-independentmethodology lets companies achieve agility by quickly assembling compositeapplications, allowing programmers to create services and architects andbusiness analysts to orchestrate and reuse these services to enable businessprocesses. Through partnerships with industry leaders such as IBM and SAP andmore than 2500 ISVs worldwide, Magic Software technology is used by more than1.5 million customers around the globe. Magic Software is a subsidiary of the Formula Systems and Emblaze Group ofcompanies. For more information on Magic Software Enterprises and its products andservices, visit www.magicsoftware.com. About EmblazeEmblaze Ltd is a group of technology companies addressing both growth andinnovation activities thus combining the stability of "bread and butter" maturetechnology enterprises with "high-risk / high-reward" investments in innovation. Growth activitiesFormula Systems, which includes: •Magic Software Enterprises Ltd. (NASDAQ & TASE: MGIC) 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. (NASDAQ & TASE: SPNS) 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, a 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 (LSE: ORCA), provider of Interactive Television IPTV middleware for Video On Demand (VOD) and broadcast services ; and •Visual Defence (LSE: VDI), (minority stake) a wireless and IP video solutions provider for military and homeland security markets. Emblaze Group is traded on the London Stock Exchange (LSE: BLZ) since 1996.www.Emblaze.com Consolidated Balance Sheets(US Dollars in Thousands June 30, 2007 December 31, 2006 Assets Current assetsCash and cash equivalents $12,316 $8,162Short term deposits 81 69Short term marketable securities 4,611 4,649 ---------- ----------- 17,008 12,880Accounts receivablesTrade receivables 12,577 12,365Other receivables and prepaid expenses 3,585 2,472Inventory 232 328 ---------- -----------Total current assets 33,402 28,045 ---------- ----------- Severance pay fund 2,062 2,176Long term deposits 540 576Investments in affiliated companies 193 213Fixed assets, net 6,234 6,414Goodwill 21,521 21,624Other assets, net 10,912 10,863 ---------- -----------Total assets $74,864 $69,911 ========== =========== Liabilities Current liabilitiesShort-term bank credit $4,107 $4,514Trade payables 3,687 3,491Accrued expenses and other liabilities 14,642 11,399 ---------- -----------Total current liabilities 22,436 19,404 ---------- ----------- Long-term loans 234 233Accrued severance pay 2,382 2,499Minority interests 130 131 Shareholders' equityShare capital 838 834Capital surplus 105,251 105,038Treasury stock (6,772) (6,772)Accumulated deficit (49,635) (51,456) ---------- -----------Total shareholders' equity $49,682 $47,644 ---------- -----------Total liabilities and shareholders'equity $74,864 $69,911 ========== =========== Unaudited Consolidated Statement of Operations (US Dollars in Thousands) --------------- -------------- Three Months Six Months ended June 30, ended June 30, --------------- -------------- 2007 2006 2007 2006RevenuesSoftware sales $3,476 $3,930 $7,047 $8,776Applications 1,615 1,776 3,508 3,182Maintenance and support 4,071 3,848 8,009 7,334Consultancy & other services 7,657 5,598 14,608 11,126Total Revenues $16,819 $15,152 $33,172 $30,418 Cost of RevenuesSoftware sales $769 $988 $1,739 $1,810Applications 794 742 1,573 1,618Maintenance and support 599 969 1,281 1,910Consultancy & other services 5,555 4,379 10,791 8,531Total Cost of Revenues $7,717 $7,078 15,384 13,869 Gross Profit $9,102 $8,074 $17,788 $16,549 Research & development, net 1,029 911 2,096 1,777Sales, marketing, and general 6,683 8,134 12,894 15,419& administrative expensesDepreciation 379 418 734 906Operating profit (loss) $1,011 ($1,389) $2,064 ($1,553) Financial income (expenses), net (11) 167 118 96Income (loss) before taxes 1,000 (1,222) 2,182 (1,457)Taxes on income 156 139 343 186Income (loss) before minority 844 (1,361) 1,839 (1,643)interestsMinority interests in 2 12 2 68income (loss) of subsidiariesEquity gain (loss) (30) 11 (20) 69Net Income $816 ($1,338) $1,821 ($1,506) Basic profit (loss) per Share $0.03 ($0.04) $0.06 ($0.05)Diluted profit (loss) per Share $0.03 ($0.04) $0.06 ($0.05)Basic Weighted Avg. Shares Outstanding(000) 31,420 31,146 31,383 31,120 Diluted Weighted Avg. SharesOutstanding 31,955 31,146 31,999 31,120(000) This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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