20th Nov 2007 10:08
Emblaze Ltd20 November 2007 MATRIX ANNOUNCES Q3 2007 RESULTS Net profit for Q3 2007 reached $4.3m Operational Profit increased 20.4% vs. Q3 2006 Matrix's credit was rated Aa3 - the highest credit rate ever granted to an IT company in Israel Ra'anana, Israel, 20 November 2007 - Emblaze Ltd ("Emblaze" or "the Group")(LSE: BLZ) announces that Matrix IT Ltd. (TASE: MTRX), a member of the Emblaze/Formula Group (NASDAQ: FORTY and TASE: FORT), ("Matrix" or "the Company"),announced its results of operations for the third quarter of 2007.Financial Highlights (*) •Q3 revenues increased by 14.2% to $75.8m, up from $66.4m in Q3 2006. •Revenues for the period ended September 30, 2007 amounted to $225.4m, up from $190.9m in the corresponding period last year. •Operational profit for Q3 2007 increased by 20.4% to $5.8m compared to $ 4.8m in Q3 2006. •Operational Profit for the period ended September 30, 2007 increased by 23% to $16.4m, up from $13.4m in the corresponding period last year. •Net profit in Q3 2007 increased by 16.3% to $4.3m compared to $3.7m in Q3 2006 •Net profit for the period ended September 30, 2007 increased by 20.6% to $13.4m compared to $11.1m in the corresponding period last year •Solid cash flow from operations in Q3 2007 is at $14.1m, an increase of 21.6% compared to $11.6m in Q3 2006. •Cash and short term investments in Q3 2007 amounted to approx. $107.9m. Operational Highlights •In August 2007, Matrix announced that Microsoft Corporation has granted the Company an exclusive license (under Microsoft's specific copyrights) for the localization of the Microsoft ERP system, Microsoft Dynamics AX Software Application, which is reviewed by analysts worldwide as the next evolution of ERP systems. The Company will distribute the adopted Microsoft ERP system in Israel for three years as of its launch and will provide the required support and maintenance services. •Midrug, an Israeli rating company and an affiliate of Moody's, provided Matrix IT Ltd. with a credit rating of Aa3 in advance of the Company's intention to raise NIS250 million in debentures from institutional investors in the Israeli stock exchange - this is the highest credit rating ever provided to an IT company in Israel. •On August 20, 2007 the Company completed a private fund raising in an amount of approximately $US60m through the issuance of unlisted bonds to institutional investors in the Tel-Aviv stock exchange. Matrix intends to use this money to expand its local and international presence. Guy Bernstein, CEO of Emblaze said: "Matrix continues to establish its positionas market leader in the Israeli IT sector and its growth is evident throughoutits entire business lines while focusing on profit and positive cash flow.Despite the increasing competition, Matrix is gaining further traction on theback of growing demand for IT solution compatible with the new regulatoryrequirements and we expect to see further growth, both on the turnover side aswell as bottom line". STATEMENTS OF OPERATIONSU.S. dollars in thousands (US GAAP) Three months ended Nine months ended September 30 September 30 2007 2006 2007 2006Revenues 75,822 66,412 225,437 190,930Cost of revenues 59,347 51,802 176,789 149,008Gross Profit 16,475 14,610 48,648 41,922 Operatingexpenses:Research and development 96 199 289 518Selling and marketing 3,606 3,621 11,538 10,375General and administrative 6,984 5,980 20,371 17,659 Total operatingexpenses 10,686 9,800 32,198 28,552 Operating income 5,789 4,810 16,450 13,370Financial expenses (1,055) (290) (1,176) (897)Other income (expenses),net (114) (94) (211) 1,581Income before taxes onincome 4,620 4,426 15,063 14,054Taxes on income (104) (610) (876) (2,754)Income before equity gainsand minorityinterests 4,516 3,816 14,187 11,300Equity gains (losses) ofaffiliates (151) - (495) 31Minority interests ingains ofsubsidiaries (60) (115) (326) (251)Net income 4,305 3,701 13,366 11,080 (*) figures are translated from New Israeli Shekels to US Dollars based onaverage exchange rates for the applicable period. Emblaze Ltd Hadas Gazit, Hagit Gal +972 9 7699302/ 339 Corfin Communications Harry Chathli, Neil Thapar +44 (0)20 7977 0020 Eisenberg-Eliash LTD., Investor & Public relations Amir Eisenberg +972 3 7538828 / +972 52 8260285 Notes to editor: About Matrix IT Ltd.Matrix IT Ltd. is traded on the Tel Aviv Stock Exchange index 100. Matrix is oneof the leading integration and information technology (IT) services providers inIsrael. The company has circa 3,300 employees which provide services for over500 clients in the Israeli market. The company is active in four major sectors:software solutions and products, Integration solutions as well as operation oftraining centers in the hi-tech field and professional training courses invarious sectors. The company provides its products and solutions to a variety ofcustomers in various sectors: banking and finance, communications and security,industry and trade for government institutions and for different companies inthe public sector.For more information, please visit www.matrix.co.il 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 activities Formula 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, 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 (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 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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