PR Newswire
OR YEHUDA, Israel, Aug. 17, 2017
OR YEHUDA, Israel, Aug. 17, 2017 /PRNewswire/ -- Formula Systems (1985) Ltd. (NASDAQ: FORTY), a global information technology holding company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products, today announced its results for the second quarter ended June 30, 2017, in accordance with International Financial Reporting Standards (IFRS).
Financial Highlights for the Second Quarter Ended June 30, 2017
Financial Highlights for Six-Month Period Ended June 30, 2017 (in accordance with IFRS)
Comments of Management
Commenting on the results, Guy Bernstein, CEO of Formula Systems, said, "We are pleased with our strong performance during the second quarter and first half of the year with double-digit revenue growth across our entire portfolio and we remain on track to deliver our full year financial targets.
While our top-line growth was strong, our profitability was impacted mostly by certain aspects of Sapiens' business activities. Sapiens delivered another quarter of double-digit revenue growth, with revenues of $69.0 million, driven by a mix of organic growth and its recent StoneRiver acquisition. During the quarter, Sapiens reported a GAAP operating loss of $1.7 million (in accordance with IFRS) as a result of the implementation of a restructuring and cost reduction plan in total of $2.7 million including integrating StoneRiver and Sapiens. Sapiens is maintaining its guidance for 2017 full year revenues of $265 to $275 million and its expectations for an operating profit margin of 13.5-14.5% in the second half of the year and full-year operating profit margin between 9-10% (all on a non-GAAP basis).
Matrix achieved another quarter of growth in all indices, both in the quarter and in the first six months with revenues increasing 14.1% and 12% respectively year over year. Matrix won several large projects in the second quarter of 2017 including two substantial multi-million dollar strategic tenders in the fields of finance and cyber, reflecting the confidence of the market in Matrix's ability to execute massive strategic projects.
Magic continued its double-digit growth momentum through the second quarter and first half of 2017 with strong performance in sales and revenues across its products and professional services. Magic enjoyed revenues of $65 million and non-GAAP operating income of $9.0 million for the second quarter, up 38% and 37% respectively year over year, and raised its revenue guidance to between $245 million and $255 million for the full year 2017. Magic's double-digit growth was driven by a mix of organic growth and M&A, which is evidence that Magic's continued efforts to create consistent growth and increased profits are paying off. Magic also updated its dividend policy from 50% to 75% of its annual distributable profits and announced a dividend distribution to its shareholders for the first half of 2017 of $0.13 per share in accordance with its revised policy. "
About Formula
Formula Systems (1985) Ltd. is a global information technology company engaged, through its subsidiaries and affiliates, in providing software consulting services and computer-based business solutions and developing proprietary software products.
For more information, visit www.formulasystems.com.
Press Contact:
Formula Systems (1985) Ltd.
+972-3-5389487
ir@formula.co.il
Except for any historical information contained herein, matters discussed in this press release might include forward-looking statements that involve a number of risks and uncertainties. Regarding any financial statements, actual results might vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both locally and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in Formula's most recent annual report and other filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
FORMULA SYSTEMS (1985) LTD. | | | | | |||||
CONSOLIDATED CONDENSED STATEMENTS OF PROFIT OR LOSS | | | | | |||||
U.S. dollars in thousands (except per share data) | | | | | | | |||
| | | | | | | | | |
| Three months ended | | | Six months ended | | ||||
| June 30, | | | June 30, | | ||||
| 2017 | | 2016 | | | 2017 | | 2016 | |
| Unaudited | | | Unaudited | | ||||
Revenues | 329,093 | | 259,057 | | | 639,971 | | 521,227 | |
Cost of revenues | 256,605 | | 197,314 | | | 501,154 | | 398,711 | |
Gross profit | 72,488 | | 61,743 | | | 138,817 | | 122,516 | |
Research and development costs, net | 11,572 | | 5,214 | | | 19,383 | | 9,730 | |
Selling, general and administrative expenses | 46,040 | | 35,991 | | | 88,320 | | 70,700 | |
Operating income | 14,876 | | 20,538 | | | 31,114 | | 42,086 | |
Financial expenses, net | (6,944) | | (1,118) | (*) | | (14,906) | | (5,035) | (*) |
Income before taxes on income | 7,932 | | 19,420 | (*) | | 16,208 | | 37,051 | (*) |
Taxes on income | 3,397 | | 5,080 | | | 6,330 | | 10,517 | |
Income after taxes | 4,535 | | 14,340 | (*) | | 9,878 | | 26,534 | (*) |
Equity in gains of affiliated companies, net | 198 | | 192 | | | 410 | | 192 | |
Net income | 4,733 | | 14,532 | (*) | | 10,288 | | 26,726 | (*) |
Net income attributable to redeemable non-controlling interests | 414 Werbung Mehr Nachrichten zur Formula Systems 1985 ADR Aktie kostenlos abonnieren
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