PR Newswire
OR YEHUDA, Israel, March 15, 2018
OR YEHUDA, Israel, March 15, 2018 /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 fourth quarter and full year ended December 31, 2017, in accordance with International Financial Reporting Standards (IFRS).
Financial Highlights for the Fourth Quarter Ended December 31, 2017
Financial Highlights for the Full Year Ended December 31, 2017
Comments of Management
Commenting on the results, Guy Bernstein, CEO of Formula Systems, said, "We are very pleased to report our 2017 full year results with another quarter reflecting solid improvement as evidenced by the group's strong revenue growth.
"In 2017, Matrix achieved significant growth across all financial indicators, including revenues, gross profit, operating income, net profit and cash flow from operating activities. Matrix reported record-breaking revenues of NIS766.0 million in the fourth quarter and NIS2.86 billion for the full year of 2017, reflecting an increase of 11.9% and 12.3% year over year, respectively. Net profits soared to NIS39.2 million in the fourth quarter and NIS123.0 million for the full year, reflecting an increase of 40.9% and 15.0% (excluding a one-time capital gain recorded in the fourth quarter of 2016), respectively. Matrix's financial strength, top-notch employees and robust technological infrastructure positions Matrix at the forefront of technology, enabling Matrix to make a significant contribution to the digital transformation process that companies throughout the world are undergoing.
"Magic continued its double-digit growth momentum through the fourth quarter and the full year of 2017 with exceptional year-over-year revenue growth, powered by strong demand across its entire portfolio and throughout all of its regions. Magic enjoyed revenues of an all-time high of $258 million and non-GAAP operating income[1] of $35.1 million for the year, up 28% and 24% respectively year over year, driven primarily by organic growth. Magic expects its strong financial position, coupled with its 2017 activities in promoting and growing its markets, to continue the company's momentum into 2018 and as a result, has provided a revenue guidance for the full-year 2018 of between $283 million and $293 million, an increase of approximately 10% to 13.6% compared to 2017.
"In 2017, Sapiens made considerable progress in executing its long-term strategy in becoming a leading global provider of insurance software solutions and services. Among these steps were the strategic acquisition of StoneRiver in early 2017 and the recent acquisition of Adaptik, providing Sapiens with competitive, comprehensive insurance platforms to position itself as a leading solution provider in the U.S. insurance market. Despite a mixed year for the company, Sapiens' full year 2017 results demonstrated another year of double-digit growth with revenues of $269 million, reflecting a year over year increase of 24.5%. Sapiens is well positioned to continue its growth trajectory and has provided a revenue guidance for the full-year 2018 in the range of $280-$285 million (on a non-GAAP basis[2]), an increase of approximately 3% to 5% compared to 2017.
"TSG (held jointly by Formula and Israel Aerospace Industries ("IAI")) finished the year with a double digit growth recorded across all major financial indicators: revenues, gross profit and operating income while increasing its efforts in sales and marketing activities to become a top competitor for large-scale defense and homeland security projects. This strategy together with TSG's recent announced win (together with IAI as the prime contractor) of one the largest IT tenders in the history of the IDF and the IMOD, estimated at hundreds of millions of shekels over the next decade, position TSG to continue its growth momentum into 2018.
"We remain excited about Michpal's market opportunity following the release of a new product and a new service line – "Michpal Pension" and "Michpal PensionPlus". These solutions enable all employers to digitally report their employees' pension fund payments to their respective pension funds as required by law (this requirement took effect on February 1, 2018 for employers who employ more than 21 employees and on February 1, 2019 for employers with no more than 20 employees)."
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.
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.
[1] Non-GAAP measures as detailed in Magic Software Enterprises' press release from February 28, 2018
[2] Non-GAAP measures as detailed in Sapiens' press release from March 8, 2018
FORMULA SYSTEMS (1985) LTD. | ||||||||
CONSOLIDATED CONDENSED STATEMENTS OF PROFIT OR LOSS | ||||||||
U.S. dollars in thousands (except per share data) | ||||||||
| | | | | | | | |
| Three months ended | | | Year ended | ||||
| December 31, | | | December 31, | ||||
| 2017 | | 2016 | | | 2017 | | 2016 |
| Unaudited | | | Unaudited | | | ||
Revenues | 366,539 | | 302,314 | | | 1,355,139 | | 1,108,621 |
Cost of revenues | 285,728 | | 233,959 | | | 1,058,316 | | 849,840 |
| | | | | | | | |
Gross profit | 80,811 | | 68,355 | | | 296,823 | | 258,781 |
Research and development costs, net | 10,394 | | 6,881 | | | 39,853 | | 22,328 |
Selling, general and administrative expenses | 51,113 | | 38,552 | | | 184,061 | | 147,953 |
Other income (expenses), net | 308 | | - | | | 308 | | - |
Operating income | 19,612 | | 22,922 | | | 73,217 | | 88,500 |
| | | | | | | | |
Financial expenses, net | (3,908) | | (2,328) | | | (22,858) | | (11,586) |
| | | | | | | | |
Income before taxes on income | 15,704 | | 20,594 | | | 50,359 | | 76,914 |
Taxes on income | 1,537 | | 5,763 | | | 13,371 | | 21,163 |
| | | | | | | | |
Income after taxes | 14,167 | | 14,831 | | | 36,988 | | 55,751 |
Equity in gains of affiliated companies, net | 607 | | (442) | | | 1,124 | | 349 |
| | | | | | | | |
Net income | 14,774 | | 14,389 | | | 38,112 | | 56,100 |
Net income attributable to redeemable non-controlling interests | (65) Werbung Mehr Nachrichten zur Formula Systems 1985 ADR Aktie kostenlos abonnieren
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