Magic Software Announces Significant Year-Over-Year Growth for Q1 2004 with 34% Growth in License Revenues and 164% Growth in Net Profit.Business Editors
OR YEHUDA Or Yehuda (אור יהודה) is a city in the Tel Aviv District in Israel. According to the Israel Central Bureau of Statistics (CBS), at the end of 2004 the city had a total population of 30,100. , Israel--(BUSINESS WIRE)--May 12, 2004
Magic Software Enterprises Ltd. (Nasdaq:MGIC MGIC Mortgage Guaranty Insurance Company
MGIC Montana Geographic Information Council ), a leading provider of state-of-the-art business integration and development technology, reported today that the company has continued to grow year-over-year in both revenues and profitability in the first quarter ended March 31, 2004.
First Quarter Results
Total revenues for the first quarter ended March 31, 2004 were $16.45 million, an increase of 9% from $15.13 million in the comparable quarter of 2003.
Gross profit margin Gross profit margin
Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold.
gross profit margin
A measure calculated by dividing gross profit by net sales. in the first quarter of 2004 was 61%, an increase from a margin of 59% in the comparable quarter of 2003. Net profit for the first quarter of 2004 was $718,000 (or $0.02 per share) compared with a net profit of $272,000 (or $0.01 per share) in the first quarter of 2003, an increase of 164%.
License sales for the quarter, at $5.5 million, increased 34% from $4.1 million in the first quarter of 2003. Application sales were $1.7 million in both the current quarter and the comparable quarter of 2003.
Revenues from consulting and other services, at $6.5 million, decreased from $6.8 million for the first quarter of 2003. Revenues from maintenance and support, at $2.8 million, increased from $2.6 million in the same period of 2003.
In the first quarter of 2004, Europe Europe (yr`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). accounted for 42% of total revenues, while North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Asia/Pacific accounted for 30% and 28%, respectively.
"Magic Software enters 2004 with strong revenue growth and improved overall financial performance, reflecting significant increases in contracts with new and existing customers," said Menachem Hasfari, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Magic Software. "Our model of combining superior technology, support and services at a reasonable cost is clearly resonating res·o·nate
v. res·o·nat·ed, res·o·nat·ing, res·o·nates
1. To exhibit or produce resonance or resonant effects.
2. with the market.
"We are very pleased with the enthusiasm surrounding sur·round
tr.v. sur·round·ed, sur·round·ing, sur·rounds
1. To extend on all sides of simultaneously; encircle.
2. To enclose or confine on all sides so as to bar escape or outside communication.
n. our iBOLT iBOLT Studio is an enterprise application integration (EAI) and business process management (BPM) software by Magic Software Enterprises. Following the introduction of iBOLT, Magic Software Enterprises was placed in the integrated services environment quadrant by information Integration Suite and the continued acceptance of eDeveloper in the market, as demonstrated by the high increase in license sales," noted Hasfari. "iBOLT sales in the first quarter of 2004 were 40% higher than the last quarter of 2003 with the average iBOLT deal getting bigger in volume. iBOLT is also providing us with entry into significant new customers as well as many new partners who have signed up for the iBOLT Integration Partner Program in recent months."
Mr. Hasfari concluded, "Our commitment to providing high-quality business integration and application development technology that deliver measurable ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). , combined with the rising momentum of the mid-tier market, places Magic Software in a unique position to take advantage of the growth opportunities that lie ahead."
The following highlights were announced or occurred since Magic Software Enterprises' last earnings statement:
New Deals and Partner Announcements
Among the significant new iBOLT deals closed during the quarter were:
-- SuperClubs, the Caribbean's Super-Inclusive resort group who
will use iBOLT to enable integration of SuperClub's SAP R/3
enterprise resource planning See ERP.
(application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) system for back-end (programming) back-end - Any software performing either the final stage in a process, or a task not apparent to the user. A common usage is in a compiler. A compiler's back-end generates machine language and performs optimisations specific to the machine's architecture.
operations and accounting with the company's
business-to-consumer Business-to-consumer (B2C), describes activities of commercial organizations serving the end consumer with products and/or services. It is usually applied exclusively to electronic commerce. (B2C (Business to Consumer) Refers to a business communicating with or selling to an individual rather than a company. See B2B. ) website;
-- CBIA CBIA California Building Industry Association
CBIA Connecticut Business & Industry Association
CBIA Coastal Barrier Improvement Act of 1990
CBIA California Background Investigators Association
CBIA Crisis Briefing & Information Area , the largest statewide business organization in the
U.S.A., with 10,000 member companies acting as the voice of
business and industry in Connecticut Connecticut, state, United States
Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W). , who acquired iBOLT to
automate To turn a set of manual steps into an operation that goes by itself. See automation. business processes and enhance integration of
existing information technology systems;
-- SCH SCH School
SCH Semester Credit Hours
SCH Santander Central Hispano (bank in Spain)
SCH Socket Head
SCH Synchronization Channel
SCH Space Center Houston (Specialist Computer Holdings) Group, Europe's largest
privately owned technology group, which specializes in
providing customized service solutions for network computing Storing and/or running applications in servers in a network. See cloud computing and network computer. ,
who acquired iBOLT for deployment of an integrated contact
-- One of Europe's largest cellular operators will use iBOLT to
provide integrated real time information and services to
internal support and operations personnel;
-- KRYS K-99 is the name of the top-rated country radio station in Corpus Christi, Texas. At 99.1 FM, K-99 has been a country station since December 1982. KRYS are the call letters of the station. K-99's original call letters were KBCB-FM(1982-84). , one of the largest network of opticians in France with
around 800 shops in France and an additional 50 in Belgium,
will use iBOLT to integrate legacy systems to streamline
internal and external business processes.
In addition, during the quarter, Magic Software exceeded its expectations and successfully recruited eighteen new iBOLT partners worldwide who chose iBOLT as their preferred mid-tier framework for business integration.
Other significant new deals and partnerships closed or announced during the quarter were:
-- One of the largest airfreight air·freight
1. A system of transporting freight by air.
2. The amount charged for transporting freight by air.
air companies in Asia will implement
"Hermes Hermes, in Greek religion and mythology
Hermes, in Greek religion and mythology, son of Zeus and Maia. His functions were many, but he was primarily the messenger of the gods, particularly of Zeus, and conductor of souls to Hades. Logistics", an eDeveloper-based air cargo air cargo: see aviation. management
and cargo handling system. Hermes has been recognized by
industry leaders to be one of the most up-to-date ground-cargo
handling system available on the market today;
-- Magic Software Japan signed a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. for
joint business development with Fujitsu Limited. Under this
agreement the companies will work together to sell eDeveloper
in conjunction with Fujitsu's Interstage Application Server;
-- Company Solutions was appointed as the sole distributor for
Magic Software in Belgium. The distributorship covers all
major software products of Magic Software including eDeveloper
and the iBOLT Integration Suite.
In addition, significant orders of eDeveloper licenses were received from Adapt and Vadim in the U.S., Bull in France, Marsh Insurance in Germany, Fujitsu in Japan, Maariv and Clalit Health in Israel.
Magic Software will host a conference call today, May 12, 2004, at 10:00 a.m. EDT EDT
Eastern Daylight Time
EDT Eastern Daylight Time
EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York
EDT , 14:00 GMT (Greenwich Mean Time) See UTC.
GMT - Universal Time 1 and 17:00 in Israel to discuss the Company's first quarter financial results. To participate, interested parties should call the appropriate number listed below five to ten minutes prior to the start of the call:
North America 1 (888) 428-4479 International +1 (651) 291-0900 Callers should reference "Magic Software Q1 Earnings Conference Call" with the AT&T Operator. A replay of the conference call will be available through May 26, 2004. Interested parties should call the appropriate number below: North America 1 (800) 475-6701 International +1 (320) 365-3844 Callers should reference Access Code No. 730254.
About Magic Software Enterprises
Magic Software Enterprises, a member of the Formula Group (Nasdaq:FORTY), develops, markets and supports software development, deployment and integration technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems. Magic technology, applications and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. are available through a global network of subsidiaries, distributors and Magic solutions partners in approximately 50 countries. The Company's North American North American
named after North America.
North American blastomycosis
see North American blastomycosis.
North American cattle tick
see boophilusannulatus. subsidiary is located at 17310 Redhill Avenue #270, Irvine, CA 92614-5637, telephone 800-345-6244, 949-250-1718, fax 949-250-7404, http://www.magicsoftware.com/.
The Formula Group is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.)
service - work done by one person or group that benefits another; "budget separately for goods and services" , developing proprietary software products and producing computer-based solutions.
Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that may involve a number of risks and uncertainties. Actual results may 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 here and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.
Consolidated Statement of Operations (US Dollars in Thousands) Three months ended March 31, ------------------------ 2004 2003 --------- --------- (Unaudited) (Unaudited) Revenues Software sales $5,461 $4,077 Applications 1,664 1,664 Maintenance 2,795 2,579 Consultancy & other services 6,534 6,806 --------- --------- Total revenues $16,454 $15,126 Cost of revenues Software sales 1,248 816 Applications 620 245 Maintenance 803 591 Consultancy & other services 3,769 4,583 --------- --------- Total cost of revenues $6,440 $6,235 Gross profit $10,014 $8,891 Research & development, net 1,205 1,006 Sales, marketing, and general & administrative expenses 7,477 7,220 Depreciation 439 413 --------- --------- Operating income $893 $252 Financial expenses (income), net 114 (45) --------- --------- Income before taxes $779 $297 Taxes on income -- (82) --------- --------- Income before minority Interest $779 $379 Minority interest in income of subsidiaries 61 107 --------- --------- Net income $718 $272 Basic earnings (loss) per share $0.02 $0.01 Diluted earnings (loss) per share $0.02 $0.01 Weighted avg. shares outstanding (000's) 30,647 29,509 Diluted weighted avg. shares outstanding (000's) 32,501 29,535 Consolidated Balance Sheets (US Dollars in Thousands) March 31, Dec. 31, 2004 2003 --------- --------- (Unaudited) Assets Current assets Cash and cash equivalents $8,116 $13,581 Short term marketable securities 4,452 Accounts receivable Trade receivables 22,660 19,725 Related parties 9 48 Other receivables and prepaid expenses 4,154 3,221 Inventory 376 188 --------- --------- Total current assets 39,767 36,763 --------- --------- Severance pay fund 1,826 1,781 Long term deposits 202 279 Investments in affiliated companies 100 100 Fixed assets, net 7,753 7,855 Goodwill 21,985 21,155 Other assets, net 9,600 9,867 --------- --------- Total assets $81,233 $77,800 ========= ========= Liabilities Current liabilities Short-term bank debt $192 $2,357 Trade payables 3,369 3,249 Accrued expenses and other liabilities 18,682 14,348 --------- --------- Total current liabilities 22,243 19,954 --------- --------- Long-term loans 280 299 Accrued severance pay 2,199 2,166 Minority interests 814 1,457 Shareholders' equity Share capital 823 805 Capital surplus 105,722 104,685 Treasury stock (5,773) (5,773) Accumulated deficit (45,075) (45,793) --------- --------- Total shareholders' equity 55,697 53,924 --------- --------- Total liabilities and shareholders' equity $81,233 $77,800 ========= =========