Welcome!

AJAX & REA Authors: RealWire News Distribution, Harald Zeitlhofer

News Feed Item

Magic Reports Record Revenue of $33 Million for the Third Quarter of 2012; Non-GAAP Operating Income for the First Nine Months Grew 36% Year Over Year to $14 Million

Company Reports Solid Cash Position with $14 Million Operating Cash Flow for the First Nine Months of 2012

OR YEHUDA, Israel, November 7, 2012 /PRNewswire/ --

Magic Software Enterprises Ltd. (NASDAQ: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today its financial results for the third quarter and first nine months of 2012.

Financial Highlights for the Nine-Month Period Ended September 30, 2012

  • Revenues for the first nine months of 2012 increased 9% to $90.7 million compared to $82.8 million in the same period last year.
  • Non-GAAP operating income for the first nine months of 2012 increased 36% to $13.6 million compared to $10.0 million in the same period last year; Operating income for the first nine months of 2012 increased 15% to $12.2 million compared to $10.5 million in the same period last year.
  • Non-GAAP net income for the first nine months of 2012 increased 30% to $13.1 million compared to $10.1 million in the same period last year; Net income for the first nine months of 2012 increased 12% to $11.9 million, or $0.32 per fully diluted share, compared to $10.7 million, or $0.29 per fully diluted share, in the same period last year.
  • Operating cash flow for the first nine months of 2012 totaled $14 million.
  • Total cash, cash equivalents and short-term investments as of September 30, 2012, amounted to $38.5 million, with zero debt.

Financial Highlights for the Third Quarter Ended September 30, 2012

  • Third quarter revenues increased 9% to $32.6 million compared to $30.0 million in the same period last year.
  • Non-GAAP operating income for the third quarter increased 15% to $4.6 million, compared to $4.0 million in the same period last year; Operating income for the third quarter increased 3% to $4.1 million, compared to $4.0 million in the same period last year.
  • Non-GAAP net income for the third quarter increased 13% to $4.5 million compared to $4.0 million in the same period last year; Net income for the third quarter increased 2% to $4.1 million, or $0.11 per fully diluted share, compared to $4.0 million, or $0.11 per fully diluted share, in the same period last year.

Comments of Management

"We are pleased to report record revenues and continued strong performance during the third quarter, especially in light of the challenging economic climate," said Guy Bernstein, Chief Executive Officer of Magic Software Enterprises. "The strongest levels of growth throughout our global operations came from the US, Japanese and Israeli markets led by strong demand for our professional services."

"Our strong cash position has allowed us to continue to add value to our shareholders by instituting a dividend policy, following which, we distributed a dividend of approximately $3.7 million (or $0.10 per share) in October for the first half of 2012," added Mr. Bernstein.

Non-GAAP Financial Measures

This release includes non-GAAP operating income, net income, basic and diluted earnings per share and other non-GAAP financial measures. These non-GAAP measures exclude the following items:

  • Amortization of purchased intangible assets
  • In-process research and development capitalization and amortization
  • Equity-based compensation expense and
  • Related tax effect

Magic's management believes that the presentation of non-GAAP measures provides useful information to investors and management regarding financial and business trends relating to the Company's financial condition and results of operations as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.

These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Magic believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Magic's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Magic's results of operations in conjunction with the corresponding GAAP measures. Please refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.

About Magic Software Enterprises

Magic Software Enterprises (NASDAQ: MGIC) empowers customers and partners around the globe with smarter technology that provides a multichannel user experience of enterprise logic and data.

For more information, visit http://www.magicsoftware.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 Magic'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.

Magic is a registered trademark of Magic Software Enterprises Ltd. All other product and company names mentioned herein are for identification purposes only and are the property of, and might be trademarks of, their respective owners.

    MAGIC SOFTWARE ENTERPRISES LTD.
    CONSOLIDATED STATEMENTS OF INCOME
    U.S. dollars in
    thousands
    (except per
    share data)
 
                          Three months ended                   Nine months ended
                             September 30,                       September 30,
                       -------------------------          ---------------------------
                        2012              2011             2012                 2011
                       ------            ------           ------               ------   
                              Unaudited                            Unaudited
                       -------------------------          --------------------------- 
    Revenues           32,578            29,977           90,650               82,845
    Cost of
    Revenues           19,583            17,816           52,601               49,290
                       ------            ------           ------               ------
    Gross profit       12,995            12,161           38,049               33,555
                       ------            ------           ------               ------ 
    Research and
    development,
    net                   892               758            2,134                1,578
    Selling,
    marketing and
    general and
    administrative
    expenses            7,981             7,396           23,765               21,436
    Total operating
    costs and
    expenses            8,873             8,154           25,899               23,014
                       ------            ------           ------               ------
    Operating
    income              4,122             4,007           12,150               10,541
                       ------            ------           ------               ------
    Financial
    income
    (expenses), net        15                60             (183)                 311
    Other income,
    net                    69                19              136                   92
                       ------            ------           ------               ------  
    Income before
    taxes on income     4,206             4,086           12,103               10,944
    Taxes on income       (25)               24               42                   67
                       ------            ------           ------               ------
    Net income          4,231             4,062           12,061               10,877
    Net income
    attributable to
    non-controlling
    interests            (116)              (43)            (131)                (198)
                       ------            ------           ------               ------
    Net income
    attributable to
    Magic
    Shareholders        4,115             4,019           11,930               10,679
 
    Earnings per
    share (basic)        0.11              0.11             0.33                 0.29
                       ------            ------           ------               ------
    Earnings per
    share (diluted)      0.11              0.11             0.32                 0.29
                       ------            ------           ------               ------
 
    Number of
    shares used in
    computing
    earnings per
    share (basic)      36,541            36,339           36,485               36,241
                       ------            ------           ------               ------
 
    Number of
    shares used in
    computing
    earnings per
    share (diluted)    37,062            36,954           37,129               37,058
                       ------            ------           ------               ------
   
    MAGIC SOFTWARE ENTERPRISES LTD.
    RECONCILIATION BETWEEN GAAP AND NON-GAAP
    STATEMENTS OF INCOME FOR COMPARATIVE PURPOSES
    U.S. dollars in thousands
    (except per share data)
 
                                 Three months ended                    Nine months ended
                                    September 30,                        September 30,
                               -----------------------                --------------------
                                2012             2011                  2012          2011
                               ------           ------                ------        ------
                                     Unaudited                             Unaudited
                               -----------------------                -------------------- 
    GAAP operating income      4,122             4,007                12,150        10,541
    Amortization of
    capitalized software and
    other intangible assets    1,418             1,066                 4,311         2,829
    Capitalization of
    software development      (1,131)           (1,253)               (3,344)       (3,846)
    Stock-based compensation     143               139                   440           447
                               ------           ------                ------        ------    
    Total adjustments to GAAP    430               (48)                1,407          (570)
                               ------           ------                ------        ------
    Non-GAAP operating income  4,552             3,959                13,557         9,971
                               ------           ------                ------        ------
 
    GAAP net income            4,115             4,019                11,930        10,679
    Amortization of
    capitalized software and
    other intangible assets    1,418             1,066                 4,311         2,829
    Capitalization of
    software development      (1,131)           (1,253)               (3,344)       (3,846)
    Stock-based compensation     143               139                   440           447
    Taxes on the above items     (62)                -                  (219)            -
    Total adjustments to GAAP    368               (48)                1,188          (570)
                               ------           ------                ------        ------ 
    Non-GAAP net income        4,483             3,971                13,118        10,109
                               ------           ------                ------        ------ 
    Non-GAAP earnings per
    share (basic)               0.12              0.11                  0.36          0.28
    Weighted average number
    of shares used in
    computing earnings per
    share (basic)             36,541            36,339                36,485        36,241
 
    Non-GAAP earnings per
    share (diluted)             0.12              0.11                  0.35          0.27
                               ------           ------                ------        ------
    Weighted average number
    of shares used in
    computing earnings per
    share (diluted)           37,129            37,046                37,234        37,155
                               ------           ------                ------        ------
   
    MAGIC SOFTWARE ENTERPRISES LTD.
    CONSOLIDATED BALANCE SHEETS
    U.S. dollars in thousands
 
                                                September 30,        December 31,
                                               --------------       -------------
                                                    2012                2011
                                                   ------              ------     
                                                 Unaudited
                                               --------------
    ASSETS
    CURRENT ASSETS:
    Cash and cash equivalents                       37,100             28,711
    Short-term bank deposits                           521              2,170
    Available-for-sale marketable
    securities                                         894              1,241
    Trade receivables, net                          27,405             24,946
    Other accounts receivable and
    prepaid expenses                                 5,831              6,401
                                                    ------             ------
    Total current Assets                            71,751             63,469
                                                    ------             ------
 
    LONG-TERM RECEIVABLES:
    Severance pay fund                                 363                351
    Other Long-term receivables                      3,110              3,824
                                                    ------             ------
    Total other long-term receivables                3,473              4,175
 
    PROPERTY AND EQUIPMENT, NET                      1,894              2,029
    IDENTIFIABLE INTANGIBLE ASSETS AND
    GOODWILL, NET                                   75,244             66,512
                                                    ------             ------
    TOTAL ASSETS                                   152,362            136,185
                                                    ------             ------ 
    LIABILITIES AND EQUITY
 
    CURRENT LIABILITIES:
    Short-term credit and current
    maturities of long term
    loans                                                -                  4
    Trade payables                                   4,403              3,545
    Accrued expenses and other
    accounts payable                                20,744             16,797
    Deferred tax Liabilities                         2,391              2,359
    Deferred revenues                                6,247              5,092
                                                    ------             ------
    Total current liabilities                       33,785             27,797
                                                    ------             ------ 
    NON CURRENT LIABILITIES:
    Long-term loans                                     26                  9
    Deferred tax Liabilities                           659                296
    Liability due to acquisition
    activities                                           -              1,350
    Accrued severance pay                            1,260              1,087
                                                    ------             ------
    Total non-current Liabilities                    1,945              2,742
                                                    ------             ------ 
    EQUITY:
    Magic Shareholders' equity                     114,194            105,156
    Non-controlling interests                        2,438                490
                                                    ------             ------
    Total equity                                   116,632            105,646
 
    TOTAL LIABILITIES AND EQUITY                   152,362            136,185
                                                    ------             ------ 


Press Contact:
Tania Amar, VP Global Marketing
Magic Software Enterprises
[email protected]

SOURCE Magic Software Enterprises Ltd

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Cloud Expo Latest Stories
Hardware will never be more valuable than on the day it hits your loading dock. Each day new servers are not deployed to production the business is losing money. While Moore’s Law is typically cited to explain the exponential density growth of chips, a critical consequence of this is rapid depreciation of servers. The hardware for clustered systems (e.g., Hadoop, OpenStack) tends to be significant capital expenses. In his session at 15th Cloud Expo, Mason Katz, CTO and co-founder of StackIQ, to discuss how infrastructure teams should be aware of the capitalization and depreciation model of these expenses to fully understand when and where automation is critical.
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects – scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e., the largest single medical system in the United States.
In his session at 15th Cloud Expo, Mark Hinkle, Senior Director, Open Source Solutions at Citrix Systems Inc., will provide overview of the open source software that can be used to deploy and manage a cloud computing environment. He will include information on storage, networking(e.g., OpenDaylight) and compute virtualization (Xen, KVM, LXC) and the orchestration(Apache CloudStack, OpenStack) of the three to build their own cloud services. Speaker Bio: Mark Hinkle is the Senior Director, Open Source Solutions, at Citrix Systems Inc. He joined Citrix as a result of their July 2011 acquisition of Cloud.com where he was their Vice President of Community. He is currently responsible for Citrix open source efforts around the open source cloud computing platform, Apache CloudStack and the Xen Hypervisor. Previously he was the VP of Community at Zenoss Inc., a producer of the open source application, server, and network management software, where he grew the Zenoss Core project to over 10...
Most of today’s hardware manufacturers are building servers with at least one SATA Port, but not every systems engineer utilizes them. This is considered a loss in the game of maximizing potential storage space in a fixed unit. The SATADOM Series was created by Innodisk as a high-performance, small form factor boot drive with low power consumption to be plugged into the unused SATA port on your server board as an alternative to hard drive or USB boot-up. Built for 1U systems, this powerful device is smaller than a one dollar coin, and frees up otherwise dead space on your motherboard. To meet the requirements of tomorrow’s cloud hardware, Innodisk invested internal R&D resources to develop our SATA III series of products. The SATA III SATADOM boasts 500/180MBs R/W Speeds respectively, or double R/W Speed of SATA II products.
14th International Cloud Expo, held on June 10–12, 2014 at the Javits Center in New York City, featured three content-packed days with a rich array of sessions about the business and technical value of cloud computing, Internet of Things, Big Data, and DevOps led by exceptional speakers from every sector of the IT ecosystem. The Cloud Expo series is the fastest-growing Enterprise IT event in the past 10 years, devoted to every aspect of delivering massively scalable enterprise IT as a service.
As more applications and services move "to the cloud" (public or on-premise) cloud environments are increasingly adopting and building out traditional enterprise features. This in turn is enabling and encouraging cloud adoption from enterprise users. In many ways the definition is blurring as features like continuous operation, geo-distribution or on-demand capacity become the norm. NuoDB is involved in both building enterprise software and using enterprise cloud capabilities. In his session at 15th Cloud Expo, Seth Proctor, CTO at NuoDB, Inc., will discuss the experiences from building, deploying and using enterprise services and suggest some ways to approach moving enterprise applications into a cloud model.
Until recently, many organizations required specialized departments to perform mapping and geospatial analysis, and they used Esri on-premise solutions for that work. In his session at 15th Cloud Expo, Dave Peters, author of the Esri Press book Building a GIS, System Architecture Design Strategies for Managers, will discuss how Esri has successfully included the cloud as a fully integrated SaaS expansion of the ArcGIS mapping platform. Organizations that have incorporated Esri cloud-based applications and content within their business models are reaping huge benefits by directly leveraging cloud-based mapping and analysis capabilities within their existing enterprise investments. The ArcGIS mapping platform includes cloud-based content management and information resources to more widely, efficiently, and affordably deliver real-time actionable information and analysis capabilities to your organization.
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity. In his session at Internet of @ThingsExpo, Mac Devine, Distinguished Engineer at IBM, will discuss bringing these three elements together via Systems of Discover.
Cloud and Big Data present unique dilemmas: embracing the benefits of these new technologies while maintaining the security of your organization’s assets. When an outside party owns, controls and manages your infrastructure and computational resources, how can you be assured that sensitive data remains private and secure? How do you best protect data in mixed use cloud and big data infrastructure sets? Can you still satisfy the full range of reporting, compliance and regulatory requirements? In his session at 15th Cloud Expo, Derek Tumulak, Vice President of Product Management at Vormetric, will discuss how to address data security in cloud and Big Data environments so that your organization isn’t next week’s data breach headline.
The cloud is everywhere and growing, and with it SaaS has become an accepted means for software delivery. SaaS is more than just a technology, it is a thriving business model estimated to be worth around $53 billion dollars by 2015, according to IDC. The question is – how do you build and scale a profitable SaaS business model? In his session at 15th Cloud Expo, Jason Cumberland, Vice President, SaaS Solutions at Dimension Data, will give the audience an understanding of common mistakes businesses make when transitioning to SaaS; how to avoid them; and how to build a profitable and scalable SaaS business.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
SYS-CON Events announced today that Solgenia, the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between personal and professional social, mobile and cloud user experiences, our solutions help large and medium-sized organizations dramatically improve productivity, reduce collaboration costs, and increase the overall enterprise value by bringing collaboration and infrastructure solutions to the cloud.
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, will explore the synergies in these two approaches, with practical tips, techniques, research data, war stories, case studies, and recommendations.
Enterprises require the performance, agility and on-demand access of the public cloud, and the management, security and compatibility of the private cloud. The solution? In his session at 15th Cloud Expo, Simone Brunozzi, VP and Chief Technologist(global role) for VMware, will explore how to unlock the power of the hybrid cloud and the steps to get there. He'll discuss the challenges that conventional approaches to both public and private cloud computing, and outline the tough decisions that must be made to accelerate the journey to the hybrid cloud. As part of the transition, an Infrastructure-as-a-Service model will enable enterprise IT to build services beyond their data center while owning what gets moved, when to move it, and for how long. IT can then move forward on what matters most to the organization that it supports – availability, agility and efficiency.
Every healthy ecosystem is diverse. This is especially true in cloud ecosystems, where portability and interoperability are more important than old enterprise models of proprietary ownership. In his session at 15th Cloud Expo, Mark Baker, Server Product Manager at Canonical/Ubuntu, will discuss how single vendors used to take the lead in creating and delivering technology, but in a cloud economy, where users want tools of their preference, when and where they need them, it makes no sense.