Click here to close now.




















Welcome!

IoT User Interface Authors: Adrian Bridgwater, Aruna Ravichandran, Liz McMillan, Elizabeth White, Kevin Benedict

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.

@CloudExpo Stories
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...