Click here to close now.

Welcome!

AJAX & REA Authors: XebiaLabs Blog, Greg O'Connor, ScriptRock Blog, Elizabeth White, Cloud Best Practices Network

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
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at...
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 world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
SYS-CON Events announced today that the DevOps Institute has been named “Association Sponsor” of SYS-CON's DevOps Summit, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. The DevOps Institute provides enterprise level training and certification. Working with thought leaders from the DevOps community, the IT Service Management field and the IT training market, the DevOps Institute is setting the standard in quality for DevOps education and training.
Even though it’s now Microservices Journal, long-time fans of SOA World Magazine can take comfort in the fact that the URL – soa.sys-con.com – remains unchanged. And that’s no mistake, as microservices are really nothing more than a new and improved take on the Service-Oriented Architecture (SOA) best practices we struggled to hammer out over the last decade. Skeptics, however, might say that this change is nothing more than an exercise in buzzword-hopping. SOA is passé, and now that people are ...
Hosted PaaS providers have given independent developers and startups huge advantages in efficiency and reduced time-to-market over their more process-bound counterparts in enterprises. Software frameworks are now available that allow enterprise IT departments to provide these same advantages for developers in their own organization. In his workshop session at DevOps Summit, Troy Topnik, ActiveState’s Technical Product Manager, will show how on-prem or cloud-hosted Private PaaS can enable organ...
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, will provide some practical insights on what, how and why when implementing "software-defined" in the dat...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Ras...
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
SYS-CON Events announced today that Emcien will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Emcien’s vision is to let anyone use data to know the future. Emcien has built an automated, predictive analysis product that improves the lives of real people. Emcien allows people to automate their data analysis so they can build a better future.
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
With the arrival of the Big Data revolution, a data professional is expected to master a broad spectrum of complex domains including data processing, mathematics, programming languages, machine learning techniques, and business knowledge. While this mastery is undoubtedly important, this narrow focus on tool usage has divorced many from the imagination required to solve real-world problems. As the demand for analysis increases, the data science community must transform from tool experts to "data...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable clou...
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microser...
The webinar, hosted by XebiaLabs, will feature 4 experts including Special Host Gene Kim, author of The Phoenix Project, along with IT thought leaders Gary Gruver, Randy Shoup and XebiaLabs' Andrew Phillips. The panel brings more than 30 years of collective experience surrounding microservices transformations at major companies including Google, eBay and Tripwire. "The story around microservices and containers is pretty compelling and the attraction of more flexibility is obviously alluring,"...
WHOA.com has announced the newest addition to its data center footprint with the expansion into Equinix's newest state-of-the-art facility: DC-11 Washington, DC IBX+. Located in Ashburn, VA, this data center expands Whoa.com's presence to meet rapidly expanding customer demand for secure cloud solutions. Equinix, Inc. operates International Business Exchange™ (IBX®) data centers in 32 markets across 15 countries in the Americas, EMEA, and Asia-Pacific. Equinix is committed to operating faciliti...
SYS-CON Events announced today that FierceDevOps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. FierceDevOps keeps software developers and IT operations personnel updated on the latest news and trends around the rapidly evolving role of the traditional IT worker.
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...