Welcome!

IoT User Interface Authors: Pat Romanski, Elizabeth White, Liz McMillan, AppDynamics Blog, Yakov Fain

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
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The U.S. Army Intelligence and Security Command (INSCOM) has awarded BAE Systems a five-year contract worth as much as $75 million to provide enhanced geospatial intelligence technical and analytical support. The award was issued under the INSCOM Global Intelligence indefinite delivery, indefinite quantity contract.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
Dialogic has announced that ZVRS chose Dialogic® PowerMedia™ XMS software media server as part of its latest video relay and translation service offering. ZVRS uses Dialogic’s PowerMedia XMS technology to provide a robust solution that supports a broad range of legacy devices and any-to-any video capabilities with its flagship Z70 videophone. ZVRS selected Dialogic’s solution to facilitate a release of Z70 that met its stringent requirements for legacy device support (H.263 and H.264) with high...
"SpeedyCloud's specialty lies in providing cloud services - we provide IaaS for Internet and enterprises companies," explained Hao Yu, CEO and co-founder of SpeedyCloud, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). Download Slide Deck: ▸ Here In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discusse...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection. In his session at 18th Cloud Expo, Bradley Holt, a Developer Advocate with IBM Cloud Data Services, discussed...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, discussed how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He also discussed how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors ...
University of Colorado Athletics has selected FORTRUST, Colorado’s only Tier III Gold certified data center, as their official data center and colocation services provider, FORTRUST announced today. A nationally recognized and prominent collegiate athletics program, CU provides a high quality and comprehensive student-athlete experience. The program sponsors 17 varsity teams and in their history, the Colorado Buffaloes have collected an impressive 28 national championships. Maintaining uptime...
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Commvault; Dave Landa, Chief Operating Officer at kintone; William Morrish, General Manager Product Sales at Interou...