Formula Systems Ltd. News
Formula Systems Reports Fourth Quarter and Fiscal Year 2007 Results
HERZLIYA,
Revenues for the fourth quarter totaled
Revenues for the year ended
Operating income in the fourth quarter of 2007 was
Net income for the fourth quarter of 2007 was
Cash and Short term investment at
Current Ratio at
Shareholder's Equity at
During the year we sold our entire holdings in BluePhoenix Solutions Ltd for a consideration of approximately
Guy Berenstein, CEO of Formula, commented: "Formula has experienced an exceptional year both from the financial and the operational points of view. At the beginning of 2007 a new Formula was presented, comprising large and mostly publicly traded subsidiaries all of which contributed positively to our operational profit. During the year 2007 the Group's Financial resources increased significantly due to the issue of debentures in our subsidiary Matrix, a private placement in Sapiens, the sale of a subsidiary of Magic and the sale of the entire holdings in BluePhoenix. These financial activities resulted in over
Our strong balance sheet will enable us to consider and pursue new investments and mainly to react swiftly and efficiently to the market fluctuations in these turbulent times."
About Formula
Formula Systems Ltd. is a global information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and providing computer-based business solutions.
Statements made in this press release that are not historical facts are forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the company's products, dependence on strategic partners, integration of new business, successful implementation of Formula's products, economic and competitive factors, international market conditions, management of growth, technological developments, the ability to finance operations and other factors which are detailed in Formula's Securities and Exchange Commission filings, including its most recent report on Form 20-F. Formula undertakes no obligation to publicly release any revision to any forward-looking statement.
CONSOLIDATED BALANCE SHEETS December 31, December 31, 2007 2006 U.S. $ (in thousands) CURRENT ASSETS: Cash and cash equivalents 161,504 103,548 Short-term investments 38,731 11,385 Marketable securities available for sale 1,545 3,646 Trade receivables 139,676 119,505 Other accounts receivable 33,222 17,582 Inventories 3,157 2,752 377,835 258,418 LONG-TERM INVESTMENTS & DEPOSITES , LOANS AND RECEIVABLES: Loans and other investments 14,377 3,871 Investments in affiliates 3,682 710 18,059 4,581 SEVERANCE PAY FUND 36,851 29,962 FIXED ASSETS, NET 15,794 15,921 OTHER ASSETS, NET 162,653 141,229 TOTAL ASSETS ATTRIBUTED TO DISCONTINUED OPERATIONS 41 146,383 611,233 596,494 CURRENT LIABILITIES: Liabilities to banks and others 26,481 40,414 Trade payables 56,172 49,719 Other accounts payable 72,521 56,967 Debentures 3,725 4,450 158,899 151,550 LONG-TERM LIABILITIES: Debentures 71,679 10,802 Unrealized Gain 85 - Deferred taxes 3,276 458 Customer advances 2,181 449 Liabilities to banks and others 23,684 59,268 Liability in respect of the acquisition of 1,374 1,489 activities Accrued severance pay 43,249 35,340 145,528 107,806 TOTAL LIABILITIES ATTRIBUTED TO DISCONTINUED OPERATIONS 503 98,782 MINORITY INTEREST 107,915 85,066 SHAREHOLDERS' EQUITY 198,388 153,290 611,233 596,494 UNAUDITED CONSOLIDATED STATEMENTS OF INCOME Twelve months Three months ended ended December 31, December 31, 2007 2006 2007 2006 U.S.$ U.S.$ (in thousands, except per share data) 493,350 416,807 135,917 111,926 Revenues Cost of revenues 369,110 309,447 100,041 83,034 Gross profit 124,240 107,360 35,876 28,892 Research and development costs, 6,547 5,508 2,700 1,019 net Selling, general and administrative expenses 86,966 84,701 24,231 22,400 Depreciation and amortization 3,282 4,143 873 379 Restructuring and non-recurring 210 2,911 - 269 costs Operating income 27,235 10,097 8,072 4,825 Financial income (expenses), (3,700) (4,660) (2,257) (1,930) net 23,535 5,437 5,815 2,895 Gain on realization of 2,039 3,755 53 1,639 investments Other income (expenses), net (898) (1,102) (715) (238) Income before taxes on income 24,676 8,090 5,153 4,296 Taxes on income 1,933 3,766 861 971 22,743 4,324 4,292 3,325 Equity in profits (losses) of (559) 47 (13) (5) affiliated companies, net Minority interest in profits, 9,723 4,832 2,759 2,753 net Income from continuing 12,461 (461) 1,520 567 operation Income (loss) from discontinued operations 24,798 10,476 4,995 5,796 Net income 37,259 10,015 6,515 6,363 Earnings per share generated from continued operation : Basic 0.95 0.07 0.12 0.05 Diluted 0.93 0.06 0.11 0.05 Earnings per share generated from discontinuing operation : Basic 1.87 0.73 0.38 0.46 Diluted 1.86 0.67 0.37 0.45 Weighted average number of shares outstanding: Basic 13,200 13,200 13,200 13,200 Diluted 13,200 13,200 13,200 13,200 Contact: Israel: Naamit Salomon, CFO, Formula Systems Ltd. +972-9-959-8800 USA: Dennis S. Dobson, for Formula Systems Ltd. +1-203-255-7902
SOURCE Formula Systems Ltd.
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