Formula Systems Reports
Fourth Quarter and Fiscal Year 2008 Results
Ra'anana, Israel - 30 March 2009 - Emblaze Ltd ("Emblaze" or "the
Group")) (LSE: BLZ) announces that its group company Formula Systems (1985)
Ltd. (NASDAQ: FORTY), a leading provider of information technology products,
solutions and services, announced today results for the fourth quarter and
year ended 31 December 2008.
Highlights:
- Revenues for the fourth quarter totaled $153.8 million, an
increase of 13% compared to $135.9 million in the fourth quarter of 2008.
- Revenues for the year ended 31 December 2008 totaled $590.8
million compared to $493.4 million in 2007, an increase of 20%.
- Operating income in the fourth quarter of 2008 was $7.4 million
compared to $8.1 million in the same quarter of 2007.
- Operating income for the full year of 2008 was $33.4 million
compared to $27.2 million in 2007, an increase of 22%.
- Net income generated from continuing operation in the fourth
quarter of 2008 was $1.7 million compared to $1.5 million in the fourth
quarter of 2007.
- Net income generated from continuing operation in 2008 was $11.9
million compared to $12.5 million in 2007, due to higher financial
expenses.
- Cash and short term investment at 31 December 2008 totaled
approximately $157.0 and current ratio was 1.8.
- Shareholder's Equity on 31 December 2008 totaled $170.0 million.
- In January 2009, Formula distributed a cash dividend of $30
million, or $2.27 per share.
Guy Bernstein, CEO of Emblaze and Formula, commented: "I am pleased
with the fourth quarter and year end results. Formula continued to increase
its revenues and profits throughout the fourth quarter and 2008 as a whole and
that is despite the current economic downturn. During 2008, all the Formula
subsidiaries reported revenue growth together with positive cash flow and
operating profits. We will continue to maintain tight controls over costs and
remain focused on long term growth of the Formula Group. With over $150
million in Formula and its subsidiaries, our group is well prepared to
navigate this turbulent period in the global environment and to continue to
explore new acquisitions, compatible with our strategy and current portfolio
companies."
Emblaze holds 50.1% of Formula Systems (1985) Ltd.
Enquiries:
Emblaze
Hagit Gal/ Dafna Cohen + 972 9 7699636/ 339
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 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.
About Emblaze
Emblaze Ltd is a group of technology companies addressing both
growth and innovation activities thus combining the stability of "bread and
butter" mature technology enterprises with "high-risk / high-reward"
investments in innovation.
Our Growth arm includes Formula Systems (NASDAQ: FORTY and TASE:
FORT), which harbors the following subsidiaries: Magic Software Enterprises
Ltd. (NASDAQ & TASE: MGIC) develops, markets and supports composite
application development and deployment platforms with a service-oriented
architecture (SOA), including application integration and business process
management (BPM), with existing and legacy systems; Matrix IT Ltd. (TASE:
MTRX) is one of Israel's leading integration and information technology
services companies, active in four principal areas: software solutions and
services, software products, infrastructure solutions and hardware products,
and training and assimilation.; Sapiens International Corporation N.V. (NASDAQ
& TASE: SPNS) is a provider of IT solutions that modernize business processes
to enable insurance and other companies to quickly adapt to changes; and
nextSource Inc., designs, develops and implements web-based, high quality,
innovative human capital management solutions.
Our Innovation arm includes Emblaze Mobile, a designer of advanced
mobile devices; EMOZE, a provider of Push Email and synchronisation technology
for mobile devices; and ZONE-IP (LSE: ZIP) (Emblaze V CON), a provider of
wireless video communications technologies and conferencing solutions for
operators and enterprise markets over IP networks.
The Emblaze Group is traded on the London Stock Exchange (LSE: BLZ) since
1996. www.Emblaze.com
FORMULA SYSTEMS (1985) LTD.
(an Israeli corporation)
CONSOLIDATED BALANCE SHEETS
December 31,
December 31,
2008 2007
(Unaudited) (Audited)
U.S. $
(in thousands)
CURRENT ASSETS:
Cash and cash equivalents 110,602 161,504
Short-term investments 46,158 40,276
Trade receivables 158,166 139,478
Other accounts receivable 16,104 34,822
Inventories 2,772 3,157
Total assets attributed to discontinued operations 31 -
333,833 379,237
LONG-TERM INVESTMENTS, LOANS AND
RECEIVABLES:
Loans and other investments 15,844 14,849
Investments in affiliates 3,694 3,792
19,538 18,641
SEVERANCE PAY FUND 38,105 36,851
FIXED ASSETS, NET 15,228 15,794
OTHER ASSETS, NET 189,918 162,060
TOTAL ASSETS ATTRIBUTED TO DISCONTINUED - 41
OPERATIONS
596,622 612,624
CURRENT LIABILITIES:
Liabilities to banks and others 10,731 26,954
Trade payables 57,240 57,099
Other accounts payable 109,732 73,072
Liability in respect of the acquisition of subsidiaries 6,954 -
Debentures 5,157 3,524
Total liabilities attributed to discontinued operations 372 -
190,186 160,649
LONG-TERM LIABILITIES:
Debentures 56,004 71,880
Deferred taxes 4,502 3,276
Customer advances 1,093 2,181
Liabilities to banks and others 16,640 23,685
Liability in respect of the acquisition of activity 1,010 1,373
Accrued severance pay 49,817 42,774
129,066 145,169
TOTAL LIABILITIES ATTRIBUTED TO
DISCONTINUED OPERATIONS - 503
MINORITY INTEREST 107,433 107,915
SHAREHOLDERS' EQUITY 169,937 198,388
596,622 612,624
FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Year months ended Three months ended
December 31, December 31,
2008 2007 2008 2007
U.S.$ U.S.$
(in thousands,
except per share
data)
Revenues 590,807 493,350 153,802 135,917
Cost of revenues 452,263 369,110 122,096 100,041
Gross profit 138,544 124,240 31,706 35,876
Research and development costs, net 6,564 6,547 2,080 2,700
Selling, general and administrative 95,071 87,176 21,381 24,231
expenses
Depreciation and amortization 3,536 3,282 871 873
Operating income 33,373 27,235 7,374 8,072
Financial expenses, net 6,008 3,810 748 2,367
27,365 23,425 6,626 5,705
Gain (loss) on realization of (337) 2,039 67 53
investments
Other income (expenses), net (580) (750) (249) (567)
Income before taxes on income 26,448 24,714 6,444 5,191
Taxes on income 3,544 1,933 2,019 861
22,904 22,781 4,425 4,330
Equity in losses (gains) of affiliated 216 653 (80) 107
companies, net
Minority interest in profits, net 10,819 9,667 2,797 2,703
Income from continuing operation 11,869 12,461 1,708 1,520
Income from discontinued operations - 24,798 - 4,995
Net income 11,869 37,259 1,708 6,515
Earnings per share generated from
continued
operation :
Basic 0.88 0.95 0.13 0.12
Diluted 0.88 0.93 0.13 0.11
Earnings per share generated from
discontinuing
operation :
Basic - 1.87 - 0.38
Diluted - 1.86 - 0.37
Weighted average number of shares
outstanding:
Basic 13,200 13,200 13,200 13,200
Diluted 13,200 13,200 13,200 13,200
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