Herzliya, Israel – March 30, 2009 – 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 December 31, 2008.
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 December 31, 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 in 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 December 31, 2008 totaled approximately $157.0 and our current ratio was 1.8.
Shareholder's Equity at December 31, 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 Formula, commented: "I am pleased with the fourth quarter and year end results. The company continued to increase its revenues and profits throughout the fourth quarter and 2008 despite the current economic downturn. In 2008 all our 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."
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.
Formula Systems Ltd.
|USA:||Dennis S. Dobson,
for Formula Systems Ltd.