Nine Months Operating Income of $26.0 million
Third Quarter Operating income of $10.5 million.
Herzliya, Israel –November 25, 2008 – Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, announced today results for the nine months and third quarter of 2008.
Revenues for the third quarter totaled $149.7million an increase of 23% compared to $121.7 million in the third quarter of 2007.
Revenues for the nine months ended September 30, 2008 totaled $437.0 million compared to $357.4 million in the same period of 2007, an increase of22%.
Operating income in the third quarter of 2008 was $10.5 million compared to $6.8 million in the same quarter of 2007, an increase of 54%.
Operating income in the first nine months of 2008 was $26.0 million compared to $19.2 million in the first nine months of 2007, an increase of 36%.
Financial expenses in the third quarter totaled $4.7 million compared to $175,000 in the third quarter of 2007. Financial expenses for the nine months of 2008 were $5.3 million compared to $1.4 million in the comparable period last year. The increase in financial expenses is mainly attributed to expenses related to debentures previously issued in two of our subsidiaries.
Net income generated from continuing operation in the third quarter and the nine months of 2008 was $2.9 and $10.2 million respectively.
Our cash and short term investments as of September 30, 2008 totaled approximately $182 million and our current ratio was 2.35.
Shareholder's equity on September 30, 2008 totaled $208 million, reflecting $15.7 per share.
Guy Bernstein, CEO of Formula, commented: "We are very pleased with the third quarter financial results. In spite of the turbulent environment, all our subsidiaries demonstrated continuous growth while achieving operating profit, net income and positive cash flow."
Mr. Bernstein added: "We believe that the steady growth of all our subsidiaries is the direct result of our cost effectiveness plan that was adopted throughout the group. Thanks to the implementation of our strategy we are well prepared to navigate the troubled waters of the current global environment."
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.