NET INCOME INCREASED BY 37% OVER SAME PERIOD LAST YEAR TO REACH $3.9 MILLION
Herzliya, Israel – November 18, 2009 – Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, announced today its results for the nine months period and third quarter of 2009.
Revenues for the third quarter totaled $117.8 million (Q3.08: $127.8 million)
Revenues for the nine months period ending 30 September 2009 totaled $345.7 million (nine months period of 2008: $373.5 million).
The vast majority of Formula’s revenues are generated in NIS. Hence, the decline is mostly attributed to the negative impact of the NIS vs. US Dollar devaluation.
Operating income in the third quarter reached $9.6 million (Q3.08: $9.8 million)
Operating income in the nine months period ending 30 September 2009 was $25.9 million (nine months period of 2008: $24.7 million).
Net income attributable to Formula in the third quarter reached $3.9 million, an increase of 37% compared to the third quarter of 2008.
Net income attributable to Formula in the nine months period ending 30 September 2009 was $11.1 million, an increase of 9% compared to the same period of 2008.
Formula’s consolidated cash and short term investments totaled approximately $143.6 million as at 30 September, 2009.
Following the reported period, Formula announced that on 22 October 2009 it completed the sale of its entire stake in nextSource Inc. for a total consideration of $12 million, comprised of cash and release of bank pledges. Formula expects to record capital gain from this transaction of approximately $4 million in the fourth quarter of 2009.
Guy Bernstein, CEO, Formula, commented: "We are pleased to report an improvement in our profitability despite the challenges in the global economy.
All our subsidiaries continued to generate positive operating and net profits, an impressive achievement considering the world wide recession. We believe that we are positioned well to seize interesting M&A opportunities, compatible with our strategy and current portfolio of 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.
Nir Feller, Formula Systems (1985) Ltd.