Company reports continuing profits growth
Herzliya, Israel – May 19, 2009 – Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, announced today results for the first quarter of 2009.
Revenues for the first quarter totaled $135.7 million compared to $135.8 million in the first quarter of 2008.
Operating income in the first quarter of 2009 was $8.0 million compared to $6.5 million in the same quarter of 2008, an increase of 24%.
Net income in the first quarter of 2009 was $3.4 million compared to net income of $3.0 million in the first quarter of 2008.
Our consolidated cash and short term investments totaled approximately $135 million as of March 31, 2009 and our current ratio was 1.9.
In January 2009, Formula distributed a cash dividend of approximately $30 million, or $2.27 per share.
Guy Bernstein, CEO of Formula, commented: "The first quarter results reflect the efforts that were made in the fourth quarter of 2008 throughout the group's companies to adjust expenses in order to increase efficiency and competitively to meet the economic challenges.
I believe that our subsidiaries can generate better operational profits from a given revenue. While seeking more opportunities in the company and at the subsidiaries level, we will continue to maintain focus on cost control
I am encouraged by the first quarter results and maintain a cautiously optimistic view for the whole year."
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.