Herzliya, Israel – August 25, 2009 – Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, announced today results for the six months and second quarter of 2009.
Revenues for the second quarter totaled $132.9 million compared to $151.5 million in the second quarter of 2008.
Revenues for the six months ended June 30, 2009 totaled $268.6 million compared to $287.3 million in the same period of 2008.
Most of this decline is attributed to the negative impact of the devaluation of the NIS against the US Dollar that affected the revenues generated in NIS, as they were translated into US Dollars.
Operating income in the second quarter of 2009 was $8.6 million compared to $9.0 million in the same quarter of 2008.
Operating income in the first half of 2009 was $16.7 million compared to $15.5 million in the first half of 2008.
Net income attributable to Formula in the second quarter of 2009 was $3.7 million compared to net income of $4.2 million in the first quarter of 2008.
Net income attributable to Formula in the six months ended June 30, 2009 was $7.1 million compared to $7.3 million in the same period of 2008.
Our cash and short term investments totaled approximately $134 million as of June 30, 2009. and our current ratio was 2.0.
Guy Bernstein, CEO of Formula, commented: "In the second quarter we continued our prudent cost saving strategy which was translated into a strong cash position. All our subsidiaries generated steady positive operating and net profits, an impressive achievement considering the world wide recession. "
"Although second quarter conditions remained challenging, we are beginning to see signs that the business environment is improving and we are well positioned to leverage it" concluded Mr. Bernstein.
Formula's Board of Directors has decided to pursue various financing alternatives and therefore is not presently seeking to finalize the draft prospectus filed with the Israel Securities Authority and Tel Aviv Stock Exchange on July 6, 2009. There is no assurance that any financing transaction will be consummated.
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.
Naamit Salomon, CFO, Formula Systems (1985) Ltd.