Herzliya, Israel – August 25, 2008 – 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 2008.
Revenues for the second quarter totaled $151.5 million an increase of 24% compared to $122.2 million in the second quarter of 2008.
Revenues for the six months ended June 30, 2008 totaled $287.3 million compared to $235.7 million in the same period of 2007, an increase of 22%.
Operating income in the second quarter of 2008 increased 47% to $9.0 million compared to $6.1 million in the same quarter of 2007.
Operating income in the first half of 2008 was $15.5 million compared to $12.3 million in the first half of 2008, an increase of 26%.
Net income generated from continuing operation in the six months ended June 30, 2008 was $7.3 million compared to $6.4 million in the same period of 2007.
Our cash and short term investments totaled approximately $203 million as of June 30, 2008 and our current ratio was 2.4.
Shareholder's equity on June 30, 2008 totaled $207 million, reflecting $15.7 per share.
In April 2008, Formula distributed a cash dividend of approximately $10 million, or $0.76 per share.
Guy Bernstein, CEO of Formula, commented: "In the second quarter we continued the constant growth trend in the group's activity. All our subsidiaries contributed positively to our increasing operational results: Magic moved from operating loss in the first quarter to an impressive operating profit in the second quarter, Sapiens reported a seventh consecutive quarter of operational profit and our primary asset, Matrix, continued to grow both in revenues and in operating profit.
Mr. Bernstein concluded: I can state with confidence that the Formula group is well equipped with the resources to explore new acquisitions, 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 20F. Formula undertakes no obligation to publicly release any revision to any forward-looking statement.
Formula Systems Ltd.