Welcome!

IBM Cloud Authors: Elizabeth White, Pat Romanski, Liz McMillan, Yeshim Deniz, John Esposito

News Feed Item

Magic Reports Record-Breaking Annual Results for 2012 with Revenues of $126.4 Million and Non-GAAP Operating Income of $18.7 Million, an Increase of 29% Year over Year

Revenues for the fourth quarter increased 17% year over year to $35.7 million; Non-GAAP operating income increased 13% to $5.1 million

OR YEHUDA, Israel, February 13, 2013 /PRNewswire/ --

Magic Software Enterprises Ltd. (NASDAQ  and  TASE: MGIC), a global provider of mobile and cloud-enabled application and business integration platforms, announced today its financial results for the fourth quarter and full year ended December 31, 2012.

Financial Highlights for the Fourth Quarter, 2012

  • Revenues for the fourth quarter increased 17% year over year to $35.7 million from $30.5 million.
  • Non-GAAP operating income increased 13% to $5.1 million, compared to $4.5 million in the same period last year; Operating income for the fourth quarter increased 2% to $4.3 million, compared to $4.2 million in the same period last year.
  • Non-GAAP net income increased 9% to $5.1 million, compared to $4.7 million in the same period last year; Net income for the fourth quarter decreased 3% to $4.3 million compared to $4.4 million in the same period last year. The decrease was mainly attributable to tax expenses recorded with respect to the utilization of deferred tax assets.    

Financial Highlights for the Full Year Ended December 31, 2012

  • Revenues for the year ended December 31, 2012, reached $126.4 million, an increase of 12%, compared to $113.3 million in 2011.
  • Non-GAAP operating income for the year increased 29% to $18.6 million, compared to $14.5 million in the same period last year; Operating income for the year ended December 31, 2012, increased 11% to $16.4 million compared to $14.7 million in the same period last year.
  • Non-GAAP net income for the year increased 24% to $18.3 million, compared to $14.8 million in the same period last year; Net income for the year ended December 31, 2012, increased 8% to $16.2 million compared to $15.0 million in the same period last year.
  • Total cash, cash equivalents and short-term investments as of December 31, 2012, amounted to $38.8 million, with zero debt (after a cash dividend of $3.7 million paid during the fourth quarter).
  • Operating cash flow for the year ended December 31, 2012 totaled $18 million.

Results

  • For the fourth quarter ended December 31, 2012, total revenues were $35.7 million, with net income of $4.3 million, or $0.12 per fully diluted share. This compares with revenues of $30.5 million and net income of $4.4 million, or $0.12 per fully diluted share for the same period last year.
  • For the fourth quarter of 2012, operating income was $4.3 million. This compares to operating income of $4.2 million for the same period a year ago.
  • For the year ended December 31, 2012, total revenues were $126.4 million, with net income of $16.2 million, or $0.44 per fully diluted share. This compares with revenues of $113.3 million and net income of $15.0 million, or $0.41 per fully diluted share, for the same period last year.
  • Operating income for the year ended December 31, 2012, was $16.4 million. This compares to operating income of $14.7 million for the same period a year ago.

Comments of Management

Guy Bernstein, Chief Executive Officer of Magic Software Enterprises, said, "2012 was an excellent year for Magic, with strong performance across our products and professional services in all regions.

"We are proud to be continuing to produce record-breaking financial results for our shareholders and that our strong cash position has enabled us to continue to make important growth investments in our product portfolio.

"We believe we are well-positioned to continue our growth track in 2013 with our powerful and versatile enterprise-grade application development and integration solutions that enable enterprise mobility, enhance productivity and increase profitability. We are further enhancing our offerings by strengthening our relationships with partners and vendors in the enterprise mobility and enterprise software ecosystems, like Samsung, SAP, Salesforce.com, Oracle JDE, IBM and Microsoft SharePoint," added Bernstein.

Non-GAAP Financial Measures

This release includes non-GAAP operating income, net income, basic and diluted earnings per share and other non-GAAP financial measures. These non-GAAP measures exclude the following items:

  • Amortization of purchased intangible assets
  • In-process research and development capitalization and amortization
  • Equity-based compensation expense
  • And the related tax effects of the above items

Magic Software's management believes that the presentation of non-GAAP measures provides useful information to investors and management regarding financial and business trends relating to the Company's financial condition and results of operations as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.

These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Magic Software believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Magic Software's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Magic Software's results of operations in conjunction with the corresponding GAAP measures.

Refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.

About Magic Software Enterprises

Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) is a global provider of mobile and cloud-enabled application and business integration platforms.

For more information, visit http://www.magicsoftware.com/en/company/?catID=6.


   
Press Contact:
Tania Amar, VP Global Marketing
Magic Software Enterprises
Tel: +972(0)3-538-9300
tania@magicsoftware.com

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both here and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

Magic is a registered trademark of Magic Software Enterprises Ltd. All other product and company names mentioned herein are for identification purposes only and are the property of, and might be trademarks of, their respective owners.

    MAGIC SOFTWARE ENTERPRISES LTD.
    CONSOLIDATED STATEMENTS OF INCOME
    U.S. dollars in thousands (except per share data)

                                           Three months ended        Year ended
                                              December 31,          December 31,
                                       -----------------------   --------------------
                                            2012          2011      2012         2011
                                       ---------   -----------   -------   ----------
                                                Unaudited      Unaudited
                                       -----------------------   -------
    Revenues                              35,730        30,483   126,380      113,328
    Cost of Revenues                      20,792        17,968    73,393       67,258
                                       ---------   -----------   -------   ----------
    Gross profit                          14,938        12,515    52,987       46,070
                                       ---------   -----------   -------   ----------
    Research and development, net            813           469     2,947        2,047
    Selling, marketing and general and
    administrative expenses                9,867         7,870    33,632       29,306
    Total operating costs and expenses    10,680         8,339    36,579       31,353
                                       ---------   -----------   -------   ----------
    Operating income                       4,258         4,176    16,408       14,717
                                       ---------   -----------   -------   ----------
    Financial income (expenses), net         193           (90)       10          221
    Other income, net                          -            33       136          125
                                       ---------   -----------   -------   ----------
    Income before taxes on income          4,451         4,119    16,554       15,063
    Taxes on income                           52          (270)       94         (203)
    Minority interest                       (146)          (24)     (277)        (222)
                                       ---------   -----------   -------   ----------
    Net income                             4,253         4,365    16,183       15,044

    Net earnings per share
    Basic                                   0.12          0.12      0.44         0.41
    Diluted                                 0.12          0.12      0.44         0.41

    Weighted average number of shares used in
    computing net earnings per share

    Basic                                 36,553        36,348    36,502       36,268
                                       =========   ===========   =======   ==========

    Diluted                               37,042        37,010    37,108       37,046
                                       =========   ===========   =======   ==========


    MAGIC SOFTWARE ENTERPRISES LTD.
    RECONCILIATION BETWEEN GAAP AND NON-GAAP
    STATEMENTS OF INCOME FOR COMPARATIVE PURPOSES
    U.S. dollars in thousands (except per share data)

                                                 Three months ended          Year ended
                                                    December 31,            December 31,
                                             ----------------------  --------------------
                                                2012           2011     2012         2011
                                             -------       --------  -------     --------
                                                     Unaudited              Unaudited
                                             ----------------------  --------------------

    GAAP operating income                      4,258          4,176   16,408       14,717
    Amortization of capitalized software
    and other intangible assets                2,376          1,506    6,687        4,335
    Capitalization of software development    (1,625)        (1,376)  (4,969)      (5,222)
    Stock-based compensation                      75            186      515          633
                                             -------       --------  -------     --------
    Total adjustments to GAAP                    826            316    2,233         (254)
                                             -------       --------  -------     --------
    Non-GAAP operating income                  5,084          4,492   18,641       14,463
                                             -------       --------  -------     --------

    GAAP net income                            4,253          4,365   16,183       15,044
    Amortization of capitalized software
    and other intangible assets                2,376          1,506    6,687        4,335
    Capitalization of software development    (1,625)        (1,376)  (4,969)      (5,222)
    Stock-based compensation                      75            186      515          633
    Taxes on the above items                      17              -      (98)           -
    Total adjustments to GAAP                    843            316    2,135         (254)
                                             -------       --------  -------     --------
    Non-GAAP net income                        5,096          4,681   18,318       14,790
                                             =======       ========  =======     ========

    Non-GAAP basic net earnings per share       0.14           0.13     0.50         0.41
                                             =======       ========  =======     ========
    Weighted average number of shares used in
    computing basic net earnings per share    36,553         36,348   36,502       36,268
                                             -------       --------  -------     --------

    Non-GAAP diluted net earnings per share     0.14           0.13     0.49         0.40
                                             =======       ========  =======     ========
    Weighted average number of shares used in
    computing diluted net earnings per share  37,091         37,084   37,198       37,137
                                             -------       --------  -------     --------


    MAGIC SOFTWARE ENTERPRISES LTD.
    CONSOLIDATED BALANCE SHEETS
    U.S. dollars in thousands


                                                    December 31,  December 31,
                                                   -------------  ------------
                                                        2012          2011
                                                   -------------  ------------
                                                      Unaudited
                                                   -------------

    ASSETS
    CURRENT ASSETS:
    Cash and cash equivalents                             37,582        28,711
    Short-term bank deposits                                 325         2,170
    Available-for-sale marketable securities                 890         1,241
    Trade receivables, net                                28,367        24,946
    Other accounts receivable and prepaid expenses         6,533         6,401
                                                   -------------  ------------
    Total current assets                                  73,697        63,469
                                                   -------------  ------------

    LONG-TERM RECEIVABLES:
    Severance pay fund                                       351           351
    Other long-term receivables                            2,287         3,824
                                                   -------------  ------------
    Total other long-term receivables                      2,638         4,175

    PROPERTY AND EQUIPMENT, NET                            1,898         2,029
    IDENTIFIABLE INTANGIBLE ASSETS AND
    GOODWILL, NET                                         74,005        66,298
                                                   -------------  ------------

    TOTAL ASSETS                                         152,238       135,971
                                                   =============  ============

    LIABILITIES AND EQUITY

    CURRENT LIABILITIES:
    Short-term credit and current maturities
    of long term loans                                        12             4
    Trade payables                                         4,722         3,545
    Accrued expenses and other accounts payable           18,717        15,748
    Deferred tax liabilities                               2,355         2,509
    Deferred revenues                                      4,160         5,359
                                                   -------------  ------------
    Total current liabilities                             29,966        27,165
                                                   -------------  ------------

    NON CURRENT LIABILITIES:
    Long-term loans                                           12             9
    Deferred tax liabilities                                 738           735
    Liability due to acquisition activities                    -         1,350
    Accrued severance pay                                  1,245         1,087
                                                   -------------  ------------
    Total non-current liabilities                          1,995         3,181
                                                   -------------  ------------

    EQUITY:
    Magic Shareholders' equity                           117,786       105,156
    Non-controlling interests                              2,491           469
                                                   -------------  ------------
    Total equity                                         120,277       105,625

    TOTAL LIABILITIES AND EQUITY                         152,238       135,971
                                                   =============  ============


SOURCE Magic Software Enterprises Ltd

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.