|
Monday November 20, 6:35 am Eastern Time
Formula Systems Ltd. Reports Third Quarter Results
Record Third Quarter Revenues of $106 Million
HERZLIYA, Israel, Nov. 20 /PRNewswire/ -- Formula Systems Ltd.,
(Nasdaq: FORTY - news), a leading provider of information technology products,
solutions and services, today announced its financial results for the third
quarter ended September 30, 2000.
Record revenues for the third quarter of 2000 totaled approximately
$106 million, compared to approximately $90 million in the third quarter of
1999. In excess of 50% of these revenues during the quarter were derived from
international sales. Revenues for the nine months ended September 30, 2000,
amounted to approximately $298 million compared to approximately $254 million
in the same period of last year.
Financial income in the third quarter of 2000, amounted to approximately
$1.2 million, compared to $4.9 million in the third quarter of 1999. The
decrease resulted from the devaluation of the US Dollar, and especially, the
European currency, the Euro, compared to the Israeli Shekel, as well as the
decrease in marketable securities valuation of the Company portfolio.
Net income for the first nine months of 2000, was approximately
$46 million, or $4.93 per share, compared to approximately $37 million, or
$3.96 per share in the first nine months of 1999. Net income for the third
quarter of 2000 was approximately $265 thousand, or $0.03 per share, compared
to approximately $7.6. million, or $0.83 per share in the same period of 1999.
During the quarter, the Company continued to implement its declared policy
to encourage its subsidiaries to aggressively accelerate the software
development of their products and solutions and to strengthen their marketing
and selling efforts to continue to expand in international markets.
On November 15, 2000, the Company completed its tender offer to purchase
its subsidiary shares, ForSoft, for $9 per share. Primarily results indicated
that the Company is in the position of holding more than 90% of the
outstanding shares of ForSoft. Final results are expected to be announced at
the end of business day of today.
Gad Goldstein, President of Formula said, "While the terms to create short
term capital gains were somewhat limited in this quarter, the environment had
changed favorably towards new possibilities that can sustain long term growth.
We are now concentrating on enhancing value activities. Such activities
include, among others, massive investments in R&D in most of our subsidiaries.
This effort is undertaken in order to reduce time to market to new and
innovative products and solutions. In addition, we continue to increase our
share in our publicly traded subsidiaries and have undertaken a more
aggressive acquisitions policy both for our subsidiaries and the Company.
With our strong financial position, we are extremely well poised to capitalize
on opportunities that the market presents to us and can set the ground work
for further enhancement of our net assets value in the near future."
Conference Call:
Formula Systems Ltd. will host a conference call on its earnings on
Monday, November 20, at 12:00 PM (EST). To participate, interested parties
should call the appropriate telephone numbers listed below five to ten minutes
prior to the start of the telephone conference call.
In the US: 1-800-288-8968.
Internationally: 1-612-332-0802.
Replay (Post View) Information.
The Formula Systems Ltd. conference call is available for replay starting
at 2:00 PM (EST) on Monday, November 20, thru Monday, November 27.
To enter the call, US Participants should call: 1-800-475-6701.
International participants should call: 1-320-365-3844
POST VIEW LISTENERS MUST MENTION
RESERVATION NUMBER 551253
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. Formula maintains its accounts in New Israeli Shekels ("NIS"). All US
dollar figures represent an exchange rate of NIS 4.024 to $1.00 at September
30, 2000. This press release contains 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 the Company'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 the Company's SEC filings.
FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
CONSOLIDATED BALANCE SHEETS
(Adjusted to the NIS of September 2000)
September 30, December 31,
2000 1999
Unaudited Audited
U.S. $
(in thousands)
Current Assets:
Cash and cash equivalents 189,739 153,331
Short-term Investments 39,673 25,797
Trade receivables 126,849 107,859
Other accounts receivable 27,977 37,450
Inventories 6,341 5,951
Work in progress, net of customer advances 14 2206
390,593 332,594
LONG-TERM INVESTMENTS, LOANS AND RECEIVABLES:
Loans and other investments 21,286 11,446
Investments in affiliates 8181 5,589
29,467 17,035
FIXED ASSETS, NET 39,311 33,898
OTHER ASSETS, NET 124,839 81,691
584,210 465,218
CURRENT LIABILITIES
Credit from banks and others 21,212 27,311
Trade payables 41,902 37,099
Other accounts, payable 68,490 66,916
Customer advances, net of work in progress 375 530
131,979 131,856
LONG-TERM LIABILITIES
Customer advances 1,042 552
Liabilities to banks and others 2,551 8,116
Severance pay 5,514 3,444
Unrealized gain 13,015 8,403
22,122 20,515
Minority Interest 196,349 125,524
SHAREHOLDERS' EQUITY
Share capital 4,007 3,994
Translation adjustments (1,380) 39
Other capital surplus 72,130 70,556
Retained earnings 159,003 112,734
233,760 187,323
584,210 465,218
FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
CONSOLIDATED STATEMENTS OF INCOME
(adjusted to the NIS of September 2000)
Nine Months Three Months Year ended
ended ended
2000 1999 2000
1999 1999
(Unaudited) (Unaudited) Audited
U.S.$ U.S.$ U.S.$
(in thousands, except per share data)
Revenues 297,797 254,229 105,973 90,367 344,626
Cost of
revenues 176,422 151,301 65,468 52,595 202,838
Gross Profit 121,375 102,928 40,505 37,772 141,788
Software
development
costs, net 13,909 9,022 4,414 3,347 13,297
Selling
expenses 41,740 31,916 14,145 11,960 43,664
General and
administrative
expenses 50,147 36,741 17,347 13,328 51,635
Operating
income 15,579 25,249 4,599 9,137 33,192
Financial
income, net 9,605 5,994 1,229 4,894 6,004
25,184 31,243 5,828 14,031 39,196
Other
expenses, net (7,440) (4,598) (4,277) (1,571) (9,864)
Gain on
realization of
shareholdings 66,840 43,068 2,189 6,113 61,854
Income before
taxes on
income 84,584 69,713 3,740 18,573 91,186
Taxes on
income 13,023 16,081 401 3,923 19,916
71,561 53,632 3,339 14,650 71,270
Company's
equity in
results of
affiliates,net (2,760) (1,477) (1,626) (201) (1,789)
Minority
interest, net (22,532) (15,032) (1,448) (6,859) (22,037)
Net income 46,269 37,123 265 7,590 47,444
Earnings per share-basic and fully-diluted:
Net earnings 4.93 3.96 0.03 0.83 5.06
 
|
 |
