SVP Group To Utilize iBOLT From Magic Software In Major Business Integration Project Valued At Over $1.5 Million
iBOLT to Be Used to Create Integrated System That Will Enable SVP to Better Respond to Customer Information Needs in a Real-Time and Proactive Manner
Thursday November 13, 7:03 am ET
IRVINE, Calif.--(BUSINESS WIRE)--Nov. 13, 2003-- Magic Software Enterprises (Nasdaq:MGIC - News), a leading provider of state-of-the-art business integration and development technology, announced today the signing of a major iBOLT deal with the French SVP Group, a global leading provider of business advisory, research and consulting services. The overall value of the project is expected to exceed $1.5 million.
SVP is an innovative knowledge services company that offers a full suite of custom business intelligence, advisory, and consulting solutions to address clients' critical business issues worldwide. They have chosen the iBOLT Integration Suite (www.magicsoftware.com/ibolt) as the primary integration and business process development framework as part of their strategy to provide their clients with timely information and customized integrated solutions.
For this project, SVP will work together with Magic Software and ESDS, a Magic iBOLT Integration partner in France. The project will involve the integration of complex systems and applications including SAP and Sage, other best-of-breed solutions, as well as homegrown applications. In addition, SVP will create new business processes to integrate with external suppliers and banking applications.
"With full responsibility for all of the information systems in the SVP Group, it is crucial for me to reduce complexities and cost, while working toward our goal of supplying real-time information to our client base in a proactive push format," said Christian Lamouroux, CIO of SVP Group. "iBOLT from Magic Software will enable us to rapidly and cost-effectively create the kind of federated architecture needed to implement this strategy, while leveraging, rather than replacing, our current IT infrastructures."
The nature of the SVP Group's business is one of integration, as they supply clients with domain expertise and consulting services by phone, fax and email. The Group's strategy is to push relevant and timely information to their client base via the Web and via other medias, to complement their expertise of client oriented refined analysis.
"We are very pleased to work with a market leader like SVP who has taken the strategic decision to use iBOLT for their EAI and BPM needs," said Menachem Hasfari, CEO of Magic Software. "The deal with SVP is a clear demonstration of iBOLT's ability to attract enterprises seeking integration solutions, an ability that we expect will help to generate many more iBOLT deals in the near future."
About SVP
SVP Group is a private company based in France that operates a worldwide network of organizations and independent consultants specialized in the provision of outsourced corporate intelligence services. Within the network, there are some 1,000 consultants worldwide serving more than 75,0000 executives in 11,000 companies across 50 countries. For more information please visit www.svp.com.
In the United States, SVP Group franchisee, FIND/SVP (OTCBB:FSVP - News) is the second largest member of the global SVP Group. FIND/SVP helps executives enhance their business performance, profit from opportunities and address critical issues through targeted research and advisory work, providing its nearly 2,000 member clients with a competitive business advantage. FIND/SVP is located at 625 Avenue of the Americas, New York, N.Y. 10011. More information is available by calling 212-645-4500 or visiting FIND/SVP's website at http://www.findsvp.com.
About Magic Software Enterprises
Magic Software Enterprises, a member of the Formula Group
(Nasdaq:FORTY - News) develops, markets and supports software development, deployment and integration technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems. Magic technology, applications and professional services are available through a global network of subsidiaries, distributors and Magic solutions partners in approximately 50 countries. The company's North American subsidiary is located at 17310 Redhill Avenue #270, Irvine, CA 92614-5637, telephone 800/345-6244, 949/250-1718, fax 949/250-7404,
http://www.magicsoftware.com/.
The Formula Group is an international information technology
company principally engaged, through its subsidiaries and affiliates,
in providing software consulting services, developing proprietary
software products and producing computer-based solutions.
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.
Consolidated Balance Sheets
(US Dollars in Thousands)
Sept. 30, Dec. 31,
2003 2002
(Unaudited)
Assets
Current assets
Cash and cash equivalents $12,797 $24,785
Trade receivables 17,306 13,605
Related parties 228 624
Other receivables and prepaid expenses 4,224 4,113
Inventories 191 175
Total current assets 34,746 43,302
Severance pay fund 1,699 1,465
Investments in affiliated companies 137 748
Fixed assets, net 7,896 8,432
Goodwill 20,649 20,721
Other assets, net 10,390 9,854
Total assets $75,517 $84,522
Liabilities
Current liabilities
Short-term bank debt $2,702 $3,464
Trade payables 2,690 2,831
Accrued expenses and other liabilities 14,850 13,703
Total current liabilities 20,242 19,998
Long-term loans 332 414
Accrued severance pay 2,105 1,861
Minority interests 1,227 1,228
Shareholders' equity
Share capital 788 788
Capital surplus 103,620 114,760
Treasury stock (5,773) (5,667)
Accumulated deficit (47,024) (48,860)
Total shareholders' equity $51,611 $61,021
Total liabilities and shareholders' equity $75,517 $84,522
Unaudited Consolidated Statement of Operations
(US Dollars in Thousands)
Three Months ended Nine Months ended
September 30, September 30,
2003 2002 2003 2002
Revenues
Software sales $4,750 $3,446 $13,352 $11,561
Applications 1,700 1,921 5,025 6,102
Maintenance 2,756 2,769 8,000 8,115
Consultancy & other services 6,462 5,685 19,718 20,465
Total Revenues $15,668 $13,821 $46,095 $46,243
Cost of Revenues
Software sales $1,150 $1,287 $3,559 $3,857
Maintenance 651 966 1,906 3,076
Consultancy & other services 4,039 4,603 12,489 14,481
Total Cost of Revenues $5,840 $6,856 $17,954 $21,414
Gross Profit $9,828 $6,965 $28,141 $24,829
Research & development, net 1,242 1,299 3,390 4,014
Sales, marketing, and general
& administrative expenses 6,928 7,317 21,274 22,042
Depreciation 502 414 1,312 1,283
Operating Income (Loss) $1,156 $(2,065) $2,165 $(2,510)
Financial income (loss), net (31) 63 199 575
Income (Loss) before taxes 1,125 (2,002) 2,364 (1,935)
Taxes on income 111 68 123 337
Income (loss) before minority
interests 1,014 (2,070) 2,241 (2,272)
Minority interests in
income of subsidiaries and
capital loss 166 85 370 103
Capital loss 35 35
Net income (loss) $813 $(2,155) $1,836 $(2,375)
Basic Earnings per Share $0.03 $(0.07) $0.06 $(0.08)
Diluted Earnings per Share $0.03 $(0.07) $0.06 $(0.08)
Weighted Avg. Shares Outstanding
(000) 29,480 29,748 29,488 29,752
Diluted Weighted Avg. Shares
Outstanding (000) 30,685 29,748 30,339 29,752
Contact:
Magic Software Enterprises Ltd.
David Leichner, 949-250-1718, ext. 299
davidl@magicsoftware.com
or
Guy Bernstein, +972-3-538-9292
gbernstein@magicsoftware.com
davidl@magicsoftware.com
 
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