Yigal Bar-Yossef Elected to Magic Software Board of Directors
Former Digital Equipment Corp. Ltd. CEO and President Brings Extensive Business Experience to Company
Tuesday February 10, 3:00 am ET
OR YEHUDA, Israel--(BUSINESS WIRE)--Feb. 10, 2004-- Magic Software Enterprises (Nasdaq:MGIC - News), a leading provider of state-of-the-art business integration and development technology, announced today the election of Yigal Bar-Yossef to its Board of Directors, as an outside director, and the resignation of Yigal Berman, who has served as a director since 1997 and has stepped down after six years of board membership. Bar-Yossef brings to Magic Software extensive business knowledge, including over 20 years of experience in the IT arena worldwide. He will head Magic's Board Audit Committee and the iBOLT Strategic Committee.
Bar-Yossef was the chief executive officer and president of Digital Equipment Corp. Ltd., from 1992 to 1997. From 1998 to 2001, he served as chief executive officer and president of Pelephone Communications Ltd., Israel's first cellular operator. Pelephone pioneered Israel's cellular communications revolution, resulting in one of the world's highest market penetration of mobile phones.
Bar-Yossef also served as senior vice president of sales and marketing at Amdocs Ltd., where he was instrumental in the Amdocs merger with Clarify.
"I would like to express our sincere appreciation for the dedicated service that Yigal Berman has provided to the Company during his tenure as a director," said David Assia, chairman of Magic Software Enterprises. "At the same time, we are delighted that Yigal Bar-Yossef has agreed to serve on Magic's Board of Directors. His extensive sales and marketing experience and knowledge accumulated from managing major corporations in diverse industries will undoubtedly strengthen the board and help guide the Company to continued growth and success."
Bar-Yossef served as a Director of Hirshzon Barak Ltd. and Aladdin Knowledge Systems Ltd. until 2003. He holds a B.A. degree in Economics and Systems Analysis and a MBA degree from the Hebrew University, Jerusalem
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/.
Formula Systems 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 Statement of Operations
(US Dollars in Thousands)
Three Months ended Twelve Months ended
December 31, December 31,
---------------------------------------
2003 2002 2003 2002
Revenues
Software sales $6,361 $3,575 $19,712 $15,136
Applications 2,252 1,253 7,277 7,355
Maintenance 2,852 2,767 10,853 10,882
Consultancy & other services 5,830 6,166 25,548 26,631
Total revenues $17,295 $13,761 $63,390 $60,004
Cost of revenues
Software sales $1,546 $1,795 $5,105 $5,652
Maintenance 674 1,024 2,580 4,100
Consultancy & other services 3,966 4,758 16,454 19,239
Total cost of revenues $6,186 $7,577 $24,139 $28,991
Gross profit $11,109 $6,184 $39,251 $31,013
Research & development, net 1,385 1,322 4,775 5,336
Sales, Marketing, General and
administrative expenses 7,813 6,920 29,087 28,962
Depreciation 415 450 1,727 1,732
Restructuring costs & non-
recurring expenses 1,123 1,123
Operating income (loss) $1,496 $(3,631) $3,662 $(6,140)
Financial income, net 108 383 307 958
Capital loss 8 - 42 -
Income (loss) before taxes 1,596 (3,248) 3,927 (5,182)
Taxes on income 106 (47) 230 (384)
Income (loss) before minority
Interest 1,490 (3,295) 3,697 (5,566)
Minority interests in
income of subsidiaries 224 115 594 11
Equity losses 36 (108) 36 (108)
Net income $1,230 $(3,288) $3,067 $(5,663)
Earnings (loss) per share,
basic and diluted $0.04 $(0.11) $0.10 $(0.19)
Basic weighted avg. shares
outstanding (000's) 29,947 29,599 29,624 29,690
Diluted weighted avg. shares
outstanding (000's) 31,319 29,599 30,533 29,690
Consolidated Balance Sheets
(US Dollars in Thousands)
December 31, December 31,
2003 2002
Assets
Current assets
Cash and cash equivalents $13,581 $24,785
Accounts receivable
Trade receivables 19,725 13,605
Related parties 48 624
Other receivables and prepaid expenses 3,500 4,009
Inventory 188 175
----------------------------
Total current assets 37,042 43,198
----------------------------
Severance pay fund 1,781 1,465
Long term receivables and investments 100 852
Fixed assets, net 7,855 8,432
Goodwill 21,155 20,839
Other assets, net 9,867 9,736
----------------------------
Total assets $77,800 $84,522
============================
Liabilities
Current liabilities
Short-term bank debt $2,357 $3,464
Trade payables 3,249 2,831
Accrued expenses and other liabilities 14,348 13,703
----------------------------
Total current liabilities 19,954 19,998
----------------------------
Long-term loans 299 414
Accrued severance pay 2,166 1,861
Minority interests 1,457 1,228
Shareholders' equity
Share capital 805 788
Capital surplus 104,685 114,760
Treasury stock (5,773) (5,667)
Accumulated deficit (45,793) (48,860)
----------------------------
Total shareholders' equity $53,924 $61,021
----------------------------
Total liabilities and shareholders' equity $77,800 $84,522
============================
Contact:
Magic Software Enterprises Ltd.
David Leichner, 949-250-1718 ext. 299
(Vice President, Worldwide Marketing)
davidl@magicsoftware.com
Guy Bernstein, +972-3-538-9292
(Vice President, Finance)
gbernstein@magicsoftware.com
 
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