Hugo Goldman, the Company's Chief Financial Officer, said, "We had solid financial results in the second quarter of 2010, reporting growth in total revenues and income from operations both when compared to the previous quarter and the year ago period. Our second quarter Non-GAAP Net Income was also a slight improvement versus the first quarter despite increased financial expenses due to currency fluctuations and its impact on the value of our non-dollar assets. We were able to achieve a better than 10% operating margin Non-GAAP in the second quarter of 2010 by focusing on efficient operations while we continue to recruit and increase our total headcount in key areas such as customer facing operations, R&D and services. We also maintained positive cash flows, generating $4 million from operations and a solid balance sheet with more than $107.5 million in cash and cash equivalents, deposits and marketable securities and negligible debt."
Outlook for FY 2010
Sheffer added, "Overall we are satisfied by the progress we made in the first two quarters of 2010. We achieved our financial goals for the first half and we continue to receive positive feedback from our customers and see good acceptance and interest in our solutions. While there continues to be caution over the rate of recovery for the global economy and inconsistencies by geography, opportunities exist based on the individual customer's market and the local versus global economy.
"We see initial signs of growth, and while there continues to be uncertainty in the economy, the results of the first half give us confidence in our guidance for 2010. We are refining our guidance and we now expect total revenues for 2010 of between $200 and $210 million and similar or better profitability than 2009."Conference Call and Webcast Information Retalix will be holding a conference call to discuss results for the second quarter 2010 on Wednesday, August 11 th at 9:00 am Eastern Time (4:00 pm Israel Time). This conference can be accessed by all interested parties through the Company's web site at http://www.retalix.com/conference-call.cfm, which web site is not part of this press release. For those unable to participate during the live broadcast, a replay will be available shortly after the call on Retalix's web site. About Retalix Retalix is an independent provider of software solutions to retailers and distributors worldwide. Retalix solutions serve the needs of grocery chains, convenience and fuel retailers, food and consumer goods distributors and independent grocers. The Company offers a portfolio of software applications that automate and synchronize essential retail and supply chain operations, encompassing stores, headquarters and warehouses. The Company's International headquarters are located in Ra'anana, Israel, and its American headquarters are located in Dallas, Texas. For more information about Retalix, please visit www.retalix.com, the contents of which are not part of this press release. Retalix is a registered trademark of Retalix Ltd. in the United States and in other countries. The names of actual companies, products and services mentioned herein may be the trademarks of their respective owners.