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
Stock quotes in this article:
MGIC
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
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