Magic presents dip in Q3 sales

Q3 revenues were $19 million, against $25m in parallel and $20m for Q2
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Magic Software Enterprises (Nasdaq:MGIC) today said its software tool and application sales had slightly improved over the previous quarter, despite the slowdown.

But its revenues were sharply down from the corresponding quarter of 2000, and slightly down from the previous quarter, while losses climbed.

Quarterly revenues this year were $18.94 million as compared with the $25.46 million reported for the comparable period in 2000 and the $20.19 million posted for the second quarter of 2001.

Pro forma net loss for Q3 was $2.58 million or $0.09 loss per share compared with the $1.16 million net income or $0.04 earnings per share recorded one year ago.

GAAP net loss for the third quarter of 2001 was $2.58 million or $0.09 loss per share compared with the $1.16 million net income or $0.04 earnings per share recorded one year ago.

Software tool sales for the quarter, at $4.93 million, were up slightly from the $4.58 million posted for the parallel.

Application sales also were slightly improved, totaling $3.21 million for the quarter as compared with $3.07 million for the corresponding quarter of 2000.

The decrease in consultancy and other services was due primarily to the drop in revenues from CoreTech Consulting Group, which is hurting badly from the slowdown.

During the third quarter, Magic said, it closed significant deals with Menzies World Cargo of the U.K., the SAPA group and EXMA CPI of France, and Israel's Bank Hapoalim.