Formula Systems Reports Fourth Quarter and Year-End Results, Record EPS of $4.93 Per Share for the Year Ended 1999
HERZLIYA, Israel, March 2 /PRNewswire/ -- Formula Systems (1985) Ltd.,
(Nasdaq: FORTY), a leading international provider of information technology products and services, announced today its financial results for the three
month period and year ended December 31, 1999.
Revenues for the fourth quarter of 1999 were $88 million, compared to 84.7 million in the same period of 1998. Revenues for the year ended December 31, 1999 were $335.5 million, compared to $262.7 million for the year
1998.
Gross margin for the fourth quarter increased to 43% ($37.8 million), as compared to 39%, ($33 million) in the fourth quarter of 1998. Gross margin for the year ended, December 31, 1999 was 41%, ($138 million), as compared to
35.5% in 1998 ($93.2 million). The constant improvement in the gross margin
during the year 1999, was driven by increased revenue contribution from the
higher margin export-oriented proprietary software solutions.
Net income for the fourth quarter of 1999 was $10 million, or $1.07 per share,
as compared to $5.7 million, or $0.59 per share, for the same period in 1998.
Net income for the year ended December 31, 1999 totaled $46.2 million, or $4.93 per share, compared to net income of $27 million, or $3.17 per share in 1998.
Dan Goldstein, Chairman of the Board of Formula Systems Ltd. said, "We are very pleased with our annual and fourth quarter results. Throughout 1999, we engaged successfully in a restructuring process of creating larger subsidiaries, with greater efficiencies and synergies in order to simplify the corporate structure and to build upon our successful IT operations worldwide.
As part of this process, in the second quarter we merged Nikuv into our subsidiary ForSoft and in the third quarter, we merged F.C.T. into our subsidiary Applicom. In addition, during the past year, we significantly increased our presence in the Web technology and e-business applications area through most of our subsidiaries (Crystal, Magic, ForSoft, Applicom etc.) We accomplished this both by acquisitions and internal development within these subsidiaries."
Mr. Goldstein said, "Also during the year 1999, our venture fund, Formula Ventures, completed a round of financing bringing its size to approximately
$86 million. I am very pleased that we have accomplished our stated objectives during 1999 and our goal to continue to enhance value for our shareholders."
Mr. Goldstein added, "As previously announced, Formula is going to open the year 2000 with a capital gain, net after tax, of $31 million in the first quarter of 2000 due to the public offering of its subsidiary Magic Software Enterprises."
Formula Systems will be holding an investor call on Thursday, March 2, 2000, at 12:00 PM (EST) to discuss 1999 earnings.
In the United States, the conference call dial-in number is 1-800-841-9385. International callers should dial 1-203-498-0057, to gain access to the call. A conference call playback will be available from
Thursday, March 2 at 2:00 PM (EST) and ending at 11:00 PM (EST) on Sunday,
March 6. The playback can be accessed by dialing I-888-836-6074 within the
United States, and 1-703-925-2505 for international callers. The access code
for the playback is 58408.
Formula Systems Ltd. is an international information technology company
principally engaged, through its subsidiaries and affiliates, in providing
software consulting services, developing proprietary software products and
providing computer-based business solutions.
Formula maintains its accounts in New Israeli Shekels ("NIS"). All U.S.
dollar figures represent an exchange rate of NIS 4.143 to $1.00 at
December 31, 1999.
This press release contains forward-looking statements. Such statements
involve various risks that may cause actual results to differ materially.
These risks and uncertainties include, but are not limited to: market demand
for the company's products, successful implementation of the company's
products, economic and competitive factors, international market conditions,
technological developments, the ability to finance operations and other
factors which are detailed in the Company's SEC filings. |
