Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC) reported double-digit revenue and profit growth for the first quarter of 2011, although the figures were similar to those for the preceding quarter. Revenue rose 29% to $25.5 million for the first quarter from $19.7 million for the corresponding quarter of 2010.
GAAP-based net profit rose 68% to $3.1 million ($0.09 per share) for the first quarter from $1.9 million for the corresponding quarter. Non-GAAP net profit rose 35% to $2.9 million ($0.08 per share) for the first quarter from $2.1 million for the corresponding quarter.
Cash flow from operations totaled $4.8 million in the first quarter. In late March, the company raised $21.2 million in a private placement. It had $50.2 million in cash and cash equivalents at the end of March.
Magic Software CEO Guy Bernstein said, "Despite the slowdown we are experiencing in Japan due to the current crisis, and the sluggishness of the economic recovery in the US and Europe, Magic has continued to perform well in all centers of activity around the world."
Magic's share price fell 0.8% on Nasdaq yesterday to $7.31, giving a market cap of NIS 234 million, and fell a further 4.2% in after-hours trading. The share price fell 5.4% by midday on the TASE to NIS 23.65.
Magic's share price has risen 230% in the past seven months, although it has fallen from its peak market cap of $335 million reached a few weeks ago.
Published by Globes [online], Israel business news - www.globes-online.com - on April 28, 2011
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