Magic reports higher profit

Guy Bernstein

The Israeli software company's was up 36% to $60.8 million.

"We are glad to report a strong opening to 2017, with record revenue and over 10% growth in revenue and profit," Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC) CEO Guy Bernstein said yesterday.

Magic today published its first quarter financial statements. Revenue was up 36% to $60.8 million, and operating profit rose from $5.3 million in the first quarter of 2015 to $6.3 million in the first quarter of 2017, a 20% increase. Non-GAAP operating profit jumped from $6.7 million in the first quarter of last year to $8.4 million in the first quarter of this year, a 26% rise.

Net profit available to shareholders totaled $4.3 million, $0.10 per share, fully diluted, compared with $3.7 million, $0.08 per share, fully diluted, in the corresponding quarter last year, a 16% increase. Non-GAAP net profit available to shareholders rose from $4.8 million, $0.11 per share, fully diluted, in the corresponding quarter in 2016 to $5.7 million, $0.13 per share, fully diluted, in the first quarter of 2017, a 19% increase.

Cash flow from current activity totaled $10.5 million in the quarter, compared with $12.2 million in the corresponding quarter last year. Magic had $99.8 million in cash at the end of the first quarter. Almost a year ago, Magic paid $21 million for 60% of the shares in Roshtov Software Industries, which developed the Clicks platform for development of apps and software.

Magic is projecting $225-230 million in revenue for 2017, 12-14% more than in 2016. "We're confident in our growth strategy, and are focusing on improving our supply of goods and services, both organically and through acquisition," Bernstein stated.

Magic is part of the Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT) group, controlled by Polish company Asseco. Magic, which develops and markets software development and integration tools, has a market cap of $357 million. The company's share price rose 3.6% yesterday.

Published by Globes [online], Israel Business News - www.globes-online.com - on May 17, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Guy Bernstein
Guy Bernstein
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