Magic Software Reports Strong Results for Q1 2010: Revenues of $19.7M;
Net Income More than Doubles to $2.1M (Non-GAAP) and $1.9M (GAAP)
Or-Yehuda, Israel, April 26, 2010 – Magic Software Enterprises L td. (NASDAQ: MGIC), a global provider
of application platforms and business and process integration solutions, today announced its financial results for
the first quarter ended March 31, 2010.
Financial Highlights for the First Quarter
For the quarter ended March 31, 2010, total revenues were $19.7 million, with net income of $1.9 million, or
$0.06 per diluted share. This compares with revenues of $13.8 million and net income of $0.7 million, or $0.02
per diluted share, for the same period last year.
Operating income was $1.8 million for the first quarter of 2010. This compares to operating income of $0.7
million for the same period last year.
Total cash and cash equivalents , short-term bank deposits and short term investments in marketable securities
as of March 31, 2010 was $24.6 million following the payment of a cash dividend during the first quarter of
approximately $16.0 million (or $0.50 per share), and an $8.0 million payment towards the purchase of the
assets of an IT services company. This compares to $41.9 million as of December 31, 2009.
“We are pleased to report strong revenues and operating income for the quarter resulting from the growing
demand for our software solutions. The number of new customers using our products increased during the
quarter and we improved sales of software licenses,” said Guy Bernstein, acting chief executive officer of Magic
Software. “Additionally, our most recent acquisition of the assets of an IT services company positively impacted
the quarter and contributed to both our top and bottom lines.”
“The operational changes implemented in 2009 and our technology roadmap enables us to offer enterprise
customers, ISVs and other p