Or Yehuda, Israel (February 2, 2004) - Magic Software Enterprises (NASDAQ: MGIC), a leading provider of state-of-the-art business integration and development technology, announced today results for the fourth quarter 2003 and year ended December 31, 2003.
Total revenues for the fourth quarter ended December 31, 2003 were .30 million, an increase of 26% from .76 million for the comparable quarter of 2002 and 10% from the .67 million posted in the third quarter of 2003.
Net profit for the fourth quarter of 2003 was .23 million (or .04 cents per share) as compared with a net loss of .29 million (or (.11) cents per share) for the fourth quarter of 2002 and increased 51% from net profit of 3 thousand (or .03 cents per share) for the third quarter of 2003.
Software license sales for the quarter, at .36 million, increased substantially by 78% from .58 million for the fourth quarter of 2002 and by 34% from .75 million in the third quarter of 2003. Application sales were .25 million for the fourth quarter, up 80% from .25 million for the fourth quarter of 2002 and up 32% from the .70 million posted in the third quarter of 2003.
In the fourth quarter of 2003, Europe accounted for 42% of the Company's total revenues, North America for 31% and Asia/Pacific for 27%.
For the year ended December 31, 2003, Magic reported total revenues of .39 million as compared with .00 million in the previous year, an increase of 6%. Net profit for 2003 was .07 million (or .10 cents per share), as compared with a net loss of .66 million (or (.19) cents per share) in 2002.
Software license sales for 2003 were .71 million, an increase of 30% from .14 million in 2002. Application sales for the year were .28 million as compared to .36 million for 2002, while consultancy and other services in 2003 were .55 million, down 4% from .63 million in 2002.
In 2003, Europe accounted for 39% of Company revenues, North America for 33% and Asia/Pacific for 28%.
"In order to meet our primary goal for 2003, to turn the company around, we implemented a powerful long term business model that we believe will bring consistent revenue growth, profitability and an upward trend for software license sales growth, a model that has already proven effective this year" said Menachem Hasfari, chief executive officer of Magic Software Enterprises. "We succeeded in meeting and beating our objectives on the financial side, and have far exceeded our expected growth in terms of software license sales."
"We are extremely satisfied with the acceptance that our iBOLT Integration Suite, which we launched in 2003, is receiving in the market," stated Hasfari. "Our iBOLT strategy is being implemented at a rapidly growing pace. We are succeeding in positioning ourselves in a leading spot in the business integration and process management market segments, a position which has been acknowledged by the leading industry analyst groups."
Hasfari continued, "We are also very happy with the reception that the recent release of eDeveloper has garnered in our customer base and with prospects. Magic Software's success is a direct result of the return on investment we are providing our customers and partners, as well as our ability to incorporate feedback and deliver on promises. With excellent products, dedicated employees and management in place, Magic Software is poised for significant double-digit growth in 2004."
About Magic Software Enterprises
Magic Software Enterprises, a subsidiary of Formula Systems (NASDAQ: FORTY), develops, markets and supports software development, deployment and integration technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems. Magic technology, applications and professional services are available through a global network of subsidiaries, distributors and Magic solutions partners in approximately 50 countries, including the UK. http://www.magicsoftware.com/.
Formula Systems is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and producing computer-based solutions.
Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both here and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.
Magic Software Enterprises UK Ltd
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