Formula Systems (FORTY)

[midastouch017]

Formula Systems Reports Second Quarter results
Thursday August 18, 1:00 am ET


HERZLIYA, Israel, Aug. 18 /PRNewswire-FirstCall/ -- Formula Systems (1985) Ltd. (Nasdaq: FORTY - News) a leading provider of information technology products, solutions and services, announced today results for the second quarter ended June 30, 2005.
ADVERTISEMENT


Total revenues for the second quarter ended June 30, 2005 were $126.4 million compared to $110.3 million in the comparable quarter of 2004, an increase of 15%. In the first six months of 2005, Formula reported revenues of $255.1 million, an increase of 16% from the same period last year.

Operating income in the second quarter of 2005 was $2.9 million compared to $3.7 million in the second quarter of 2004. In the first half of 2005 operating income increased to $8.7 million from $6.5 million in the comparable period of 2004.

In the second quarter the Company reported a net income of $111 thousands compared to net income of $2.0 million in the second quarter of 2004. Net income in the first six months of 2005 totaled $1.9 million compared to $4.7 million in the same period last year.

Gad Goldstein, President of Formula, commented: "I am satisfied with the revenue and operational growth of 16% and 33% respectively in the first half of 2005 as compared to the same period in 2004. Gain on realization of investments was substantially lower in the first six months of 2005 as compared to the same period of 2004 and had a negative impact on the net income for this period. Since capital gains do not occur on a regular basis it is difficult to control their timing. Based on our arsenal of potential capital gains, whose materialization we are working on, and encouraged by the nice head start of the Formula Telecom IPO in the AIM stock market, we believe that the second half net income will follow the positive trend of the revenues and operating income in the first half."

About Formula

Formula Systems Ltd. is a global 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.

http://biz.yahoo.com/prnews/050818/nyth030.html?.v=21

Dubi