Translation software developer Babylon Ltd. (TASE:BBYL) achieved further growth in the first quarter of 2010. Revenue rose 26% to NIS 24.2 million for the first quarter from NIS 19.2 million for the corresponding quarter of 2009.
However, net profit fell to NIS 2.9 million (NIS 0.20 per share) for the first quarter from NIS 8.4 million for the corresponding quarter.
Babylon paid NIS 836,000 in taxes in the first quarter, compared with a tax refund of NIS 4.2 million in the corresponding quarter. The company does not yet pay income taxes because it is still using up its accumulated losses.
Net cash flow from operations rose ten-fold to NIS 8.7 million for the first quarter from NIS 840,000 for the corresponding quarter.
Babylon CEO Alon Carmeli said, "Internet advertising and a focus on sales drove growth in this quarter too. In contrast, the slowdown in sales to enterprises continued, partly due to seasonal factors in the first quarter, and partly due to the market climate."
Babylon's share was unchanged in morning trading at NIS 5.63, giving a market cap of NIS 251 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2010
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