Magic reports 8th straight quarter of double-digit growth

Revenue rose 34% to $30 million and net profit rose 60% to $4 million.

Mobile and cloud enterprise solutions developer Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC) reported strong revenue and profit growth for the third quarter of 2011 - its eighth consecutive quarter of double-digit growth. Revenue rose 34% to $30 million from $22.4 million for the corresponding quarter of 2010, and net profit rose 60% to $4 million ($0.11 per share) from $2.5 million. The company beat the analysts' forecast of $0.09 earnings per share on $27.3 million revenue.

Magic had $46.6 million in cash and cash equivalents at the end of September, some of which was used last week to buy the AppBuilder business of BluePhoenix Solutions Ltd. (Nasdaq: BPHX; TASE: BPHX) for $17 million.

Magic CEO Guy Bernstein said, "Moving forward, we expect to see significant customer adoption of our expanded mobile offering and cloud-based application platform, both of which deliver technologies that are central to many enterprises' IT strategy. We will also continue to make strategic technology acquisitions, such as the recently announced purchase of BluePhoenix's AppBuilder activity, which will strengthen our position as a global provider of application development platforms.

Magic is a subsidiary of Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT), which is controlled by Asseco Poland SA (WSE: ACP).

Magic's share price rose 8.9% on Nasdaq yesterday to $5.29, giving a market cap of $170 million, but fell 1.5% in early trading on the TASE today to NIS 19.45.

Published by Globes [online], Israel business news - - on November 3, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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