Magic Software Enterprises Ltd. (MGIC) has reported a net profit for the first quarter of 2004 of $718,000 (or $0.02 per share) compared with a net profit of $272,000 (or $0.01 per share) in the first quarter of 2003, an increase of 164%.
Gross profit margin in the first quarter of 2004 was 61%, an increase from a margin of 59% in the comparable quarter of 2003.
Total revenue for the first quarter ended March 31, 2004 was $16.45 million, an increase of 9% from $15.13 million in the comparable quarter of 2003.
License sales for the quarter, at $5.5 million, increased 34% from $4.1 million in the first quarter of 2003. Application sales were $1.7 million in both the current quarter and the comparable quarter of 2003.
Revenues from consulting and other services, at $6.5 million, decreased from $6.8 million for the first quarter of 2003. Revenues from maintenance and support, at $2.8 million, increased from $2.6 million in the same period of 2003.
In the first quarter of 2004, Europe accounted for 42% of total revenues, while North America and Asia/Pacific accounted for 30% and 28%, respectively.
Magic Software CEO Menachem Hasfari said that sales of the iBOLT product in the first quarter of 2004 were 40% higher than the last quarter of 2003 with the average iBOLT deal getting bigger in volume. "iBOLT is also providing us with entry into significant new customers as well as many new partners who have signed up for the iBOLT Integration Partner Program in recent months."
Among the significant new iBOLT deals closed during the quarter were the Caribbean's resort group SuperClubs; Connecticut business organization CIBA; SCH (Specialist Computer Holdings) Group, Europe largest privately owned technology group; French optical chain KRYS; and a cellular operator described as "one of Europe's largest".
In addition, a large Asian airfreight company will implement Magic's "Hermes Logistics", an eDeveloper-based air cargo management and cargo handling system. Magic Software Japan signed a memorandum of understanding for joint business development with Fujitsu Ltd., to sell eDeveloper in conjunction with Fujitsu's Interstage Application Server. Orders for eDeveloper licenses were received from Adapt and Vadim in the US, Bull in France, Marsh Insurance in Germany, Fujitsu in Japan, Maariv and Clalit Health in Israel.
Published by Globes [online] - www.globes.co.il - on Wednesday, May 12, 2004