Matrix IT (TASE:MTRX), controlled by Dan Goldstein's Formula Systems (Nasdaq:FORTY; TASE:FORT), is continuing to expand its defense business. MatrixIT today announced that it had signed a $1.5 million contract to supply an information system to a Far Eastern army. MatrixIT CEO Moti Gutman said the name of the country was confidential at its request.
Gutman said the information system sold was for training simulators. "MatrixIT has developed technology combining simulation systems for various uses for land, sea and air forces," he said. "The system can display a very realistic training environment, using ordinary computers, and without the strong servers that were once needed because of the huge computing power necessary for the simulators to work."
MatrixIT sells its systems to both makers of simulators, such as Elbit Systems (Nasdaq:ESLT; TASE:ESLT), and directly to countries' militaries, which are the end customers for the simulators. The latest deal was of this type.
MatrixIT is Formula's largest and most important arm. Formula owns 60.4% of the company. MatrixIT posted a net profit of NIS 11.3 million on NIS 426.8 million in revenue in the first half of 2004, compared with a net loss of NIS 1.75 million in NIS 389 million in revenue in the first half of 2003. Its shareholders equity is NIS 154 million, amounting to 27% of its balance sheet total, and its cash and short-term investments total NIS 76.9 million. Its market cap is NIS 442 million.
Published by Globes [online] - www.globes.co.il - on September 14, 2004