Formula Systems' revenues up 27% as it returns to profitability

ZEV STUB
Jerusalem Post
02-19-2004
Headline: Formula Systems' revenues up 27% as it returns to profitability
Byline: ZEV STUB
Edition; Daily
Section: Economics
Page: 16

Thursday, February 19, 2004 -- Formula Systems said Wednesday it recorded net income of $3 million, or 29 cents per share, compared to a net loss of $8.1m., or 82 cents per share, in the fourth quarter of 2002.

The information-technology holding company's revenues rose 27% to $96.8m.

For 2003, net income was $3.1m., or 31 cents per share, compared with a net loss of $2.4m., or 24 cents, in 2002. Revenues rose 29% to $366.8m.

During the year, "We were able to build large and self-contained subsidiaries such as Matrix and BluePhoenix through a series of internal mergers and external acquisitions. We concluded the acquisition of Sapiens and its redirection into the insurance software arena. Our subsidiary Magic launched a new and exiting product, iBOLT, which we believe is going to lead Magic to rapid growth and improved profitability and we were able to increase the revenues of our privately held subsidiary nextSource by 200% from the previous year," Formula president Gad Goldstein said.

"Based on the encouraging results of the fourth quarter and the expected consolidation of Formula Vision with its exciting offspring portfolio, we have set our initial goals for 2004 of revenues exceeding $430m. and a substantial additional improvement in net profit."

Internet Gold's broadband clients rise 221% in 2003

Internet Gold's fourth-quarter net income was NIS 5.1m., or 28 agorot a share, compared to NIS 4.5m., or 24 agorot, for the 2002 period.

Revenues totaled NIS 47.5m. during the quarter, the same as a year earlier.

Net income for 2003 came to NIS 14.3m., or 78 agorot per share, compared with NIS 20m., or NIS 1.08 per share, in 2002. Revenues for the year were NIS 179.6m., compared with NIS 184.3m. in 2002.

The company's broadband customer base increased by 221% in 2003, significantly higher than the overall market's growth rate, it noted. It rose by 28% in the fourth quarter alone.

"Another optimistic development is the sharp upturn in the Israeli interactive advertising market overall, which increased 50% in 2003," CEO Eli Holtzman said. "MSN Israel, Internet Gold's partnership with Microsoft, exceeded that figure, posting a 59% revenue increase in 2003, thus further increasing its market share."

The company plans to increase its prices in the coming year, Holtzman noted.

VCON narrows Q4 loss

VCON narrowed its net loss to $1.3m. in the fourth quarter, from $1.4m., excluding one-time write-offs, in the fourth quarter of 2002.

The provider of audio and videoconferencing solutions' revenues fell 3% from the parallel quarter to $4.6m.

"2003 was a year of transition. We invested in the development of our new product lines, accomplished two significant acquisitions and centralized our sales and marketing organizations," chairman and CEO Yair Shamir said.

"The signing of our recent round of financing reflects the confidence of both new and existing shareholders representing leading venture capital firms," CFO Jack Wakileh added. "The closing of this transaction will significantly bolster our balance sheets and strengthen our ability to execute our plans."

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