Magic Software Reports Record Results for Q4 and Full Year 2010

Magic Software, an Israeli company from Asseco Group, more than Doubles its Year-over-Year Annual Income and Reports Annual Operating Cash Flow of $11.7 Million.

Magic Software Enterprises Ltd., (NASDAQ: MGIC) a global provider of application platforms and business and process integration solutions, announced its financial results for the fourth quarter and full year 2010.

For the fourth quarter ended December 31, 2010, total revenues were $25 million, with net income of $3.1 million. This compares with revenues of $14.5 million and net income of $1.5 million (excluding a $2.0 million one-time capital gain), for the same period last year. 

For the year 2010, total revenues were $88.6 million, with net income of $9.4 million. This compares with revenues of $55.4 million and net income of $4.2 million, for the same period last year (excluding a $2.0 million one-time capital gain from the sale of the Company’s headquarters office building).

Operating income was $3.0 million for the fourth quarter of 2010. This compares to operating income of $1.8 million for the same period a year ago (excluding a $2.0 million one-time capital gain from the sale of the Company’s headquarters office building).

Operating income was $9.3 million for the full year 2010. This compares to operating income of $4.3 million for the same period a year ago.

Total cash, cash equivalents and short-term investments as at December 31, 2010 amounted to $46.5 million.

Commenting on the results, Guy Bernstein, acting chief executive officer of Magic Software, said: 

- 2010 has been a strong year for Magic Software. We demonstrated excellent performance throughout all of our regions and major businesses, resulting in impressive double-digit growth at the top and bottom lines. 
Our strong financial position, coupled with our 2010 activities in promoting and growing new markets, will continue the Company's momentum into 2011, where we see opportunity to expand both organically and through acquisitions. We stand ready to meet an increase in demand for our products, especially in the rapidly evolving arenas of mobile and cloud computing solutions.

Magic Software Enterprises Ltd. is a global provider of cloud and on-premise application platform and business integration solutions. Magic Software has 14 offices worldwide and a presence in more than 50 countries with a global network of ISVs, system integrators, value-added distributors and resellers, as well as consulting and OEM partners.