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Software Consulting Service Formula Systems Earned $75 Million in 2014

Operating income for the year ending December 31, 2014 amounted to $35.0 million compared to $60.7 million in the same period last year.

Formula Systems

Israel’s Formula Systems, a provider of software consulting services, computer-based business solutions and proprietary software products, reported a net income of $75.1 million for 2014.

Net income for the fourth quarter amounted to $8.8 million.

As a result of Formula’s gaining of control in Sapiens, Formula’s investment in Sapiens was consolidated in Formula’s closing balances as of December 31, 2014. The gain recognized in relation to the consolidation of Sapiens and the related re-measurement of the investment to fair value amounted to $4.2 million and is presented in the income statement as “equity in gains of affiliated companies, net.”
Revenues for the fourth quarter of 2014 amounted to $162 million.

Operating income for the fourth quarter of 2014 amounted to $9.8 million, compared to $17.4 million in the same period last year. Operating income for the fourth quarter showed a decrease due to the deconsolidation of Magic’s and Sapiens’ results of operations, which were previously consolidated during the fourth quarter of 2013. As of December 31, 2014 Formula held 50.2%, 50.2% and 45.1% of the outstanding ordinary shares of Matrix, Sapiens and Magic respectively.

Net income for the year ended December 31, 2014 amounted to $75.1 million, or $5.19 per fully diluted share, compared to $80.7 million, or $5.68 per fully diluted share, in the same period last year. Net income for the year

Revenues for the year ending December 31, 2014 amounted to $636.4 million compared to $795.9 million in the same period last year. Revenues showed a year over year decrease due to the deconsolidation of Magic’s and Sapiens’ results of operations, which were previously consolidated during the same period in 2013.

Operating income for the year ending December 31, 2014 amounted to $35.0 million compared to $60.7 million in the same period last year. Operating income showed a year over year decrease due to the deconsolidation of Magic’s and Sapiens’ results of operations, which were previously consolidated during the same period in 2013. Formula’s comparable non-GAAP pro-forma operating income, had it continued to consolidate Magic’s and Sapiens’ results of operations for the years 2014 and 2013, would have totaled $66.7 million, compared to $62.4 million in the same period last year, reflecting a year over year increase of 6.9%.

Consolidated cash, short-term deposits and short-term and long-term investments in marketable securities totaled approximately $163.4 million as of December 31, 2014. Formula’s stand-alone net debt as of December 31, 2014 amounted to $26.9 million.

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