MATRIX ANNOUNCES Q1 2008 RESULTS
Ra'anana, Israel, 27 May 2008 - Emblaze Ltd ("Emblaze or "the Group") (LSE:
BLZ) announces that Matrix IT Ltd. (TASE: MTRX), a member of the Emblaze/
Formula Group (NASDAQ: FORTY and TASE: FORT) announced its results of
operations for the first quarter of 2008.
Financial Highlights(*)
* Q1 revenues increased to $US90 million, up from $72m in Q1 2006;
* Operational profit increased to $US6.8 million, up from US$5.3 million in
Q1 2006 and 7.6% of total income in Q1 2008;
* Net profit increased to $5.7 million compared to $US4.4 million in Q1 2006;
* Pursuant to Matrix dividend policy representing distribution of 50% of net
profits, Matrix distributed dividends on 30 March 2008 in a total amount of
approx. $US11.2 million in consideration of 2007 profits.
* Cash and short term investments in Q1 2008 amounted to approx. $US110
million
Operational Highlights
* Matrix delivers on its strategy of focusing around its core competency as
approx. 60% of total revenue stream in Q1 2008 was generated from software
and value added services;
* Matrix continues to maintain its leading position in the Israeli IT market
as Schwarzkopf, The Knowledge Integrators ("STKI"), an IT analyst and
advisory organization serving leading Israeli corporations and businesses,
rated Matrix number one vendor of most of the important benchmarked
parameters in its annual review of the Israeli IT market, namely: value
added services, training and integration, outsourcing personnel & offshore
and risk management projects & BCP services.
* Matrix signed a NIS20 million agreement with Bezeq, Israel's largest
telecommunications service provider, to continue the implementation of its
CRM program. The project is expected to take up to 18 months until
completion at the end of which, the CRM system will be deployed in all of
Bezeq's sales and service centers
* Further growth of "Matrix Global" , Matrix Off Shore development centers,
with an intention to open additional centers during 2008
* Earlier this month, Matrix has announced that it has signed an agreement to
acquire the TACT Group, an Israeli IT services provider, for NIS42.1
million. TACT focuses on the provision of software testing and QA services
to customers. TACT, which employs approximately 470 people, posted an
operating profit of NIS8.4 million on revenue of NIS114 million in 2007.
Matrix may make a further payment for the acquisition based on TACT's
financial results in 2008 and 2009. The acquisition of TACT allows Matrix
further enhancement of its existing IT services as well as complementing
the existing services with additional capabilities and penetration to
additional sectors, primarily in the defense sector.
STATEMENTS OF OPERATIONS
U.S. dollars in thousands (USGAAP)
Three months ended
March 31,
2008 2007
Revenues $ 89,922 $ 72,004
Costs of revenues 70,404 56,101
Gross profit 19,518 15,903
Operating expenses:
Research and development 83 95
Selling and marketing 4,945 3,846
General and administrative 7,689 6,608
Total operating expenses 12,717 10,549
Operating income 6,801 5,354
Financial expenses (403) (38)
Other expenses, net (44) (44)
Income before taxes on income 6,351 5,272
Taxes on income 323 692
Income before equity gains and minority 6,031 4,580
interests
Equity gains (losses) of affiliates (267) (161)
Minority interests in gains of subsidiaries (27) ( 27)
Net Income $ 5,737 $ 4,392
(*) figures are translated from New Israeli Shekels to US Dollars based on
average exchange rates for the applicable period
Enquiries:
Emblaze Ltd
Hadas Gazit, Hagit Gal +972 9 7699302/ 339
Notes to editor:
About Matrix IT Ltd.
Matrix IT Ltd., traded on the Tel Aviv Stock Exchange, is one of the leading
integration and information technology (IT) services providers in Israel.
Matrix employs circa 3,500 employees, providing services for over 500 clients
in the Israeli market. The company is active in four major sectors: software
solutions and services, software products, infrastructure solutions and
hardware products as well as training and assimilation. The company provides
its products and solutions to a variety of customers in various sectors:
banking and finance, insurance, communications and security, industry and trade
for government institutions as well as for companies in the public sector.
For more information, please visit www.matrix.co.il
About Emblaze
Emblaze Ltd is a group of technology companies addressing both growth and
innovation activities thus combining the stability of "bread and butter" mature
technology enterprises with "high-risk / high-reward" investments in
innovation.
Our Growth arm includes Formula Systems (NASDAQ: FORTY and TASE: FORT), which
harbors the following subsidiaries: Magic Software Enterprises Ltd. (NASDAQ &
TASE: MGIC) develops, markets and supports composite application development
and deployment platforms with a service-oriented architecture (SOA), including
application integration and business process management (BPM), with existing
and legacy systems; Matrix IT Ltd. (TASE: MTRX) is one of Israel's leading
integration and information technology services companies, active in four
principal areas: software solutions and services, software products,
infrastructure solutions and hardware products, and training and assimilation.;
Sapiens International Corporation N.V. (NASDAQ & TASE: SPNS) is a provider of
IT solutions that modernize business processes to enable insurance and other
companies to quickly adapt to changes; and nextSource Inc., designs, develops
and implements web-based, high quality, innovative human capital management
solutions.
Our Innovation arm includes Emblaze Mobile, a designer of advanced mobile
devices; EMOZE, a provider of Push Email and synchronisation technology for
mobile devices; and ZONE-IP (LSE: ZIP) (Emblaze V CON), a provider of wireless
video communications technologies and conferencing solutions for operators and
enterprise markets over IP networks.
The Emblaze Group is traded on the London Stock Exchange (LSE: BLZ) since 1996.
www.Emblaze.com
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