Magic Software Still Has The Touch In Q1

May 12, 2014 Timothy Prickett Morgan

Software development tool maker Magic Software Enterprises is riding up the wave of mobile and cloud software development and tools to integrate legacy systems into these new-fangled apps and devices.

In the first quarter ended in March, Magic Software reported revenues of $40.95 million, up 22.6 percent from the year ago period. Its costs did not rise as fast as sales, and neither did research and development costs and other operational costs, and so the company was able to bring $4.85 million to the bottom line, an increase of 29.4 percent over the same quarter in 2013.

The company’s cash hoard has been growing nicely as the business has done better, and stood at $87.4 million at the end of the quarter, up by a factor of 1.5 times. The company only has $3.1 million in in debts, both long-term and short term. That cash hoard was bumped up by an offering of shares to the public on the NASDAQ stock exchange, where it had net proceeds after paying off the lawyers and bankers of $54.7 million.

“I am very pleased to report another excellent quarter with strong performance across our products and professional services in all regions,” Guy Bernstein, chief executive officer at Magic Software, said in a statement accompanying the financial results. “Our revenue streams are growing in line with Magic’s strategic development goals.”

“This strong start to 2014 along with the additional capital from our recent public offering puts us on track to continue to create and deliver long-term shareholder value,” Bernstein continued. “We are confident in our growth strategy and are establishing revenue guidance in the range of $161 million to $165 million for the full year 2014.”