Magic Software Rides UniPaaS and iBOLT Waves in Q3

Published: November 8, 2010

by Timothy Prickett Morgan

Asseco Group, the Polish holding company that is traded on the Warsaw Stock Exchange that recently took control of IBM i development tool maker Magic Software Enterprises, must be feeling pretty good about its investment. Magic Software's sales and profits have shot up like a rocket in the most recent quarter.

In the quarter ended September 30, Magic Software reported sales of $22.4 million, up 65.9 percent from the year ago period, and net income more than tripled to $2.6 million. This is the second quarter in a row of strong sales and profits from the software tool maker, which hasn't seen numbers like this for several years.

Magic Software, which is still a publicly traded company whose shares go back and forth on the NASDAQ exchange even though it is controlled by another company traded on another exchange on the other side of the globe, doesn't break its revenues down by product line. But in its commentary on its Q3 financials, Magic Software said that it has gained new customers for both its uniPaaS and iBOLT tools and has also increased sales of these to products. Sales were particularly strong in Japan, the United States, and the Netherlands, and with several partnerships in the United Kingdom and Greece and its big-time connections in Poland, you can expect the company to do a big push in these regions now. In fact, Magic Software said it is now cutting deals in Germany and Hungary and did its first deal in Poland in the quarter.

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

"I am very pleased to report robust growth and continued improvement in all our operations for the third quarter. This has been driven by greater demand for our professional services and improved license sales of our uniPaaS RIA application platform among enterprises and independent software vendors worldwide."

Magic Software has $22.1 million in cash and equivalents on hand and no debts on its balance sheet. For the nine months of this year, the company has booked $63.6 million in revenues and brought $6.3 million to the bottom line.

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