More Record-Breaking Results For Magic Software
February 18, 2013 Dan Burger
The year 2012 was a good one. Felix Baumgartner’s record-breaking skydive from 24 miles above the planet in 2012 got more attention, but Magic Software Enterprises broke records, too, admittedly with less fanfare. Perhaps CEO Guy Bernstein should take up skydiving. Then again, he is not doing a bad job increasing revenue at the company that specializes in application development and business integration tools for the IBM midrange as well as several other important markets.
Revenue gains, like the 12 percent increase that Magic scored last year, would be cause for celebration in most companies. Converted to cash money, that’s an increase from $113.3 million in 2011 to $126.4 million last year. And as a sign of the momentum the company is creating, the Q4 revenue gain was 17 percent, or a jump from $30.5 million to $35.7 million. The Q3 revenue increase was 9 percent and totaled $32.6 million.
Net income for the year ended in December increased 8 percent to $16.2 million compared to $15 million in 2011. Net income for the fourth quarter decreased 3 percent to $4.3 million compared to $4.4 million in the same period one year prior. The decrease was “mainly attributable,” according to the statement, “to tax expenses recorded with respect to the utilization of deferred tax assets.”
The company also announced a 12 cent per share cash dividend to shareholders for the second half of 2012. A 10 cent per share cash dividend was awarded in September 2012 after the first half financial report.
In a statement, Bernstein described the financial success as attributable to a “strong performance across our products and professional services in all regions” and noted that his company’s “strong cash position has enabled us to continue to make important growth investments in our product portfolio.”
Bernstein also believes that Magic is on track for increased profitability in 2013. “We are further enhancing our offerings by strengthening our relationships with partners and vendors in the enterprise mobility and enterprise software ecosystems, like Samsung, SAP, Salesforce.com, Oracle JDE, IBM, and Microsoft SharePoint,” he said.
For fiscal year 2011, the company reported a 28 percent increase in revenue, to $113.3 million, and an eye-opening 60 percent jump in net income, to $15 million.