FORM 6-K

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Report of Foreign Private Issuer

 

Pursuant to Rule 13a-16 or 15d-16

 

of the Securities Exchange Act of 1934

 

For the Month of May 2012

 

FORMULA SYSTEMS (1985) LTD.

(Translation of Registrant's Name into English)

 

5 HaPlada st., Or-Yehuda, Israel

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F

 

Form 20-F ...X... Form 40-F .......

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ..... No ..X..

 

If "Yes" is marked indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ....................

 

Attached to Registrant's Form 6-K for the month of May 2012 and incorporated by reference herein is the Registrant's immediate report dated May 10, 2012.

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to signed on its behalf by the undersigned, thereunto duly authorized.

 

FORMULA SYSTEMS (1985) LTD.

(Registrant)

 

By:/s/ Guy Bernstein

Guy Bernstein CEO

dated: May 10, 2012

 

 

 

 

PRESS RELEASE

 

Formula Systems Reports Strong Start to 2012 with Record-breaking First-Quarter Revenues of $178 Million and Operating Income of $14 Million

 

All Formula Group Subsidiaries Report Substantial Growth in First Quarter of 2012

 

Or Yehuda, Israel, May 10, 2012 – Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of software consulting services, computer-based business solutions, and proprietary software products, today announced its results for the first quarter of 2012.

 

Financial Highlights for the first Quarter of 2012

 

·

Revenues for the first quarter ended March 31, 2012, increased by 14% to $178.3 million compared to $155.9 million in the same period last year.

 

·

Operating income for the first quarter ended March 31, 2012 increased by 13% to $13.9 million, compared to $12.3 million in the same period last year.

 

·

Net income for the first quarter ended March 31, 2012 increased by 87% to $7.8 million compared to $4.2 million in the same period last year. Net income included a net gain of $2.9 million resulting from the remeasurement of the Company’s investments, primarily attributable to regaining the controlling interest in Sapiens.

 

·

Formula’s consolidated cash and short-term and long-term investments in marketable securities totaled approximately $128.0 million, as of March 31, 2012.

 

·

Total equity on March 31, 2012 was $456.4 million, representing 53% of the total balance sheet.

 

Comments of Management

 

Commenting on the results, Guy Bernstein, CEO of Formula Systems, said: “These outstanding results reflect the strong start to the year made by Formula and its subsidiaries. Matrix reported record-breaking results for the first quarter of 2012, with substantial growth in all its activities, in particular in its core business as a leader in the provision of software solutions and services in Israel. Magic continued its success from 2011, with double-digit growth for the tenth consecutive quarter and very strong performance across the board in all of its regional centers of activity. Magic expects to continue its growth with new releases of its enterprise mobile and cloud-based technology. On January 27, 2012, Formula regained a controlling interest in Sapiens, demonstrating our firm belief in Sapiens' current and future performance. Following successful acquisitions, which have enhanced its product offering and expanded its global reach, Sapiens reported significant growth in the first quarter of 2012. We are confident that we can build on this impressive start to the year to achieve even greater success moving forward.”

 

 

About Formula

 

Formula Systems Ltd. is a global information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products, and providing computer-based business solutions.

 

For more information, visit www.formulasystems.com.

 

Statements made in this press release that are not historical facts are forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the company’s products, dependence on strategic partners, integration of new business, successful implementation of Formula’s products, economic and competitive factors, international market conditions, management of growth, technological developments, the ability to finance operations and other factors which are detailed in Formula’s Securities and Exchange Commission filings, including its most recent report on Form 20-F. Formula undertakes no obligation to publicly release any revision to any forward-looking statement.

 

Press Contact:

 

Formula Systems (1985) Ltd.

+972-3-5389487

ir@formula.co.il

 

 

 

 

FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share data)

 

 

 

		Three months ended
		March 31,
		2012				2011
		Unaudited
Revenues			178,305				155,916
Cost of revenues			136,336				119,716
Gross profit			41,969				36,200
Research and development costs, net			2,439				1,685
Selling, general and administrative expenses			25,607				22,272
Other income, net			-				31
Operating income			13,923				12,274
Financial expenses, net			1,494				1,358
Income before taxes on income			12,429				10,916
Taxes on income			2,042				2,176
			10,387				8,740
Gain derived from consolidation of subsidiary and
equity in gains (losses) of affiliated companies, net			3,719				(240	)
Net income			14,106				8,500
Net income attributable to non-controlling interests			6,304				4,323
Net income attributable to Formula's shareholders			7,802				4,177
Earnings per share:
Basic			0.58				0.31
Diluted			0.56				0.30
Shares used in computing earnings per share :
Basic			13,596				13,464
Diluted			13,749				13,646

 

 

 

FORMULA SYSTEMS (1985) LTD. 

CONSOLIDATED CONDENSED BALANCE SHEETS

U.S. dollars in thousands 

 

		March 31,		December 31,
		2012		2011
		(Unaudited)		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		110,665			88,172
Marketable securities		14,929			14,347
Short-term deposits		414			5,170
Trade receivables		188,333			163,219
Other accounts receivable		42,642			36,085
Total current assets		356,983			306,993
LONG-TERM INVESTMENTS:
Marketable securities		2,752			2,746
Deferred Taxes		18,095			11,630
Investments in affiliated companyies		3,042			77,107
Prepaid expenses and other accounts receivable		2,729			3,885
Total long-Term Investments		26,618			95,368
SEVERANCE PAY FUND		62,712			49,507
PROPERTY, PLANTS AND EQUIPMENT, NET		21,033			19,165
NET INTANGIBLE ASSETS AND GOODWILL		388,123			198,188
TOTAL  ASSETS		855,469			669,221
CURRENT LIABILITIES:
Liabilities to banks		15,758			16,642
Debentures		15,970			31,472
Trade payables		49,412			40,344
Deferred revenues		53,327			22,653
Other accounts payable		84,051			70,054
Dividend payable to non controling interests		3,221			-
Total current liabilities		221,739			181,165
LONG-TERM LIABILITIES:
Liabilities to banks and others		40,975			34,459
Debentures		15,690			15,246
Deferred revenue		1,553			2,094
Other long-term pyables		10,700			9,258
Accrued severance pay		78,156			63,321
Total long-term liabilities		147,074			124,378
REDEEMABLE NON-CONTROLING INTEREST		30,283			11,469
EQUITY
Formula shareholders' equity		233,616			218,668
Non-controlling interests		222,757			133,541
Total equity		456,373			352,209
TOTAL LIABILITIES AND EQUITY		855,469			669,221