midastouch017
11 years ago
Magic Provides Consulting Services for Two Strategic Communication and Infrastructure Projects for the Tel Aviv-Yafo Municipa...
Wednesday 9 April 2014
OR YEHUDA, Israel, April 9, 2014 /PRNewswire/ -- Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that it has provided consulting services for two strategic communication and infrastructure projects for the Tel Aviv-Yafo Municipality through its Comm-IT subsidiary.
The two complex projects included the architecture design and testing for an optical fiber broadband network ("Metro" project) and the design of the tender for a city-wide wireless internet project. Intended to save communication and infrastructure costs, the Metro network will support thousands of phone lines and security cameras around the city, serving various municipal systems and act as the infrastructure for future systems.
The wireless project will enable Tel Aviv residents and visitors to surf the web and get wireless access through 150 access points distributed along 80 sites around the city, including parks and main streets. Comm-IT audited the city's existing infrastructure and defined technical, commercial and maintenance aspects to maximize value to residents while minimizing costs.
"It's exciting to work for a forward-thinking municipality like Tel Aviv–Yafo that takes advantage of advanced technology to provide its residents and visitors with high quality infrastructure that can also reduce costs. For instance, the Metro project enables the municipality to avoid the costs of digging optic fiber infrastructure and to eliminate monthly payments to traditional communication providers," said Anatoly Koushnir, CTO at Comm-IT. "Both projects showcase Comm-IT's ability to execute strategic planning for large, complex infrastructure projects. Our team are experts in translating the requirements and needs of our customers into technological solutions of the highest quality, with full transparency, and in strict compliance with the project's schedule and budget," added Koushnir.
midastouch017
11 years ago
Magic Announces Pricing of Offering of its Ordinary Shares
Friday 28 February 2014
OR YEHUDA, Israel, Feb. 28, 2014 /PRNewswire/ -- Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) (the "Company"), a global provider of mobile and cloud-enabled application development and business integration platforms, announced today that it has priced an underwritten offering of 6,000,000 of its ordinary shares, pursuant to its existing shelf registration statement. Pursuant to the offering, the Company is selling the shares at a price to the public of $8.50 per share. The Company has also granted to the underwriters for the offering an option to purchase from it up to an additional 900,000 of its ordinary shares to cover over-allotments in connection with the offering. The Company's largest shareholder, Formula Systems (1985) Ltd., has agreed to purchase 700,000 ordinary shares in this offering at the public offering price. Formula Systems will, following completion of this offering, own approximately 45.9% of our ordinary shares, assuming no exercise of the underwriters' option to purchase additional ordinary shares.
midastouch017
11 years ago
Magic Software set for $30-40m US offering
24/02/2014, 18:45
Shiri Habib-Valdhorn
Management is in the US for the road show.
Sources inform ''Globes'' that the management of Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC) is in the US for the road show among potential investors ahead of an offering in which the company will raise an estimated $30-40 million. The share price of the IT integrator, run by CEO Guy Bernstein, has risen 88% in the past 12 months, to reach a market cap of $324 million.
Magic Software files to raise $60m on Nasdaq
Magic's share price is close to a two-year high, and the rise in value has apparently created a good opportunity for raising capital.
Magic said in response, "Two months ago, the company filed a shelf prospectus, which is valid for three years. When the company decides to exercise it, it will announce this pursuant to the provisions of the law."
The shelf prospectus filed in late 2013 allows it to raise up to $60 million in an offering of shares, warrants, and/or bonds. The company will use the proceeds for general purposes, including acquisitions and investments.
Magic is one of the oldest Israeli companies on Nasdaq, listing in 1991. In 2010, after a rally in its share, the company raised $26 million in a private placement. At the end of 2013, it had $36 million in cash, and it tends to use the money for supplementary acquisitions.
Magic's last acquisition was Allstates Technical Services Inc. from KBR Inc. (NYSE: KBR) for $10 million in the fourth quarter of 2013. The US company provides IT, engineering, and telecommunications consultancy services. Its acquisition is intended to expand Magic's presence in the US and increase its customer base.
Magic posted $145 million revenue in 2013, 14.7% more than in 2012. GAAP-based net profit fell 1.8% to $15.9 million, but non-GAAP net profit rose 6.5% to $19.5 million ($0.52 per share). In line with the company's policy to distribute half of its annual profits as dividends, on March 14, it will distribute a dividend of $0.14 per share ($4.5 million) on its profits from the second half of 2013. The main beneficiary is the company's controlling shareholder, Formula Systems Ltd. (Nasdaq: FORTY; TASE: FORT), which owns 51.6% of Magic, and will receive $2.3 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2014
midastouch017
11 years ago
Magic Reports Record-Breaking Results for the Fourth Quarter of 2013 with Revenues of $41.2 Million, an Increase of 15% Year ...
Wednesday 12 February 2014
OR YEHUDA, Israel, Feb. 12, 2014 /PRNewswire/ -- Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), a global provider of mobile and cloud-enabled application and business integration platforms, announced today its financial results for the fourth quarter and full year ended December 31, 2013.
Financial Highlights for the Fourth Quarter, 2013
Revenues for the fourth quarter increased 15% year over year to $41.2 million from $35.7 million in the corresponding 2013 quarter.
Non-GAAP operating income increased 34% to $6.8 million, compared to $5.1 million in the same period last year. Operating income for the fourth quarter increased 28% to $5.4 million, compared to $4.3 million in the same period last year.
Non-GAAP net income increased 17% to $6.0 million, compared to $5.1 million in the same period last year. Net income for the fourth quarter increased 10% to $4.7 million compared to $4.3 million in the same period last year.
Financial Highlights for the Full Year Ended December 31, 2013
Revenues for the year ended December 31, 2013 reached $145.0 million, an increase of 15%, compared to $126.4 million in 2012.
Non-GAAP operating income for 2013 increased 22% to $22.7 million, compared to $18.6 million in 2012. Operating income for the year ended December 31, 2013 increased 17% to $19.1 million compared to $16.4 million in the prior year. Operating income in 2013 was negatively impacted compared to 2012 due to the devaluation of the Japanese Yen and the appreciation of the New Israeli Shekel versus the U.S. Dollar by approximately $1 million.
Non-GAAP net income for 2013 increased 6% to $19.5 million, compared to $18.3 million in 2012. Net income for the year ended December 31, 2013 decreased 2% to $15.9 million compared to $16.2 million in the prior year. Net income for 2013 was negatively impacted by $0.5 million in non-cash tax expenses recorded with respect to utilization of deferred tax assets and by $0.5 million in financial expenses recorded as a result of unfavorable foreign currency exchange rates. In accordance with U.S. generally accepted accounting principles, the Company records deferred tax expenses on utilization of carry-forward tax losses.
Total cash, cash equivalents and short-term investments as of December 31, 2013 amounted to $36.0 million.
Operating cash flow for the year ended December 31, 2013 totaled $18 million.
Results
For the fourth quarter ended December 31, 2013 total revenues were $41.2 million, with net income of $4.7 million, or $0.13 per fully diluted share. This compares with revenues of $35.7 million and net income of $4.3 million, or $0.12 per fully diluted share for the same period in 2012.
For the fourth quarter of 2013, operating income was $5.4 million. This compares to operating income of $4.3 million for the same period in 2012.
For the year ended December 31, 2013, total revenues were $145.0 million, with net income of $15.9 million, or $0.43 per fully diluted share. This compares with revenues of $126.4 million and net income of $16.2 million, or $0.44 per fully diluted share, for the same period in 2012.
Operating income for the year ended December 31, 2013, was $19.1 million. This compares to operating income of $16.4 million for the same period in 2012.
Comments of Management
Guy Bernstein, Chief Executive Officer of Magic Software Enterprises, said, "2013 was a tremendous year for Magic with record sales and strong performance across all of our products and professional services in all regions. Our results demonstrate increasing customer demand for our products and services coupled with continued focus on operational discipline. Our award-winning enterprise mobility solution, integration platform and complementary software services are well-positioned for sustained growth as we enter 2014, in terms of both immediate sales and longer-term maintenance and support revenues."
"We are continuing to strengthen our products and expand our services portfolio to help businesses meet the increasing demand of enterprise mobility, cloud and big data and have expectations for accelerated growth in 2014," added Bernstein.
Non-GAAP Financial Measures
This release includes non-GAAP operating income, net income, basic and diluted earnings per share and other non-GAAP financial measures. These non-GAAP measures exclude the following items:
Amortization of purchased intangible assets;
In-process research and development capitalization and amortization;
Equity-based compensation expense;
Change in valuation of contingent consideration; and
The related tax effects of the above items.
Magic Software's management believes that the presentation of non-GAAP measures provides useful information to investors and management regarding financial and business trends relating to the Company's financial condition and results of operations as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.
These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Magic Software believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Magic Software's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Magic Software's results of operations in conjunction with the corresponding GAAP measures.
Refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.
About Magic Software Enterprises
Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) is a global provider of mobile and cloud-enabled application and business integration platforms.
For more information, visit www.magicsoftware.com.
Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both here and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Magic is a registered trademark of Magic Software Enterprises Ltd. All other product and company names mentioned herein are for identification purposes only and are the property of, and might be trademarks of, their respective owners.
Press Contact:
Tania Amar, VP Global Marketing
Magic Software Enterprises
Tel: +972 (0)3 538 9300
tania@magicsoftware.com
midastouch017
11 years ago
Top-Tier Thai Bank Selects Magic's AppBuilder as Part of Its Core Banking Development Platform
Wednesday 13 November 2013
OR YEHUDA, Israel, November 13, 2013 /PRNewswire/ --
Magic Software Enterprises Ltd. (NASDAQ: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that a Top-Tier Thai bank has selected Magic's AppBuilder as part of its core banking development platform. The selection process was facililted by one of AppBuilder's key partners, a large European financial software group specializing in banking software systems.
With more than $50 billion USD in assets, the Thai bank operates approximately 1,000 branches, 6,000 ATMs, 100 foreign exchange offices, 50 international trade centers throughout Thailand, as well as many international branches.
"We welcome another major bank to our list of customers. AppBuilder's track record of stability and robustness, with proven ability to support millions of transactions per day, makes it an exceptional solution for banking and financial organizations," said Arik Killman, CEO of AppBuilder Solutions Ltd.
About AppBuilder Solutions
AppBuilder Solutions is a subsidiary of Magic Software Enterprises Ltd., a global provider of mobile and cloud-enabled application and business integration.
AppBuilder provides a comprehensive application development infrastructure for large-scale and complex environments that is used across industry verticals including banking, insurance, healthcare and government, and by many Fortune 1000 enterprises around the world. AppBuilder enables development teams to quickly and easily build, deploy, and maintain large-scale, custom-built business applications. Because AppBuilder uses a platform-independent model and generates code for COBOL, Java/J2EE, and C#, enterprises get the benefit of easy-to-maintain applications, without being dependent on any particular technology.
For more information, visit http://www.appbuilder.com.
midastouch017
11 years ago
Magic Software files to raise $60m on Nasdaq
In the prospectus, Magic said that it would use the proceeds from the offering for general purposes, including acquisitions and investments.
10 November 13 15:00, Shiri Habib-Valdhorn
On Friday, Magic Software Enterprises Ltd. (Nasdaq: MGIC; TASE: MGIC) filed with the US Securities and Exchange Commission (SEC) a draft prospectus to raise up to $60 million. The company did not disclose the structure of the proposed offering, and whether it will include shares, warrants, bonds, or a combination of these securities.
In the prospectus, Magic said that it would use the proceeds from the offering for general purposes, including acquisitions and investments. In October, it acquired the US operations of Allstates Technical Services LLC, a subsidiary of KBR Inc. (NYSE: KNR), for $10 million.
On Thursday, Magic reported 9% revenue growth to $35.6 million for the third quarter from $32.6 million for the corresponding quarter, and 23% non-GAAP net profit growth to $5.5 million from $4.5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 10, 2013
midastouch017
11 years ago
Magic Continues Growth Streak with Record Q3 2013 Non-GAAP Operating Income of $6.0 Million, an Increase of 31% Year over Yea...
Wednesday 6 November 2013
OR YEHUDA, Israel, Nov. 6, 2013 /PRNewswire/ -- Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), a global provider of mobile and cloud-enabled application and business integration platforms, announced today its financial results for the third quarter and first nine months of 2013.
Financial Highlights for the Third Quarter Ended September 30, 2013
Revenues for the third quarter increased 9% year over year to $35.6 million from $32.6 million.
Non-GAAP operating income for the third quarter increased 31% to $6.0 million, compared to $4.6 million in the same period last year; Operating income increased 21% to $5.0 million, compared to $4.1 million in the same period last year.
Non-GAAP net income for the third quarter increased 23% to $5.5 million, compared to $4.5 million in the same period last year; Net income increased 2% to $4.2 million (or $0.11 per fully diluted share) compared to $4.1 million (or $0.11 per fully diluted share) in the same period last year. The increase in net income was negatively impacted by tax expenses recorded with respect to utilization of deferred tax assets. In accordance with U.S. generally accepted accounting principles, the Company records deferred tax expenses on utilization of carry-forward tax losses.
Financial Highlights for the Nine-Month Period Ended September 30, 2013
Revenues for the first nine months of 2013 increased 14% to $103.8 million compared to $90.7 million in the same period last year.
Non-GAAP operating income for the first nine months of 2013 increased 17% to $15.9 million compared to $13.6 million in the same period last year; Operating income for the first nine months of 2013 increased 13% to $13.7 million compared to $12.2 million in the same period last year.
Non-GAAP net income for the first nine months of 2013 increased 3% to $13.5 million compared to $13.1 million in the same period last year; Net income for the first nine months of 2013 decreased 6% to $11.2 million (or $0.30 per fully diluted share), compared to $11.9 million (or $0.32 per fully diluted share) in the same period last year. The decrease in net income was mainly attributable to tax expenses recorded with respect to utilization of deferred tax assets.
Operating cash flow for the first nine months of 2013 totaled $13.1 million.
Total cash, cash equivalents and short-term investments as of September 30, 2013, amounted to $39.2 million, with no debt.
Comments of Management
Guy Bernstein, Chief Executive Officer of Magic Software Enterprises, said, "We are pleased to report another record quarter with strong year-over-year growth across all areas of our business and all regions. We are seeing great interest in the recent enhancements we have made to enrich our enterprise mobility, integration and services offerings. We are committed to maximizing our opportunities by continuing to strengthen our positions in these growth markets now and in the years to come."
Non-GAAP Financial Measures
This release includes non-GAAP operating income, net income, basic and diluted earnings per share and other non-GAAP financial measures. These non-GAAP measures exclude the following items:
Amortization of purchased intangible assets
In-process research and development capitalization and amortization
Equity-based compensation expense
Unwinding of discount in connection with liabilities due to acquisitions
Related tax effects of the above items
Magic Software's management believes that the presentation of non-GAAP measures provides useful information to investors and management regarding financial and business trends relating to the Company's financial condition and results of operations as well as the net amount of cash generated by its business operations after taking into account capital spending required to maintain or expand the business.
These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Magic Software believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Magic Software's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Magic Software's results of operations in conjunction with the corresponding GAAP measures.
Refer to the Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP tables below.
About Magic Software Enterprises
Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) is a global provider of mobile and cloud-enabled application and business integration platforms.
For more information, visit www.magicsoftware.com.
midastouch017
11 years ago
Magic Software: Has Anyone Looked At The 2014 Revenue Potential?
Nov 4 2013, 15:56
Disclosure: I am long MGIC. (More...)
Overview
Magic Software Enterprises Ltd. (MGIC) is a significantly overlooked Israeli-based technology company that develops, markets, sells and supports an application platform and business and process integration solutions and offers information technology, or IT, professional services. The company's application and integration platforms are known for their code-free approach, allowing users to focus on business logic rather than technology requirements.
Not Well Known Among U.S. Investors
The ownership structure of the company, combined with an extremely quiet investor relations effort, have left this company virtually unknown among U.S. retail and institutional investors. MGIC's market capitalization is $233 million with the stock at $6.25, and the company had nearly $40 million in cash as of June 30, 2013, or a little over $1.00 per share in cash. Formula Systems (1985) Ltd. (FORTY), also based in Or Yehuda, Israel, owns 52.3% of MGIC's outstanding shares. Asseco Poland SA, a large IT company based in Poland, owns 50.2% of FORTY. With a public float of a bit more than $100 million, a complicated ownership structure, and headquarters in Israel, I'm sure many potential U.S. institutional investors simply take a pass on the opportunity to review MGIC's investment potential. However, as an individual investor, I'm most interested in identifying undervalued securities with attractive growth, cash flow, and return characteristics. Throw in a strong management team and a conservative balance sheet, and I'm more than willing to take a look. MGIC qualifies across these metrics, and I have been a shareholder in the company since February of this year. After taking a closer look at the company, I think this week's third quarter earnings release may provide investors with an opportunity to establish a position in the stock. The company's CFO has agreed to speak with me after the quarterly results have been released. Lastly, I hope the company is able to share details of its recent announcement to acquire Allstates Technical Services. The acquisition is expected to close within the next couple of weeks, and I don't think many investors are aware of the potential contribution from this deal.
Quiet Acquisition Announcement Is A Big Deal
On October 8, 2013 MGIC announced that it intends to acquire the U.S. operations of Allstates Technical Services for $10 million. Allstates is a subsidiary of KBR Inc. (KBR), the large engineering and construction firm. Allstates describes themselves as a full-service provider of technical staffing solutions. I believe the company has close to 1,000 employees and according to the press release, the acquisition broadens "Magic's existing US footprint and adds leading Fortune 500 companies to its customer base, making an important contribution to Magic's growth strategy. The acquisition will be managed by Magic's US-based Fusion Solutions LLC subsidiary." I found another article from Staffing Industry Analysts that reports Allstates has annual revenue of around $89 million. This is speculation on my part, but it seems that a well run IT staffing company can have net profit margins in the 3-4% range. I suspect Allstates has a relatively low level of profitability given the purchase price of $10 million, but I expect MGIC will have the opportunity to reduce SG&A by perhaps $1-3 million as it consolidates Allstates into its Fusion Solutions division. A 3-4% net profit margin could add $0.07-$0.09 to MGIC's annual EPS. In late August, Analysts International Corporation (ANLY) , a similar-sized IT staffing company with 900 employees and $106 million in revenue last year, was sold for $35 million. I hope investors receive confirmation of this type of opportunity after the acquisition closes in the middle part of this month.
Magic Has Grown Significantly Via Acquisitions In Recent Years
MGIC has a history of buying consulting and staffing services businesses, having spent over $15 million in 2010 on acquisitions in this area. The company made additional acquisitions of Complete Business Solutions Ltd in 2011 and Comm-IT Group in 2012 ($9 mil. for 80% of the company, with subsequent earnouts). Largely via these acquisitions, MGIC's consulting services revenue has grown at nearly a 50% annualized rate from 2009-2012, with revenue advancing from $24.3 million in 2009 to $80.3 million in 2012. Gross margins in this division have fluctuated in a range between 19-23% during this time period. Obviously the Allstates acquisition will have a very significant impact on the revenue line next year. Around two-thirds of MGIC's current 1000 employees fall within the technical support and consulting division. The balance are spread among research and development (14%), marketing and sales (11%), and operations and administration (8%). MGIC's strategy of acquiring IT people has two benefits. First it provides a level of stability and recurring revenue to the company. Secondly, MGIC attempts to leverage the relationships with its clients and cross-sell MGIC's software products. I want to explore this second concept more with the CFO given that software revenue growth has been fairly modest in recent years. I want to learn more about the cross-selling opportunity, particularly in light of the forthcoming acquisition of Allstates. If MGIC were to add $90 million in U.S. based revenue in 2014, sales by geography would be more than 70% in the U.S., with around 13% in Europe, 5% in Israel, and another 5% in Japan.
Magic's Technology Is Well-Positioned In Growing Markets
At a high level, MGIC has positioned themselves to participate in the rapid growth of Cloud Computing, Social Media, Mobile, and Big Data.
(click to enlarge)
Source: Investor Presentation
MGIC's primary software offerings include its Magic xpa Application Platform, which the company says "provides a simple, code-free and cost-effective development and deployment environment that lets organizations and ISVs quickly create user-friendly, enterprise-grade, multi-channel mobile and desktop business app that employ the latest advanced functionalities and technologies." The second major software product is the Magic xpi Integration Platform, which "delivers enterprise-grade integration, business process automation, and data synchronization solutions." (Source: MGIC web site).
Success Stories and Strong Partnerships
I will admit that I'm still moving up the learning curve on how MGIC truly fits in today's technology ecosystem. I found it helpful to review some of the company's success stories. For those seeking a more technical view on the company and its products and services, there's a Yahoo Group dedicated to MGIC topics which has over 4,000 members. Over the years, MGIC also has forged a number of key strategic partnerships, with the likes of SAP (SAP), Salesforce.com (CRM), IBM (IBM), Oracle (ORCL), Microsoft (MSFT), and MicroStrategy (MSTR).
Financial Review: Good Cash Flow and A Cheap Stock
From a financial perspective, MGIC has generated a healthy level of free cash flow in recent years, which has been used largely to fund $37 million in acquisitions from 2010-2012. If I assume the company can grow earnings at a 10% annual rate over the next few years and a 3% rate thereafter, plus a potential contribution of around $3 million in earnings from the Allstates acquisition, I can conservatively derive a discounted cash flow price target of over $8 today, representing about 30% upside to fair value. MGIC's tax rate is expected to increase in the coming years, as its operating loss carryforwards wind down, particularly in the U.S. I expect Israeli-based income will be exempt from taxation for the next few years. I don't have a full quarterly earnings model built for the company but acknowledge that the tax rate and currency rates might prove to be headwinds for the soon to be reported third quarter. The Israeli Shekel appreciated further versus the U.S. dollar during the third quarter and was up by more than 10% year over year. Based on currency exposures at the end of 2012, I estimate this could negatively impact earnings in the third quarter by up to $0.02 per share. This becomes meaningful in the context of a single Non-GAAP earnings estimate of $0.13 for the quarter (Source: Yahoo Finance).
Risks Exist And This Week's Earnings May Provide An Opportunity
While I believe there is substantial upside to the MGIC story, I acknowledge that there are risks as well. Continued successful integration of all the acquisitions is not an easy task, and the Allstates acquisition is quite large for the company in terms of headcount additions. MGIC has customer concentration, with Ericsson accounting for 19% of professional services revenue in 2012, or a little more than 9% of last year's $126 million in total revenue. MGIC has chosen to capitalize about two-thirds of its software development costs over the past few years, which could turn into a problem if the company makes any strategic errors on its ongoing software development. Lastly, I expect MGIC will meet the consensus estimate for third quarter revenue of $34.2 million when results are released this Wednesday (11/6/13), but I am concerned that the EPS number might come in light vs. the $0.13 estimate. I would view any price weakness as an opportunity to initiate/add to positions. In September 2012, MGIC established a dividend policy, pledging to distribute up to 50% of its annual distributable profits. The company has paid $0.31 in dividends per share thus far ($0.10 paid in 2012Q4, and $0.12 was paid in 2013Q1, and $0.09 in 2013Q3). U.S. investors are subject to a 25% Israeli withholding tax on dividends.
midastouch017
11 years ago
Magic Acquires Allstates Technical Services, LLC Enterprise Operations in the US for $10 Million USD
Tuesday 8 October 2013
OR YEHUDA, Israel, October 8, 2013 /PRNewswire/ --
Magic Software Enterprises Ltd. (NASDAQ: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that it has entered into an agreement with KBR Inc. (NYSE: KBR) to acquire the US enterprise operations of KBR subsidiary, Allstates Technical Services, LLC, for $10 million. The acquisition is expected to be finalized by mid-November 2013, subject to the fulfillment of certain conditions defined in the acquisition agreement.
Allstates Technical Services, LLC is a US-based full-service provider of consulting and staffing solutions for IT, Engineering and Telecom personnel. With a 60-year history, Allstates brings a strong reputation and an experienced growth-focused management team serving some of the world's leading telecom and technology companies.
The Allstates acquisition broadens Magic's existing US footprint and adds leading Fortune 500 companies to its customer base, making an important contribution to Magic's growth strategy. The acquisition will be managed by Magic's US-based Fusion Solutions LLC subsidiary.
"We're excited about the synergies and growth opportunities provided by the Allstates acquisition," said Yuki Tsaroya, President and CEO of Fusion Solutions LLC. "We welcome Allstates' clients and are committed to providing them with the same great service and support to which they have grown accustomed.
The acquisition was facilitated by Pauli Overdorff, President of Alarian Associates.
About Magic Software Enterprises
Magic Software Enterprises (NASDAQ: MGIC) empowers customers and partners around the globe with smarter technology that provides a multichannel user experience of enterprise logic and data.
For more information, visit http://www.magicsoftware.com.
About KBR, Inc.
KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power, industrial, and commercial markets. For more information, visit http://www.KBR.com.
midastouch017
11 years ago
Magic Expands Into Greater China With United Electronics
Tuesday 1 October 2013
OR YEHUDA, Israel, October 1, 2013 /PRNewswire/ --
Magic Software Enterprises Ltd. (NASDAQ: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that it has accelerated its expansion into China with the appointment of United Electronics Co., Ltd. (UEC) as a Magic xpa and Magic xpi prime partner and reseller for Mainland China, Hong Kong, and Macau. The partnership agreement for licenses, maintenance and support is worth nearly $1,000,000 over five years.
"The Chinese market is ripe for this partnership with Magic. Demand for enterprise products and services is on the rise and the enterprise mobility is poised to take off. By enabling businesses to mobilize enterprise data easily, reliably and securely, Magic's robust enterprise-grade application and integration platforms provide us with a huge growth opportunity," stated Mr. Donghui Wang, Chairman of the Board at United Electronics Co. "In addition to their ease of use and flexibility, Magic products provide an excellent price/performance ratio that is highly valued in Asia Pacific market and in China in particular."
"We have been looking for an established, reliable and qualified partner in China. With their strong IT expertise, strength in energy, finance, manufacturing and other verticals, as well as partnerships with many of the same leading global IT vendors including Oracle, Microsoft and IBM, United Electronics is a natural fit for our target market," said Ran Lewinski, Distribution General Manager for Magic Software Enterprises. "We are especially pleased with United Electronics' determination and commitment to building and expanding the existing Magic community around our integration and mobility offerings."
This new partnership strengthens Magic's presence in the Asia Pacific market where the company already boasts many long-term partners.
About United Electronics Co., Ltd. (UEC)
United Electronics Co., Ltd., (UEC) is a leading IT solutions and service provider in China with over 600 employees and net revenues of approximately 1 Billion RMB (US $163 million) in 2012.
Headquartered in Beijing, UEC has 21 branch offices in Mainland China and Hong Kong to support customers from five industries (Finance, Telco, Manufacturing, Government, Life Science) and also some local ISVs. UEC is a public company listed in Shenzhen Stock Exchange (002642.sz).
UEC is also a pioneer providing emerging technologies and services in local markets, including cloud computing, big data, enterprise mobile applications, etc. A specialist in the final mile to end users, UEC is a long-time partner of global IT vendors, which include Oracle, IBM, HP, Dell, HDS, Microsoft, Symantec, EMC, NetApp, VMware, APC, etc.
midastouch017
11 years ago
BNP Real Estate Uses Magic xpa Application Platform to Enhance and Mobilize its Key Sales Application
Wednesday 12 June 2013
OR YEHUDA, Israel, June 12, 2013 /PRNewswire/ --
Magic Software Enterprises Ltd. (NASDAQ: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that BNP Real Estate, a subsidiary of BNP Paribas operating in all areas of the real-estate business, has successfully upgraded and mobilized its key eBroker sales application using the Magic xpa Application Platform. The new iPad application allows all information about the company's real-estate assets to be used by BNP Real Estate's 400 salespeople in the field.
Over the years, BNP Real Estate's eBroker application had become outdated; it lacked desired features, performed poorly, and was difficult to use. BNP Real Estate used Magic xpa to improve eBroker's user interface and range of functions using RIA (Rich Internet Application) technology, while retaining the core business rules of the original application. The project was completed and rolled out in just six months.
In addition to desktop access, salespeople can now access the application on their iPads while in the field. The application fully complies with the BNP Paribas Group's security policy since connections are made using a highly secure RSA authentication token, data transits via 3G network or by Wi-Fi, and the IS Department implemented a new mobile device infrastructure.
"The enhanced eBroker application is very user friendly and its new features enable our salespeople to respond to customers immediately with relevant information displayed in an easily understood visual format. For example, our salespeople can now bring up a list of offers with their geographical locations displayed on a map or produce a PowerPoint presentation including a complete description of each offer and send it directly to the customer by email," explains Eric François, Chief Information Officer at BNP Real Estate. "The application has been overwhelmingly endorsed by our salespeople, to the extent that we have had to increase the number of user licences," adds François.
"Magic is proud of our close working relationships with our customers. By understanding BNP Real Estate's specific needs and mobility requirements, we were able to guide them use to leverage Magic xpa's RIA technology and built in mobile deployment options to rapidly roll out iPad and desktop apps while adhering to the company's enterprise-grade performance and security requirements," said Eric Choppe, the Managing Director of Magic France.
About BNP Real Estate
BNP Paribas Real Estate is one of the world's major international real-estate service providers. The company provides a comprehensive range of services covering the whole property cycle: Development, Transaction, Consulting, Valuation, Property Management and Investment Management.
With 3,300 employees, BNP Paribas Real Estate provides its customers with local market expertise in 34 countries (18 wholly-owned subsidiaries and 16 national alliances, representing over 3,000 staff) and more than 180 offices. BNP Paribas Real Estate is part of the BNP Paribas Group.
For more information: http://www.realestate.bnpparibas.com
midastouch017
12 years ago
Magic xpi Integration Platform Chosen by Godrej Properties, One of India's Top Real Estate Developers, to Connect Its Salesfo...
OR YEHUDA, Israel, May 1, 2013 /PRNewswire/ --
Magic Software Enterprises Ltd. (NASDAQ: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that Godrej Properties, one of India's top real estate developers, currently developing residential, commercial and township projects spread across 82 million square feet in 12 cities, has implemented Magic xpi Integration Platform as its back-end integration engine for connecting its Salesforce.com and SAP R/3 systems.
The Magic xpi integration enables Godrej Properties to automate many processes regarding its customers, sales, pricing, inventory, materials and billing, and maintain up-to-date data in both Salesforce.com and SAP R/3. By integrating data that was previously locked in separate silos, enterprises, such as Godrej Properties, enjoy increased synergies and efficiencies, including: a more complete view of their customers, real-time up-to-date data, automation of mundane tasks, fewer human errors, improved customer service, and increased customer and employee satisfaction. Magic's enterprise-grade platform and certified connectors to the most popular business systems assure accurate, secure, scalable and high performance applications.
"Magic empowers its customers by enabling them to reliably integrate their applications with a host of internationally renowned enterprise systems with minimum effort. This is crucial for organizations, like Godrej Properties, where maximizing value and employing the best tools to make informed business decisions are of vital importance," said Ran Lewinski, GM - Distribution of Magic Software Enterprises Ltd. "Magic xpi Integration Platform recently received the India CIO Choice 2013 honor for Enterprise Application Integration Software. This project is another piece of evidence showing the growing adoption of Magic technology among Indian enterprises."
"Using Magic's technology, we were able to rapidly process transactions, while significantly reducing the risks and costs usually associated with such integration projects," said Shailesh Joshi, CIO of Godrej Properties. "This project enables our users to maximize the benefits of Salesforce.com and have all our updated customer data in SAP at any given point in time."
midastouch017
12 years ago
Agricultural Bank of China, China's Third Largest Lender, Chose Magic's AppBuilder to Develop Major Banking Application
Date : 03/18/2013 @ 4:25AM
Source : PR Newswire (US)
OR YEHUDA, Israel, March 18, 2013 /PRNewswire/ --
Magic Software Enterprises Ltd. (NASDAQ: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that Agricultural Bank of China Ltd. (ABC), China's third largest lender by assets, chose Magic's AppBuilder to develop its new generation of core banking application (the "BoEing", Blue Ocean Engineering), deployed at all of its nearly 24,000 banking facilities.
The application built by ABC using AppBuilder is a key component of the bank's core banking system. The vast application includes more than 20,000 programs and hundreds of thousands of application artifacts, and took a team of 350 developers two years to complete. AppBuilder's comprehensive application development infrastructure enabled ABC to easily deploy the application across a complex distributed environment containing many disparate technologies, including IBM Mainframe, Microsoft Windows, Cobol, C#_WPF, WSDL, DB2 and Sybase.
"We needed a robust solution that would support hundreds of millions of transactions per day and allow us to maintain complete control over the application development along the way," said Mr.Liang, the BoEing project manager at ABC. "For large, long-term projects like this, any delay is extremely costly. Not only did AppBuilder meet our demanding system requirements, it also enabled us to meet our aggressive deployment schedule."
"Forward-thinking banks like ABC, understand that their business is only as good as their underlying technologies," said Arik Killman, CEO of AppBuilder Solutions Ltd. "We are proud to be the development platform of choice for ABC and many other leading financial and Fortune 1000 institutions."
About Agricultural Bank of China
Agricultural Bank of China Limited ("ABC") is one of the major integrated financial service providers in China. Capitalizing on its comprehensive business portfolio, extensive distribution network and advanced IT platform, ABC provides a full range of commercial banking services, including consumer banking, corporate banking, investment banking, investment management, global wealth management, private equity, mortgages, credit cards, foreign currency deposits, loans, international and domestic settlements and currency trading.
At the end of 2011, ABC had over 395 million retail customers (ranking first among all large commercial banks), and nearly 24,000 branches. It is China's third largest lender by assets. ABC went public in mid-2010, fetching the world's biggest ever initial Public Offering (IPO). As of 2011, it ranks 7th in the Banker's "Top 1000 World Banks" list in terms of profit before tax for the year of 2010.
For more information, visit http://www.abchina.com/en/
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