Latest news with #MagicSoftwareEnterprisesLtd
San Francisco Chronicle
7 days ago
- Business
- San Francisco Chronicle
Magic Software: Q2 Earnings Snapshot
OR YEHUDA, Israel (AP) — OR YEHUDA, Israel (AP) — Magic Software Enterprises Ltd. (MGIC) on Wednesday reported profit of $9.9 million in its second quarter. On a per-share basis, the Or Yehuda, Israel-based company said it had profit of 20 cents. Earnings, adjusted for one-time gains and costs, came to 26 cents per share. The business process integration software company posted revenue of $151.6 million in the period. _____
Yahoo
22-05-2025
- Business
- Yahoo
Magic Software Enterprises Ltd (MGIC) Q1 2025 Earnings Call Highlights: Record Revenue and ...
Revenue: $147.3 million, up 12.7% from Q1 2024. North America Revenue: Increased by 11.1% to $58.7 million. Israeli Operation Revenue: $69.9 million, up 17.7% from the previous year. Non-GAAP Gross Margin: 28.5% of revenues, amounting to $41.9 million. Non-GAAP Operating Income: $18.5 million, a 1.9% increase from the previous year. Non-GAAP Net Income: $12.2 million, up 8.3%, or $0.25 per fully diluted share. Cash and Cash Equivalents: Approximately $105 million as of March 31, 2025. Total Financial Debt: Approximately $56.3 million as of March 31, 2025. Cash Flow from Operating Activities: $14.9 million for Q1 2025. Full Year 2025 Revenue Guidance: $593 million to $603 million, reflecting 7.3% to 9.1% anticipated growth. Warning! GuruFocus has detected 6 Warning Sign with MGIC. Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Magic Software Enterprises Ltd (NASDAQ:MGIC) reported a record first quarter revenue of $147.3 million, marking a 12.7% increase from the previous year. The Israeli operations showed impressive growth with a 17.7% year-over-year increase, driven by strong demand for cloud, DevOps, and AI services. The North American operations saw an 11.1% revenue increase, bolstered by the acquisition of Theories Inc. The company is leading in AI adoption, with a 62% success rate in AI projects, significantly outperforming the industry average. Magic Software Enterprises Ltd (NASDAQ:MGIC) is strategically positioned for growth with a potential merger with Matrix IT, which could enhance its capabilities and market presence. The gross margin for the first quarter decreased to 28.5% from 29.3% in the previous year, due to the timing of software license renewals. Cash flow from operating activities declined to $14.9 million from $27.7 million in the same period last year, primarily due to increased investment in working capital. The company anticipates a temporary reduction in billable capacity in the second quarter due to the timing of the Passover holiday. Despite growth in North America, excluding acquisitions, revenue remained unchanged, indicating challenges in organic growth. The company's cash and cash equivalents decreased from $112.8 million at the end of 2024 to $105 million as of March 31, 2025. Q: Can you provide more details on the momentum change in the US market? Are you seeing new customers or expansion with current ones? A: We are seeing positive signs from our existing customer base of around 400 in the US. After a significant reduction in operations in the second half of 2023, we now observe an increase in deal flow, indicating potential expansion in the second half of the year. - Asaf Bernstein, CFO Q: The gross margin this quarter was slightly lower than usual. Is this due to higher payrolls or other factors? A: The fluctuation is mainly due to the timing of renewals for our term-based software licenses. In 2025, significant renewals are expected in Q3 and Q4, unlike 2024 when they were concentrated in the first half. We anticipate gross margins to improve to over 29% later in the year. - Asaf Bernstein, CFO Q: What is driving the strong performance in the Israeli market? A: The Israeli market saw a 17.7% increase in revenue, driven by strong demand for our cloud, DevOps, and AI services, as well as continued demand in the defense sector. This performance aligns with our strategic focus on mature, stable, and technology-driven sectors. - Asaf Bernstein, CFO Q: How is Magic Software leveraging AI in its operations and offerings? A: We are leading in AI adoption with over 200 projects across 20 industries. Our AI services have a 62% success rate, significantly higher than the industry average. We are focusing on generative AI to enhance our offerings and drive innovation across sectors like finance, healthcare, and defense. - Asaf Bernstein, CFO Q: Can you elaborate on the potential merger with Matrix IT and its expected impact? A: The merger with Matrix IT is expected to create a more diversified and resilient global IT service provider. It will enhance our capabilities, broaden our customer base, and expand our market presence. We anticipate completing the merger in the first quarter of 2025, subject to regulatory approvals. - Asaf Bernstein, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data
Yahoo
21-05-2025
- Business
- Yahoo
Magic Software: Q1 Earnings Snapshot
OR YEHUDA, Israel (AP) — OR YEHUDA, Israel (AP) — Magic Software Enterprises Ltd. (MGIC) on Wednesday reported earnings of $9.5 million in its first quarter. On a per-share basis, the Or Yehuda, Israel-based company said it had net income of 19 cents. Earnings, adjusted for non-recurring costs, were 25 cents per share. The business process integration software company posted revenue of $147.3 million in the period. Magic Software expects full-year revenue in the range of $593 million to $603 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on MGIC at
San Francisco Chronicle
21-05-2025
- Business
- San Francisco Chronicle
Magic Software: Q1 Earnings Snapshot
OR YEHUDA, Israel (AP) — OR YEHUDA, Israel (AP) — Magic Software Enterprises Ltd. (MGIC) on Wednesday reported earnings of $9.5 million in its first quarter. On a per-share basis, the Or Yehuda, Israel-based company said it had net income of 19 cents. Earnings, adjusted for non-recurring costs, were 25 cents per share. The business process integration software company posted revenue of $147.3 million in the period. _____
Washington Post
21-05-2025
- Business
- Washington Post
Magic Software: Q1 Earnings Snapshot
OR YEHUDA, Israel — OR YEHUDA, Israel — Magic Software Enterprises Ltd. (MGIC) on Wednesday reported earnings of $9.5 million in its first quarter. On a per-share basis, the Or Yehuda, Israel-based company said it had net income of 19 cents. Earnings, adjusted for non-recurring costs, were 25 cents per share. The business process integration software company posted revenue of $147.3 million in the period. Magic Software expects full-year revenue in the range of $593 million to $603 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on MGIC at
