Latest news with #MagicSoftwareEnterprisesLtd
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
Associated Press
21-05-2025
- Business
- Associated Press
Magic Software Reports First Quarter 2025 Financial Results
OR YEHUDA, Israel, May 21, 2025 (GLOBE NEWSWIRE) -- Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) ('the Company'), a global provider of IT consulting services and end-to-end integration and application development platforms solutions, announced today its financial results for the first quarter ended March 31, 2025. Summary Results for the First Quarter 2025 (USD in millions, except per share data) Financial Highlights for the first Quarter Ended March 31, 2025 Guy Bernstein, Chief Executive Officer of Magic Software, said: 'We commenced 2025 with strong momentum, successfully advancing our strategic growth initiatives and executing agreements with both new and existing customers. Our financial performance reflects continued expansion in the Israeli market, alongside early indications of recovery in the United States. Demand for our innovative digital, artificial intelligence and cloud transformation solutions remains robust, along with continued strong demand for our services in the defense sector, underscoring the effectiveness of our strategic direction and the dedication of our team in delivering measurable results. Given the strength of our current sales pipeline and improving market conditions in the U.S., we remain confident in our ability to generate sustainable long-term value for both our customers and shareholders.' Conference Call Details Magic Software's management will host a conference call on Wednesday, May 21, 2025, at 10:00 am Eastern Daylight Time (17:00 Israel Daylight Time) to review and discuss Magic Software's results. To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 5 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, call the international dial-in number. NORTH AMERICA: +1-888-281-1167 UK: 0-800-917-5108 ISRAEL: 03-918-0644 ALL OTHERS: +972-3-918-0644 For those unable to join the live call, a replay of the call will be available in the Investor Relations section of Magic Software's website, Non-GAAP Financial Measures This press release contains the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP operating income, non-GAAP net income attributable to Magic Software's shareholders and non-GAAP basic and diluted earnings per share. Magic Software believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Magic Software's financial condition and results of operations. Magic Software's management uses these non-GAAP measures to compare the Company's performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company's board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company's financial measures with other software companies, many of which present similar non-GAAP financial measures to investors. Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures together with GAAP results. Magic Software urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company's business. Non-GAAP measures used in this press release are included in the financial tables of this release. These non-GAAP measures exclude the following items: Reconciliation of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included in the financial tables of this release. About Magic Software Enterprises Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) is a global provider of end-to-end integration and application development platforms solutions and IT consulting services. For more information, visit Forward Looking Statements Some of the statements in this press release may constitute 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. Words such as 'will,' 'look forward', 'expect,' 'believe,' 'guidance' and similar expressions are used to identify these forward-looking statements (although not all forward-looking statements include such words). These forward-looking statements, which may include, without limitation, projections regarding our future performance and financial condition, are made based on management's current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in our Annual Report on Form 20-F for the year ended December 31, 2024, which filed on May 14, 2025, and subsequent reports and filings made from time to time with the Securities and Exchange Commission. 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: Ronen Platkevitz Magic Software Enterprises [email protected]
