Magic Software sees Q4 profit well above last year

NEW YORK, (Reuters) - Israel's Magic Software Enterprise Ltd. (Nasdaq:MGIC - news), maker of electronic commerce and business software, said Thursday it expects fourth-quarter net income to exceed $3.8 million, well ahead of last year's $1.2 million.

The company said earnings per share should be about 42 cents in the fourth quarter and $1.29 for the year. Magic Software earned a profit of 18 cents a share in last year's fourth quarter, but lost $1.13 a share in the 1998 full year.

The software company said fourth-quarter revenues would surpass $18.6 million, resulting in 1999 revenues of about $63.9 million. Net income for the 1999 year is expected to be $10.9 million.

It will release fourth-quarter and year-end results at the end of March.

The company also said its stockholders have approved a three-for-one stock split. Shareholders of record on Feb. 4 will receive two additional shares for each share held on or about Feb. 11.

Shares of Magic closed at 81-1/2 on Nasdaq on Wednesday.