Formula Systems Sees Better-than-expected Profit

NEW YORK, Feb 14 (Reuters) - Israel's Formula Sytems Ltd. (NasdaqNM:FORTY - news) on Monday said its fourth-quarter profit should exceed expectations, and U.S. shares of the software company rose more than 15 percent to a record high.

Formula Systems also said it would delay the release of its fourth-quarter results until Feb. 28 because of the secondary stock offering by its majority-owned Magic Software Enterprises Inc. (NasdaqSC: MBIC - news), which makes electronic commerce and other business software applications.

Magic Software is selling 1.33 million shares in the offering, a third of which are being sold by Formula Systems, according to U.S. Security and Exchange Commission records.

Wall Street analysts had been expecting Formula Systems to report a profit of 50 cents per share in the fourth quarter, according to research firm First Call/Thomson Financial.

"According to the information currently available by Formula Systems Ltd, the earnings per share of Formula Systems Ltd. is expected to be higher than analyst and Wall Street expectations," the company said in a statement.

At about noon, Formula Systems shares were up 8-7/8 at 75-7/8 on Nasdaq but earlier had touched a new high of 77-1/4.

Further details were not immediately available.