Rayware to Update and Customize Legacy Business Systems with Magic Software's eDeveloper
Europe's Largest Distributor of Housewares to Modernize All Business and Operational Processes from Purchase Ordering to Warehouse Contro
Wednesday February 11, 7:00 am ET
IRVINE, Calif-(BUSINESS WIRE)--Feb. 11, 2004-- Magic Software Enterprises (Nasdaq:MGIC - News), a leading provider of state-of-the-art business integration and development technology, announced today a new customer win with Rayware, an internationally known supplier of housewares to the retail trade, based in the U.K. Rayware has selected Magic's eDeveloper application development environment (www.magicsoftware.com/edeveloper) to build a new distributed client server and web-based enterprise solution that will replace their existing business and operational processes from purchase ordering to warehouse control.
In the thirty years since its foundation, Rayware has developed into a leading international supplier of housewares. Their product range covers glassware, ovenware, tableware, giftware, cookware, kitchen tools and textiles with designs that are famous for color, originality, excellent quality and value.
The new system, to be developed in-house using eDeveloper, will allow Rayware to add enhanced functionality as required, quickly and easily, and provide the necessary integration between applications to ensure the smooth and efficient running of the operational business. In addition, eDeveloper will eliminate the costly maintenance associated with its current system.
In recent years, Rayware's operational needs have grown considerably and the existing off-the-shelf applications and systems were becoming inflexible, difficult and costly to maintain, and did not offer the high degree of integration necessary for the future growth of Rayware.
"We were looking to replace our current systems with something that would provide us with more flexibility and integration between applications," said Maria Pearman, IT Manager of Rayware. "At the same time we also wanted an open solution that would allow us to easily upgrade our technology in the future. One of our partners had already developed some systems in eDeveloper and recommended it to us. Upon further investigation we found that eDeveloper addressed all of our issues including ease of use, speed and flexibility."
"As with many of our other customers that have both a manufacturing and distribution side to their business," said Regev Yativ, Managing Director of Magic EMEA, "Rayware has discovered that the flexibility and speed of development that eDeveloper offers, combined with its integration capabilities, provides a simple solution to complex systems development."
The initial stage of the migration to the new system, expected to go live early in 2004, involves the development of a loading and distribution application that will allow Rayware to track the unloading of containers, assign stock, manage inventory movement and deliver management data.
Critical in the selection of eDeveloper was the ability to integrate the new applications with Cobol-based legacy systems allowing deployment of the new system to be phased in. In addition, the business rules capabilities available with eDeveloper allows Rayware to shorten the development cycle while allowing its business users to be involved in the creation of the new systems and incorporate their changes and ideas more easily.
About Rayware Group
Rayware Group (Liverpool, UK), a privately owned company, has been trading for over 30 years and is a leading international supplier with a product range covering glassware, ovenware, tableware, giftware, cookware, kitchen tools and textiles. It currently employs over 125 people and has distributors and partners across the world. Rayware can be contacted at telephone: +44(0) 151 486 1888, fax: +44(0) 151 486 1467 or from their website, http://www.rayware.co.uk/.
About Magic Software Enterprises
Magic Software Enterprises, a member of the Formula Group
(Nasdaq:FORTY - News) develops, markets and supports software development, deployment and integration technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems. Magic technology, applications and professional services are available through a global network of subsidiaries, distributors and Magic solutions partners in approximately 50 countries. The company's North American subsidiary is located at 17310 Redhill Avenue #270, Irvine, CA 92614-5637, telephone 800/345-6244, 949/250-1718, fax 949/250-7404,
http://www.magicsoftware.com/.
Formula Systems is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products, and producing computer-based solutions.
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.
Consolidated Statement of Operations
(US Dollars in Thousands)
Three Months ended Twelve Months ended
December 31, December 31,
---------------------------------------
2003 2002 2003 2002
Revenues
Software sales $6,361 $3,575 $19,712 $15,136
Applications 2,252 1,253 7,277 7,355
Maintenance 2,852 2,767 10,853 10,882
Consultancy & other services 5,830 6,166 25,548 26,631
Total revenues $17,295 $13,761 $63,390 $60,004
Cost of revenues
Software sales $1,546 $1,795 $5,105 $5,652
Maintenance 674 1,024 2,580 4,100
Consultancy & other services 3,966 4,758 16,454 19,239
Total cost of revenues $6,186 $7,577 $24,139 $28,991
Gross profit $11,109 $6,184 $39,251 $31,013
Research & development, net 1,385 1,322 4,775 5,336
Sales, Marketing, General and
administrative expenses 7,813 6,920 29,087 28,962
Depreciation 415 450 1,727 1,732
Restructuring costs & non-
recurring expenses 1,123 1,123
Operating income (loss) $1,496 $(3,631) $3,662 $(6,140)
Financial income, net 108 383 307 958
Capital loss 8 - 42 -
Income (loss) before taxes 1,596 (3,248) 3,927 (5,182)
Taxes on income 106 (47) 230 (384)
Income (loss) before minority
Interest 1,490 (3,295) 3,697 (5,566)
Minority interests in
income of subsidiaries 224 115 594 11
Equity losses 36 (108) 36 (108)
Net income $1,230 $(3,288) $3,067 $(5,663)
Earnings (loss) per share,
basic and diluted $0.04 $(0.11) $0.10 $(0.19)
Basic weighted avg. shares
outstanding (000's) 29,947 29,599 29,624 29,690
Diluted weighted avg. shares
outstanding (000's) 31,319 29,599 30,533 29,690
Consolidated Balance Sheets
(US Dollars in Thousands)
December 31, December 31,
2003 2002
Assets
Current assets
Cash and cash equivalents $13,581 $24,785
Accounts receivable
Trade receivables 19,725 13,605
Related parties 48 624
Other receivables and prepaid expenses 3,500 4,009
Inventory 188 175
----------------------------
Total current assets 37,042 43,198
----------------------------
Severance pay fund 1,781 1,465
Long term receivables and investments 100 852
Fixed assets, net 7,855 8,432
Goodwill 21,155 20,839
Other assets, net 9,867 9,736
----------------------------
Total assets $77,800 $84,522
============================
Liabilities
Current liabilities
Short-term bank debt $2,357 $3,464
Trade payables 3,249 2,831
Accrued expenses and other liabilities 14,348 13,703
----------------------------
Total current liabilities 19,954 19,998
----------------------------
Long-term loans 299 414
Accrued severance pay 2,166 1,861
Minority interests 1,457 1,228
Shareholders' equity
Share capital 805 788
Capital surplus 104,685 114,760
Treasury stock (5,773) (5,667)
Accumulated deficit (45,793) (48,860)
----------------------------
Total shareholders' equity $53,924 $61,021
----------------------------
Total liabilities and shareholders' equity $77,800 $84,522
============================
Contact:
Magic Software Enterprises Ltd.
David Leichner, 949-250-1718 ext. 299
(Vice President, Worldwide Marketing)
davidl@magicsoftware.com
Guy Bernstein, +972-3-538-9292
(Vice President, Finance)
gbernstein@magicsoftware.com
 
|
 |
