Herzliya, Israel – March 2, 2006 – Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, announced today results for the fourth quarter and year ended December 31, 2005.
Revenues for the year ended December 31,2005 totaled $506.4 million compared to $456.6 million in 2004. For the fourth quarter, Formula recorded revenues of $124.8 million compared to $127.2 million in the fourth quarter of 2004.
Operating income in 2005 was $15.9 million compared to $18.1 million in 2004. Operating income in the fourth quarter of 2005 was $2.5 million compared to $7.6 million in the same quarter last year.
Net income in the year ended December 31, 2005 was $183,000 compared to $8.1 million in 2004. Net loss in the fourth quarter totaled $2.7 million compared to net income of $3.1 million in the fourth quarter of 2004.
Gad Goldstein, President of Formula, commented: "Weakness in certain subsidiaries in the second half of 2005 together with reassessment of intangible assets and deferred tax assets in certain of our subsidiaries, resulted in unsatisfactory financial results for Formula. Restructuring processes, personnel changes and refocusing that were implemented by our subsidiaries, with our assistance and under our guidance, towards the end of 2005, combined with events and trends which we identified after the year end, provide us with the confidence that significant profitability will be regained in 2006." Mr. Goldstein concluded:" We expect 2006 to be a successful harvest year of all the seeds that were sown in the previous year".
Click here to download Formula Groups Q4 05 and Year-End Results
About Formula
Formula Systems Ltd. is a global information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and providing computer-based business solutions.
Statements made in this press release that are not historical facts are forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the company’s products, dependence on strategic partners, integration of new business, successful implementation of Formula’s products, economic and competitive factors, international market conditions, management of growth, technological developments, the ability to finance operations and other factors which are detailed in Formula’s Securities and Exchange Commission filings, including its most recent report on Form 20-F. Formula undertakes no obligation to publicly release any revision to any forward-looking statement.
Statements made in this press release that are not historical facts are forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the company's products, dependence on strategic partners, integration of new business, successful implementation of Formula's products, economic and competitive factors, international market conditions, management of growth, technological developments, the ability to finance operations and other factors which are detailed in Formula's Securities and Exchange Commission filings, including its most recent report on Form 20-F. Formula undertakes no obligation to publicly release any revision to any forward-looking statement
Contact:
| Israel: | Gad Goldstein, President, Formula Systems Ltd. +972-9-959-8800 |
| USA: | Dennis S. Dobson, for Formula Systems Ltd. (203) 255-7902 |
