(Correction: Modifies article to more clearly state that Magic Software reported earnings growth excluding a capital gain in the same quarter a year ago.)
Israel-based software development company Magic Software Enterprises Ltd. (MGIC) Wednesday reported a fourth-quarter profit that rose sharply year-over-year, excluding a one-time capital gain recorded in the prior-year quarter.
The company's quarterly net income from continuing operations surged to US$1.08 million from US$284 thousand last year.
In the prior-year quarter, the company reported US$9.73 million as net income from discontinued operations, which includes a US$9.3 million one-time capital gain from the sale of the company's AAOD subsidiary and contributions from AAOD operations.
Including the gain, net income for the recently completed quarter plunged to US$1.08 million or US$0.03 per share from US$10.02 million or US$0.31 per share in the earlier year.
Non-GAAP net income for the quarter was US$1.15 million or US$0.04 per share, compared to US$10.13 million or US$0.32 per share in the year-ago quarter. Non-GAAP net income from continuing operations in the year-ago quarter totaled US$398 thousand.
Revenues for the quarter decreased slightly to US$15.07 million from US$15.68 million in the preceding year. Operating income was US$1.19 million, up from US$154 thousand a year ago.
For the full year, the company posted net income from continuing operations or US$4.51 million compared to US$1.14 million in the previous year. Including income from discontinued operations, net income in the previous year totaled $12.61 million.
Revenues for the year increased to US$61.98 million from US$58.43 million a year earlier.
Magic Software Chairman, Guy Bernstein commented, "I am pleased to report that the Company continued to increase its sales and profits throughout 2008 despite the challenging economic climate."
"We are maintaining our competitive edge by providing our customers with cost-effective solutions and solid support," Bernstein added. "We are also maintaining tight control over costs and remain focused on the long-term growth of the Company."
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