Unassociated Document
 
FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the Month of August 2011

FORMULA SYSTEMS (1985) LTD.
(Translation of Registrant's Name into English)

5 HaPlada st., Or-Yehuda, Israel
(Address of Principal Executive Offices)


Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F

Form 20-F x      Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o    No x

If "Yes" is marked indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________

Attached to Registrant's Form 6-K for the month of August 2011 and incorporated by reference herein is the Registrant's immediate report dated August 18, 2011.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to signed on its behalf by the undersigned, thereunto duly authorized.

FORMULA SYSTEMS (1985) LTD.
(Registrant)

By:/s/ Guy Bernstein
Guy Bernstein CEO
dated:  August 18, 2011
 
 
 
 
 
FOR IMMEDIATE RELEASE

Formula Systems Reports Second Quarter Results for 2011

Revenues increased 26% Year-Over-Year to reach $165.9 million and Net Income Increased 32% to $5 million

Or-Yeuda, Israel – August 18, 2011 – Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, today announced its results for the second quarter of 2011.

 
Financial Highlights for the Second Quarter and Six-Month Periods Ended June 30, 2011
·  
Second quarter Revenues totaled $165.9 million (Q2 2010: $131.7 million), a 26% increase compared to the same quarter of 2010.
 
·  
Operating income for the second quarter increased by 18% to $13.3 million (Q2 2010: $11.3 million)
 
·  
Net Income attributable to Formula for the second quarter reached $5 million, an increase of 32% compared to $3.8 million for the second quarter of 2010.
 
·  
Revenues for the first half of 2011 increased 23% to $321.8 million compared to $262.6million in the same period last year.
 
·  
Operating income for the first half of 2011 increased 15% to $25.6 million compared to $22.3 million in the same period last year.
 
·  
Net income for the first half of 2011 increased 7% to $9.2 million compared to $8.6 million in the same period last year.
 
·  
Formula’s consolidated cash and short term and long term investments totaled approximately $125.0 million, as of 30 June, 2011, of which Formula’s stand alone cash and short term and long term investments totaled to $9.4 million with no debt.
 
·  
Total equity stood at $348.1 million on June 30, 2011, representing 53% of the total balance sheet.
 

Guy Bernstein, CEO of Formula Systems, commented: "I am pleased with the group’s performance in both the second quarter and the six months period. We continued to demonstrate growth reflected in our impressive financial performance driven by strong demand for the products and services offered by our subsidiaries. We feel well positioned to carry out our growth strategy for bringing added value to our customers and shareholders."

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.


Contact:
Formula Systems (1985) Ltd.
ir@formula.co.il
+972-3-5389487

 
 
 

FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share data)
 
   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2011
    
2010
    
2011
    
2010
  
   
Unaudited
    
Unaudited
  
Revenues
     165,875       131,724       321,791       262,566  
Cost of revenues
     126,022       98,650       245,738       197,048  
Gross profit
     39,853       33,074       76,053       65,518  
Research and development costs, net
     1,535       1,211       3,220       2,594  
Selling, general and administrative expenses
     24,993       20,568       47,265       40,624  
Operating income
     13,325       11,295       25,568       22,300  
Financial income (expenses), net
     (1,788 )     (2,243 )     (3,146 )     (1,721 )
      11,537       9,052       22,422       20,579  
Other income (expenses), net
     146       (146 )     177       (153 )
Income before taxes on income
     11,683       8,906       22,599       20,426  
Taxes on income
     1,685       1,213       3,861       3,371  
      9,998       7,693       18,738       17,055  
Equity in gains (losses) of affiliated companies, net
     103       (140 )     (137 )     (378 )
Net income
     10,101       7,553       18,601       16,677  
Net income attributable to non-controlling interests
     5,089       3,720       9,412       8,044  
Net income attributable to Formula's shareholders
     5,012       3,833       9,189       8,633  
                                 
Earnings per share:
                                
Basic
     0.37       0.29       0.68       0.65  
Diluted
     0.35       0.28       0.65       0.63  
                                 
Weighted average number of shares outstanding:
                                
Basic
     13,497       13,365       13,481       13,349  
Diluted
     13,662       13,524       13,654       13,518  
 
 
 
 
 
FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
U.S. dollars in thousands
 
   
June 30,
    
December 31,
  
   
2011
    
2010
  
   
(Unaudited)
        
 ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
     90,077       110,508  
Marketable securities
     26,185       38,170  
Short-term deposits
     6,218       24  
Trade receivables
     160,317       154,366  
Other accounts receivable
     29,811       23,140  
Inventories
     3,100       5,601  
Total current assets
     315,708       331,809  
                 
LONG-TERM INVESTMENTS:
                
Marketable securities
     2,926       2,828  
Deferred Taxes
     14,927       13,135  
Investments in affiliated company
     3,746       3,209  
Prepaid expenses and other assets
     6,209       5,493  
Total long-Term Investments
     27,808       24,665  
                 
SEVERANCE PAY FUND
     55,591       55,286  
                 
PROPERTY, PLANTS AND EQUIPMENT, NET
     20,145       12,411  
                 
NET INTANGIBLE ASSETS AND GOODWILL
     234,733       199,596  
                 
TOTAL  ASSETS
     653,985       623,767  
                 
LIABILITIES AND EQUITY
                
CURRENT LIABILITIES:
                
Liabilities to banks
     6,137       6,684  
Trade payables
     44,958       53,177  
Deferred revenues
     35,364       26,845  
Employees and payroll accrual
     43,619       40,704  
Other accounts payable
     28,903       30,693  
Liability in respect of business combinations
     3,871       3,963  
Debentures
     16,909       15,927  
Total current liabilities
     179,761       177,993  
                 
LONG-TERM LIABILITIES:
                
Debentures
     33,817       31,854  
Deferred taxes
     3,784       2,654  
Customer advances
     3,027       3,520  
Liabilities to banks and others
     3,173       3,154  
Liability in respect of business combinations
     13,293       4,758  
Accrued severance pay
     68,989       65,450  
Total long-term liabilities
     126,083       111,390  
                 
EQUITY
                
Formula shareholders' equity
     200,849       197,615  
Non-controlling interests
     147,292       136,769  
Total equity
     348,141       334,384  
                 
TOTAL LIABILITIES AND EQUITY
     653,985       623,767