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 May 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 May 2011 and incorporated by reference herein is the Registrant's immediate report dated May 12, 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: May 12, 2011
FOR IMMEDIATE RELEASE
Formula Systems Reports First Quarter Results for 2011
OPERATING INCOME INCREASED BY 11% TO REACH $12.2 MILLION
Or-Yeuda, Israel – May 12, 2011 – Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, today announced its results for the first quarter of 2011.
Financial Highlights for the First Quarter
| · | Revenues totaled $155.9 million (Q1 2010: $130.8 million), a 19% increase compared to the same quarter of 2010. |
| · | Operating income increased by 11% to $12.2 million (Q1 2010: $11.0 million) |
| · | Net Income attributable to Formula reached $4.2 million, a decrease of 13% compared to $4.8 million for the first quarter of 2010 due to decrease in financial income resulting from losses in one of our subsidiary’s investment portfolio. |
| · | Formula’s consolidated cash and short term investments totaled approximately $153.0 million, as of 31 March, 2011. |
| · | Total equity stood at $347.6 million on March 31, 2011, representing 53% of the total balance sheet. |
Guy Bernstein, CEO of Formula Systems, commented: "We are pleased to report a positive start to 2011. with strong financial results for the first quarter. All our subsidiaries have continued to improve their performance, resulting in increased revenue and operating income, generating double-digit growth year over year. Looking forward, our strong cash position enables us to continue to explore new business opportunities, while we maintain our strategic focus on profitability and growth."
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.
(An Israeli corporation)
CONSOLIDATED BALANCE SHEETS
| | | March 31, 2011 (Unaudited) | | | December 31, 2010 | |
| | | U.S. $ | |
| ASSETS | | (in thousands) | |
| CURRENT ASSETS: | | | | | | |
| Cash and cash equivalents | | | 103,625 | | | | 110,508 | |
| Marketable securities | | | 37,855 | | | | 38,170 | |
| Short-term deposits | | | 11,500 | | | | 24 | |
| Trade receivables | | | 155,517 | | | | 154,366 | |
| Other accounts receivable | | | 32,563 | | | | 23,140 | |
| Inventories | | | 3,770 | | | | 5,601 | |
| | | | 344,830 | | | | 331,809 | |
| | | | | | | | | |
| LONG-TERM INVESTMENTS: | | | | | | | | |
| Marketable securities | | | 3,034 | | | | 2,828 | |
| Deferred Taxes | | | 13,596 | | | | 13,135 | |
| Investments in affiliated company | | | 3,171 | | | | 3,209 | |
| Prepaid expenses and other assets | | | 6,473 | | | | 5,493 | |
| | | | | | | | | |
| | | | 26,274 | | | | 24,665 | |
| | | | | | | | | |
| | | | | | | | | |
| SEVERANCE PAY FUND | | | 56,134 | | | | 55,286 | |
| | | | | | | | | |
| PROPERTY, PLANTS AND EQUIPMENT, NET | | | 14,520 | | | | 12,411 | |
| | | | | | | | | |
| OTHER ASSETS, NET | | | 211,203 | | | | 199,596 | |
| | | | | | | | | |
| | | | 652,961 | | | | 623,767 | |
| | | | | | | | | |
| CURRENT LIABILITIES: | | | | | | | | |
| Liabilities to banks | | | 6,551 | | | | 6,684 | |
| Trade payables | | | 49,610 | | | | 53,177 | |
| Deferred revenues | | | 43,274 | | | | 26,845 | |
| Employees and payroll accrual | | | 42,088 | | | | 40,704 | |
| Other accounts payable | | | 25,659 | | | | 30,693 | |
| Dividend payable to non controlling interests | | | 2,405 | | | | - | |
| Liability in respect of business combinations | | | 4,987 | | | | 3,963 | |
| Debentures | | | 17,012 | | | | 15,927 | |
| | | | 191,586 | | | | 177,993 | |
| | | | | | | | | |
| LONG-TERM LIABILITIES: | | | | | | | | |
| Debentures | | | 32,778 | | | | 31,854 | |
| Deferred taxes | | | 3,360 | | | | 2,654 | |
| Customer advances | | | 3,541 | | | | 3,520 | |
| Liabilities to banks and others | | | 1,571 | | | | 3,154 | |
| Liability in respect of business combinations | | | 5,123 | | | | 4,758 | |
| Accrued severance pay | | | 67,403 | | | | 65,450 | |
| | | | | | | | | |
| | | | 113,776 | | | | 111,390 | |
| | | | | | | | | |
| TOTAL EQUITY | | | 347,599 | | | | 334,384 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | 652,961 | | | | 623,767 | |
FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
| | | Three months ended March 31, | |
| | | 2011 | | | 2010 | |
| | | U.S.$ | |
| | | (in thousands, except per share data) | |
| | | | | | | |
| Revenues | | | 155,916 | | | | 130,842 | |
| Cost of revenues | | | 119,716 | | | | 98,398 | |
| | | | | | | | | |
| Gross profit | | | 36,200 | | | | 32,444 | |
| Research and development costs, net | | | 1,685 | | | | 1,383 | |
| Selling, general and administrative expenses | | | 22,272 | | | | 20,056 | |
| | | | | | | | | |
| Operating income | | | 12,243 | | | | 11,005 | |
| Financial income (expenses), net | | | (1,358 | ) | | | 522 | |
| | | | | | | | | |
| | | | 10,885 | | | | 11,527 | |
| Other income (expenses), net | | | 31 | | | | (7 | ) |
| | | | | | | | | |
| Income before taxes on income | | | 10,916 | | | | 11,520 | |
| Taxes on income | | | 2,176 | | | | 2,158 | |
| | | | | | | | | |
| | | | 8,740 | | | | 9,362 | |
| Equity in losses of affiliated companies, net | | | (240 | ) | | | (238 | ) |
| Net income | | | 8,500 | | | | 9,124 | |
| | | | | | | | | |
| Net income attributable to non-controlling interests | | | 4,323 | | | | 4,324 | |
| | | | | | | | | |
| | | | | | | | | |
| Net income attributable to Formula's shareholders | | | 4,177 | | | | 4,800 | |
| | | | | | | | | |
| Earnings per share: | | | | | | | | |
| Basic | | | 0.31 | | | | 0.36 | |
| | | | | | | | | |
| Diluted | | | 0.30 | | | | 0.35 | |
| | | | | | | | | |
| | | | | | | | | |
| Weighted average number of shares outstanding: | | | | | | | | |
| Basic | | | 13,464 | | | | 13,365 | |
| | | | | | | | | |
| Diluted | | | 13,646 | | | | 13,548 | |
