Formula Systems (FORTY) 6-K Current report (foreign)

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