OR YEHUDA, Israel, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) ("the Company"), a global provider of IT consulting services and end-to-end integration and application development platforms solutions, announced today its financial results for the second quarter and first half ended June 30, 2024. Summary Results for the Second Quarter 2024 (USD in millions, except per share data) | --- | --- | --- | --- | --- | --- | --- | |------------------|------------------|- ...

[Q1 2024 Financial Performance Overview](index=1&type=section&id=Q1%202024%20Financial%20Performance%20Overview) Magic Software's Q1 2024 saw revenue decline, but improved margins and strong operating cash flow, with full-year guidance reiterated [Summary of Financial Results](index=1&type=section&id=Summary%20of%20Financial%20Results) Magic Software experienced an **8.2% revenue decline** in Q1 2024, with GAAP net income down **13.0%**, yet gross and operating margins improved Q1 2024 Financial Results Summary (USD in millions, except per share data) | Metric | Q1 2024 GAAP | Q1 2023 GAAP | % Change | Q1 2024 Non-GAAP | Q1 2023 Non-GAAP | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenues | $130.7 | $142.4 | (8.2)% | $130.7 | $142.4 | (8.2)% | | Gross profit | $36.7 | $38.9 | (5.6)% | $38.3 | $40.1 | (4.5)% | | Gross margin | 28.1% | 27.3% | +80 bps | 29.3% | 28.2% | +110 bps | | Operating income | $14.4 | $15.3 | (6.0)% | $18.1 | $18.5 | (1.7)% | | Operating margin | 11.0% | 10.8% | +20 bps | 13.9% | 13.0% | +90 bps | | Net income (*) | $8.8 | $10.1 | (13.0)% | $11.3 | $12.6 | (10.4)% | | Diluted EPS | $0.18 | $0.21 | (14.3)% | $0.23 | $0.26 | (11.5)% | [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Q1 2024 revenues declined **8.2%** due to reduced U.S. customer demand, while operating cash flow significantly increased and the balance sheet remained strong - Revenues for Q1 2024 decreased by **8.2%** to **$130.7 million**, impacted by a **$20.4 million** decline in demand from key U.S. blue-chip customers[2](index=2&type=chunk) - GAAP net income attributable to shareholders fell **13.0%** to **$8.8 million**, primarily due to lower operating profit and higher interest expenses[4](index=4&type=chunk) - Cash flow from operating activities significantly increased to **$27.7 million** in Q1 2024, compared to **$18.8 million** in the same period last year[4](index=4&type=chunk) - As of March 31, 2024, the company held **$125.9 million** in cash, cash equivalents, and bank deposits, with total financial debt at **$78.4 million**[5](index=5&type=chunk) [2024 Full Year Guidance](index=2&type=section&id=2024%20Full%20Year%20Guidance) Magic Software reiterates its 2024 full-year revenue guidance, projecting revenues between **$540 million** and **$550 million** - The company reaffirms its 2024 annual revenue guidance to be between **$540 million** and **$550 million**[5](index=5&type=chunk) [Shareholder Returns](index=2&type=section&id=Shareholder%20Returns) The company declared a semi-annual cash dividend of **20.4 cents per share**, totaling **$10.0 million**, representing **70%** of H2 2023 distributable profits [Dividend Declaration](index=2&type=section&id=Dividend%20Declaration) A semi-annual cash dividend of **20.4 cents per share**, totaling **$10.0 million**, was declared for H2 2023, payable July 13, 2024 - A semi-annual cash dividend of **20.4 cents per share** was declared, amounting to a total of approximately **$10.0 million**[6](index=6&type=chunk) - The dividend is payable on **July 13, 2024**, to shareholders of record as of **June 27, 2024**[6](index=6&type=chunk) - This distribution reflects approximately **70%** of the company's distributable profits for the second half of 2023[6](index=6&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Guy Bernstein acknowledged U.S. headwinds but affirmed continued customer engagement and focus on long-term profitability through cutting-edge capabilities [CEO Statement](index=2&type=section&id=CEO%20Statement) CEO acknowledged H2 2023 U.S. headwinds but affirmed strong customer engagement and commitment to long-term profitability through innovation - The CEO acknowledged a slowdown in H2 2023 due to headwinds with certain U.S. customers[7](index=7&type=chunk) - He emphasized that most customers continue to view Magic Software as a preferred partner for digital transformation[7](index=7&type=chunk) - The company is focused on developing cutting-edge capabilities to ensure long-term profitability and shareholder value[7](index=7&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the condensed consolidated statements of income, balance sheets, and cash flows for Q1 2024, detailing the company's financial position and performance [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q1 2024 revenues decreased to **$130.7 million**, with net income attributable to shareholders at **$8.8 million** and diluted EPS of **$0.18** Q1 2024 vs Q1 2023 Income Statement (USD in thousands) | Line Item | Q1 2024 (Unaudited) | Q1 2023 | | :--- | :--- | :--- | | Revenues | $130,720 | $142,440 | | Gross profit | $36,699 | $38,885 | | Operating income | $14,426 | $15,347 | | Financial expenses, net | ($1,758) | ($564) | | Income before taxes | $12,782 | $14,648 | | Net income | $10,053 | $11,835 | | Net income attributable to Magic's shareholders | $8,797 | $10,108 | | Diluted EPS | $0.18 | $0.21 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to **$536.5 million**, driven by higher cash, with total equity reaching **$296.5 million** Balance Sheet Summary (USD in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $125,803 | $105,943 | | Total current assets | $273,746 | $256,625 | | Total assets | $536,517 | $522,406 | | **Liabilities & Equity** | | | | Total current liabilities | $161,583 | $141,699 | | Total long term liabilities | $78,449 | $89,763 | | Total equity | $296,485 | $290,944 | | Total liabilities and equity | $536,517 | $522,406 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 operating cash flow significantly increased to **$27.7 million**, leading to a **$19.9 million** rise in cash and cash equivalents Cash Flow Summary for Q1 (USD in thousands) | Cash Flow Activity | Q1 2024 (Unaudited) | Q1 2023 (Unaudited) | | :--- | :--- | :--- | | Net cash provided by operating activities | $27,677 | $18,753 | | Net cash used in investing activities | ($1,265) | ($11,239) | | Net cash (used in) provided by financing activities | ($5,428) | $13,520 | | Increase in cash and cash equivalents | $19,860 | $19,444 | | Cash and cash equivalents at end of period | $125,803 | $102,506 | [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section explains and reconciles non-GAAP financial measures, providing a clearer view of Magic Software's underlying business performance [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures are used to provide a clearer view of ongoing business performance by excluding specific non-recurring or non-cash items - The company believes non-GAAP measures provide useful information to management and investors regarding financial and business trends[9](index=9&type=chunk) - Key items excluded from non-GAAP calculations include: - Amortization of purchased intangible assets - Cost of share-based payment - Costs related to acquisitions - Change in valuation of contingent consideration - Related tax and non-controlling interests' effects[11](index=11&type=chunk) [Reconciliation of GAAP to Non-GAAP Results](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) Detailed reconciliation of Q1 2024 GAAP to non-GAAP results, adjusting for items like amortization and share-based payments, yielding a non-GAAP diluted EPS of **$0.23** Reconciliation of GAAP to Non-GAAP Operating Income for Q1 2024 (USD in thousands) | Description | Amount | | :--- | :--- | | **GAAP operating income** | **$14,426** | | Gross profit adjustments | $1,610 | | Amortization of other intangible assets | $1,514 | | Increase in valuation of contingent consideration | $306 | | Capitalization of software development | ($748) | | Costs related to acquisitions | $144 | | Cost of share-based payment | $891 | | **Non-GAAP operating income** | **$18,143** | Reconciliation of GAAP to Non-GAAP Net Income for Q1 2024 (USD in thousands) | Description | Amount | | :--- | :--- | | **GAAP net income attributable to Magic's shareholders** | **$8,797** | | Operating income adjustments | $3,717 | | Expenses attributed to non-controlling interests | ($452) | | Increase in valuation of consideration related to acquisitions | $114 | | Deferred taxes on the above items | ($899) | | **Non-GAAP net income attributable to Magic's shareholders** | **$11,277** |

Second Quarter 2024 Net Income of $204.2 million or $0.77 per Diluted Share Second Quarter 2024 Adjusted Net Operating Income (Non-GAAP) of $204.9 million or $0.77 per Diluted Share MILWAUKEE, July 31, 2024 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today reported operating and financial results for the second quarter of 2024. Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "I am pleased to report we again delivered a solid quarter of financial results. We cont ...

Company Overview - MGIC Investment Corporation is the principal subsidiary of Mortgage Guaranty Insurance Corporation, providing private mortgage insurance to lenders across the United States, facilitating affordable low-down-payment mortgages for families [1]. Dividend Announcement - MGIC Investment Corporation's Board of Directors declared a quarterly cash dividend of $0.13 per share, marking a 13% increase from the previous dividend of $0.115 per share [3]. - The upcoming dividend will be payable on August 22, 2024, to shareholders of record as of August 8, 2024 [3].

Company Overview - Magic Software Enterprises Ltd. is a global provider of IT consulting services and end-to-end integration and low-code application development platforms, with 40 years of experience and millions of installations worldwide [3][5] - The company has strategic alliances with global IT leaders and operates in 50 countries, enabling customers to adopt new technologies and maximize business opportunities [3] Financial Reporting - Magic Software will report its financial results for the second quarter of 2024 on Wednesday, August 14th, 2024 [5] - A conference call will be hosted on the same day at 10:30 a.m. Eastern Daylight Time to discuss the results [1][5] Communication and Accessibility - A replay of the conference call will be available on the company's website for those unable to join live [2] - For more information, interested parties can visit the company's website at www.magicsoftware.com [6]

Core Viewpoint - Magic Software Enterprises Ltd. will report its financial results for the second quarter of 2024 on August 14, 2024, and will host a conference call to discuss these results [1][5]. Company Overview - Magic Software Enterprises Ltd. is a global provider of IT consulting services, specializing in end-to-end integration and low-code application development platforms, with 40 years of experience and millions of installations worldwide [3]. - The company has strategic alliances with global IT leaders and operates in 50 countries, focusing on helping customers adopt new technologies and maximize business opportunities [3]. Financial Reporting - The financial results for the second quarter of 2024 will be available on August 14, 2024, with a conference call scheduled for 10:30 a.m. Eastern Daylight Time [1][5]. - A replay of the call will be accessible on the company's website for those unable to join live [2].

MILWAUKEE, July 1, 2024 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) has announced plans to release its second quarter 2024 financial results after the market closes on Wednesday, July 31, 2024. A conference call/webcast has been scheduled for 10:00 a.m. Eastern Time on Thursday, August 1, 2024, to discuss the Company's results for the quarter ended June 30, 2024. Individuals interested in joining by telephone should register for the call "here" to receive the dial-in number and unique PIN to acc ...

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Magic Software (MGIC) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question. Within the past quarter, the Zacks Consensus Estimate for MGIC's full ...

Core Insights - The article emphasizes the importance of the Zacks Rank and Style Scores system in identifying strong stocks, particularly focusing on value investing strategies [1][2][3] Company Analysis - Magic Software Enterprises (MGIC) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is a high-quality value stock [4] - MGIC's current P/E ratio is 10.82, significantly lower than the industry average of 30.82, suggesting it may be undervalued [4] - Over the past year, MGIC's Forward P/E has fluctuated between 7.36 and 13.62, with a median of 10.82, indicating stable valuation metrics [4] - The company has a P/CF ratio of 9.16, which is also lower than the industry average of 21.75, further supporting the notion of undervaluation [5] - MGIC's P/CF has ranged from 6.61 to 11.27 over the past year, with a median of 9.18, reflecting a solid cash flow outlook [5] - Overall, MGIC is considered an impressive value stock due to its strong earnings outlook and favorable valuation metrics [6]

A downtrend has been apparent in Magic Software (MGIC) lately with too much selling pressure. The stock has declined 9.8% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround. How to Determine if a Stock is Oversold We use Relative Strength Index (RSI), one of the most commonly used technical indicators, ...