OR YEHUDA, Israel, May 16, 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 first quarter ended March 31, 2024. Summary Results for the First Quarter 2024 (USD in millions, except per share data) | | GAAP | | | | | Non-GAAP | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 ...

Form 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the month of May 2024 Commission file number: 0-19415 MAGIC SOFTWARE ENTERPRISES LTD. (Translation of registrant's name into English) 1 Yahadut Canada Street, Or-Yehuda, Israel 6037501 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F o ...

Magic Software Enterprises Ltd. (NASDAQ:MGIC) Q4 2023 Earnings Conference Call March 13, 2024 11:00 AM ET Company Participants Guy Bernstein - Chief Executive Officer Asaf Berenstin - Chief Financial Officer Yuval Lavi - Chief Technology Officer Conference Call Participants Chris Reimer - Barclays Maggie Nolan - William Blair Operator Ladies and gentlemen, thank you for standing by. Welcome to the Magic Software Enterprises 2023 Fourth Quarter and Full Year Financial Results Conference Call. Magic’s fourth ...

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) Magic Software's financial performance in 2023 saw revenue declines in Q4 and full year, driven by reduced U.S. customer demand, yet demonstrated improved operational efficiency and positive 2024 growth guidance [Fourth Quarter 2023 Financial Performance](index=1&type=section&id=Fourth%20Quarter%202023%20Financial%20Performance) In the fourth quarter of 2023, Magic Software experienced a significant revenue decline of 14.7% to $125.5 million, primarily due to an unexpected and immediate suspension of projects by several key U.S. blue-chip customers, which impacted revenues by approximately $24.8 million. Despite the revenue drop, both GAAP and Non-GAAP gross and operating margins improved year-over-year. GAAP net income fell 11.2% to $8.5 million, and Non-GAAP net income decreased by 13.1% to $11.6 million Q4 2023 vs. Q4 2022 Financial Results (USD in millions) | Metric | Q4 2023 (GAAP) | Q4 2022 (GAAP) | % Change | Q4 2023 (Non-GAAP) | Q4 2022 (Non-GAAP) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $125.5 | $147.1 | (14.7)% | $125.5 | $147.1 | (14.7)% | | **Operating Income** | $13.0 | $14.2 | (8.4)% | $17.7 | $18.7 | (5.7)% | | **Operating Margin** | 10.3% | 9.6% | +70 bps | 14.1% | 12.7% | +140 bps | | **Net Income** | $8.5 | $9.6 | (11.2)% | $11.6 | $13.4 | (13.1)% | | **Diluted EPS** | $0.17 | $0.19 | (10.5)% | $0.24 | $0.27 | (11.1)% | - The revenue decrease was primarily driven by an unexpected decline in demand for professional services from several important U.S.-based blue-chip customers, who suspended significant projects. This resulted in a revenue impact of approximately **$24.8 million** in Q4 2023 compared to Q4 2022[5](index=5&type=chunk) - The decrease in net income was attributed to lower operating profit and higher interest expenses, which resulted from increased bank interest rates and a larger overall financial debt[5](index=5&type=chunk) [Full Year 2023 Financial Performance](index=2&type=section&id=Full%20Year%202023%20Financial%20Performance) For the full year 2023, revenues decreased by 5.6% to $535.1 million, impacted by a $40.8 million reduction in demand from key U.S. customers starting in the third quarter. GAAP and Non-GAAP net income also declined. However, the company demonstrated strong operational efficiency, with cash flow from operating activities increasing significantly to $77.9 million from $56.6 million in the prior year Full Year 2023 vs. 2022 Financial Results (USD in millions) | Metric | 12M 2023 (GAAP) | 12M 2022 (GAAP) | % Change | 12M 2023 (Non-GAAP) | 12M 2022 (Non-GAAP) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $535.1 | $566.8 | (5.6)% | $535.1 | $566.8 | (5.6)% | | **Operating Income** | $57.1 | $61.8 | (7.5)% | $71.8 | $74.5 | (3.7)% | | **Operating Margin** | 10.7% | 10.9% | (20) bps | 13.4% | 13.1% | +30 bps | | **Net Income** | $37.0 | $40.5 | (8.5)% | $48.4 | $51.7 | (6.5)% | | **Diluted EPS** | $0.75 | $0.82 | (8.5)% | $0.99 | $1.05 | (5.7)% | - The full-year revenue decline was caused by a substantial and unexpected drop in demand for professional services from U.S. blue-chip customers beginning in Q3, resulting in a negative impact of approximately **$40.8 million** for the year[7](index=7&type=chunk) - Cash flow from operating activities for 2023 increased significantly to **$77.9 million**, compared to **$56.6 million** in 2022[7](index=7&type=chunk) [Management Commentary and Outlook](index=3&type=section&id=Management%20Commentary%20and%20Outlook) Despite the slowdown in the second half of 2023, CEO Guy Bernstein expressed optimism about resuming growth, citing the company's diversified portfolio and focus on innovation. The company is pursuing both organic and inorganic expansion. For 2024, Magic Software introduced annual revenue guidance of $540 million to $550 million, which represents 7.5% to 9.5% growth based on the annualized fourth-quarter 2023 revenue - The CEO stated that despite headwinds, the company will pursue both organic and inorganic expansion, embracing innovation to drive long-term profitability and restore growth[8](index=8&type=chunk) - The company provided 2024 annual revenue guidance of between **$540 million** and **$550 million**. This reflects an annual growth of **7.5% to 9.5%** when measured against the annualized revenue of Q4 2023[12](index=12&type=chunk) - As of December 31, 2023, the company held cash, cash equivalents, and bank deposits of **$107.1 million**, with total financial debt at **$81.2 million**[12](index=12&type=chunk) [Detailed Financial Statements](index=5&type=section&id=Detailed%20Financial%20Statements) This section presents Magic Software's comprehensive GAAP financial statements, including consolidated statements of income, balance sheets, and cash flows, along with a reconciliation to non-GAAP measures, providing a detailed view of the company's financial position and performance [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The consolidated statements of income detail the company's financial performance on a GAAP basis for the fourth quarter and full year of 2023, with comparisons to 2022. Key line items show a year-over-year decrease in revenues, gross profit, and net income attributable to shareholders for both the quarter and the full year Consolidated Income Statement Highlights (USD in thousands) | Line Item | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $125,545 | $147,146 | $535,052 | $566,792 | | **Gross Profit** | $36,960 | $41,821 | $152,987 | $155,355 | | **Operating Income** | $12,983 | $14,177 | $57,108 | $61,762 | | **Net Income Attributable to Magic's Shareholders** | $8,483 | $9,558 | $37,031 | $40,470 | [Reconciliation of GAAP to Non-GAAP Results](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) This section provides a detailed reconciliation from GAAP to Non-GAAP financial measures for the fourth quarter and full year of 2023 and 2022. It quantifies adjustments for items such as amortization of intangible assets, share-based payment costs, and acquisition-related expenses to derive Non-GAAP gross profit, operating income, and net income, offering a view of underlying operational performance FY 2023 Operating Income Reconciliation (USD in thousands) | Description | Amount | | :--- | :--- | | **GAAP operating income** | **$57,108** | | Amortization of intangible assets (Gross profit & other) | $13,449 | | Cost of share-based payment | $3,798 | | Capitalization of software development | ($3,183) | | Other adjustments | $612 | | **Non-GAAP operating income** | **$71,784** | FY 2023 Net Income Reconciliation (USD in thousands) | Description | Amount | | :--- | :--- | | **GAAP net income attributable to Magic's shareholders** | **$37,031** | | Total Operating income adjustments | $14,676 | | Other adjustments (non-controlling interests, deferred taxes, etc.) | ($3,302) | | **Non-GAAP net income attributable to Magic's shareholders** | **$48,405** | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2023, the company's balance sheet shows total assets of $524.4 million, up from $505.1 million at year-end 2022. The increase was supported by higher cash and cash equivalents. Total liabilities also grew, primarily due to an increase in long-term debt, while total equity saw a modest increase Balance Sheet Highlights (USD in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $257,327 | $249,098 | | Cash and cash equivalents | $106,354 | $83,062 | | **Total Assets** | **$524,420** | **$505,141** | | **Total Current Liabilities** | $141,983 | $156,053 | | **Total Liabilities** | $233,476 | $228,830 | | **Total Equity** | $290,944 | $276,311 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the year ended December 31, 2023, Magic Software generated $77.9 million in net cash from operating activities, a substantial improvement from $56.6 million in 2022. Net cash used in investing activities was $35.9 million, largely for business acquisitions. Financing activities used $17.9 million, mainly for dividend payments to shareholders, partially offset by net proceeds from new loans. The company's cash and cash equivalents increased by $23.3 million during the year - Net cash provided by operating activities increased to **$77.9 million** in 2023 from **$56.6 million** in 2022[24](index=24&type=chunk) - Investing activities used **$35.9 million**, including **$17.9 million** for business acquisitions and **$14.2 million** for deferred payments related to past business combinations[24](index=24&type=chunk) - Financing activities used **$17.9 million**, which included **$30.8 million** in dividend payments to shareholders and was partially offset by a net **$28.5 million** in proceeds from loans[24](index=24&type=chunk) [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides additional context on Magic Software's financial reporting, including the rationale for using non-GAAP financial measures and details regarding the investor conference call for the 2023 results [About Non-GAAP Financial Measures](index=3&type=section&id=About%20Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP financial measures to offer management and investors insights into financial and business trends, excluding certain items to better reflect ongoing operational performance. These measures are used for internal analysis, planning, and comparison with industry peers. Key adjustments include the exclusion of amortization of acquired assets, share-based payment costs, and acquisition-related expenses - Management uses non-GAAP measures for trend analyses, determining executive compensation, and for budgeting and planning purposes[12](index=12&type=chunk) - The company believes non-GAAP measures provide an additional tool for investors to evaluate ongoing operating results and compare financial performance with other software companies[12](index=12&type=chunk) - Items excluded from GAAP results to arrive at non-GAAP measures include amortization of purchased intangible assets, cost of share-based payment, and costs related to acquisitions[19](index=19&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Magic Software's management scheduled a conference call for Wednesday, March 13, 2024, at 11:00 am Eastern Time to discuss the fourth quarter and full-year 2023 results. The press release provides specific dial-in numbers for participants from North America, the UK, Israel, and other international locations - A conference call was scheduled for March 13, 2024, at 11:00 am Eastern Daylight Time to discuss the financial results[9](index=9&type=chunk) - Specific teleconferencing numbers were provided for participants in North America (+1-866-652-8972), the UK (0-800-917-9141), Israel (03-918-0650), and other locations (+972-3-918-0650)[10](index=10&type=chunk)

Magic Software Enterprises Ltd. (NASDAQ:MGIC) Q3 2023 Earnings Conference Call November 14, 2023 9:00 AM ET Company Participants Asaf Berenstin - Chief Financial Officer Guy Bernstein - Chief Executive Officer Conference Call Participants Chris Reimer - Barclays Operator Ladies and gentlemen, thank you for standing by. Welcome to the Magic Software Enterprises 2023 Third Quarter Financial Results Conference Call. Magic’s third quarter 2023 earnings release was issued before the market opened this morning, a ...

Magic Software Enterprises Ltd. (NASDAQ:MGIC) Q2 2023 Earnings Conference Call August 14, 2023 9:00 AM ET Company Participants Guy Bernstein - Chief Executive Officer Asaf Berenstin - Chief Financial Officer Yuval Lavi - Chief Technology Officer Conference Call Participants Chris Reimer - Barclays Maggie Nolan - William Blair Operator Ladies and gentlemen, thank you for standing by. Welcome to the Magic Software Enterprises 2023 Second Quarter Financial Results Conference Call. Magic’s Second Quarter 2023 e ...

Exhibit 99.1 PRESS RELEASE (*) Attributable to Magic Software's shareholders. Financial Highlights for the Second Quarter Ended June 30, 2023 ● Revenues for the Second quarter of 2023 increased by 0.4% to a record-breaking second quarter result of $137.6 million, compared to $137.0 million in the same period of the previous year. On a constant currency basis (calculated based on average currency exchange rates for the three months ended June 30, 2022), revenues for the second quarter of 2023 would have incr ...

Magic Software Enterprises Ltd. (NASDAQ:MGIC) Q1 2023 Earnings Conference Call May 18, 2023 10:00 AM ET Company Participants Asaf Berenstin - Chief Financial Officer Guy Bernstein - Chief Executive Officer Conference Call Participants Chris Reimer - Barclays Maggie Nolan - William Blair Mike Silver - Kensington Capital Corp Operator Welcome to Magic Software Enterprises 2023 First Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session ...

Exhibit 99.1 PRESS RELEASE Magic Software Reports First Quarter 2023 Financial Results Revenues for the first quarter of 2023 increased by approximately 3% to a record-breaking first quarter result of $142.4 million, compared to $138.7 million in the same period of the previous year. Or Yehuda, Israel, May 18, 2023 – 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, ...