CORRECTION: Magic Software Reports First Quarter 2024 Financial Results

Core Viewpoint - Magic Software Enterprises Ltd. reported a decline in financial performance for Q1 2024, with revenues decreasing by 8.2% year-over-year, attributed to reduced demand from key U.S. customers and increased interest expenses [1][3]. Financial Performance Summary - Revenues for Q1 2024 were $130.7 million, down from $142.4 million in Q1 2023, marking an 8.2% decrease [2][3]. - Gross profit decreased by 5.6% to $36.7 million, with a gross margin of 28.1%, an increase of 80 basis points from the previous year [2][3]. - Operating income fell by 6.0% to $14.4 million, with an operating margin of 11.0%, up 20 basis points year-over-year [2][3]. - Net income attributable to shareholders decreased by 13.0% to $8.8 million, or $0.18 per diluted share, compared to $10.1 million, or $0.21 per diluted share, in Q1 2023 [2][3]. Cash Flow and Financial Position - Cash flow from operating activities increased to $27.7 million from $18.8 million in the same period last year [4]. - As of March 31, 2024, the company had cash and cash equivalents totaling $125.9 million and total financial debt of $78.4 million [4]. Dividend Declaration - The board declared a semiannual cash dividend of 20.4 cents per share, totaling approximately $10.0 million, payable on July 11, 2024 [5]. Management Commentary - The CEO noted that despite challenges in the second half of 2023, the majority of customers continue to value the company's services and are engaging in digital transformation initiatives [5]. Annual Revenue Guidance - The company reiterated its annual revenue guidance for 2024, projecting revenues between $540 million and $550 million [4].