Core Insights - Magic Software Enterprises Ltd. has demonstrated strong performance as a small-cap tech stock, achieving record Q3 revenue of $161.7 million, reflecting a year-over-year increase of 13.1% driven by demand in IT consulting and enterprise software services [1] - The company maintained a stable gross margin of 27.3%, with GAAP operating income rising 13.6% to $17.1 million and non-GAAP operating profit increasing by 8.1% to $19.9 million, while net income reached $9.9 million, or $0.20 per diluted share, compared to $0.17 in the previous year [2] - CEO Guy Bernstein highlighted the company's all-time highs in revenues, gross profit, and operating income, attributing this success to sustained demand for digital, AI-driven, and cloud transformation solutions, as well as disciplined execution [3] Company Overview - Magic Software Enterprises Ltd., based in Israel, specializes in IT consulting, cloud integration, low-code development, and automation tools for mid- and large-enterprise clients globally [4] Future Outlook - The pending merger with Matrix I.T. is anticipated to enhance the company's scale, market reach, and technological depth, marking an exciting new phase for Magic Software [3]