Magic Dual Software Industries, which develops and provides solutions for application development and business integration and the provision of IT consulting services, reports its financial results for the second quarter and first half of 2020.
Revenue in the second quarter increased by about 12% to about $ 86.5 million, compared to $ 77.1 million in the corresponding quarter last year. Revenue in the first half of 2020 rose by about 15% to about $ 171.7 million, compared to $ 148.9 million in the same period last year.
Net income attributable to shareholders in the second quarter increased by about 19% and amounted to about $ 5.7 million or 12 cents per fully diluted share compared to $ 4.8 million and a loss of 8 cents per fully diluted share in the corresponding quarter last year. Net income attributable to Magic non-GAAP shareholders rose about 14% to about $ 8.1 million, or 17 cents per fully diluted share, compared to $ 7.1 million, or 14 cents per fully diluted share, in the same quarter last year.
Net income attributable to shareholders in the first half rose about 14% to about $ 11.6 million, or 24 cents per fully diluted share, compared to $ 10.2 million, or 19 cents per fully diluted share, last year. On a non-GAAP basis, net income rose 27% to $ 17.5 million, or 36 cents a fully diluted share, compared to $ 13.7 million, or 28 cents a fully diluted share, last year.
Cash flow from operating activities in the first half of 2020 amounted to approximately $ 28.1 million, compared to $ 26.6 million in the corresponding period last year. As of June 30, 2020, the Company had cash, cash equivalents, short-term and long-term deposits and securities in the amount of $ 91.7 million.
In addition, the company confirms its previous forecast for 2020 and expects annual revenues to be in the range of $ 350 million to $ 360 million, reflecting an annual growth rate of 7.5% -10.6%.
In accordance with the Company’s Dividend Distribution Policy, the Company’s Board of Directors approved a dividend distribution for the first half of 2020 in the amount of 17.5 cents per share and a total amount of approximately $ 8.6 million, constituting approximately 75% of earnings for the period.
Guy Bernstein, CEO of Magic Software Industries: “Despite the outbreak of the corona virus starting in March 2020, Magic’s revenue forecast for 2020 has improved thanks to the increase in demand for digital transformation projects, both from existing and new customers. “This is in light of the reality of life and the new work environment that the Corona virus has forced the various companies and their employees to adopt.”
“We are pleased to see that Magic’s strong and stable financial positioning, coupled with our constant efforts to become the preferred provider in the digital transformation market, is indeed paying off. We are also committed to continuing to make every effort to enrich the company’s product and services basket through organic growing And mergers and acquisitions activities, with the aim of consolidating under one roof all the products and services for digital transformation (one-stop-shop). “