SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

 

For the month of: November 2019

 

Commission file number: 0-19415

 

MAGIC SOFTWARE ENTERPRISES LTD.

(Translation of registrant’s name into English)

 

5 HaPlada Street, Or-Yehuda, Israel 6021805

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒          Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulations S-T Rule 101(b)(1): N/A

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulations S-T Rule 101(b)(7): N/A

 

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

 

Yes ☐ No ☐

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- N/A

 

 

 

 

 

 

CONTENTS

 

This report on Form 6-K of MAGIC SOFTWARE ENTERPRISES Ltd. consists of the following documents, which are attached hereto and incorporated by reference herein

 

99.1

Magic Reports Third Quarter 2019 Financial Results with Record-Breaking Revenues of $85.8 million - a 19% Year Over Year Growth

 

1

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: November 14, 2019

 

 

 

 

 

 

By:

/s/ Amit Birk

 

Name: 

Amit Birk

 

Title: 

VP, General Counsel

 

2

 

 

EXHIBIT INDEX

 

Exhibit
Number

 

Description of Exhibit

 

 

 

99.1

 

Magic Reports Third Quarter 2019 Financial Results with Record-Breaking Revenues of $85.8 million - a 19% Year Over Year Growth

 

 

3

 

 


Exhibit 99.1

 

PRESS RELEASE

 

Magic Reports Third Quarter 2019 Financial Results with Record-Breaking Revenues of $85.8 million - a 19% Year Over Year Growth

 

Net cash provided by operating activities for the first nine months of 2019 amounted to $32.7 million

 

Or Yehuda, Israel, November 14, 2019 – Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), a global provider of end-to-end integration and application development platforms solutions and IT consulting services, announced today its financial results for the third quarter and nine-month period ended September 30, 2019.

 

Financial Highlights for the Third Quarter Ended September 30, 2019

 

 

Revenues for the third quarter increased 19% to $85.8 million compared to $72.1 million in the same period last year.

 

 

Operating income for the third quarter increased 10% to $8.5 million compared to $7.7 million in the same period last year.

 

 

Non-GAAP operating income for the third quarter increased 18% to $11.8 million compared to $10.0 million in the same period last year.

 

 

Net income attributable to Magic’s shareholders for the third quarter remained constant at $5.0 million, or $0.10 per fully diluted share compared to the same period last year. Net income was negatively impacted by an amount of $0.9 million compared to the same period last year resulting from acquisition related expenses of $0.6 million recorded in connection with mainly the acquisition of NetEffects Inc and the devaluation of the US Dollar versus the new Israeli shekel by $0.3 million.

 

 

Non-GAAP net income attributable to Magic’s shareholders for the third quarter increased 19% to $8.1 million, or $0.17 per fully diluted share, compared to $6.8 million, or $0.14 per fully diluted share, in the same period last year.

 

Financial Highlights for the Nine-Month Period Ended September 30, 2019

 

 

Revenues for the first nine months of 2019 increased 11% to $234.7 million compared to $212.1 million in the same period last year.

 

 

Operating income for the first nine months of 2019 increased 7% to $25.0 million compared to $23.3 million in the same period last year.

 

 

Non-GAAP operating income for the first nine months of 2019 increased 10% to $32.5 million compared to $29.5 million in the same period last year.

 

 

 

 

 

Net income attributable to Magic’s shareholders for the first nine months of 2019 decreased 1% to $15.1 million, or $0.29 per fully diluted share, compared to $15.3 million, or $0.33 per fully diluted share in the same period last year. Net income was negatively impacted by an amount of $2.4 million compared to the same period last year resulting from acquisition related expenses of $1.4 million recorded in connection with mainly the acquisition of Powwow and NetEffects and the devaluation of the US Dollar versus the new Israeli shekel by $1 million.

 

 

Non-GAAP net income attributable to Magic’s shareholders for the first nine months of 2019 increased 9% to $21.8 million, or $0.45 per fully diluted share, compared to $19.9 million, or $0.43 per fully diluted share, in the same period last year. Earnings per share for the first nine months of 2019 were negatively impacted by $0.04 per fully diluted share compared to the same period last year as a consequence of the Company’s private placement of 4.3 million shares in the third quarter of 2018 to Israeli institutional investors.

 

 

Cash flow from operating activities for the first nine months of 2019 amounted to $32.7 million compared to $20.3 million in the same period last year.

 

 

As of September 30, 2019, Magic’s net cash, cash equivalents, short and long-term bank deposits and marketable securities, offset by short and long-term financial liabilities amounted to $69.8 million.

 

 

We are increasing our full-year revenue guidance to a range of $317-$320 million, from the previous revenue guidance of $313-$319 million, reflecting annual growth of 12% to 13%.

 

Guy Bernstein, Chief Executive Officer of Magic Software Enterprises, said:

 

“We are pleased to report Magic’s all-time best quarterly results with revenues of $86 million and operational profit of $12 million (on a non-GAAP basis), reflecting a double-digit growth of 19% and 18% year over year, respectively. This quarter’s results demonstrate Magic’s ability to consistently grow by leveraging its continued long engagement cycles with its existing and new customers, along with its fruitful M&A activity.”

 

“This quarter we welcome NetEffects Inc. to our software services portfolio. NetEffects, a US based company, specializes in IT staffing and recruiting. This acquisition supports our continuing efforts to maintain and upgrade our strong market position as a preferred one-stop-shop software services vendor.”.

 

Conference Call Details

 

Magic’s management will host a conference call on Thursday, November 14, 2019 at 10:00 am Eastern Daylight Time (5:00 p.m. Israel Daylight Time) to review and discuss Magic’s results.

 

To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, call the international dial-in number.

 

2

 

 

NORTH AMERICA: +1-888-668-9141

 

UK: 0-800-917-5108

 

ISRAEL: 03-918-0609

 

ALL OTHERS: +972-3-918-0609

 

For those unable to join the live call, a replay of the call will be available under the Investor Relations section of Magic’s website, www.magicsoftware.com.

 

Non-GAAP Financial Measures

 

This press release contains the following non-GAAP financial measures: Non-GAAP gross profit, Non-GAAP operating income, Non-GAAP net income attributable to Magic’s shareholders and Non-GAAP basic and diluted earnings per share.

 

Magic believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Magic’s financial condition and results of operations. Magic’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analyses, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. These measures are used in financial reports prepared for management and in quarterly financial reports presented to the Company’s board of directors. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

 

Management of the Company does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. Magic urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

 

Non-GAAP measures used in this press release are included in the financial tables of this release. These non-GAAP measures exclude the following items:

 

 

Amortization of purchased intangible assets and other related costs;

 

 

In-process research and development capitalization and amortization;

 

 

Equity-based compensation expenses;

 

 

The related tax, non-controlling interests and redeemable non-controlling interest effects of the above items;

 

 

Change in valuation of contingent consideration related to acquisitions; and

 

 

Acquisition-related costs;

 

3

 

 

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included in the financial tables of this release.

 

About Magic Software Enterprises

 

Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC) is a global provider of mobile and cloud-enabled application and business integration platforms.

 

For more information, visit www.magicsoftware.com.

 

Forward Looking Statements

 

Some of the statements in this press release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the United States Private Securities Litigation Reform Act of 1995. Words such as “will,” “look forward”, “expect,” “believe” and similar expressions are used to identify these forward-looking statements (although not all forward-looking statements include such words). These forward-looking statements, which may include, without limitation, projections regarding our future performance and financial condition, are made based on management’s current views and assumptions with respect to future events. Any forward-looking statement is not a guarantee of future performance and actual results could differ materially from those contained in the forward-looking statement. These statements speak only as of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We operate in a changing environment. New risks emerge from time to time and it is not possible for us to predict all risks that may affect us. For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should refer to the Risk Factors detailed in our Annual Report on Form 20-F for the year ended December 31, 2018 and subsequent reports and filings made from time to time with the Securities and Exchange Commission.

 

Magic® is a registered trademark of Magic Software Enterprises Ltd. All other product and company names mentioned herein are for identification purposes only and are the property of, and might be trademarks of, their respective owners.

 

Press Contact:

 

Noam Amir
Magic Software Enterprises
ir@magicsoftware.com

 

4

 

 

MAGIC SOFTWARE ENTERPRISES LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

U.S. Dollars in thousands (except per share data)

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

Unaudited

 

 

Unaudited

 

Revenues

 

$

85,843

 

 

$

72,135

 

 

$

234,703

 

 

$

212,082

 

Cost of revenues

 

 

58,458

 

 

 

50,626

 

 

 

160,442

 

 

 

145,354

 

Gross profit

 

 

27,385

 

 

 

21,509

 

 

 

74,261

 

 

 

66,728

 

Research and development, net

 

 

2,235

 

 

 

1,281

 

 

 

6,277

 

 

 

4,399

 

Selling, marketing and general and administrative expenses

 

 

16,654

 

 

 

12,521

 

 

 

43,062

 

 

 

39,071

 

Total operating costs and expenses

 

 

18,889

 

 

 

13,802

 

 

 

49,339

 

 

 

43,470

 

Operating income

 

 

8,496

 

 

 

7,707

 

 

 

24,922

 

 

 

23,258

 

Financial income (expenses), net

 

 

(622

)

 

 

(286

)

 

 

(828

)

 

 

161

 

Income before taxes on income

 

 

7,874

 

 

 

7,421

 

 

 

24,094

 

 

 

23,419

 

Taxes on income

 

 

1,380

 

 

 

1,475

 

 

 

4,897

 

 

 

4,885

 

Net income

 

$

6,494

 

 

$

5,946

 

 

$

19,197

 

 

$

18,534

 

Net income attributable to redeemable non-controlling interests

 

 

(1,045

)

 

 

(588

)

 

 

(3,057

)

 

 

(2,005

)

Net income attributable to non-controlling interests

 

 

(491

)

 

 

(313

)

 

 

(995

)

 

 

(1,186

)

Net income attributable to Magic’s shareholders

 

$

4,958

 

 

$

5,045

 

 

$

15,145

 

 

$

15,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share attributable to Magic’s shareholders :

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.10

 

 

$

0.10

 

 

$

0.29

 

 

$

0.33

 

Diluted

 

$

0.10

 

 

$

0.10

 

 

$

0.29

 

 

$

0.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in computing net earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

48,897

 

 

 

48,799

 

 

 

48,888

 

 

 

45,926

 

Diluted

 

 

48,991

 

 

 

48,959

 

 

 

48,985

 

 

 

46,075

 

 

5

 

 

Summary of Non-GAAP Financial Information

U.S. Dollars in thousands (except per share data)

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

Unaudited

 

 

Unaudited

 

 

Unaudited

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

85,843

 

 

 

100

%

 

$

72,135

 

 

 

100

%

 

$

234,703

 

 

 

100

%

 

$

212,082

 

 

 

100

%

Gross profit

 

 

28,908

 

 

 

33.7

%

 

 

22,945

 

 

 

31.8

%

 

 

78,492

 

 

 

33.4

%

 

 

70,954

 

 

 

33.5

%

Operating income

 

 

11,751

 

 

 

13.7

%

 

 

9,967

 

 

 

13.8

%

 

 

32,508

 

 

 

13.9

%

 

 

29,494

 

 

 

13.9

%

Net income attributable to Magic’s shareholders

 

 

8,079

 

 

 

9.4

%

 

 

6,791

 

 

 

9.4

%

 

 

21,822

 

 

 

9.3

%

 

 

19,942

 

 

 

9.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.17

 

 

 

 

 

 

$

0.14

 

 

 

 

 

 

$

0.45

 

 

 

 

 

 

$

0.43

 

 

 

 

 

Diluted earnings per share

 

$

0.17

 

 

 

 

 

 

$

0.14

 

 

 

 

 

 

$

0.45

 

 

 

 

 

 

$

0.43

 

 

 

 

 

 

6

 

 

MAGIC SOFTWARE ENTERPRISES LTD.

RECONCILIATION OF GAAP AND NON-GAAP RESULTS

U.S. Dollars in thousands (except per share data)

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

Unaudited

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit     

 

$

27,385

 

 

$

21,509

 

 

$

74,261

 

 

$

66,728

 

Amortization of capitalized software and acquired technology

 

 

1,246

 

 

 

1,306

 

 

 

3,679

 

 

 

3,834

 

Amortization of other intangible assets   

 

 

277

 

 

 

130

 

 

 

552

 

 

 

390

 

Stock-based compensation   

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2

 

Non-GAAP gross profit   

 

$

28,908

 

 

$

22,945

 

 

$

78,492

 

 

$

70,954

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income   

 

$

8,496

 

 

$

7,707

 

 

$

24,922

 

 

$

23,258

 

Gross profit adjustments   

 

 

1,523

 

 

 

1,436

 

 

 

4,231

 

 

 

4,226

 

Amortization of other intangible assets   

 

 

2,039

 

 

 

1,441

 

 

 

4,859

 

 

 

4,374

 

Increase in valuation of contingent consideration related to acquisitions   

 

 

255

 

 

 

-

 

 

 

255

 

 

 

140

 

Capitalization of software development   

 

 

(876

)

 

 

(809

)

 

 

(3,128

)

 

 

(2,702

)

Acquisition-related costs   

 

 

314

 

 

 

-

 

 

 

1,294

 

 

 

-

 

Stock-based compensation   

 

 

-

 

 

 

192

 

 

 

75

 

 

 

198

 

Non-GAAP operating income   

 

$

11,751

 

 

$

9,967

 

 

$

32,508

 

 

$

29,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income attributable to Magic’s shareholders

 

$

4,958

 

 

$

5,045

 

 

$

15,145

 

 

$

15,343

 

Operating income adjustments   

 

 

3,255

 

 

 

2,260

 

 

 

7,586

 

 

 

6,236

 

Amortization expenses attributed to non-controlling interests and redeemable non-controlling interests   

 

 

(109

)

 

 

(341

)

 

 

(728

)

 

 

(1,072

)

Deferred taxes on the above items   

 

 

(25

)

 

 

(173

)

 

 

(181

)

 

 

(565

)

Non-GAAP net income attributable to Magic’s shareholders

 

$

8,079

 

 

$

6,791

 

 

$

21,822

 

 

$

19,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP basic net earnings per share    

 

$

0.17

 

 

$

0.14

 

 

$

0.45

 

 

$

0.43

 

Weighted average number of shares used in   computing basic net earnings per share    

 

 

48,897

 

 

 

48,799

 

 

 

48,888

 

 

 

45,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP diluted net earnings per share    

 

$

0.17

 

 

$

0.14

 

 

$

0.45

 

 

$

0.43

 

Weighted average number of shares used in computing diluted net earnings per share   

 

 

48,991

 

 

 

48,971

 

 

 

48,980

 

 

 

46,079

 

 

 

7

 

 

MAGIC SOFTWARE ENTERPRISES LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. Dollars in thousands

 

 

 

September 30,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

    Cash and cash equivalents

 

$

76,889

 

 

$

87,126

 

    Short-term bank deposits

 

 

11,262

 

 

 

16,881

 

    Marketable securities

 

 

7,677

 

 

 

9,913

 

    Trade receivables, net

 

 

96,323

 

 

 

90,274

 

    Other accounts receivable and prepaid expenses

 

 

11,061

 

 

 

7,029

 

Total current assets

 

 

203,212

 

 

 

211,223

 

 

 

 

 

 

 

 

 

 

LONG-TERM RECEIVABLES:

 

 

 

 

 

 

 

 

    Severance pay fund

 

 

3,572

 

 

 

3,284

 

    Deferred tax assets

 

 

1,429

 

 

 

1,858

 

    Operating lease right-of-use assets

 

 

9,524

 

 

 

-

 

    Other long-term receivables

 

 

3,525

 

 

 

4,727

 

    Other long-term deposits

 

 

2,286

 

 

 

1,636

 

Total long-term receivables

 

 

20,336

 

 

 

11,505

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

3,642

 

 

 

3,072

 

IDENTIFIABLE INTANGIBLE ASSETS AND GOODWILL, NET

 

 

174,115

 

 

 

136,485

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

401,305

 

 

$

362,285

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

     Short-term debt

 

$

7,988

 

 

$

8,661

 

     Trade payables

 

 

10,726

 

 

 

14,036

 

     Accrued expenses and other accounts payable

 

 

25,895

 

 

 

24,458

 

     Current maturities of operating lease liabilities

 

 

3,271

 

 

 

-

 

     Liabilities due to acquisition activities

 

 

5,307

 

 

 

910

 

     Deferred revenues and customer advances

 

 

10,074

 

 

 

4,857

 

Total current liabilities

 

 

63,261

 

 

 

52,922

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

     Long-term debt

 

 

20,374

 

 

 

19,388

 

     Deferred tax liability

 

 

11,864

 

 

 

10,343

 

     Long-term operating lease liabilities

 

 

 

6,191

 

 

 

-

 

     Long-term liabilities due to acquisition activities

 

 

11,201

 

 

 

94

 

     Accrued severance pay

 

 

4,367

 

 

 

3,934

 

Total non-current liabilities

 

 

53,997

 

 

 

33,759

 

 

 

 

 

 

 

 

 

 

REDEEMABLE NON-CONTROLLING INTERESTS

 

 

30,296

 

 

 

27,235

 

 

 

 

 

 

 

 

 

 

EQUITY:

 

 

 

 

 

 

 

 

     Magic Software Enterprises equity

 

 

248,016

 

 

 

243,956

 

     Non-controlling interests

 

 

5,735

 

 

 

4,413

 

Total equity

 

 

253,751

 

 

 

248,369

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

 

$

401,305

 

 

$

362,285

 

 

8

 

 

MAGIC SOFTWARE ENTERPRISES LTD.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. Dollars in thousands

 

 

 

For the nine months ended
September 30,

 

 

 

2019

 

 

2018

 

 

 

Unaudited

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

19,197

 

 

$

18,534

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

10,037

 

 

 

9,501

 

Stock-based compensation

 

 

75

 

 

 

200

 

Amortization of marketable securities premium and accretion of discount

 

 

147

 

 

 

165

 

Decrease (increase) in trade receivables, net

 

 

6,307

 

 

 

(3,328

)

Decrease (increase) in other long-term and short-term accounts receivable and prepaid expenses

 

 

2,761

 

 

 

(5,107

)

Increase (decrease) in trade payables

 

 

(5,540

)

 

 

1,822

 

Change in value of loans

 

 

1,712

 

 

 

(1,274

)

Decrease in accrued expenses and other accounts payable

 

 

(5,608

)

 

 

(2,226

)

Increase in deferred revenues

 

 

4,365

 

 

 

1,641

 

Change in deferred taxes, net

 

 

(758

)

 

 

349

 

Net cash provided by operating activities

 

 

32,695

 

 

 

20,277

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized software development costs

 

 

(3,128

)

 

 

(2,702

)

Purchase of property and equipment

 

 

(1,057

)

 

 

(615

)

Cash paid in conjunction with acquisitions, net of acquired cash

 

 

(20,889

)

 

 

(3,545

)

Proceeds from maturity and sale of marketable securities

 

 

2,450

 

 

 

2,000

 

Investment in marketable securities

 

 

(202

)

 

 

-

 

Proceeds (Investment) from bank deposits, net

 

 

5,127

 

 

 

(760

)

Net cash used in investing activities

 

 

(17,699

)

 

 

(5,622

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of options by employees

 

 

69

 

 

 

238

 

Issuance of ordinary shares, net

 

 

(9

)

 

 

34,569

 

Dividend paid

 

 

(14,963

)

 

 

(13,541

)

Dividend paid to non-controlling interests

 

 

(400

)

 

 

(69

)

Dividend paid to redeemable non-controlling interests

 

 

(2,589

)

 

 

(2,074

)

Purchase of redeemable non-controlling interest

 

 

(1,237

)

 

 

-

 

Short-term and long-term loans received

 

 

878

 

 

 

575

 

Repayment of short-term and long-term loans

 

 

(7,681

)

 

 

(2,513

)

Net cash provided by (used in) financing activities

 

 

(25,932

)

 

 

17,185

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

699

 

 

 

(1,159

)

 

 

 

 

 

 

 

 

 

Change in cash and cash equivalents

 

 

(10,237

)

 

 

30,681

 

Cash and cash equivalents at the beginning of the period

 

 

87,126

 

 

 

76,076

 

Cash and cash equivalents at end of the period

 

$

76,889

 

 

$

106,757

 

 

 

9

 

 


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