Magic Software Enterprises (MGIC) Tops Q2 EPS by 1c, Beats on Revenues; Boosts FY17 Revenue Guidance Above Consensus

Magic Software Enterprises (NASDAQ: MGIC) reported Q2 EPS of $0.13, $0.01 better than the analyst estimate of $0.12. Revenue for the quarter came in at $65.5 million versus the consensus estimate of $51.83 million.

Financial Highlights for the Second Quarter Ended June 30, 2017

• Revenues for the second quarter increased 38% to $65.5 million compared to $47.4 million in the same period last year.
• Operating income for the second quarter increased 19% to $6.3 million compared to $5.3 million in the same period last year. Non-GAAP operating income for the second quarter increased 37% to $9.0 million compared to $6.5 million in the same period last year.
• Net income attributable to Magic\'s shareholders for the second quarter decreased 12% to $3.6 million, or $0.08 per fully diluted share, compared to $4.1 million, or $0.09 per fully diluted share in the same period last year. Non-GAAP net income attributable to Magic\'s shareholders for the second quarter increased 11% to $5.7 million, or $0.13 per fully diluted share, compared to $5.2 million, or $0.12 per fully diluted share, in the same period last year.

Financial Highlights for the Six-Month Period Ended June 30, 2017

• Revenues for the first half of 2017 increased 37% to $126.2 million compared to $92.0 million in the same period last year.
• Operating income for the first half increased 20% to $12.7 million compared to $10.6 million in the same period last year. Non-GAAP operating income for the first half of 2017 increased 31% to $17.4 million compared to $13.2 million in the same period last year.
• Net income attributable to Magic\'s shareholders for the first half remained constant at $7.8 million, or $0.18 per fully diluted share, compared to $7.8 million, or $0.17 per fully diluted share in the same period last year. Non-GAAP net income attributable to Magic\'s shareholders for the first half increased 15% to $11.5 million, or $0.26 per fully diluted share, compared to $10.0 million, or $0.23 per fully diluted share, in the same period last year.
• Cash flow from operating activities for the first half of 2017 amounted to $15.1 million compared to $15.6 million in the same period last year.
• As of June 30, 2017, our net cash, cash equivalents, short-term bank deposits and available-for-sale marketable securities, offset by financial liabilities, amounted to $56.9 million.
• Magic is raising its guidance for the 2017 fiscal year revenues to between $245 million and $255 million on a constant currency basis, up from prior guidance of $225 to $230 million, reflecting a revised annual growth rate of 22%-26%.

GUIDANCE:

Magic Software Enterprises sees FY2017 revenue of $245-255 million, versus the consensus of $230 million.

For earnings history and earnings-related data on Magic Software Enterprises (MGIC) click here.

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