Magic: The quarterly profit increased by 60% to 10 m – the capital market

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Magic
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, Which provides business integration solutions and technical support consulting, reports its financial results for the last quarter of 2020 and for the entire year: revenue for the quarter totaled $ 104.6 million, record levels for the company representing a 15% increase compared to $ 91 million in the corresponding quarter. The company reported net income on a non-GAAP basis of $ 10.3 million in the quarter (21 cents per fully diluted share), up 63% from $ 6.3 million (13 cents per share in full dilution), in the same quarter last year. Magic announced a dividend of 21 cents per share and a total of about $ 10.2 million for the second half of 2020, and also provided a forecast for 13-16% growth in the coming year to revenue level of $ 420-430 million.

Also for the full year, Magic recorded a record revenue of $ 371.2 million, an increase of 14% compared to 2019, when revenue was $ 325.6 million. Net income on a non-GAAP basis was $ 37.2 million (76 cents per fully diluted share), up 32% from $ 28.2 million in 2019 (58 cents per full diluted share).

GAAP quarterly earnings were up 27% to $ 6.5 million (11 cents per fully diluted), compared to $ 5.1 million in the same quarter last year (loss of 3 cents per share fully diluted) – the calculation per share in both periods included a 1.3 m reduction D. in the reporting period and 6.4 m in the corresponding period as a result of the revaluation of PUT options attributed to minority shareholders in respect of shares that can be redeemed. Excluding the effect, the figure would have been 13 cents per share in the reporting period, compared with 10 cents per share in the corresponding period.

GAAP-based net income rose about 24% to about $ 25.2 million (49 cents per fully diluted share), compared to $ 20.3 million in 2019 (26 cents per fully diluted share). Excluding the effect of the calculation method mentioned above, earnings per share in full dilution would have stood at 51 cents in 2020, compared to 41 cents in 2019.

Operating profit for the quarter increased by 26% to approximately $ 11.0 million, compared to $ 8.7 million in the corresponding quarter. On a non-GAAP basis, the figure rose by about 33% in the quarter to about $ 15.3 million, compared to $ 11.4 million in the corresponding quarter. Operating profit for the full year increased 21% to approximately $ 40.6 million ($ 52.6 million on a non-GAAP basis – an increase of 20% compared to $ 43.9 million last year).
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Cash flow from operating activities in 2020 amounted to approximately $ 52.3 million, compared to $ 45.9 million in 2019. At the end of 2020, the company had cash, cash equivalents, short-term and long-term deposits and securities in the amount of $ 92.0 million.

Magic is traded in Tel Aviv and Nasdaq and provides and develops smart solutions for business application development and integration of cloud and on-premise systems. The company operates in about 50 countries around the world in collaboration with software houses, integrators, consultants and OEM partners, including Oracle, Salesforce, SAP and IBM.