Unassociated Document
FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the Month of November 2011

FORMULA SYSTEMS (1985) LTD.
(Translation of Registrant's Name into English)

5 HaPlada st., Or-Yehuda, Israel
(Address of Principal Executive Offices)


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

Form 20-F x  Form 40-F o

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

Yes o  No x

If "Yes" is marked indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________.

Attached to Registrant's Form 6-K for the month of November 2011 and incorporated by reference herein is the Registrant's immediate report dated November 10, 2011.

 
SIGNATURE

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

FORMULA SYSTEMS (1985) LTD.
(Registrant)

By:/s/ Guy Bernstein
Guy Bernstein CEO
dated:    November 10, 2011
 
 
 
 
 
FOR IMMEDIATE RELEASE
 
Formula Systems Reports Third Quarter Results for 2011
 
Revenues increased 21% Year-Over-Year to $161.5 million with Net Income of $29.7 million
 
Or-Yeuda, Israel – November 10, 2011 – Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of software consulting services, computer-based business solutions and proprietary software products, today announced its results for the third quarter of 2011.
 
Financial Highlights for the Third Quarter and Nine-Month Period Ended September 30, 2011

·  
Third-quarter revenues increased 20.7% to $161.5 million compared to $133.8 million in the same period last year.
 
·  
Operating income for the third quarter increased 10.2% to $13 million, compared to $11.8 million in the same period last year.
 
·  
Net income for the third quarter increased 506% to $29.7 million, compared to $4.9 million in the same period last year. Net income for the third quarter of 2011 included income of $25.8 million recorded in connection with the acquisition by Sapiens International Corporation N.V. of two privately held companies (IDIT I.D.I. Technologies Ltd and FIS Software Ltd.), which was completed on August 21, 2011, following which Formula's holdings in Sapiens were reduced below 50%. As of September 30, 2011, Formula held 43.6% of Sapiens' outstanding share capital.
 
·  
Revenues for the nine-month period ended September 30, 2011 increased 21.9% to $483.3 million, compared to $396.4 million in the same period last year.
 
·  
Operating income for the nine-month period ended September 30, 2011 increased 12.9% to $38.5 million, compared to $34.1 million in the same period last year.
 
·  
Net income for the nine-month period ended September 30, 2011 increased 187.4% to $38.8 million, compared to $13.5 million in the same period last year.
 
·  
As of September 30, 2011, Formula’s consolidated cash and short term and long term investments in marketable securities totaled approximately $101.7 million, of which Formula’s standalone net cash and short term and long term investments totaled $5.8 million (with no debt).
 
·  
As of September 30, 2011, total equity was $351.2 million, representing 57% of the total balance sheet.
 
Results
 
For the third quarter ended September 30, 2011, total revenues were $161.5 million, with net income of $29.7 million, or $2.16 per fully diluted share. This compares with revenues of $133.8 million and net income of $4.9 million, or $0.36 per fully diluted share, for the same period last year.
 
Operating income for the third quarter ended September 30, 2011, was $13 million, or $0.95 per fully diluted share. This compares to operating income of $11.8 million, or $0.87 per fully diluted share, for the same period a year ago.
 
For the nine month-period ended September 30, 2011, total revenues were $483.3 million, with net income of $38.8 million, or $2.81 per fully diluted share. This compares with revenues of $396.4 million and net income of $13.5 million, or $1 per fully diluted share, for the same period last year.
 
 
 
 
 
Operating income for the nine-month period ended September 30, 2011, was $38.5 million, or $2.82 per fully diluted share. This compares to operating income of $34.1 million, or $2.52 per fully diluted share, for the same period last year.
 
Guy Bernstein, CEO of Formula Systems, commented: "I am pleased with the group’s continued strong performance in the third quarter and throughout this year. We continued to demonstrate growth, reflected in all our operations and driven by strong demand for the products and services offered by our subsidiaries. Our subsidiaries continued to make strategic acquisitions, such as Magic Software Enterprises' recently announced acquisition of BluePhoenix’s AppBuilder activity and Sapiens' acquisition of IDIT I.D.I. Technologies Ltd. and FIS Software Ltd., bringing added value to our customers and shareholders."

About Formula

Formula Systems Ltd. is a global information technology company, engaged through its subsidiaries and affiliates in providing software consulting services and computer-based business solutions and developing proprietary software products.

Statements made in this press release that are not historical facts are forward-looking statements. Such statements involve various risks that may cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to: market demand for the company’s products, dependence on strategic partners, integration of new businesses, successful implementation of Formula’s products, economic and competitive factors, international market conditions, management of growth, technological developments, the ability to finance operations and other factors which are detailed in Formula’s filings with the United States Securities and Exchange Commission, including its most recent annual report on Form 20-F.

Contact:
Formula Systems (1985) Ltd.
ir@formula.co.il
+972-3-5389487
 
 
 
 
 
FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share data)
 
 
   
Three months ended
    
Nine months ended
  
   
September 30,
    
September 30,
  
   
2011
    
2010
    
2011
    
2010
  
   
Unaudited
    
Unaudited
  
Revenues
     161,497       133,791       483,288       396,357  
Cost of revenues
     123,409       100,282       369,147       297,330  
                                 
Gross profit
     38,088       33,509       114,141       99,027  
Research and development costs, net
     1,440       1,399       4,660       3,993  
Selling, general and administrative expenses
     23,675       20,320       70,940       60,944  
Operating income
     12,973       11,790       38,541       34,090  
                                 
Financial expenses, net
     (1,813 )     (1,033 )     (4,959 )     (2,754 )
                                 
      11,160       10,757       33,582       31,336  
Other income, net
     54       301       231       148  
                                 
Income before taxes on income
     11,214       11,058       33,813       31,484  
Taxes on income
     1,917       1,718       5,778       5,089  
                                 
      9,297       9,340       28,035       26,395  
Gain derived from deconsolidation of subsidiary and
                                
equity in gains (losses) of affiliated companies, net
     25,583       (271 )     25,446       (649 )
Net income
     34,880       9,069       53,481       25,746  
Net income attributable to non-controlling interests
     5,223       4,193       14,635       12,237  
                                 
Net income attributable to Formula's shareholders
     29,657       4,876       38,846       13,509  
                                 
Earnings per share:
                                
Basic
     2.19       0.36       2.88       1.01  
Diluted
     2.16       0.36       2.81       1.00  
                                 
Weighted average number of shares outstanding:
                                
Basic
     13,530       13,398       13,497       13,365  
Diluted
     13,674       13,530       13,666       13,522  
 
 
 
 
 
FORMULA SYSTEMS (1985) LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
U.S. dollars in thousands
 
   
September 30,
    
December 31,
  
   
2011
    
2010
  
   
(Unaudited)
        
ASSETS
            
CURRENT ASSETS:
            
Cash and cash equivalents
     64,827       110,508  
Marketable securities
     24,315       38,170  
Short-term deposits
     9,800       24  
Trade receivables
     140,191       154,366  
Other accounts receivable
     29,784       23,140  
Inventories
     3,036       5,601  
Total current assets
     271,953       331,809  
                 
LONG-TERM INVESTMENTS:
                
Marketable securities
     2,805       2,828  
Deferred Taxes
     13,509       13,135  
Investments in affiliated company
     73,156       3,209  
Prepaid expenses and other assets
     4,409       5,493  
Total  long-Term Investments
     93,879       24,665  
                 
SEVERANCE PAY FUND
     49,438       55,286  
                 
PROPERTY, PLANTS AND EQUIPMENT, NET
     19,031       12,411  
                 
NET INTANGIBLE ASSETS AND GOODWILL
     183,861       199,596  
                 
TOTAL  ASSETS
     618,162       623,767  
                 
LIABILITIES AND EQUITY
                
CURRENT LIABILITIES:
                
Liabilities to banks
     5,692       6,684  
Trade payables
     38,596       53,177  
Deferred revenues
     20,720       26,845  
Employees and payroll accrual
     36,838       40,704  
Other accounts payable
     24,140       30,693  
Dividend payable to non controling interests
     511       -  
Liability in respect of business combinations
     4,231       3,963  
Debentures
     16,250       15,927  
Total current liabilities
     146,978       177,993  
                 
LONG-TERM LIABILITIES:
                
Debentures
     31,309       31,854  
Deferred taxes
     3,184       2,654  
Customer advances
     2,588       3,520  
Liabilities to banks and others
     7,406       3,154  
Liability in respect of business combinations
     12,157       4,758  
Accrued severance pay
     63,294       65,450  
Total long-term liabilities
     119,938       111,390  
                 
EQUITY
                
Formula shareholders' equity
     218,541       197,615  
Non-controlling interests
     132,705       136,769  
Total equity
     351,246       334,384  
                 
TOTAL LIABILITIES AND EQUITY
     618,162       623,767