Profits grew by approximately 19% and amounted to NIS 375M
Operating profit grew by approximately 6.7% and amounted to NIS 29M
Net profit grew by approximately 7.2% and amounted to NIS 27M
Cash flow from regular activity reached approximately NIS 31M compared with approximately NIS 15M in the corresponding quarter of the previous year
Profits from software services grew by approximately 30% and they represent approximately 64% of revenues
Despite the economic crisis, Matrix has improved results and retains its leading position in the Israeli IT market. Moti Gutman, Matrix CEO: “We had a good quarter, despite the slowdown in the economy. The diversified structure of the profits, which combines four strong branches – software development services, marketing of software products, integration of computerization infrastructure, and training and deployment services – is at the basis of Matrix's unique ability to cope with the challenges of the period."
Several weeks ago the consulting company, STKI, graded Matrix as a leader in the IT services market and as a leader in most of the important categories such as software development, CRM systems, training and deployment, software testing, and more.
Gutman adds: "In the first quarter the slowdown of the economy has manifested itself in an approximately 5% erosion of our gross profit as a result of erosion in the prices of software development and in profits from new deals. We prepared for the crisis in advance: at the end of 2008 we started reducing operating expenses and the salaries of senior employees, and acted with extreme caution in tenders for fixed price projects. The result are clearly reflected in the financial reports: not only did the company's profitability not suffer despite the erosion of our gross profits, but it grew by more than 7%. In addition, we increased our presence and sales efforts in all areas of our activity, and the results are shown in the income line of the financial report – a growth of about 15%. We were able to achieve our goals and implement the work plans in all areas of operation. We improved both operating and net profits and demonstrated excellent cash flow. From the point of view of strengthening financial stability, our high cash reserves guarantee the continued implementation of a strategy of growth and of a policy of dividend distribution. Despite the economic crisis, we continue to see great growth potential in the Israeli market and identify new opportunities for acquiring companies in Israel and abroad at more advantageous terms than in the past.
Summary of Profit and Loss for the first quarter of 2008
|
|
|
|
|
|
31.03.08 |
|
Turnover |
375,072 |
325,823 |
|
Cost of sales and services |
305,397 |
252,452 |
|
Gross profit |
69,675 |
73,371 |
|
R&D expenses |
300 |
300 |
|
Sales and marketing expenses |
14,771 |
17,918 |
|
Management and general expenses |
25,799 |
28,133 |
|
Loss (capital gain) from realization of permanent assets |
47 |
(14) |
|
Profit from regular activities |
28,758 |
27,034 |
|
Net financing costs |
4,191 |
8,331 |
|
Net financing gains |
11,220 |
6,073 |
|
The company’s share in the losses of affiliated companies |
(135) |
979 |
|
Profit before taxes |
35,922 |
23,797 |
|
Taxes on income |
11,995 |
1,477 |
|
Net profit |
23,927 |
22,320 |
In the first quarter of 2009 Matrix continued to consolidate its status as a leader in the Israeli IT market in a wide range of sectors and services: CRM-based system for management of collection processes at a large bank; large-scale development of a command and control system for the defense sector; a direct cellular channel for a leading bank; a system for management of automated warehouses for a leading pharmaceutical company; a DRP virtualization project for an insurance company; a storage project for a communications company; a testing project for a large communications company; a training project for a large bank; significant product deals for several financial institutions; and new projects for high-tech startups in the area of testing and development based on the Nearshore model. Over the period of the report, growth continued in the areas of software services, the company’s core business, and it reached approximately 64% of the company’s total revenues, indicating focus and growth in the areas of Matrix’s added value.
Company Revenues
Results of the first quarter of 2009 compared with previous years
Analysis of results
Company revenues amounted to approximately NIS 375M, compared with NIS 326M in the corresponding quarter of the previous year, a growth of about 15%.
Revenues from the software services sector amounted to approximately NIS 254.4M compared with NIS 196M in the corresponding quarter of the previous year, a growth of about 30%. The increase in revenues reflects organic growth of about 15% in addition to combined results with TACT, which was acquired at the beginning of 2008. Revenues from this sector reached approximately 64% of total revenues and about 65% of Matrix's operating profits.
Marketing of software products sector. Revenues amounted to NIS 49.3M, and the results indicate that stability has been maintained in revenues and profitability level in this sector.
Revenues in the Infrastructure integration and communication sector amounted to approximately NIS 54.5M compared with approximately NIS 52.7M in the corresponding quarter of the previous year, together with an improved profitability rate.
Revenues in the Training and deployment sector remained stable and amounted to approximately NIS 39.5M; profitability rates remained approximately the same compared with the corresponding quarter of the previous year.
Growth of Matrix revenues in Q1/2004-2009
(NIS millions)
Operating Profit
Operating profit grew by approximately 6.7% and amounted to approximately NIS 29M, compared with NIS 27M in the corresponding quarter of the previous year.
Growth of operating profit in Q1/2004-2009
(NIS millions)
Net Profit
Net profit in the quarter grew to approximately NIS 24M, a 7.2% growth relative to around NIS 22M in the corresponding quarter of the previous year.
Growth of net profit in Q1/2004-2009
(NIS millions)
Cash flow and Financing Sources. In the first quarter, cash flow from current activity amounted to approximately NIS 31M.
The company has cash reserves and short-term investments of NIS 351M.
Dividends. On 23.4.2009 the company distributed a dividend of 57 agorot per share for a total of NIS 33.5M.
Shareholders’ equity capital as of the date of the report amounted to about NIS 481M compared with approximately NIS 438M on 31.03.08.
The current ratio of the company stands at 1.97.
