Formula Systems (1985) Ltd. (FORTY) has reported a 3.61 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $5.94 million, or $0.40 a share in the quarter, compared with $5.74 million, or $0.39 a share for the same period last year. Revenue during the quarter grew 19.31 percent to $302.31 million from $253.38 million in the previous year period. Gross margin for the quarter contracted 256 basis points over the previous year period to 22.61 percent. Total expenses were 92.42 percent of quarterly revenues, up from 91.72 percent for the same period last year. That has resulted in a contraction of 69 basis points in operating margin to 7.58 percent.
Operating income for the quarter was $22.92 million, compared with $20.97 million in the previous year period.
Commenting on the results, Guy Bernstein, chief executive officer of Formula Systems, said, “We are very pleased to report another quarter and full year of strong growth and performance across our entire portfolio.
Debt moves up
Formula Systems (1985) has witnessed an increase in total debt over the last one year. It stood at $258.66 million as on Dec. 31, 2016, up 17.19 percent or $37.94 million from $220.72 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 6.94 for the quarter from 9.70 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
