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 May 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 May 2011 and incorporated by reference herein is the Registrant's immediate report dated May 12, 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:     May 12, 2011
 
 
 
 
 
FOR IMMEDIATE RELEASE

Formula Systems Reports First Quarter Results for 2011

OPERATING INCOME INCREASED BY 11% TO REACH $12.2 MILLION

Or-Yeuda, Israel – May 12, 2011 – Formula Systems (1985) Ltd. (NASDAQ: FORTY) a leading provider of information technology products, solutions and services, today announced its results for the first quarter of 2011.

Financial Highlights for the First Quarter
 
·
Revenues totaled $155.9 million (Q1 2010: $130.8 million), a 19% increase compared to the same quarter of 2010.
 
·
Operating income increased by 11% to $12.2 million (Q1 2010: $11.0 million)
 
·
Net Income attributable to Formula reached $4.2 million, a decrease of 13% compared to $4.8 million for the first quarter of 2010 due to decrease in financial income resulting from losses in one of our subsidiary’s investment portfolio.
 
·
Formula’s consolidated cash and short term investments totaled approximately $153.0 million, as of 31 March, 2011.
 
·
Total equity stood at $347.6 million on March 31, 2011, representing 53% of the total balance sheet.
 
Guy Bernstein, CEO of Formula Systems, commented: "We are pleased to report a positive start to 2011. with strong financial results for the first quarter. All our subsidiaries have continued to improve their performance, resulting in increased revenue and operating income, generating double-digit growth year over year. Looking forward, our strong cash position enables us to continue to explore new business opportunities, while we maintain our strategic focus on profitability and growth."
 
 
About Formula

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

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. These risks and uncertainties include, but are not limited to: market demand for the company’s products, dependence on strategic partners, integration of new business, 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 Securities and Exchange Commission filings, including its most recent report on Form 20-F. Formula undertakes no obligation to publicly release any revision to any forward-looking statement.


Contact:
Formula Systems (1985) Ltd.
ir@formula.co.il
+972-3-5389487
 
 
 
 

FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
CONSOLIDATED BALANCE SHEETS

   
March 31, 2011
(Unaudited)
    
December 31,
 2010
  
   
U.S. $
  
ASSETS
  
(in thousands)
  
CURRENT ASSETS:
            
Cash and cash equivalents                                                                                               
     103,625       110,508  
Marketable securities  
     37,855       38,170  
Short-term deposits     
     11,500       24  
Trade receivables      
     155,517       154,366  
Other accounts receivable    
     32,563       23,140  
Inventories        
     3,770       5,601  
      344,830       331,809  
                 
LONG-TERM INVESTMENTS:
                
Marketable securities  
     3,034       2,828  
Deferred Taxes     
     13,596       13,135  
Investments in affiliated company  
     3,171       3,209  
Prepaid expenses and other assets     
     6,473       5,493  
                 
      26,274       24,665  
                 
                 
SEVERANCE PAY FUND    
     56,134       55,286  
                 
PROPERTY, PLANTS AND EQUIPMENT, NET
     14,520       12,411  
                 
OTHER ASSETS, NET   
     211,203       199,596  
                 
      652,961       623,767  
                 
CURRENT LIABILITIES:
                
Liabilities to banks 
     6,551       6,684  
Trade payables  
     49,610       53,177  
Deferred revenues  
     43,274       26,845  
Employees and payroll accrual 
     42,088       40,704  
Other accounts payable  
     25,659       30,693  
Dividend payable to non controlling interests  
     2,405       -  
Liability in respect of business combinations   
     4,987       3,963  
Debentures
     17,012       15,927  
      191,586       177,993  
                 
LONG-TERM LIABILITIES:
                
Debentures  
     32,778       31,854  
Deferred taxes   
     3,360       2,654  
Customer advances 
     3,541       3,520  
Liabilities to banks and others 
     1,571       3,154  
Liability in respect of business combinations 
     5,123       4,758  
Accrued severance pay  
     67,403       65,450  
                 
      113,776       111,390  
                 
TOTAL EQUITY  
     347,599       334,384  
                 
                 
      652,961       623,767  
 
 
 
 
 
FORMULA SYSTEMS (1985) LTD.
(An Israeli corporation)
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

   
Three months ended
 March 31,
  
   
2011
    
2010
  
   
U.S.$
  
   
(in thousands, except per share data)
  
             
Revenues   
     155,916       130,842  
Cost of revenues 
     119,716       98,398  
                 
Gross profit 
     36,200       32,444  
Research and development costs, net  
     1,685       1,383  
Selling, general and administrative expenses   
     22,272       20,056  
                 
Operating income       
     12,243       11,005  
Financial income (expenses), net   
     (1,358 )     522  
                 
      10,885       11,527  
Other income (expenses), net 
     31       (7 )
                 
Income before taxes on income  
     10,916       11,520  
Taxes on income   
     2,176       2,158  
                 
      8,740       9,362  
Equity in losses of affiliated companies, net   
     (240 )     (238 )
Net income 
     8,500       9,124  
                 
Net income attributable to non-controlling interests 
     4,323       4,324  
                 
                 
Net income attributable to Formula's shareholders 
     4,177       4,800  
                 
Earnings per share:
                
Basic  
     0.31       0.36  
                 
Diluted    
     0.30       0.35  
                 
                 
Weighted average number of shares outstanding:
                
Basic       
     13,464       13,365  
                 
Diluted      
     13,646       13,548