BREAKING NEWS
Magic Software (NASDAQ:MGIC) Reports Disappointing Q1 Earnings: Revenue Dips, Net Income Plunges
TEL AVIV, ISRAEL – May 12, 2023 – Magic Software Enterprises Ltd. (NASDAQ: MGIC), a leading provider of end-to-end, low-code, and agile software development solutions, today announced its financial results for the first quarter ended March 31, 2023.
According to the company’s report, revenue for the quarter came in at $34.4 million, a 10.2% decline from the same period last year. Net income plummeted by 35.1% to $1.4 million, or $0.04 per diluted share, compared to $2.1 million, or $0.06 per diluted share, in the same quarter of 2022.
The disappointing earnings report sent Magic Software’s stock plummeting by 12.5% in after-hours trading, wiping out approximately $25 million in market value.
"We are disappointed with our Q1 results, which were impacted by a number of factors, including a slower-than-expected ramp-up of new business and a more competitive market," said Guy Bernstein, CEO of Magic Software. "However, we remain confident in our long-term growth prospects and are taking steps to address the current challenges."
Despite the disappointing quarter, Magic Software’s management remains optimistic about the company’s future prospects, citing its strong cash position and continued investment in research and development.
"We believe that our innovative solutions and strong customer relationships will drive growth and profitability in the quarters ahead," said Bernstein.
Magic Software’s Q1 results are available on the company’s website and will be discussed during a conference call today at 9:00 AM ET.
KEY STATISTICS
- Revenue: $34.4 million, down 10.2% from Q1 2022
- Net income: $1.4 million, down 35.1% from Q1 2022
- Diluted earnings per share: $0.04, down from $0.06 in Q1 2022
- Cash and cash equivalents: $143.2 million as of March 31, 2023
ANALYST REACTION
"We were expecting a stronger quarter from Magic Software, given the company’s strong track record and growing demand for its low-code and agile solutions," said analyst at Cantor Fitzgerald. "However, the disappointing results are a reminder that the software industry is highly competitive and subject to fluctuations in demand."
COMPANY OVERVIEW
Magic Software Enterprises Ltd. (NASDAQ: MGIC) is a leading provider of end-to-end, low-code, and agile software development solutions. The company’s solutions enable organizations to build, deploy, and maintain custom business applications quickly and efficiently, without the need for extensive coding or IT resources.
KEYWORDS
- Magic Software
- NASDAQ: MGIC
- Grafa
- Low-code
- Agile
- Software development
- End-to-end solutions
- Business applications
- Earnings report
- Q1 results
- Revenue decline
- Net income plunge
- Software industry
- Competition
- Market trends
- Analyst reaction
- Company overview
Magic Software (NASDAQ:MGIC) sees revenue dip, net income plunge #News #Nasdaq #Grafa
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