EMT Computing – a flight of almost 9% of the stock against the background of the reports

by time news

Gross profit for the quarter amounted to NIS 56 million, an increase of 19% compared with the corresponding quarter last year.

An increase of approximately 39% in operating profit in the quarter, which amounted to approximately NIS 13 million, compared with NIS 9.5 million in the corresponding quarter last year.

The net profit amounted to NIS 8.9 million, an increase of about 65% compared to the corresponding period last year.

The transaction for the acquisition of 87% of the Unitsk Group shares for NIS 77 million was completed. The transaction also includes a contingent consideration based on targets of approximately NIS 18.3 million over the next three years.

Yoav Weinberg, CEO of EMT Computer Messaging: “We conclude the third quarter with good results and growth in operational parameters. The positive momentum in OEM activity continues as the growth in the quarter is an outgrowth of organic growth alongside successful assimilation of the acquisitions we have made in this field. We continue to work to deepen OEM activity Additional synergistic acquisitions overseas and anticipate significant growth in line with the targets we have set for ourselves. We recently completed the transaction to acquire Unitsk, which is a significant milestone in expanding our software operations. The connection to Unitsk allows us to expand the basket of solutions offered to our customers and significantly increase software activities, an area in which we anticipate high growth potential in the coming years. We will continue to focus on improving existing activities and locating additional synergistic acquisitions in Israel and around the world. All this in order to realize the company’s multi-year growth plans. “

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Third quarter results for 2021

The company’s revenues in the third quarter amounted to NIS 345 million, compared with NIS 301 million in the corresponding quarter last year, an increase of 14.7% which is mainly due to organic growth mainly in the OEM sector as a result of new customers and expansion of existing customers. .

Gross profit in the third quarter amounted to NIS 55.5 million (approximately 16.1% of revenues), compared with NIS 47 million (approximately 15.6% of revenues) in the corresponding quarter last year. An increase of approximately 18.4% due to the increase in revenue turnover and an improvement in the rate of gross profitability, mainly in the OEM sector.

General and administrative expenses in the third quarter amounted to NIS 42.3 million, compared with NIS 37.2 million in the corresponding quarter last year. The increase is due to the increase in revenue volume as well as a decrease in wage and other costs in the corresponding period due to actions taken then with the onset of the corona crisis and the consolidation of the results of a company acquired this year and not yet consolidated in the corresponding quarter.

Operating profit in the third quarter amounted to approximately NIS 13.2 million (constituting approximately 3.8% of revenues) compared with approximately NIS 9.5 million (constituting approximately 3.2% of revenues) in the corresponding quarter last year, an increase of approximately 39% due mainly to the improvement in profit The gross which was partially offset by the increase in selling and administrative expenses, as aforesaid.

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Net financing expenses in the third quarter amounted to NIS 1.7 million, compared with NIS 2.3 million in the corresponding quarter last year. The change in financing expenses is due to gaps between the shekel / dollar exchange rate differences recorded in the corresponding quarter compared with the current quarter.

EBITDA in the third quarter amounted to NIS 20.8 million, compared with NIS 17 million in the corresponding quarter last year. An increase of about 22% due to the increase in operating profit.

Net income in the third quarter amounted to NIS 8.9 million, compared with NIS 5.4 million in the corresponding quarter last year. An increase of approximately 65%, mainly due to the increase in operating profit and the decrease in financing expenses, which were partially offset due to the increase in tax expenses.

The net financial debt as of September 30, 2121 amounted to approximately NIS 126 million, compared with a debt of NIS 102 million as of December 31, 2020.

Main results of the operating segments in the third quarter of 2021

OEM sector

Total revenues in the OEM segment in the third quarter amounted to NIS 158 million, compared with revenues of NIS 119 million in the corresponding period last year. An increase of about 33% due to an increase in organic activity and the expansion of projects among existing customers.

Operating profit in the OEM segment in the third quarter amounted to approximately NIS 9 million (approximately 5.7% of the segment’s revenue), compared with operating profit of approximately NIS 5 million (approximately 4.3% of the segment’s revenue) in the corresponding quarter last year. An increase of approximately 77%, mainly due to the increase in revenues and gross profit, which was partially offset by an increase in sales and management costs.

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Computing Solutions Sector

Revenues in the computing solutions segment in the third quarter amounted to NIS 187 million, compared with revenues of NIS 183.5 million in the corresponding quarter last year. An increase of about 1.7%, mainly due to the consolidation of the results of the cybercom company, which was acquired this year and has not yet been consolidated in the corresponding quarter last year.

Operating profit in the Computing Solutions segment in the third quarter amounted to NIS 3.8 million (approximately 2% of the segment’s revenue), compared with operating profit of NIS 4 million (approximately 2.2% of the segment’s revenue) in the corresponding period last year. The change in operating profit was affected by the addition to gross profit as a result of the increase in revenue turnover which was offset by an increase in selling and administrative expenses mainly due to cost reduction operations in the corresponding quarter due to the corona crisis.

Dividend declaration – The company continues to implement the quarterly dividend distribution policy in the amount of approximately 60% of the net profit, and announces a dividend in respect of the third quarter profits for 2021, in the amount of approximately NIS 5.3 million.

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