True Computing soars 9% following a sharp increase in net profit

by time news

Emet Computing reports on the results of the third quarter of 2021 Completion of the transaction for the acquisition of 87% of the Unitsk Group shares for NIS 77 million. The transaction also includes a contingent consideration based on targets of approximately NIS 18.3 million over the next three years.

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, about 16.1% of revenues, compared with NIS 47 million, about 15.6% of revenues in the corresponding quarter last year. The increase is due to the increase in revenue turnover and an improvement in the rate of gross profit, 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 consolidation of the results of a company acquired this year and has not yet been consolidated in the corresponding quarter.

Operating profit in the third quarter amounted to NIS 13.2 million, compared with NIS 9.5 million in the corresponding quarter last year, an increase of 39%, mainly due to the improvement in gross profit, which was partially offset by the increase in sales and management expenses.

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.

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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 gross profit and the decrease in financing expenses, which were partially offset due to the increase in tax expenses.

Dividend Announcement – 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.

Yoav Weinberg, CEO of EMT Computing Message:We conclude the third quarter with good results and growth in operational parameters. The positive momentum in OEM activity continues as the quarterly growth is an outgrowth of organic growth alongside the successful assimilation of the acquisitions we have made in this area. We continue to work to deepen OEM operations while examining additional synergistic acquisitions abroad and anticipate significant growth in line with the goals we have set for ourselves. We recently completed the acquisition of Unitsk which is a significant milestone in expanding our software operations. “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.

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