Magic Announces Dividend Distribution Policy
OR YEHUDA, Israel, September 5, 2012 /PRNewswire/ --
Magic Software Enterprises Ltd. (MGIC) (NASDAQ: MGIC), a global provider of software platforms for enterprise mobility, cloud applications, and business integration, announced today that on September 4, 2012, the Company's Board of Directors decided to adopt a policy for distributing dividends, subject to any applicable law.
According to this policy, each year the Company will distribute a dividend of up to 50% of its annual distributable profits. It is possible that the Board of Directors will decide, subject to the conditions stated above, to declare additional dividend distributions. The Company's Board of Directors may at its discretion and at any time, change, whether as a result of a one-time decision or a change in policy, the rate of dividend distributions and/or not to distribute a dividend, all at its discretion.
Guy Bernstein, CEO of Magic, states that, "After five years of sequential growth, during which the company has surpassed $100M in sales while demonstrating significant income and cash growth, we have decided to implement a divided policy that considers the company's long term activity and its relationship with shareholders. Magic will continue to implement its growth strategy for years to come in order to create greater value for its shareholders."
The actual distribution of a dividend will be subject to meeting the conditions required by applicable law, including the distribution tests set forth in Section 302 of the Israeli Companies Law - 1999, and to the specific decision of the Company's Board of Directors for each distribution.
About Magic Software Enterprises
For more information, visit http://www.magicsoftware.com.
Except for any historical information contained herein, matters discussed in this press release might include forward-looking statements that involve a number of risks and uncertainties. Regarding any financial statements, actual results might vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both locally and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in Magic's most recent annual report and other filings with the Securities and Exchange Commission.
Magic has made every effort to ensure that the information contained in this press release is accurate; however, there are no representations or warranties regarding this information, including warranties of merchantability or fitness for a particular purpose. Magic assumes no responsibility for errors or omissions that may occur in this press release.
Magic is a registered trademark of Magic Software Enterprises Ltd. All other product and company names mentioned herein are for identification purposes only and are the property of, and might be trademarks of, their respective owners.
Amit Birk | VP M&A and General Counsel
Magic Software Enterprises
SOURCE Magic Software Enterprises Ltd