The net loss in the first quarter was attributable to the Company’s subsidiaries, mainly Magic and Applicom, which due to global economic changes, especially in North America, posted a one time restructuring charge and write off of investments.
In times like this of global economic changes, decline in capital spending in the Information Technology arena and the overall business slow down in North America, the name of the game is to digest the changes and implement the necessary adjustments in a timely manner to capitalize on emerging trends for renewed growth, stated Gad Goldstein, President of Formula.
The test of a focused holding company like Formula is to identify the new business challenges and opportunities and to take the right steps to implement the necessary adjustments to leverage these new trends throughout our portfolio companies.
Mr. Goldstein continued, In this quarter we focused on the continued process of reorganizing our group of companies which we started last quarter. We made deep plowing in each subsidiary, making the right adjustments. We merged business lines and restructured the workforce. Upon completion of these necessary actions in our subsidiaries, combined with the identification of growing business opportunities, we are confident that our strategy and our swift and decisive response to changeable market conditions will bear fruit in the near future.
