Matrix 2nd Q revenues decline by 3.3% to NIS 856 million - Net profit climbed 10.6%

Matrix publishes the concluding financial report for the second quarter. The company reports a 3.3% decline in revenue - partly due to the pressure of the Corona crisis on customers and the move to work from home. Revenues amounted to NIS 856 million, compared with NIS 886.1 million in the corresponding quarter in 2019.
The decrease in revenues in the quarter was due to a decrease in all sectors and substantially in the training division as a result of the general closure in the economy and adaptation to work from home. On the plus side, preparations for moving from work to home have given impetus to the results of the Integration Solutions and Computing Infrastructure segment. At the same time, a decrease in selling and marketing expenses during the closure period and the move to work from home contributed to a more than 10% increase in Matrix's profit margins.
"The atmosphere is characterized by caution on the part of customers in making subsequent projects or entering large-scale projects, on the issue of equipping and new IT systems, as well as expanding or upgrading existing systems, and even streamlining measures, including reducing staffing, recruiting company employees, reductions, tariffs And customer cuts, which are reflected in pressures on the company's tariffs, "Matrix notes in the reports, adding that" accordingly, the company adopts a conservative and prudent policy regarding the management of its business on the one hand and initiates innovative solutions to the changing needs of its customers on the other. "
Selling and marketing expenses were reduced to NIS 60 million in the reported quarter compared to NIS 66.6 million in the second quarter of 2019. The reduction in expenses helped push the quarterly operating profit to NIS 66.1 million, compared with NIS 59.3 million in the corresponding quarter - an increase of 11.5%. Net profit climbed 10.6% to NIS 41.6 million, compared with NIS 37.6 million in the corresponding period.
Motti Gutman, CEO of Matrix, said after the publication of the results: "We are in the midst of a global crisis with direct and indirect effects on the Israeli economy and as a result Matrix as the technological partner of companies from all sectors of the economy. We are all following and hoping to find a solution to the corona virus, but at this stage the extent and duration of the crisis is unknown. Despite the many challenges in the quarter, we were able to achieve double-digit growth in operating profit and net profit. Along with maintaining business continuity and transferring most of our employees to work from home through appropriate infrastructure, we have identified opportunities for growth. "