Revenue during the quarter grew 18.58 percent to $310.88 million from $262.17 million in the previous year period. Gross margin for the quarter contracted 184 basis points over the previous year period to 21.34 percent. Total expenses were 94.78 percent of quarterly revenues, up from 91.78 percent for the same period last year. That has resulted in a contraction of 300 basis points in operating margin to 5.22 percent.

Operating income for the quarter was $16.24 million, compared with $21.55 million in the previous year period.

Commenting on the results, Guy Bernstein, CEO of Formula Systems, said, "We are pleased to report another quarter of double-digit revenue growth across our entire portfolio. While our top-line growth was strong, our profitability was impacted mostly by certain aspects of Sapiens’ business activities. Sapiens revenues reached $56.5 million for the quarter, driven by a mix of organic growth and its recent StoneRiver acquisition. Sapiens operational profitability was affected by the loss of a significant customer and the integration of StoneRiver activities. Sapiens is taking steps to address and overcome these developments and has declared that it is on track to return to double-digit operating margins in the second half of 2017.

Formula Systems (1985) forecasts revenue to be in the range of $265 million to $275 million for fiscal year 2017.