Magic Software Enterprises Ltd. reported net income of $3.5 million, or $0.11 per diluted share, for the fourth quarter of 2009. This was up from the $1.1 million, or $0.03 per share, earned in the same quarter of 2008.

Magic Software Enterprises Ltd. reported revenues of $14.5 million for the fourth quarter of 2009, down slightly from the $15.1 million reported in 2008. On a sequential basis, revenues increased from the third quarter of 2009.

“During a difficult year for global markets, I am pleased to report that we have improved efficiency, maintained our operating profits, and implemented structural, management and operational changes to serve our future growth,” said Guy Bernstein, the Chairman of Magic Software Enterprises Ltd.

Magic Software Enterprises Ltd. also has a solid balance sheet, and reported cash, cash equivalents and short-term investments of $42 million as of December 31, 2009. This was an increase from the $33 million reported a year earlier.