(Translation of Registrant's Name into English)
|
(Address of Principal Executive Offices)
|
99.1 |
Press Release: NICE Reports 10% Growth in GAAP Revenue and 11% Growth in Non-GAAP Revenue for Full Year 2016, Dated February 16, 2017
|
NICE-SYSTEMS LTD. | |||
|
By:
|
/s/ Yechiam Cohen | |
Name: Yechiam Cohen | |||
Title: Corporate VP Finance | |||
Dated February 16, 2017 |
99.1 |
Press Release: NICE Reports 10% Growth in GAAP Revenue and 11% Growth in Non-GAAP Revenue for Full Year 2016, Dated February 16, 2017
|
GAAP
|
Non-GAAP
|
Revenue growth of 10% year-over-year
|
Revenue growth of 11% year-over-year
|
Gross margin of 66.7% compared to 67.2% last year
|
Gross margin of 72.0% compared to 70.6% last year
|
Operating profit of $134 million, compared to $166 million last year
|
Operating profit of $273 million, up 16% year-over-year
|
Operating margin of 13.2% compared to 17.9% last year
|
Operating margin of 26.5% compared to 25.4% last year
|
Effective tax rate of 14.8% compared to 18.0% last year
|
Effective tax rate of 21.4% compared to 19% last year
|
Diluted EPS from continuing operations of $2.02 versus $2.29 last year
|
Diluted EPS from continuing operations of $3.61 versus $3.18 last year, 14% growth
|
GAAP
|
Non-GAAP
|
Revenue growth of 18% year-over-year
|
Revenue growth of 20% year-over-year
|
Gross margin of 68.3% compared to 70.0% last year
|
Gross margin of 73.9% compared to 72.9% last year
|
Operating profit of $37 million, compared to $64 million last year
|
Operating profit of $94 million, up 16% year-over-year
|
Operating margin of 11.5% compared to 23.3% last year
|
Operating margin of 28.6% compared to 29.7% last year
|
Effective tax rate of 16.1% compared to 12.4% last year
|
Effective tax rate of 22.1% compared to 18.9% last year
|
Diluted EPS from continuing operations of $0.49 versus $0.93 last year
|
Diluted EPS from continuing operations of $1.18 versus $1.09 last year, 8% growth
|
NICE LTD. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS of INCOME
|
|
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
Year ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
Audited
|
|||||||||||||
Revenue:
|
||||||||||||||||
Product
|
$
|
110,975
|
$
|
110,079
|
$
|
306,252
|
$
|
317,900
|
||||||||
Services
|
212,885
|
163,479
|
709,290
|
608,967
|
||||||||||||
Total revenue
|
323,860
|
273,558
|
1,015,542
|
926,867
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
Product
|
13,246
|
19,125
|
53,032
|
66,363
|
||||||||||||
Services
|
89,516
|
62,916
|
284,701
|
237,219
|
||||||||||||
Total cost of revenue
|
102,762
|
82,041
|
337,733
|
303,582
|
||||||||||||
Gross profit
|
221,098
|
191,517
|
677,809
|
623,285
|
||||||||||||
Operating Expenses:
|
||||||||||||||||
Research and development, net
|
40,882
|
35,566
|
141,528
|
128,485
|
||||||||||||
Selling and marketing
|
91,983
|
63,599
|
268,349
|
225,817
|
||||||||||||
General and administrative
|
44,342
|
26,062
|
116,569
|
90,349
|
||||||||||||
Amortization of acquired intangible assets
|
6,775
|
2,560
|
17,187
|
12,528
|
||||||||||||
Total operating expenses
|
183,982
|
127,787
|
543,633
|
457,179
|
||||||||||||
Operating income
|
37,116
|
63,730
|
134,176
|
166,106
|
||||||||||||
Finance and other income (expense), net
|
(1,360
|
)
|
1,188
|
10,305
|
5,304
|
|||||||||||
Income from continuing operations before tax
|
35,756
|
64,918
|
144,481
|
171,410
|
||||||||||||
Taxes on income
|
5,765
|
8,034
|
21,412
|
30,832
|
||||||||||||
Net income from continuing operations
|
29,991
|
56,884
|
123,069
|
140,578
|
||||||||||||
Discontinued operations
|
||||||||||||||||
Income (loss) from discontinued operations
|
(5,976
|
)
|
(1,621
|
)
|
(8,235
|
)
|
152,459
|
|||||||||
Taxes on income (tax benefits)
|
(2,086
|
)
|
(2,130
|
)
|
(2,086
|
)
|
34,206
|
|||||||||
Net income (loss) from discontinued operations
|
(3,890
|
)
|
509
|
(6,149
|
)
|
118,253
|
||||||||||
Net income
|
$
|
26,101
|
$
|
57,393
|
$
|
116,920
|
$
|
258,831
|
||||||||
Basic earnings per share from continuing operations
|
$
|
0.50
|
$
|
0.95
|
$
|
2.06
|
$
|
2.36
|
||||||||
Basic earnings (loss) per share from discontinued operations
|
$
|
(0.06
|
)
|
$
|
0.01
|
$
|
(0.10
|
)
|
$
|
1.99
|
||||||
Basic earnings per share
|
$
|
0.44
|
$
|
0.96
|
$
|
1.96
|
$
|
4.35
|
||||||||
Diluted earnings per share from continuing operations
|
$
|
0.49
|
$
|
0.93
|
$
|
2.02
|
$
|
2.29
|
||||||||
Diluted earnings (loss) per share from discontinued operations
|
$
|
(0.06
|
)
|
$
|
0.01
|
$
|
(0.10
|
)
|
$
|
1.93
|
||||||
Diluted earnings per share
|
$
|
0.43
|
$
|
0.94
|
$
|
1.92
|
$
|
4.22
|
||||||||
Weighted average number of shares
|
||||||||||||||||
outstanding used to compute:
|
||||||||||||||||
Basic earnings (loss) per share
|
59,977
|
59,651
|
59,667
|
59,552
|
||||||||||||
Diluted earnings (loss) per share
|
61,349
|
61,092
|
61,035
|
61,281
|
NICE LTD. AND SUBSIDIARIES
|
||
CONSOLIDATED CASH FLOW STATEMENTS
|
||
U.S. dollars in thousands
|
Quarter ended
|
Year to date
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Unaudited
|
Audited
|
Unaudited
|
Audited
|
|||||||||||||
Operating Activities
|
||||||||||||||||
Net income
|
$
|
26,101
|
$
|
57,393
|
$
|
116,920
|
$
|
258,831
|
||||||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||||||
Depreciation and amortization
|
27,469
|
13,294
|
77,801
|
57,964
|
||||||||||||
Stock based compensation
|
14,833
|
7,774
|
40,547
|
28,451
|
||||||||||||
Excess tax benefit from share-based payment arrangements
|
(4,695
|
)
|
(3,553
|
)
|
(7,867
|
)
|
(7,595
|
)
|
||||||||
Amortization of premium and discount and accrued interest on marketable securities
|
86
|
856
|
2,441
|
2,799
|
||||||||||||
Deferred taxes, net
|
(8,393
|
)
|
14,604
|
(25,905
|
)
|
10,576
|
||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Trade Receivables
|
(72,462
|
)
|
(41,346
|
)
|
(31,784
|
)
|
(56,363
|
)
|
||||||||
Prepaid expenses and other current assets
|
1,505
|
2,405
|
4,933
|
(1,482
|
)
|
|||||||||||
Trade payables
|
(525
|
)
|
(9,478
|
)
|
4,392
|
2,166
|
||||||||||
Accrued expenses and other current liabilities
|
44,727
|
8,233
|
15,179
|
38,488
|
||||||||||||
Deferred revenue
|
(6,817
|
)
|
1,739
|
9,379
|
54,914
|
|||||||||||
Long term liabilities
|
7,443
|
60
|
7,529
|
2,453
|
||||||||||||
Loss (gain) on disposal of discontinued operations
|
7,158
|
1,094
|
9,148
|
(147,334
|
)
|
|||||||||||
Realized loss (gain) on marketable securities
|
(22
|
)
|
225
|
(3,388
|
)
|
(32
|
)
|
|||||||||
Other
|
1,288
|
452
|
1,020
|
897
|
||||||||||||
Net cash provided by operating activities
|
37,696
|
53,752
|
220,345
|
244,733
|
||||||||||||
Investing Activities
|
||||||||||||||||
Purchase of property and equipment
|
(9,113
|
)
|
(5,630
|
)
|
(27,278
|
)
|
(16,596
|
)
|
||||||||
Purchase of investments
|
-
|
(59,749
|
)
|
(47,221
|
)
|
(287,593
|
)
|
|||||||||
Proceeds from investments
|
28,915
|
29,388
|
449,880
|
92,542
|
||||||||||||
Capitalization of software development costs
|
(3,796
|
)
|
(677
|
)
|
(8,502
|
)
|
(1,380
|
)
|
||||||||
Purchase of intangible assets
|
(500
|
)
|
-
|
(500
|
)
|
-
|
||||||||||
Proceeds (repayment) from sale of discontinued operations
|
(7,158
|
)
|
(1,038
|
)
|
(9,148
|
)
|
186,134
|
|||||||||
Payments for business acquisitions, net of cash acquired
|
(1,005,921
|
)
|
-
|
(1,157,249
|
)
|
(1,500
|
)
|
|||||||||
Net cash used in investing activities
|
(997,573
|
)
|
(37,706
|
)
|
(800,018
|
)
|
(28,393
|
)
|
||||||||
Financing Activities
|
||||||||||||||||
Proceeds from issuance of shares upon exercise of share options and ESPP
|
2,264
|
4,521
|
23,525
|
27,532
|
||||||||||||
Purchase of treasury shares
|
(8,613
|
)
|
(20,000
|
)
|
(43,630
|
)
|
(68,384
|
)
|
||||||||
Dividends paid
|
(9,598
|
)
|
(9,559
|
)
|
(38,202
|
)
|
(38,239
|
)
|
||||||||
Capital Lease payments
|
(392
|
)
|
-
|
(1,087
|
)
|
-
|
||||||||||
Proceeds from issuance of debt, net of costs
|
464,841
|
-
|
464,841
|
-
|
||||||||||||
Excess tax benefit from share-based payment arrangements
|
4,695
|
3,553
|
7,867
|
7,595
|
||||||||||||
Earnout payments related to acquisitions
|
-
|
(11
|
)
|
-
|
(297
|
)
|
||||||||||
Net cash provided (used) by financing activities
|
453,197
|
(21,496
|
)
|
413,314
|
(71,793
|
)
|
||||||||||
Effect of exchange rates on cash and cash equivalents
|
(2,419
|
)
|
(1,349
|
)
|
(2,546
|
)
|
(6,113
|
)
|
||||||||
Net change in cash and cash equivalents
|
(509,099
|
)
|
(6,799
|
)
|
(168,905
|
)
|
138,434
|
|||||||||
Cash and cash equivalents, beginning of period
|
666,125
|
332,730
|
325,931
|
187,497
|
||||||||||||
Cash and cash equivalents, end of period
|
$
|
157,026
|
$
|
325,931
|
$
|
157,026
|
$
|
325,931
|
NICE LTD. AND SUBSIDIARIES
|
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
|
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
Year to date
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
GAAP revenues
|
$
|
323,860
|
$
|
273,558
|
$
|
1,015,542
|
$
|
926,867
|
||||||||
Valuation adjustment on acquired deferred product revenue
|
526
|
-
|
1,976
|
-
|
||||||||||||
Valuation adjustment on acquired deferred service revenue
|
4,118
|
-
|
12,794
|
177
|
||||||||||||
Non-GAAP revenues
|
$
|
328,504
|
$
|
273,558
|
$
|
1,030,312
|
$
|
927,044
|
||||||||
GAAP cost of revenue
|
$
|
102,762
|
$
|
82,041
|
$
|
337,733
|
$
|
303,582
|
||||||||
Amortization of acquired intangible assets on cost of product
|
(5,994
|
)
|
(6,558
|
)
|
(26,161
|
)
|
(27,097
|
)
|
||||||||
Amortization of acquired intangible assets on cost of services
|
(8,448
|
)
|
-
|
(15,129
|
)
|
-
|
||||||||||
Valuation adjustment on acquired deferred cost of services
|
182
|
-
|
182
|
-
|
||||||||||||
Cost of product revenue adjustment (1,2,3)
|
(189
|
)
|
(132
|
)
|
(503
|
)
|
(502
|
)
|
||||||||
Cost of services revenue adjustment (1,2,3)
|
(2,612
|
)
|
(1,244
|
)
|
(7,666
|
)
|
(3,291
|
)
|
||||||||
Non-GAAP cost of revenue
|
$
|
85,701
|
$
|
74,107
|
$
|
288,456
|
$
|
272,692
|
||||||||
GAAP gross profit
|
$
|
221,098
|
$
|
191,517
|
$
|
677,809
|
$
|
623,285
|
||||||||
Gross profit adjustments
|
21,705
|
7,933
|
64,047
|
31,068
|
||||||||||||
Non-GAAP gross profit
|
$
|
242,803
|
$
|
199,450
|
$
|
741,856
|
$
|
654,353
|
||||||||
GAAP operating expenses
|
$
|
183,982
|
$
|
127,787
|
$
|
543,633
|
$
|
457,179
|
||||||||
Research and development (1,2,3)
|
(2,150
|
)
|
(1,426
|
)
|
(6,612
|
)
|
(3,618
|
)
|
||||||||
Sales and marketing (1,2,3)
|
(6,984
|
)
|
(3,168
|
)
|
(18,123
|
)
|
(11,266
|
)
|
||||||||
General and administrative (1,2,3)
|
(19,171
|
)
|
(2,394
|
)
|
(32,417
|
)
|
(10,521
|
)
|
||||||||
Amortization of acquired intangible assets
|
(6,775
|
)
|
(2,560
|
)
|
(17,187
|
)
|
(12,528
|
)
|
||||||||
Settlement and related expenses
|
-
|
-
|
-
|
(390
|
)
|
|||||||||||
Non-GAAP operating expenses
|
$
|
148,902
|
$
|
118,239
|
$
|
469,294
|
$
|
418,856
|
||||||||
GAAP finance & other income, net
|
$
|
(1,360
|
)
|
$
|
1,188
|
$
|
10,305
|
$
|
5,304
|
|||||||
Debt issuance cost
|
379
|
-
|
379
|
-
|
||||||||||||
Realized gain from substantial liquidation of marketable securities
|
-
|
-
|
(2,711
|
)
|
-
|
|||||||||||
Non-GAAP finance & other income, net
|
$
|
(981
|
)
|
$
|
1,188
|
$
|
7,973
|
$
|
5,304
|
|||||||
GAAP taxes on income
|
$
|
5,765
|
$
|
8,034
|
$
|
21,412
|
$
|
30,832
|
||||||||
Tax adjustments re non-GAAP adjustments
|
14,737
|
7,503
|
38,490
|
14,934
|
||||||||||||
Non-GAAP taxes on income
|
$
|
20,502
|
$
|
15,537
|
$
|
59,902
|
$
|
45,766
|
||||||||
GAAP net income
|
$
|
29,991
|
$
|
56,884
|
$
|
123,069
|
$
|
140,578
|
||||||||
Valuation adjustment on acquired deferred revenue
|
4,644
|
-
|
14,770
|
177
|
||||||||||||
Valuation adjustment on acquired deferred cost of service of revenue
|
(182
|
)
|
-
|
(182
|
)
|
-
|
||||||||||
Amortization of acquired intangible assets
|
21,217
|
9,118
|
58,477
|
39,625
|
||||||||||||
Share-based compensation (1)
|
14,833
|
7,808
|
40,547
|
27,660
|
||||||||||||
Re-organization expenses (2)
|
7,780
|
556
|
11,073
|
1,538
|
||||||||||||
Acquisition related expenses (3)
|
8,493
|
-
|
13,701
|
-
|
||||||||||||
Debt issuance cost
|
379
|
-
|
379
|
-
|
||||||||||||
Realized gain from substantial liquidation of marketable securities
|
-
|
-
|
(2,711
|
)
|
-
|
|||||||||||
Settlement and related expenses
|
-
|
-
|
-
|
390
|
||||||||||||
Tax adjustments re non-GAAP adjustments
|
(14,737
|
)
|
(7,503
|
)
|
(38,490
|
)
|
(14,934
|
)
|
||||||||
Non-GAAP net income
|
$
|
72,418
|
$
|
66,863
|
$
|
220,633
|
$
|
195,034
|
||||||||
GAAP diluted earnings per share
|
$
|
0.49
|
$
|
0.93
|
$
|
2.02
|
$
|
2.29
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
1.18
|
$
|
1.09
|
$
|
3.61
|
$
|
3.18
|
||||||||
Shares used in computing GAAP diluted earnings per share
|
61,349
|
61,092
|
61,035
|
61,281
|
||||||||||||
Shares used in computing Non-GAAP diluted earnings per share
|
61,349
|
61,092
|
61,035
|
61,281
|
NICE LTD. AND SUBSIDIARIES
|
|||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
|
|||
U.S. dollars in thousands
|
(1 | ) |
Share-based Compensation
|
||||||||||||||||
Quarter ended
|
Year to date
|
|||||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||||
Cost of product revenue
|
$
|
(189
|
)
|
$
|
(132
|
)
|
$
|
(493
|
)
|
$
|
(502
|
)
|
||||||
Cost of service revenue
|
(2,610
|
)
|
(1,207
|
)
|
(7,411
|
)
|
(3,210
|
)
|
||||||||||
Research and development
|
(2,140
|
)
|
(907
|
)
|
(5,681
|
)
|
(2,161
|
)
|
||||||||||
Sales and marketing
|
(5,933
|
)
|
(3,168
|
)
|
(16,374
|
)
|
(11,266
|
)
|
||||||||||
General and administrative
|
(3,961
|
)
|
(2,394
|
)
|
(10,588
|
)
|
(10,521
|
)
|
||||||||||
$
|
(14,833
|
)
|
$
|
(7,808
|
)
|
$
|
(40,547
|
)
|
$
|
(27,660
|
)
|
|||||||
(2 | ) |
Re-organization expenses
|
||||||||||||||||
Quarter ended
|
Year to date
|
|||||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||||
Cost of service revenue
|
$
|
-
|
$
|
(37
|
)
|
$
|
(246
|
)
|
$
|
(81
|
)
|
|||||||
Research and development
|
-
|
(519
|
)
|
(896
|
)
|
(1,457
|
)
|
|||||||||||
Sales and marketing
|
-
|
-
|
(150
|
)
|
-
|
|||||||||||||
General and administrative
|
(7,780
|
)
|
-
|
(9,781
|
)
|
-
|
||||||||||||
$
|
(7,780
|
)
|
$
|
(556
|
)
|
$
|
(11,073
|
)
|
$
|
(1,538
|
)
|
|||||||
(3 | ) |
Acquisition related expenses
|
||||||||||||||||
Quarter ended
|
Year to date
|
|||||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||||
Cost of product revenue
|
$
|
-
|
$
|
-
|
$
|
(10
|
)
|
$
|
-
|
|||||||||
Cost of service revenue
|
(2
|
)
|
-
|
(9
|
)
|
-
|
||||||||||||
Research and development
|
(10
|
)
|
-
|
(35
|
)
|
-
|
||||||||||||
Sales and marketing
|
(1,051
|
)
|
-
|
(1,599
|
)
|
-
|
||||||||||||
General and administrative
|
(7,430
|
)
|
-
|
(12,048
|
)
|
-
|
||||||||||||
$
|
(8,493
|
)
|
$
|
-
|
$
|
(13,701
|
)
|
$
|
-
|
NICE LTD. AND SUBSIDIARIES
|
||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||
U.S. dollars in thousands
|
December 31,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
Unaudited
|
Audited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
157,026
|
$
|
325,931
|
||||
Short-term investments
|
30,287
|
99,195
|
||||||
Trade receivables
|
260,220
|
177,323
|
||||||
Prepaid expenses and other current assets
|
57,966
|
43,561
|
||||||
Current assets of discontinued operations
|
3,734
|
9,142
|
||||||
Total current assets
|
509,233
|
655,152
|
||||||
LONG-TERM ASSETS:
|
||||||||
Long-term investments
|
$
|
98,726
|
$
|
403,249
|
||||
Other long-term assets
|
18,701
|
17,175
|
||||||
Property and equipment, net
|
87,678
|
40,593
|
||||||
Deferred tax assets
|
14,093
|
14,130
|
||||||
Other intangible assets, net
|
618,735
|
68,202
|
||||||
Goodwill
|
1,284,710
|
651,112
|
||||||
Total long-term assets
|
2,122,643
|
1,194,461
|
||||||
TOTAL ASSETS
|
$
|
2,631,876
|
$
|
1,849,613
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current maturities of long term loan
|
$
|
21,164
|
$
|
-
|
||||
Trade payables
|
25,634
|
11,719
|
||||||
Deferred revenues and advances from customers
|
149,801
|
131,125
|
||||||
Accrued expenses and other liabilities
|
273,134
|
223,255
|
||||||
Current liabilities of discontinued operations
|
3,077
|
12,744
|
||||||
Total current liabilities
|
472,810
|
378,843
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues and advances from customers
|
$
|
22,710
|
$
|
20,220
|
||||
Deferred tax liabilities
|
146,952
|
15,040
|
||||||
Long-term loan
|
444,016
|
-
|
||||||
Other long-term liabilities
|
34,056
|
17,952
|
||||||
Long-term liabilities of discontinued operations
|
-
|
2,409
|
||||||
Total long-term liabilities
|
647,734
|
55,621
|
||||||
SHAREHOLDERS' EQUITY
|
1,511,332
|
1,415,149
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
2,631,876
|
$
|
1,849,613
|