EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1
 
 
NICE Reports 10% Growth in GAAP Revenue and 11% Growth in
Non-GAAP Revenue for Full Year 2016

Company Reports Continued Strength in Analytics and Record Number of New Customers

Hoboken, New Jersey, February 16, 2017 - NICE (NASDAQ: NICE) today announced results for the fourth quarter and full year 2016 ended December 31, 2016.
 
Full Year 2016 Financial Highlights

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

Fourth Quarter 2016 Financial Highlights

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
 
"We are pleased to end the year on a high note with a strong fourth quarter performance that culminated in 11% growth in non-GAAP total revenue for 2016," said Barak Eilam, CEO of NICE.  "Fourth quarter results reflected across-the-board growth in each of our business segments and further strength in analytics."
 
Mr. Eilam continued, "2016 marked a year of excellent execution amid a very busy period in which we launched many new products, took on a record number of new customers and made two significant acquisitions, while seeing continued expansion of our solutions within our customer base.  As we head into 2017, we are well positioned for continued success with the industry's leading cloud and analytics assets, and healthy end markets. I believe we are in one of the strongest competitive positions that we have ever been, and we are looking forward to the opportunities that lie ahead in 2017 and beyond."
 
GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
 
The following GAAP financial data, excluding cash flow and cash balance, are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2016 and 2015.
 
Revenues: Fourth quarter 2016 total revenues increased 18.4% to $323.9 million compared to $273.6 million for the fourth quarter of 2015.
Full year 2016 total revenues increased 9.6% to $1,015.5 million compared to $926.9 million for the full year 2015.

Gross Profit: Fourth quarter 2016 gross profit and gross margin were $221.1 million and 68.3%, respectively, compared to $191.5 million and 70.0%, respectively, for the fourth quarter of 2015.
Full year 2016 gross profit and gross margin were $677.8 million and 66.7%, respectively, from $623.3 million and 67.2%, respectively, for the same period last year.

Operating Income: Fourth quarter 2016 operating income and operating margin were $37.1 million and 11.5%, respectively, compared to $63.7 million and 23.3%, respectively, for the fourth quarter of 2015.
Full year 2016 operating income and operating margin were $134.2 million and 13.2%, respectively, compared to $166.1 million and 17.9%, respectively, for the full year 2015.

Net Income from Continuing Operations: Fourth quarter 2016 net income and net margin were $30.0 million and 9.3%, respectively, compared to $56.9 million and 20.8%, respectively, for the fourth quarter of 2015.
Full year 2016 net income and net margin were $123.1 million and 12.1%, respectively, compared to $140.6 million and 15.2%, respectively, for the full year 2015.

Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the fourth quarter of 2016 were $0.49, compared to $0.93 in the fourth quarter of 2015.
Fully diluted earnings per share for the full year 2016 were $2.02 compared to $2.29 for the full year 2015.

Operating Cash Flow and Cash Balance: Fourth quarter 2016 operating cash flow was $37.7 million. Full year cash flow from operations reached $220.3 million. In the fourth quarter, $8.6 million was used for share repurchases and $9.6 million for dividends. As of December 31, 2016, total cash and cash equivalents, short term investments and marketable securities were $286.0 million, and total debt was $465.2 million.
 
Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
 
The following non-GAAP financial data are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2016 and 2015.
 
Revenues: Fourth quarter 2016 non-GAAP total revenues were $328.5 million, up 20.1% from $273.6 million for the fourth quarter of 2015.
Non-GAAP total revenues for the full year 2016 increased 11.1% to $1,030.3 million compared to $927.0 million for the full year 2015.

Gross Profit: Fourth quarter 2016 non-GAAP gross profit and non-GAAP gross margin increased to $242.8 million and 73.9%, respectively, from $199.5 million and 72.9%, respectively, for the fourth quarter of 2015.
Full year 2016 non-GAAP gross profit and non-GAAP gross margin increased to $741.9 million and 72.0%, respectively, compared to $654.4 million and 70.6%, respectively, for the same period last year.

Operating Income: Fourth quarter 2016 non-GAAP operating income increased to $93.9 million compared to $81.2 million, and non-GAAP operating margin was 28.6% compared to 29.7% for the fourth quarter of 2015.
Full year 2016 non-GAAP operating income and non-GAAP operating margin increased to $272.6 million and 26.5%, respectively, compared to $235.5 million and 25.4%, respectively, for the full year 2015.

Net Income from Continuing Operations: Fourth quarter 2016 non-GAAP net income increased to $72.4 million compared to $66.9 million, and non-GAAP net income margin was 22.0% compared to 24.4% for the fourth quarter of 2015.
Full year 2016 non-GAAP net income and non-GAAP net margin increased to $220.6 million and 21.4%, respectively, compared to $195.0 million and 21.0%, respectively, for the same period last year.

Fully Diluted Earnings Per Share from Continuing Operations: Fourth quarter 2016 non-GAAP fully diluted earnings per share increased 8.3% to $1.18, compared to $1.09 for the fourth quarter of 2015.
Full year 2016 non-GAAP fully diluted earnings per share increased 13.5% to $3.61 compared to $3.18 for the full year 2015.
 
Dividend Declaration
 
The Company declared a cash dividend for the fourth quarter of 2016 of $0.16 per share. The record date will be February 27th, 2017 and the payment date will be March 15th, 2017. Tax will be withheld at a rate of 15%.
 
First Quarter and Full Year 2017 Guidance:
 
First Quarter 2017: First quarter 2017 non-GAAP total revenues are expected to be in a range of $303 million to $313 million. First quarter 2017 non-GAAP fully diluted earnings per share are expected to be in a range of $0.81 to $0.87.

Full Year 2017: Full year 2017 non-GAAP total revenues are expected to be in a range of $1,330 million to $1,354 million. Full year 2017 non-GAAP fully diluted earnings per share are expected to be in a range of $3.80 to $4.00.
 
Quarterly Results Conference Call

NICE management will host its earnings conference call today, February 16th, 2017 at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial in to the following numbers: United States 1-866-804-8688 or +1-718-354-1175, International +44(0)1296-480-100, United Kingdom 0-800-783-0906, Israel 1-809-242-041. The Passcode is 500 634 92. Additional access numbers can be found at http://www.btconferencing.com/globalaccess/?bid=54_attended. The call will be webcast live on the Company's website at http://www.nice.com/news-and-events/ir-events. An online replay will also be available approximately two hours following the call. A telephone replay of the call will be available for 7 days after the live broadcast, and may be accessed by dialing: United States 1-877-482-6144, International +44(0)20-7136-9233, United Kingdom 0-800-032-9687. The Passcode for the replay is 589 323 20.

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, share-based compensation, and certain business combination accounting entries, settlement, debt issuance cost, realized gain from substantial liquidation of marketable securities and tax adjustment re non-GAAP adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income.
 
About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.
 
Investors
Marty Cohen, +1 212 574 3635, ir@nice.com, ET
Yisca Erez, +972 9 775-3798, ir@nice.com, CET
 
Media Contact
Erik Snider, +1 877 245 7448, erik.snider@nice.com 
 
Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE.  All other marks are trademarks of their respective owners.  For a full list of NICE' marks, please see: http://www.nice.com/nice-trademarks.
 
Forward-Looking Statements
 This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including the statements by Mr. Eilam, are based on the current beliefs, expectations and assumptions of the management of NICE Ltd. (the Company).  In some cases, such forward-looking statements can be identified by terms such as believe, expect, may, will, intend, project, plan, estimate or similar words.  Forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results or performance of the Company to differ materially from those described herein, including but not limited to the impact of the global economic environment on the Company's customer base (particularly financial services firms) potentially impacting our business and financial condition; competition; changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements; the effect of newly enacted or modified laws, regulation or standards on the Company and our products, and the risk that the required approvals for the inContact acquisition may not be received on the expected timeline or at all. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission, including the Company's Annual Report on Form 20-F. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company undertakes no obligation to update or revise them, except as required by law.
 
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