(Translation of Registrant's Name into English)
|
(Address of Principal Executive Offices)
|
99.1 |
Press Release: NICE Reports 35% Growth in Revenue for the First Quarter 2017, Dated May 4, 2017
|
NICE-SYSTEMS LTD. | |||
By:
|
/s/ Yechiam Cohen | ||
Name: Yechiam Cohen | |||
Title: Corporate VP Finance | |||
Dated May 4, 2017
|
99.1 |
Press Release: NICE Reports 35% Growth in Revenue for the First Quarter 2017, Dated May 4, 2017
|
GAAP
|
Non-GAAP
|
Revenue growth of 35% year-over-year
|
Revenue growth of 36% year-over-year
|
Operating income of $28 million compared to $37 million last year
|
Operating income of $74 million, up 27% year-over-year
|
Effective tax rate of 8.8% compared to 14.5% last year
|
Effective tax rate of 23.2% compared to 19.5% last year
|
Diluted EPS from continuing operations of $0.28 versus $0.58 last year
|
Diluted EPS from continuing operations of $0.89 versus $0.81 last year
|
Cash flow from operations increased 16% to $133 million
|
NICE SYSTEMS LTD. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS of INCOME
|
|
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2017
|
2016
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Revenue:
|
||||||||
Product
|
$
|
68,457
|
$
|
65,117
|
||||
Services
|
158,416
|
149,338
|
||||||
Cloud
|
78,749
|
11,512
|
||||||
Total revenue
|
305,622
|
225,967
|
||||||
Cost of revenue:
|
||||||||
Product
|
13,211
|
13,734
|
||||||
Services
|
58,716
|
57,025
|
||||||
Cloud
|
43,807
|
3,710
|
||||||
Total cost of revenue
|
115,734
|
74,469
|
||||||
Gross profit
|
189,888
|
151,498
|
||||||
Operating Expenses:
|
||||||||
Research and development, net
|
42,954
|
32,521
|
||||||
Selling and marketing
|
79,201
|
55,783
|
||||||
General and administrative
|
29,227
|
23,192
|
||||||
Amortization of acquired intangible assets
|
10,565
|
2,507
|
||||||
Total operating expenses
|
161,947
|
114,003
|
||||||
Operating income
|
27,941
|
37,495
|
||||||
Finance and other income (expense), net
|
(8,990
|
)
|
3,765
|
|||||
Income from continuing operations before tax
|
18,951
|
41,260
|
||||||
Taxes on income
|
1,662
|
6,003
|
||||||
Net income from continuing operations
|
17,289
|
35,257
|
||||||
Discontinued operations
|
||||||||
Loss from discontinued operations
|
-
|
(117
|
)
|
|||||
Taxes on income
|
-
|
-
|
||||||
Net loss from discontinued operations
|
-
|
(117
|
)
|
|||||
Net income
|
$
|
17,289
|
$
|
35,140
|
||||
Basic earnings per share from continuing operations
|
$
|
0.29
|
$
|
0.59
|
||||
Basic earnings (loss) per share from discontinued operations
|
$
|
-
|
$
|
(0.00
|
)
|
|||
Basic earnings per share
|
$
|
0.29
|
$
|
0.59
|
||||
Diluted earnings per share from continuing operations
|
$
|
0.28
|
$
|
0.58
|
||||
Diluted earnings (loss) per share from discontinued operations
|
$
|
-
|
$
|
(0.00
|
)
|
|||
Diluted earnings per share
|
$
|
0.28
|
$
|
0.58
|
||||
Weighted average number of shares outstanding used to compute:
|
||||||||
Basic earnings (loss) per share
|
60,127
|
59,433
|
||||||
Diluted earnings (loss) per share
|
61,751
|
60,851
|
NICE SYSTEMS LTD. AND SUBSIDIARIES
|
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
|
|
U.S. dollars in thousands (except per share amounts)
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2017
|
2016
|
|||||||
GAAP revenues
|
$
|
305,622
|
$
|
225,967
|
||||
Valuation adjustment on acquired deferred product revenue
|
219
|
84
|
||||||
Valuation adjustment on acquired deferred service revenue
|
997
|
58
|
||||||
Valuation adjustment on acquired deferred cloud revenue
|
1,211
|
-
|
||||||
Non-GAAP revenues
|
$
|
308,049
|
$
|
226,109
|
||||
GAAP cost of revenue
|
$
|
115,734
|
$
|
74,469
|
||||
Amortization of acquired intangible assets on cost of product
|
(6,358
|
)
|
(6,291
|
)
|
||||
Amortization of acquired intangible assets on cost of services
|
(3,208
|
)
|
-
|
|||||
Amortization of acquired intangible assets on cost of cloud
|
(10,975
|
)
|
-
|
|||||
Valuation adjustment on acquired deferred cost of services
|
431
|
-
|
||||||
Cost of product revenue adjustment (1)
|
(175
|
)
|
(121
|
)
|
||||
Cost of services revenue adjustment (1,2)
|
(1,875
|
)
|
(1,542
|
)
|
||||
Cost of cloud revenue adjustment (1)
|
(769
|
)
|
(62
|
)
|
||||
Non-GAAP cost of revenue
|
$
|
92,805
|
$
|
66,453
|
||||
GAAP gross profit
|
$
|
189,888
|
$
|
151,498
|
||||
Gross profit adjustments
|
25,356
|
8,158
|
||||||
Non-GAAP gross profit
|
$
|
215,244
|
$
|
159,656
|
||||
GAAP operating expenses
|
$
|
161,947
|
$
|
114,003
|
||||
Research and development (1,2,3)
|
(2,211
|
)
|
(1,982
|
)
|
||||
Sales and marketing (1,3)
|
(5,646
|
)
|
(3,346
|
)
|
||||
General and administrative (1,2,3)
|
(1,886
|
)
|
(4,351
|
)
|
||||
Amortization of acquired intangible assets
|
(10,565
|
)
|
(2,507
|
)
|
||||
Non-GAAP operating expenses
|
$
|
141,639
|
$
|
101,817
|
||||
GAAP finance & other income (expense), net
|
$
|
(8,990
|
)
|
$
|
3,765
|
|||
Amortization of discount on long term debt
|
7,165
|
-
|
||||||
Non-GAAP finance & other income (expense), net
|
$
|
(1,825
|
)
|
$
|
3,765
|
|||
GAAP taxes on income
|
$
|
1,662
|
$
|
6,003
|
||||
Tax adjustments re non-GAAP adjustments
|
14,991
|
6,009
|
||||||
Non-GAAP taxes on income
|
$
|
16,653
|
$
|
12,012
|
||||
GAAP net income
|
$
|
17,289
|
$
|
35,257
|
||||
Valuation adjustment on acquired deferred revenue
|
2,427
|
142
|
||||||
Valuation adjustment on acquired deferred cost of service of revenue
|
(431
|
)
|
-
|
|||||
Amortization of acquired intangible assets
|
31,106
|
8,798
|
||||||
Share-based compensation (1)
|
12,562
|
6,360
|
||||||
Re-organization expenses (2)
|
-
|
1,308
|
||||||
Acquisition related expenses (3)
|
-
|
3,736
|
||||||
Amortization of discount on long term debt
|
7,165
|
-
|
||||||
Tax adjustments re non-GAAP adjustments
|
(14,991
|
)
|
(6,009
|
)
|
||||
Non-GAAP net income
|
$
|
55,127
|
$
|
49,592
|
||||
GAAP diluted earnings per share
|
$
|
0.28
|
$
|
0.58
|
||||
Non-GAAP diluted earnings per share
|
$
|
0.89
|
$
|
0.81
|
||||
Shares used in computing GAAP diluted earnings per share
|
61,751
|
60,851
|
||||||
Shares used in computing Non-GAAP diluted earnings per share
|
61,751
|
60,851
|
NICE SYSTEMS LTD. AND SUBSIDIARIES
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
|
U.S. dollars in thousands
|
(1
|
)
|
Share-based Compensation
|
|||||||||
Quarter ended
|
|||||||||||
March 31,
|
|||||||||||
2017
|
2016
|
||||||||||
Cost of product revenue
|
$
|
(175
|
)
|
$
|
(121
|
)
|
|||||
Cost of service revenue
|
(1,875
|
)
|
(1,118
|
)
|
|||||||
Cost of cloud revenue
|
(769
|
)
|
(6,360
|
)
|
|||||||
Research and development
|
(2,211
|
)
|
(856
|
)
|
|||||||
Sales and marketing
|
(5,646
|
)
|
(2,859
|
)
|
|||||||
General and administrative
|
(1,886
|
)
|
(1,118
|
)
|
|||||||
$
|
(12,562
|
)
|
$
|
(12,432
|
)
|
(2
|
)
|
Re-organization expenses
|
|||||||||
Quarter ended
|
|||||||||||
March 31,
|
|||||||||||
2017
|
2016
|
||||||||||
Cost of service revenue
|
$
|
-
|
$
|
(198
|
)
|
||||||
Research and development
|
-
|
(1,102
|
)
|
||||||||
General and administrative
|
-
|
(8
|
)
|
||||||||
$
|
-
|
$
|
(1,308
|
)
|
(3
|
)
|
Acquisition related expenses
|
|||||||||
Quarter ended
|
|||||||||||
March 31,
|
|||||||||||
2017
|
2016
|
||||||||||
Research and development
|
$
|
-
|
$
|
(24
|
)
|
||||||
Sales and marketing
|
-
|
(487
|
)
|
||||||||
General and administrative
|
-
|
(3,225
|
)
|
||||||||
$
|
-
|
$
|
(3,736
|
)
|
March 31,
|
December 31,
|
|||||||
2017
|
2016
|
|||||||
Unaudited
|
Unaudited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$
|
266,751
|
$
|
157,026
|
||||
Short-term investments
|
42,394
|
30,287
|
||||||
Trade receivables
|
205,683
|
260,220
|
||||||
Prepaid expenses and other current assets
|
68,964
|
57,966
|
||||||
Current assets of discontinued operations
|
2,182
|
3,734
|
||||||
Total current assets
|
585,974
|
509,233
|
||||||
LONG-TERM ASSETS:
|
||||||||
Long-term investments
|
79,571
|
98,726
|
||||||
Other long-term assets
|
20,338
|
18,701
|
||||||
Property and equipment, net
|
97,309
|
87,678
|
||||||
Deferred tax assets
|
14,732
|
14,093
|
||||||
Other intangible assets, net
|
587,749
|
618,735
|
||||||
Goodwill
|
1,284,760
|
1,284,710
|
||||||
Total long-term assets
|
2,084,459
|
2,122,643
|
||||||
TOTAL ASSETS
|
$
|
2,670,433
|
$
|
2,631,876
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Current maturities of long term loan
|
$
|
-
|
$
|
21,164
|
||||
Trade payables
|
25,548
|
25,634
|
||||||
Current portion of deferred revenues and advances from customers
|
194,813
|
149,801
|
||||||
Accrued expenses and other liabilities
|
246,645
|
273,134
|
||||||
Current liabilities of discontinued operations
|
574
|
3,077
|
||||||
Total current liabilities
|
467,580
|
472,810
|
||||||
LONG-TERM LIABILITIES:
|
||||||||
Deferred revenues and advances from customers
|
29,117
|
22,710
|
||||||
Deferred tax liabilities
|
126,346
|
146,952
|
||||||
Long-term debt
|
441,504
|
444,016
|
||||||
Other long-term liabilities
|
34,728
|
34,056
|
||||||
Total long-term liabilities
|
631,695
|
647,734
|
||||||
SHAREHOLDERS' EQUITY
|
1,571,158
|
1,511,332
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
2,670,433
|
$
|
2,631,876
|
NICE LTD. AND SUBSIDIARIES
|
||
CONSOLIDATED CASH FLOW STATEMENTS
|
||
U.S. dollars in thousands
|
Quarter ended
|
||||||||
March 31,
|
||||||||
2017
|
2016
|
|||||||
Unaudited
|
Unaudited
|
|||||||
Operating Activities
|
||||||||
Net income
|
$
|
17,289
|
$
|
35,140
|
||||
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||
Depreciation and amortization
|
39,143
|
12,916
|
||||||
Stock based compensation
|
12,562
|
6,431
|
||||||
Amortization of premium and discount and accrued interest on marketable securities
|
190
|
969
|
||||||
Deferred taxes, net
|
(11,671
|
)
|
(3,586
|
)
|
||||
Changes in operating assets and liabilities:
|
||||||||
Trade Receivables
|
56,299
|
39,568
|
||||||
Prepaid expenses and other current assets
|
(6,787
|
)
|
13,036
|
|||||
Trade payables
|
(112
|
)
|
861
|
|||||
Accrued expenses and other current liabilities
|
(31,299
|
)
|
(26,714
|
)
|
||||
Deferred revenue
|
50,664
|
35,688
|
||||||
Long term liabilities
|
(747
|
)
|
74
|
|||||
Amortization of discount on long term debt
|
7,165
|
-
|
||||||
Other
|
49
|
117
|
||||||
Net cash provided by operating activities
|
132,745
|
114,500
|
||||||
Investing Activities
|
||||||||
Purchase of property and equipment
|
(10,414
|
)
|
(7,059
|
)
|
||||
Purchase of Investments
|
(24,999
|
)
|
(27,952
|
)
|
||||
Proceeds from Investments
|
32,016
|
39,118
|
||||||
Capitalization of software development costs
|
(6,938
|
)
|
(1,061
|
)
|
||||
Payments for business acquisitions, net of cash acquired
|
-
|
(150,453
|
)
|
|||||
Net cash used in investing activities
|
(10,335
|
)
|
(147,407
|
)
|
||||
Financing Activities
|
||||||||
Proceeds from issuance of shares upon exercise of share options
|
3,733
|
7,514
|
||||||
Purchase of treasury shares
|
(8,429
|
)
|
(22,673
|
)
|
||||
Dividends paid
|
(9,637
|
)
|
(9,517
|
)
|
||||
Repayment of long term debt
|
(260,000
|
)
|
-
|
|||||
Proceeds from issuance of exchangeable notes
|
260,842
|
-
|
||||||
Net cash used in financing activities
|
(13,491
|
)
|
(24,676
|
)
|
||||
Effect of exchange rates on cash and cash equivalents
|
806
|
1,365
|
||||||
Net change in cash and cash equivalents
|
109,725
|
(56,218
|
)
|
|||||
Cash and cash equivalents, beginning of period
|
157,026
|
325,931
|
||||||
Cash and cash equivalents, end of period
|
$
|
266,751
|
$
|
269,713
|