-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WNib5003szijZPRy5/Raf4aCOvLGLZ/GeKecBBmF6kPW3TkhESjYP2JRnUqPIfFq 5ryftk3tO5Nn4x/v0wJt+Q== 0000903423-03-000944.txt : 20031113 0000903423-03-000944.hdr.sgml : 20031113 20031113153657 ACCESSION NUMBER: 0000903423-03-000944 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20031113 FILED AS OF DATE: 20031113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENESYS SA CENTRAL INDEX KEY: 0001125276 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-31134 FILM NUMBER: 03997915 BUSINESS ADDRESS: STREET 1: 4 RUE JULES FERRY BP 1145 CITY: MONTPELLIER CE STATE: X0 ZIP: 34008 BUSINESS PHONE: 0113346706 MAIL ADDRESS: STREET 1: LE REGENT STREET 2: 4 RUE JULES FERRY BP 1145 CITY: MONTPELLIER CE STATE: X0 ZIP: 34008 6-K 1 genesys-6k_1113.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the Month of November 2003 GENESYS S.A. (Exact name of registrant as specified in its charter) L'Acropole, 954-980 avenue Jean Mermoz, 34000 Montpellier, FRANCE (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F X Form 40-F --- --- Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):____ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):____ Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No X --- --- If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______________. Genesys Conferencing Logo Genesys Conferencing Reports Financial Results for the Third Quarter Ended September 30, 2003 Denver, Colorado, and Montpellier, France, November 13, 2003 - Genesys Conferencing (Euronext: 3955) (Nasdaq: GNSY), a leading multimedia conferencing specialist, today reported financial results (unaudited) for the third quarter ended September 30, 2003. All financial results are reported under French Generally Accepted Accounting Principles (GAAP). Improving Profitability and Cost Reduction Efforts Comparisons for the third quarter versus the prior year included: o Total call volumes increased 8.5% to 322.1 million minutes o Revenue decreased 22.6% to (euro)36.3 million, with automated services representing 68.3% of revenue o Gross margin increased to 62.5% o EBITDA* increased to (euro)7.1 million, with EBITDA margins improving to 19.5% o Net loss improved 50.3% to (euro)3.8 million, including previously announced (euro)1.6 million production center restructuring charge o Cash and cash equivalents increased by (euro)14.4 million from Q4 2002 to (euro)24.4 million "We are continuing to direct the migration towards our higher-margin automated conferencing services. We are also initiating an innovative bundled pricing strategy to support the adoption of our unique, fully integrated multimedia conferencing solutions," stated Francois Legros, Chairman and Chief Executive Officer of Genesys Conferencing. "By implementing additional operating efficiencies and productivity improvements, we are aiming to enhance our leading service quality and further our improved profitability." Total call volumes were 322.1 million minutes, up 8.5% from the same period in 2002, while automated services call volumes rose 26.2% from the third quarter of 2002. Automated services represented approximately 68.3% of revenue and 84.5% of audio call volumes in the third quarter of 2003, as compared to 54.7% and 72.7% in the third quarter 2002, respectively. Revenue decreased 22.6% to (euro)36.3 million, from (euro)46.9 million in the third quarter of 2002. The revenue decline, which was anticipated, was primarily due to the weak U.S. dollar, the continuing shift toward automated services (which carry higher margins but generate lower per-minute revenues than operator-assisted services) and price erosion. Despite the revenue decrease, gross margin was 62.5% compared to 56.7% in the third quarter of 2002, primarily as a result of greater cost efficiencies and higher productivity of the consolidated production centers, as well as the continuing improvement of our mix of higher margin automated services. Selling, general and administrative expenses and research and development expenses declined (euro)5.6 million to (euro)18.2 million, a 23.7% decline compared to the third quarter of 2002. The improvement in selling, general and administrative expenses is primarily due to the Company's continuing cost-reduction initiatives, including the greater centralization of certain operations and functional groups. Operating profit in the third quarter of 2003 was (euro)155,000, compared to an operating loss of (euro)1.3 million in the third quarter of 2002. Earnings before interest, taxes, depreciation and amortization (EBITDA*) totaled (euro)7.1 million in the third quarter of 2003, resulting in an EBITDA margin of 19.5%, compared to (euro)6.2 million in the third quarter of 2002, or an EBITDA margin of 13.2%. Net loss was (euro)3.8 million, or (euro)0.23 per share, in the third quarter of 2003, compared with a loss of (euro)7.7 million, or (euro)0.50 per share, in the same period last year. Cash increased to (euro)24.4 million, up (euro)14.4 million from the fourth quarter of 2002. Gross cash and cash equivalents increased to (euro)24.4 million as of September 30, 2003 from (euro)10.3 million as of September 30, 2002. "Continuing improvement of our liquidity and profitability remains a high priority and a focus of the strategic initiatives that we are implementing as we prepare our business plans for 2004", stated Michael E. Savage, Executive Vice President and Chief Financial Officer. Guidance for 2003 The following contains forward-looking guidance regarding the Company's financial outlook. The following is based on current expectations. The company confirms its previously disclosed guidance as follows: o Automated services are anticipated to be in the range of 68%-72% of revenue for the fourth quarter of 2003 o EBITDA for 2003 is anticipated to be in the range of (euro)36 million - (euro)40 million However, the Company now anticipates that revenue for 2003 will be approximately (euro)160 million due to our expectations regarding the continued industry price erosion and the continuing weakness of the U.S. Dollar as compared to the Euro. Third Quarter 2003 Conference Call and Webcast Chairman and Chief Executive Officer Francois Legros and Executive Vice President and Chief Financial Officer Michael E. Savage will host a conference call on November 13, 2003, at 5:30 p.m. Central European Time or 11:30 a.m. Eastern Standard Time. The conference call will be webcast live. The call may be accessed at www.genesys.com. A replay of the call will also be available at www.genesys.com. See financial tables below. * * * * * * *EBITDA is not a generally accepted accounting principle measurement and is presented solely as a supplemental disclosure. See attached note A to consolidated statements of operations for reconciliation of operating income and EBITDA. Forward-Looking Statements This release contains statements that constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical information or statements of current condition. These statements appear in a number of places in this release and include statements concerning the parties' intent, belief or current expectations regarding future events and trends affecting the parties' financial condition or results of operations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements as a result of various factors. Some of these factors are described in the Form 20-F that was filed by Genesys with the Securities and Exchange Commission on May 15, 2003. Although management of the parties believe that their expectations reflected in the forward-looking statements are reasonable based on information currently available to them, they cannot assure you that the expectations will prove to have been correct. Accordingly, you should not place undue reliance on these forward-looking statements. In any event, these statements speak only as of the date of this release. Except to the extent required by law, the parties undertake no obligation to revise or update any of them to reflect events or circumstances after the date of this release, or to reflect new information or the occurrence of unanticipated events. About Genesys Conferencing Genesys Conferencing is a global leader in integrated multimedia conferencing, providing a full range of practical and innovative real-time collaboration and conferencing services to over 18,000 clients worldwide. A leading multimedia conferencing specialist, with an unmatched global presence, Genesys Conferencing has established its integrated multimedia technology in 20 countries throughout Europe, Asia Pacific and North America. Genesys Conferencing is listed on the Nouveau Marche in Paris (Euronext: 3955) and Nasdaq (GNSY). Additional information is available at www.genesys.com. At Genesys Conferencing Michael E. Savage Executive Vice President and Chief Financial Officer Phone: +33 4 99 13 27 66 mike.savage@genesys.com Marine Pouvreau Investor Relations Phone: +33 4 99 13 25 17 marine.pouvreau@genesys.com Tricia Heinrich Public Relations Phone: +1 415 608 6651 tricia.heinrich@genesys.com GENESYS CONFERENCING Consolidated Balance Sheets (French GAAP) (in thousands of Euros, except share data) At Dec.31, 2002 At Sept. 30, 2003 --------------- ----------------- ASSETS (unaudited) Fixed assets: Goodwill, net (euro) 77 504 (euro) 68 802 Intangible assets, net 80 715 72 243 Tangible assets, net 27 502 21 807 Financial assets, net 1 194 1 059 Investments in affiliated companies 118 115 --------------- --------------- Total fixed assets 187 033 164 026 Current assets: Inventory 72 40 Accounts receivable, less allowances (Eur 3,502 and Eur 2,128 at December 31,2002 and Sept. 30, 2003, respectively) (euro) 35 929 (euro) 34 859 Deferred tax assets 361 154 Other current assets 7 919 5 990 Prepaid expenses and deferred charges 5 834 5 460 Marketable securities 109 11 558 Cash at bank 9 886 12 835 --------------- --------------- Total current assets 60 110 70 896 --------------- --------------- TOTAL ASSETS (euro) 247 143 (euro) 234 922 =============== =============== LIABILITIES AND SHAREHOLDERS' EQUITY Shareholders' equity: Ordinary shares, nominal value of Eur 5 per share, 15,409,933 shares issued and outstanding at December 31,2002 and Eur 1 per share, 18,297,139 shares issued and outstanding and September 30, 2003, respectively (euro) 77 051 (euro) 18 297 Common shares to be issued 1 332 141 Additional paid-in capital 180 652 185 093 Additional paid-in capital to be issued 6 344 3 890 Accumulated deficit (103 250) (137 954) Net loss for the period (96 617) (2 281) Currency translation adjustments 8 111 12 131 --------------- --------------- Total shareholders' equity 73 623 79 317 Provisions for risks and charges: 7 505 6 165 Long-term debt: Long-term portion of long-term debt 119 537 98 468 Long-term portion of capitalized lease obligations 673 193 --------------- --------------- Total long-term debt 120 210 98 661 Current liabilities Bank overdrafts 3 417 4 231 Accounts payable and accrued liabilities 20 276 14 391 Tax payable and deferred compensation 15 553 16 426 Current portion of long-term debt 2 390 13 362 Current portion of capitalized lease obligations 1 844 826 Deferred revenue 352 223 Other liabilities 1 973 1 320 --------------- --------------- Total current liabilities 45 805 50 779 --------------- --------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (euro) 247 143 (euro) 234 922 =============== ===============
GENESYS CONFERENCING Unaudited Consolidated Statements of Operations (French GAAP) (in thousands of Euros, except share data) Three months ended Sept. 30, Nine months ended Sept. 30, ------------------------------------------------------------------------------ 2002 2003 2002 2003 ---- ---- ---- ---- Revenue: Services (euro) 46 296 (euro) 36 225 (euro) 153 544 (euro) 123 921 Products 567 67 1 426 295 ------------------------------------- ------------------------------------ 46 863 36 292 154 970 124 216 Cost of revenue: Services 19 894 13 555 65 838 44 415 Products 411 55 1 114 199 ------------------------------------- ------------------------------------ 20 305 13 610 66 952 44 614 ------------------------------------- ------------------------------------ Gross Profit 26 558 22 682 88 018 79 602 Operating expenses: Research and development 1 159 1 043 3 607 3 128 Selling and marketing 11 828 9 300 39 200 28 460 General and administrative 11 239 8 231 44 234 29 218 Restructuring charge - 1 562 - 1 562 Amortization of intangible assets 3 643 2 391 10 933 7 175 (Note A) ------------------------------------- ------------------------------------ 27 869 22 527 97 974 69 543 ------------------------------------- ------------------------------------ Operating income / (loss) (1 311) 155 (9 956) 10 059 Financial expenses, net (Note B) (3 251) (1 937) (9 107) (5 766) Equity in income/(loss) of affiliated companies (4) (4) (15) 11 Income tax expense (Note C) (836) (535) (2 594) (2 576) Amortization of goodwill (2 296) (1 503) (7 464) (4 009) ------------------------------------- ------------------------------------ Net loss (euro) (7 698) (euro) (3 824) (euro) (29 136) (euro) (2 281) ===================================== ===================================== Basic and diluted net loss per share (euro) (0.50) (euro) (0.23) (euro) (1.87) (euro) (0.14) ============= ============= ============= ============= Number of outstanding shares used in computing basic and diluted net loss per share 15 547 280 16 829 643 15 540 009 15 974 734
GENESYS CONFERENCING Notes to the Statements of Operations (unaudited) ( in thousands of euros) NOTE A- EBITDA calculation Three months ended Nine months ended September 30, September 30, ------------------------------------------------------------------------ 2002 2003 2002 2003 ---- ---- ---- ---- General and administrative expenses (euro) 11 239 (euro) 8 231 (euro) 44 234 (euro) 29 218 Amortization of deferred acquisition and (423) (409) (1 251) (1 186) deferred financing costs Non recurrent income (charges) 22 (119) 92 (141) ---------------------------------- ----------------------------------- Operating general and administrative expenses restated for the above items (euro) 10 838 (euro) 7 703 (euro) 43 075 (euro) 27 891 ================================== =================================== Operating income (loss) (euro) (1 311) (euro) 155 (euro) (9 956) (euro) 10 059 Amortization of deferred acquisition and deferred financing costs 423 409 1 251 1 186 Amortization of intangible assets 3 643 2 391 10 933 7 175 Non recurrent charges (income) (22) 119 (92) 141 ---------------------------------- ----------------------------------- Operating income restated for the above items 2 733 3 074 2 136 18 561 ---------------------------------- ----------------------------------- Depreciation and provisions 3 471 2 391 14 247 9 021 Penalty for early termination of a Rich Media - - 3 231 - contract Restructuring charge - 1 607 - 1 607 ---------------------------------- ----------------------------------- EBITDA (euro) 6 204 (euro) 7 072 (euro) 19 614 (euro) 29 189 ---------------------------------- ----------------------------------- NOTE B- DETAIL OF FINANCIAL EXPENSES, NET 2002 2003 2002 2003 Interest and other financial income (euro) 258 (euro) 11 (euro) 164 (euro) 389 Foreign exchange gains 31 25 2 090 2 077 ---------------------------------- ----------------------------------- Total financial income 289 36 2 254 2 466 Interest and other financial expenses 2 614 1 676 7 811 5 805 Foreign exchange losses 926 297 3 550 2 427 ---------------------------------- ----------------------------------- Total financial charges 3 540 1 973 11 361 8 232 Financial expenses, net (euro) (3 251) (euro) (1 937) (euro) (9 107) (euro) (5 766) ================================== =================================== NOTE C- DETAIL OF INCOME TAX EXPENSE 2002 2003 2002 2003 Deferred tax credit (expense) (euro) 1 (euro) (202) (euro) 10 (euro) (233) Income tax expense (837) (333) (2 604) (2 343) ---------------------------------- ----------------------------------- Total income tax expense (euro) (836) (euro) (535) (euro) (2 594) (euro) (2 576) ================================== ===================================
US GAAP ANNEX GENESYS S.A. CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, September 30, 2002 2003 ------------- ------------- ASSETS (Unaudited) Current assets: Cash and cash equivalents...............................................(euro) 9,976 (euro) 24,393 Accounts receivable, less allowances of (euro)3,502 at December 31, 2002 and (euro)2,128 at September 30, 2003............................ 35,930 34,859 Inventory............................................................... 72 40 Prepaid expenses........................................................ 1,874 2,658 Other current assets.................................................... 5,261 4,234 -------------- -------------- Total current assets............................................. 53,113 66,184 Property and equipment, net............................................... 32,234 26,727 Goodwill and other intangibles, net....................................... 158,213 148,307 Investment in affiliated company.......................................... 118 115 Deferred tax assets....................................................... 361 154 Deferred financing costs, net............................................. 3,797 2,953 Other assets.............................................................. 1,897 1,637 -------------- -------------- Total assets...........................................(euro) 249,733 (euro) 246,077 ============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Bank overdrafts.........................................................(euro) 3,417 (euro) 4,231 Accounts payable........................................................ 14,344 9,139 Accrued liabilities..................................................... 7,178 7,805 Accrued compensation.................................................... 6,555 7,479 Tax payable............................................................. 8,998 8,947 Deferred revenue........................................................ 352 223 Current portion of long-term debt....................................... 1,143 10,809 Current portion of capitalized lease obligations........................ 191 125 Current portion of deferred tax liability............................... 3,097 3,097 Current portion of other long-term liability............................ 2,284 794 Other current liabilities............................................... 1,759 1,068 -------------- -------------- Total current liabilities........................................ 49,318 53,717 Long-term portion of long-term debt....................................... 120,165 99,163 Long-term portion of capitalized lease obligations........................ 149 54 Long term portion of deferred tax liability............................... 20,666 18,178 Other long-term liability................................................. 6,644 3,850 Commitments and contingencies............................................. -- -- Shareholders' equity: Ordinary shares; (euro)5.00 and (euro) 1.00 nominal value at December 31, 2002 and September 30, 2003, respectively; 15,409,933 and 18,297,139 shares issued and outstanding at December 31, 2002 and Sept. 30, 2003, respectively............................................. 77,050 18,297 Common shares to be issued:(euro)5.00 and (euro)1.00 nominal value at December 31, 2002 and September 30, 2003, respectively; 137,347 and 65,085 shares at December 31, 2002 and September 30, 2003, respectively.. 687 65 Additional paid-in capital.............................................. 194,217 198,042 Accumulated other comprehensive income.................................. 6,980 9,107 Deferred compensation................................................... (220) (720) Accumulated deficit..................................................... (225,172) (152,925) -------------- -------------- 53,542 71,866 Less cost of treasury shares: 22,131 shares at December 2002 and September 30, 2003................................................ (751) (751) -------------- -------------- Total shareholders' equity....................................... 52,791 71,115 -------------- -------------- Total liabilities and shareholders' equity.............(euro) 249,733 (euro) 246,077 ============== ==============
GENESYS S.A. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except share data) Three months ended Sept. 30, Nine months ended Sept. 30, ---------------------------- ---------------------------- 2002 2003 2002 2003 ----------- ----------- ----------- ----------- Revenue: Services.................................(euro) 46,296 (euro) 36,225 (euro) 152,835 (euro) 123,921 Products................................. 567 67 1,426 295 ------------- ------------- -------------- -------------- 46,863 36,292 154,261 124,216 Cost of revenue: Services................................. 19,894 13,574 65,838 44,564 Products................................. 411 55 1,114 199 ------------- ------------- -------------- -------------- 20,305 13,629 66,952 44,763 ------------- ------------- -------------- -------------- Gross profit............................... 26,558 22,663 87,309 79,453 Operating expenses: Research and development................. 1,159 1,044 3,607 3,128 Selling and marketing.................... 11,828 9,300 39,200 28,460 General and administrative............... 10,866 8,097 42,447 28,430 Restructuring charge..................... -- -- 3,671 -- Amortization of intangibles............... 3,790 2,608 11,271 7,834 ------------- ------------- -------------- -------------- Total operating expenses......... 27,643 21,049 100,196 67,852 Operating income (loss).................... (1,085) 1,614 (12,887) 11,601 Financial income (expense) Interest income.......................... 10 16 99 195 Interest expense......................... (2,595) (1,851) (7,703) (5,556) Foreign exchange gain (loss)............. (895) 285 (1,460) 5,615 Other financial expense, net............. (34) (87) (829) (857) ------------- ------------- -------------- -------------- Financial expense, net..................... (3,514) (1,637) (9,893) (603) Equity in income (loss) of affiliated company.................................... (4) (4) (15) 11 ------------- ------------- -------------- -------------- Income (loss) before taxes................. (4,603) (27) (22,795) 11,009 Income tax (expense) credit................ 369 406 1,020 (88) ------------- ------------- -------------- -------------- Net income (loss)................(euro) (4,234) (euro) 379 (euro) (21,775) (euro) 10,921 ============= ============= ============== ============== Basic net income (loss) per share..........(euro) (0.27) (euro) 0.02 (euro) (1.40) (euro) 0.68 ============= ============= ============== ============== Diluted net income (loss) per share........(euro) (0.27) (euro) 0.02 (euro) (1.40) (euro) 0.66 ============= ============= ============== ============== Number of shares used in computing basic net income (loss) per share................ 15,547,280 16,829,643 15,540,009 15,974,734 Dilution effect on convertible notes....... -- 552,188 -- 552,188 Number of shares used in computing diluted net income (loss) per share........ 15,547,280 17,381,831 15,540,009 16,526,922
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Dated: November 13, 2003 GENESYS SA By: /s/ Francois Legros --------------------------------------- Name: Francois Legros Title: Chairman and Chief Executive Officer -----END PRIVACY-ENHANCED MESSAGE-----