6-K 1 e18592_6k.txt FORM 6-K UNITED STATES 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 July 28, 2004 Tecnomatix Technologies Ltd. ---------------------------- (Exact Name of Registrant as specified in the charter) N/A (Translation of Registrant's name into English) Israel ------ (Jurisdiction of incorporation or organization) 16 Hagalim Avenue, Herzlia 46733, Israel ----------------------------------------- (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 whether the registrant by furnishing the information contained in this Form 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 ] 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. TECNOMATIX TECHNOLOGIES LTD. By: /s/ Jaron Lotan -------------------------- Jaron Lotan President and Chief Executive Officer Dated: July 28, 2004 Tecnomatix Announces Second Quarter 2004 Results 20% increase in quarterly revenues over prior year Company increases full year guidance HERZLIA, Israel, July 28 /PRNewswire-FirstCall/ -- Tecnomatix Technologies Ltd. (Nasdaq: TCNO), the driving force in Manufacturing Process Management (MPM), today announced its financial results for the second quarter ended June 30, 2004. Revenues for the second quarter of 2004 were $24.2 million, compared to $20.2 million for the second quarter of 2003. Operating income for the second quarter of 2004 was $0.5 million, compared to an operating loss of $(0.2) million for the second quarter of 2003. Net income for the second quarter of 2004 was $0.4 million or $0.03 per diluted share, compared to $0.2 million or $0.02 per diluted share for the second quarter of 2003. Revenues for the first six months of 2004 were $48.0 million, compared to $40.8 million for the first six months of 2003. Operating income for the first six months of 2004 was $1.0 million, compared to an operating loss of $(1.8) million for the first six months of 2003. Net income for the first six months of 2004 was $0.7 million or $0.05 per diluted share, compared to a net loss of $(1.3) million or $(0.12) per diluted share for the first six months of 2003. At June 30, 2004, the Company had a $38.0 million balance of cash and cash equivalents, short-term investments and long-term investments. "The second quarter was a period of very solid performance for Tecnomatix, where we accomplished our strategic and financial goals," said Jaron Lotan, president and chief executive officer of Tecnomatix Technologies Ltd. "This is the third sequential quarter that we are reporting year-over-year growth in revenues, and another quarter that we are reporting year-over-year growth in operating and net profits. In addition, we continue to report a positive cash flow from operating activities. These results are mainly attributable to continued strength in the Automotive sector, continued improvement in the Electronics sector, and growing sales momentum in the Automotive Tier-1 Supplier sector. "Automotive manufacturers continue to expand their deployment of our MPM solutions with more OEMs joining the Tecnomatix customer base and others adopting our solutions for additional domains and facilities," continued Lotan. "During the second quarter, companies like Opel, Skoda and Isuzu started initial enterprise implementations, and BMW decided to extend its use of eMPower to its powertrain division. In addition, Tecnomatix carried out several projects for global accounts, including Audi, Ford, GM and Volkswagen, as part of their stategies to deploy MPM throughout their facilities worldwide. "Particularly noteworthy, was PSA Peugeot Citrokn's choice of Tecnomatix as its standard solution for all its carbody assembly operations worldwide. This decision resulted in the latest multi-million dollar agreement for Tecnomatix's eMPower CarBody solution. PSA Peugeot Citrokn is presently using Tecnomatix solutions for its powertrain operations and this win, which came after a very competitive evaluation process, underscores our growing market share in Europe. "We also received initial and follow-on orders from the automotive supplier community, including Tier-1 suppliers Draexelmaier, ebm-papst, Getrag-Ford, Hella, Robert Bosch, Webasto, and ZF, and from EX-CELL-O, a world-leading supplier of machining lines and systems. "In the Electronics sector, we are particularly pleased with the market acceptance of our new eM-Execution solution, which we announced last quarter. Several of our electronics customers are already expanding implementations, among them Siemens, which is extending its deployment across three of its plants in Germany. "Overall, we enter the second half of 2004 in a strong leadership position," concluded Lotan. "Our expanding suite of MPM solutions, track record of delivering customer value, and strong management team continue to differeniate Tecnomatix from our competitors and to drive our growth." Forward-Looking Guidance Oren Steinberg, chief financial officer and executive vice president of Tecnomatix Technologies said, "We continue to make steady progress in improving our financial performance and creating value for our shareholders, as we gain sales momentum in our key markets and leverage our cost efficencies. Based on our current plans and visibility, we expect to achieve revenue growth of approximately 15%-20% for the full year 2004 over 2003, with improved profitability on a quarterly basis." Investor Conference Call / Webcast Details Tecnomatix will review detailed second quarter 2004 results on July 28, 2004 at 8:30 AM EDT. The conference call-in number is 973-935-2408. A replay will be available from 11:30 AM EDT on July 28 through midnight EDT, August 4. The replay number is 973-341-3080. The confirmation identification is 4995912. The live call and replay will also be accessible over the web at http://investor.tecnomatix.com. About Tecnomatix Technologies Ltd. Tecnomatix Technologies Ltd. provides the world's leading Manufacturing Process Management (MPM) solutions for the automotive, electronics, aerospace and other manufacturing and processing industries. Tecnomatix eMPower solutions for MPM enable the design, simulation, and execution of production processes, and provide real-time control and visibility throughout shop-floor operations. More than 5000 companies worldwide are using eMPower solutions to reduce operating costs, accelerate product introductions, and shorten time-to-volume -- while maintaining high levels of product and process quality. With offices in over 20 countries, Tecnomatix supports such global leaders as BMW, Boeing, Comau, Ford, GM, Mazda, Philips, Schneider Electric and Volkswagen . For more information, visit http://www.tecnomatix.com. This press release includes forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the Company's plans, objectives and expected financial and operating results. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, market demand for Tecnomatix products and services, long sales cycles, new product developments, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchange Commission. Tecnomatix undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. TECNOMATIX TECHNOLOGIES LTD. Condensed Consolidated Balance Sheets U.S $ in thousands 6/30/2004 12/31/2003 Current Assets: Cash and cash equivalents 11,004 9,232 Short-term investments 23 70 Receivables: Trade 27,636 29,190 Related parties 400 -- Other and prepaid expenses 5,688 5,747 Total current assets 44,751 44,239 Non-current receivables 1,114 1,108 Long-term investments 27,070 24,556 Property and equipment, net 4,756 5,628 Goodwill, net 25,451 25,829 Acquired intangibles, net 2,149 2,444 Other assets, net 13,296 13,296 Total assets 118,587 117,100 Current Liabilities: Current maturities of long-term loan 2,500 833 Payables: Trade 2,656 4,644 Deffered Revenue 10,089 7,130 Other and accrued expenses 16,849 19,163 Total current liabilities 32,094 31,770 Long-term liabilities: Accrued restructuring expense and other 3,042 1,716 Loan from a Bank 22,500 24,167 Accrued severance pay, net 1,080 1,095 Total long-term liabilities 26,622 26,978 Shareholders' equity 59,871 58,352 Total liabilities and shareholders' equity 118,587 117,100 Consolidated Statements of Operations U.S $ in thousands, except per share data Six months ended Three months ended 6/30/2004 6/30/2003 6/30/2004 6/30/2003 Revenues Software license fees 18,750 16,214 9,520 7,746 Services 29,293 24,540 14,657 12,408 Total revenues 48,043 40,754 24,177 20,154 Costs and expenses Software license fees 3,567 4,271 1,737 1,784 Services 9,602 7,348 4,878 3,611 Amortization of acquired intangibles 295 -- 144 -- Research and development, net 8,010 7,422 4,061 3,665 Selling and marketing 23,297 19,462 11,674 10,026 General and administrative 2,317 2,568 1,188 1,289 Restructuring costs and assets impairment -- 1,487 -- -- Total costs and expenses 47,088 42,558 23,682 20,375 Operating income (loss) 955 (1,804) 495 (221) Financial income (expense), net (72) 598 (13) 366 Income (loss) before taxes on income 883 (1,206) 482 145 Provision for income taxes (147) (1) (107) 16 Income (loss) after taxes on income 736 (1,207) 375 161 Equity share in net income (loss) of an affiliate company (55) (49) (22) 10 Net income (loss) 681 (1,256) 353 171 Basic earnings (loss) per share: Net Income (loss) 0.06 (0.12) 0.03 0.02 Diluted earnings (loss) per share: Net Income (loss) 0.05 (0.12) 0.03 0.02 Weighted average number of shares outstanding: Basic 12,024,668 10,677,678 12,061,212 10,704,177 Diluted 12,961,227 10,677,678 12,955,327 11,031,269 Company Contact: Tecnomatix Technologies Ltd. Oren Steinberg +972-9-9594891 osteinberg@tecnomatix.com Company Investor Contact: Tecnomatix Technologies Ltd. Marsha Shalvi +972-9-9594733 +972-54-942180 mshalvi@tecnomatix.com Investor Contact: The Ruth Group David Pasquale +646-536-7006 dpasquale@theruthgroup.com SOURCE Tecnomatix Technologies Ltd. -0- 07/28/2004 /CONTACT: Oren Steinberg, +972-9-959-489, osteinberg@tecnomatix.com, or Marsha Shalvi +972-99-594-733, +972-54-942-180, mshalvi@tecnomatix.com, both of Tecnomatix Technologies Ltd.; or David Pasquale, The Ruth Group, +1-646-536-7006, dpasquale@theruthgroup.com, for Tecnomatix Technologies Ltd./ (TCNO) CO: Tecnomatix Technologies Ltd. ST: Israel IN: CPR RAD AUT STW SU: ERN CCA