-----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, BHKvwqK6WBtsPrJXKKez7IeMepNh5xaeXTEYkRh3eBXZWVDj4yzEYHt5bSsL5imn oX1hv8pRUpUCVEA3gi0pvQ== 0000950123-00-003819.txt : 20000419 0000950123-00-003819.hdr.sgml : 20000419 ACCESSION NUMBER: 0000950123-00-003819 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000430 FILED AS OF DATE: 20000418 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARADIGM GEOPHYSICAL LTD CENTRAL INDEX KEY: 0000931131 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 000-29538 FILM NUMBER: 604229 BUSINESS ADDRESS: STREET 1: GAV-YAM CENTER NO.3 STREET 2: 9 SHENKAR STREET CITY: ISRAEL STATE: L3 ZIP: 46120 BUSINESS PHONE: 2818763473 MAIL ADDRESS: STREET 1: TWO ALLEN CENTER STREET 2: 1200 SMITH STREET STE 2100 CITY: HOUSTON STATE: TX ZIP: 77002 6-K 1 PARADIGM GEOPHYSICAL LTD. 1 FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the Month of April 2000 PARADIGM GEOPHYSICAL LTD. (Translation of Registrant's Name into English) Shenkar Street 9, Gav Yam Center No.3, P.O.B. 2061 Herzlia B, Israel 46120 (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.... If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-..................... 2 Attached to the Registrant's Form 6-K for the month of April 2000 and incorporated by reference herein is the Registrant's news release dated April 17, 2000. 3 SIGNATURE 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. PARADIGM GEOPHYSICAL LTD. (Registrant) By: /s/ Jonathan Keller Jonathan Keller Company Secretary Dated: 18 April, 2000 4 PARADIGM GEOPHYSICAL ANNOUNCES FIRST QUARTER RESULTS FOR THE PERIOD ENDED MARCH 31, 2000 HERZLIA, Israel--(BUSINESS WIRE)--April 17, 2000--Paradigm Geophysical Ltd. (NASDAQ: PGEO) today announced its first quarter results for the period ended March 31, 2000. Growth Highlights: - EPS is $0.02 for the first quarter of 2000, and $0.03 before goodwill amortization. - CFPS is $0.18 for the first quarter of 2000. - Total revenues for the first quarter increased by 22 percent over the same period in 1999. - On a pro-forma basis, total revenues increased by 44 percent over the same period in 1999. Summary of Key Results and Comparisons
1st Quarter ----------- Q1'00 Q1'00 Increase/ Increase/ 2000 1999 (Decrease) Q4 '99 (Decrease) as % Q1'99 as % Q4'99 - --------------------------------------------------------------------------------- EPS $0.02 $(0.35) $0.02 0% EPS before goodwill $0.03 $(0.35) $0.03 0% CFPS $0.18 $(0.19) $0.17 6% - --------------------------------------------------------------------------------- (US$ mil.) Revenues $14.1 $ 11.6 22% $16.4 (14%) Operating Income/(Loss) $ 0.4 $ (3.5) $ 0.4 0% Net Income/(Loss) $ 0.3 $ (3.7) $ 0.3 0% - ---------------------------------------------------------------------------------
Management Comments: Eldad Weiss, Chairman and CEO of Paradigm Geophysical Ltd., commented: "We achieved our targets for this quarter. The Company has, for the second consecutive quarter, returned to profitability and positive cash flow, and has achieved strong growth in this quarter over the previous year's quarter. We believe that these results, together with our wide global presence and combined products and services offering, positions us to benefit from the sector turn-around, now beginning." 5 Detailed Results and Comparisons
1st Quarter ----------- Q1'00 Q1'00 Increase/ Increase/ 2000 1999 (Decrease) Q4 '99 (Decrease) as % Q1'99 as % Q4'99 - ---------------------------------------------------------------------------------- Product revenues $ 10.2 $ 9.6 6% $ 13.5 (24%) Services revenues $ 3.9 $ 2.0 95% $ 2.9 34% Operating expenses $ 13.7 $ 15.1 (9%) $ 16.0 (14%) EBITDA $ 2.5 $ (2.0) $ 2.2 14% - ----------------------------------------------------------------------------------
Product revenues: Product revenues this quarter increased by 6 percent over the first quarter 1999 and declined by 24 percent over the fourth quarter of 1999, reflecting the traditionally seasonally strong forth quarter. On a pro-forma basis product revenue growth is 30 percent compared with the first quarter 1999. The pro-forma adjustment takes into account first quarter 1999 PTM revenues (the "PTM" group was acquired at the close of the first quarter 1999) and excluding hardware and the turnkey revenues. Service revenues: During this quarter service revenues increased by 95 percent over the same period in 1999, and 34 percent increase over the fourth quarter of 1999. Operating expenses: A decline to 86 percent over fourth quarter 1999 expense levels reflects one-time year-end charges in the forth quarter, and the Company's continuing tight control on expenses. Recent press announcements are available on Paradigm's web site: www.paradigmgeo.com. About Paradigm Geophysical Ltd. Paradigm Geophysical Ltd. provides geoscience software and service solutions to the oil and gas industry. The Company has sales, customer support and service offices in Houston, London, Aberdeen, Bahrain, Calgary, Moscow, Caracas, Buenos Aires, Rio de Janeiro, Perth, Brisbane, Beijing, Jakarta and Singapore. "Paradigm Geophysical(R)" is the registered trademark of Paradigm Geophysical Ltd. Safe Harbor statement: This news release may contain certain forward-looking statements relating to the Company's expectations for its future performance. Such statements are subject to certain factors which may cause the Company's plans to differ or results to vary from those expected including the risks associated with the future capital expenditures by oil and gas companies, international oil prices, the impact of competitive products and pricing, increased investment to support product introductions, market acceptance of products, product transitions by the Company and its competitors, currency fluctuations, changes in product sales mix, and a variety of risks described in the Company's 20-F filing with the U.S. Securities and Exchange Commission on June 30, 1999. Paradigm undertakes no obligation to publicize or release results of any of these forward-looking statements, which may be made to 6 reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results. SEGMENT REVENUES
(US$ mil.) Q1 2000 Q4 1999 Q1 1999 - --------------------------------------------------------------------------------- Products Revenues $ 10.2 $ 13.5 $ 9.6 Cost of Revenues 2.8 3.1 3.4 Operating expenses(a) 2.8 3.2 2.7 ----------------------------------- Contribution 4.7 7.2 3.5 % Contribution 46% 54% 37% EBITDA(a) 5.6 8.1 4.3 % EBITDA 55% 60% 45% Segment Net Fixed Assets $ 2.4 $ 2.3 $ 1.6 Services Revenues $ 3.9 $ 2.9 $ 2.0 Cost of Revenues 1.2 1.5 1.0 Operating expenses(a) 1.2 0.9 0.7 ----------------------------------- Contribution 1.4 0.5 0.3 % Contribution 37% 17% 17% EBITDA (a) 1.9 0.9 0.6 % EBITDA 50% 30% 32% Segment Net Fixed Assets $ 7.2 $ 6.7 $ 5.3 - ---------------------------------------------------------------------------------
(a) R&D and some Marketing, G&A, Depreciation and Amortization expenses are not allocated to segments 7 PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------- U.S. dollars in thousands
December 31, March 31, 1999 2000 ------------ ----------- Audited Unaudited ------------ ----------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 5,457 $ 5,239 Trade receivables (net of allowance for doubtful accounts - $ 1,666 in 1999 and $ 1,664 in 2000) 21,612 15,179 Accrued income 9,012 12,159 Other receivables and prepaid expenses 2,443 2,888 ------- ------- Total current assets 38,524 35,465 ------- ------- LONG-TERM TRADE RECEIVABLES 54 336 ------- ------- SEVERANCE PAY FUNDS 861 950 ------- ------- FIXED ASSETS 12,007 12,061 ------- ------- OTHER ASSETS: Acquired developed technology 9,805 9,462 Other assets, net 4,914 4,610 ------- ------- 14,719 14,072 ------- ------- $66,165 $62,884 ======= =======
8 PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------- U.S. dollars in thousands
December 31, March 31, 1999 2000 ----------- --------- Audited Unaudited ----------- --------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term bank debt $ 2,000 $ 2,000 Current maturities of long-term bank loans 2,639 3,111 Current maturities of capital lease obligations 434 434 Trade payables 2,774 1,247 Other payables and accrued expenses 8,792 7,556 Deferred revenues 6,539 6,160 -------- -------- Total current liabilities 23,178 20,508 -------- -------- LONG TERM LIABILITIES: Long-term bank loans 3,923 3,114 Capital lease obligations 742 638 Other lease obligations 759 670 Accrued severance pay 1,650 1,799 Deferred tax liability 445 405 -------- -------- Total long-term liabilities 7,519 6,626 -------- -------- SHAREHOLDERS' EQUITY: Ordinary shares: Authorized - 20,000,000 shares of NIS 0.5 par value at December 31, 1999 and at March 31, 2000 Issued and outstanding - 13,026,336 shares at December 31, 1999 and 13,052,634 shares at March 31, 2000 2,064 2,067 Additional paid-in capital 51,903 52,027 Accumulated other comprehensive loss (1,166) (1,293) Accumulated deficit (17,333) (17,051) -------- -------- Total shareholders' equity 35,468 35,750 -------- -------- $ 66,165 $ 62,884 ======== ========
9 PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS - -------------------------------------------------------------------------------- U.S. dollars in thousands, except per share amounts
Year ended Three months ended December 31 March 31, ----------------------- 1999 1999 2000 ----------- -------- -------- Audited Unaudited ----------- ----------------------- Revenues: Products $ 43,023 $ 9,632 $ 10,210 Services 11,483 1,979 3,875 -------- -------- -------- 54,506 11,611 14,085 -------- -------- -------- Operating expenses: Cost of products 12,418 3,427 2,752 Cost of services 5,804 967 1,236 Research and development 9,306 2,009 2,552 Selling, general and administrative 20,638 4,514 5,092 Depreciation 3,865 782 1,124 Amortization 3,064 724 894 Non recurring expenses 2,705 2,705 -- -------- -------- -------- Total operating expenses 57,800 15,128 13,650 -------- -------- -------- Operating income (loss) (3,294) (3,517) 435 Financial expenses, net (484) (155) (102) -------- -------- -------- Income (loss) before income taxes (3,778) (3,672) 333 Income taxes -- -- (51) -------- -------- -------- Net income (loss) $ (3,778) $ (3,672) $ 282 ======== ======== ======== Basic income (loss) per share $ (0.31) $ (0.35) $ 0.02 ======== ======== ======== Number of shares used in computing basic income (loss) per share 12,205 10,515 13,021 ======== ======== ======== Diluted income (loss) per share $ (0.31) $ (0.35) $ 0.02 ======== ======== ======== Number of shares used in computing diluted income (loss) per share 12,205 10,515 13,471 ======== ======== ========
10 Contact: Paradigm Geophysical Ltd. Arita Mattsoff, Investor Relations Officer Phone: +972-9-970-9634 Fax: +972-9-970-9319 Email: aritam@paradigmgeo.com or Ruder-Finn, Inc. Magda Gagliano Phone: +1-212-593-6319 Fax: +1-212-715-1660 Email: gaglianom@ruderfinn.com or Cubitt Consulting Noga Villalon Phone: +44-171-232-4591 Fax: +44-171-232-2541 Email: nv@cubitt-consult.co.uk or Morgen Walke Israel Maya Huli-Lustig Phone: +972-3-561-1877 Fax: +972-3-561-1875 Email: maya_h@koteret-pr.co.il -----END PRIVACY-ENHANCED MESSAGE-----