-----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, QfCpQzTp6f85p2KaBBkpGwmxTWVebVOBGJbhFNrsOKsj7QtI1sV4jK9ZxkFapBEV oVtrylFusSl/DSWK80W+5w== 0000950123-01-000578.txt : 20010129 0000950123-01-000578.hdr.sgml : 20010129 ACCESSION NUMBER: 0000950123-01-000578 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010124 FILED AS OF DATE: 20010125 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: 1514513 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 y44685e6-k.txt FORM 6-K 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 January 2001 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 January 2001 and incorporated by reference herein is the Registrant's news release dated January 23, 2001. 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: 24 January, 2001 EX-99 2 y44685ex99.txt NEWS RELEASE 1 [PARADIGM LOGO] FOR IMMEDIATE RELEASE PARADIGM GEOPHYSICAL REPORTS FOURTH QUARTER AND YEAR-END RESULTS COMPANY REPORTS SUSTAINED TURNAROUND FROM 1999 NEW YORK, JANUARY 23, 2001: Paradigm Geophysical (NASDAQ:PGEO) today announced its fourth quarter and year-end results for the period ending December 31, 2000. HIGHLIGHTS - EPS FOR THE QUARTER were $0.08, a 300 percent increase compared to $0.02 for the fourth quarter of 1999, and an increase of 60 percent over the $0.05 reported for the third quarter of 2000. Before amortization of goodwill EPS were $0.09, a 50 percent increase over the third quarter 2000. - EPS FOR THE YEAR were $0.17, and $0.21 before amortization of goodwill, compared to losses of $0.31 and $0.27, respectively, for 1999. - TOTAL REVENUES FOR THE QUARTER reached $20.9 million, an increase of 27 percent over the same period last year, and an increase of 46 percent over the third quarter of this year. - TOTAL REVENUES FOR THE YEAR 2000 were $63.3 million, up 16 percent over 1999. - EBITDA was $3.9 million for the fourth quarter, up 77 percent over the third quarter, and $11.5 million for the year, and increase of 219 percent over 1999. (more) 2 - CASH FLOW PER SHARE for the fourth quarter of this year was $0.23, a 44 percent increase over the same period last year. Cash flow for the year was $0.78, a 196 percent increase over 1999. SUMMARY KEY RESULTS AND COMPARATORS QUARTERLY BASIS
---------------------------------------------------------------- Fourth Quarter ---------------------------------- 2000 1999 % Change Q3 '00 % Change Q4'00 over Q4 over Q3 Q4'99 ---------------------------------------------------------------- (US$ per share) EPS $0.08 $0.02 300% $0.05 60% EPS before Goodwill $0.09 $0.03 200% $0.06 50% CFPS $0.23 $0.16 44% $0.19 21% - ----------------------------------------------------------------------------------------------------- (US$ million) Revenue $20.9 $16.4 27% $14.3 46% Operating Income/(Loss) $1.7 $0.4 325% $ 0.8 113% Net Income/(Loss) $1.2 $0.3 300% $ 0.6 100% ----------------------------------------------------------------
FISCAL YEAR BASIS
-------------------------------------------- Fiscal Year -------------------------------------------- 2000 1999 % Change 2000 over 1999 -------------------------------------------- (US$ per share) EPS $0.17 ($0.31) EPS before Goodwill $0.21 ($0.27) CFPS $0.77 $0.26 196% ----------------------------------------------------------------------------- (US$ million) Revenue $63.3 $54.5 16% Operating Income/(Loss) $3.3 ($3.3) Net Income/(Loss) $2.4 ($3.8) --------------------------------------------
MANAGEMENT COMMENTS Eldad Weiss, Chairman and CEO stated, "This is our eighth consecutive quarter of revenue growth on a quarter-over-same-quarter basis, and the fifth consecutive quarter of positive earnings. These results demonstrate the Company's sustained recovery, which has been parallel (more) 3 to the recovery of the market for technical information solutions for oil and gas exploration and production." "We believe that our performance this quarter, and the steady progress we have achieved over the entire year, demonstrate that the company's products and services have established broad and growing acceptance in the industry worldwide. We benefited from the industry turnaround because our full solution offering and global infrastructure was in place. We will continue to capitalize on the industry's turnaround in 2001 without a significant increase in our fixed overhead component." "Management has reviewed the outlook for 2001 and believes that the company's continued commitment to delivering a full solution of software and services meets the changing market requirements. Further, we believe that demand for out-sourced data analysis and interpretation services will continue to grow. Our advanced solutions, both for seismic data processing, and also for integrated reservoir studies to improve production recovery, respond well to this demand. We plan to expand our reservoir studies services to meet the emerging demand for these out-sourced services." DETAILED RESULTS QUARTERLY BASIS
----------------------------------------------------------------- Fourth Quarter ----------------------------------- % Change Q4'00 over % Change 2000 1999 Q4'99 Q3'00 Q4 over Q3 ----------------------------------------------------------------- (US$ million) Product Revenues $16.4 $13.5 21% $9.9 66% Services Revenues $4.5 $2.9 55% $4.4 2% Operating Expenses $19.2 $16.0 20% $13.5 42% Cash Flow $3.4 $2.1 62% $2.6 31% EBITDA $3.9 $2.2 77% $2.7 44% ------------------------------------------------------------------
(more) 4 FISCAL YEAR BASIS
------------------------------------- Fiscal Year ------------------------------------- % Change 2000 1999 year over year ------------------------------------- (US$ million) Product Revenues $46.4 $43.0 8% Services Revenues $16.9 $11.5 47% Operating Expenses $60.0 $57.8 4% Cash Flow $10.5 $3.2 228% EBITDA $11.5 $3.6 219% -------------------------------------
PRODUCTS: On the product side we closed a number of significant agreements for enterprise-wide delivery of Paradigm solutions, with leading oil and gas companies in the US and Europe. These deals demonstrate the acceptance of Paradigm's high-end solutions by industry leaders. Overall, for the year 2000 software, and maintenance and support revenues increased by 22 percent over 1999 (the Flagship acquisition accounted for 9 percentage points of this increase). SERVICES: The quarter was characterized by steady revenues from services. Further, we experienced a continuing growth in demand for advanced seismic data analysis services, with the addition of demand for integrated reservoir studies. We expect that in 2001 there will be significant growth in our delivery of such reservoir studies - a new service offering for Paradigm. On an annual basis we are very pleased to report that total service revenues grew by 50 percent. OPERATING EXPENSES: Expenses have been held essentially steady throughout the year, with only 4 percent growth over 1999. This includes a 42% increase in operating expenses in the fourth quarter over the prior quarter, reflecting the incorporation of the Flagship operations in this reporting quarter. BALANCE SHEET: The Company's balance sheet became stronger over the fourth quarter. At December 31, 2000, cash was at $8.6 million compared to $3.2 million at the end of the third quarter ended September 30, 2000, and $5.4 million at the close of 1999. The Company also reported net receivables of $26.8 million in the fourth quarter, a 3 percent reduction from the $27.6 million reported in the third quarter. (more) 5 Total long-term debt (including current maturities) was $4.3 million, 9% percent of shareholders' equity. ABOUT PARADIGM Paradigm Geophysical provides information solutions to the leaders of the oil and gas industry worldwide. The company delivers technical software solutions and product-driven services to companies involved in the exploration & production of oil and gas and to oilfield service companies. The company has about 500 professionals focused on the needs of the oil and gas industry, with a global network of sales, user support and services, through 20 offices in 16 countries, serving all major oil- and gas-producing provinces in the world. "Paradigm Geophysical(R)" is a registered trademark of Paradigm Geophysical Ltd. Recent press announcements are available on Paradigm's web site: www.paradigmgeo.com. Safe Harbor statement: Certain statements contained in this press release are forward-looking in nature. These statements can be identified by the use of forward-looking terminology such as "`believes," "expects," "may," "will," "should," or "anticipates" or the negative thereof or comparable terminology, or by discussions of strategy. The company's business and operations are subject to a variety of risks, and uncertainties and other factors. Consequently, actual results may materially differ from those projected stated by any forward-looking statements. Such risks, uncertainties and other factors that could cause actual results to differ from those projected include, but are not limited to, the following: (1) future capital expenditures by oil and gas companies (2) fluctuations and absolute levels of international oil prices, (3) the need for increased Company investment to support product and new services introductions, (4) the company's ability to raise needed additional capital, (5) rapid technological changes that could make the company's products less desirable or obsolete, (6) market acceptance of the Company's products and services, (6) changes in product sales mix (7) product transitions by the Company and its competitors, (8) the impact of competitive products and pricing, (9) currency fluctuations. These as well as other risks and uncertainties, are discussed in greater detail in the Company's filings with the Securities and Exchange Commission, including its most recent 20-F filed on June 26, 2000, its 1999 Annual Report and its regular Quarterly Reports. The company makes no commitment to revise or update any forward-looking (more) 6 statements in order to reflect events or circumstances after the date any such statement is made. For more information please contact: PARADIGM GEOPHYSICAL LTD. Brian Berman Chief Financial Officer Phone: +972-9-970-9339 Fax: +972-9-970-9319 Email: brian@paradigmgeo.com THE RUTH GROUP Denise Roche Phone: +1-646-546-7008 Fax: +1-646-536-7100 Email: droche@theruthgroup.com CUBITT CONSULTING Noga Villalon Phone: +44-20-7367-5100 Fax: +44-20-7367-5150 Email: noga.villalon@cubitt.com MORGEN WALKE ISRAEL Maya Huli-Lustig Phone: +972-3-561-1877 Fax: +972-3-561-1875 Email: maya_h@koteret-pr.co.il (more) 7 PARADIGM GEOPHYSICAL LIMITED CONSOLIDATED BALANCE SHEET - -------------------------------------------------------------------------------- U.S. DOLLARS IN THOUSANDS
DECEMBER 31, -------------------------------- 1999 2000 ------- ------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 5,457 $ 8,647 Trade receivables (net of allowance for doubtful accounts - $ 1,666 in 1999 and $ 2,950 in 2000) 21,612 22,707 Accrued income 9,012 4,077 Other receivables and prepaid expenses 2,443 4,110 ------- ------- Total current assets 38,524 39,541 ------- ------- LONG-TERM TRADE RECEIVABLES 54 221 ------- ------- SEVERANCE PAY FUNDS 861 1,076 ------- ------- FIXED ASSETS, Net 12,007 13,318 ------- ------- OTHER ASSETS: Acquired developed technology (net of accumulated amortization of $ 1,490 in 1999 and 3,724 in 2000) 9,805 11,369 Other assets, net 4,914 14,236 ------- ------- 14,719 25,605 ------- ------- $66,165 $79,761 ======= =======
(more) 8 PARADIGM GEOPHYSICAL LIMITED CONSOLIDATED BALANCE SHEET - ------------------------------------------------------------------------------- U.S. DOLLARS IN THOUSANDS
DECEMBER 31, ----------------------------------- 1999 2000 -------- -------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term bank debt $ 2,000 $ 4,528 Current maturities of long-term bank loans 2,639 3,112 Current maturities of capital lease obligations 434 546 Trade payables 2,774 6,045 Other payables and accrued expenses 8,792 9,931 Deferred revenues 6,539 4,519 -------- -------- Total current liabilities 23,178 28,681 -------- -------- LONG TERM LIABILITIES: Long-term bank loans 3,923 1,277 Capital lease obligations 742 206 Other lease obligations 759 517 Accrued severance pay 1,650 2,338 Deferred tax liability 445 273 -------- -------- Total long-term liabilities 7,519 4,611 -------- -------- SHAREHOLDERS' EQUITY: Ordinary shares: Authorized - 20,000,000 shares of NIS 0.5 par value at December 31, 1999 and at December 31, 2000 Issued and outstanding - 13,026,336 shares at December 31, 1999 and 14,691,904 shares at December 31, 2000 2,064 2,273 Additional paid-in capital 51,903 60,954 Accumulated other comprehensive loss (1,166) (1,784) Accumulated deficit (17,333) (14,974) -------- -------- Total shareholders' equity 35,468 46,469 -------- -------- $ 66,165 $ 79,761 ======== ========
(more) 9 PARADIGM GEOPHYSICAL LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS - ------------------------------------------------------------------------------- U.S. DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS
YEAR ENDED DECEMBER 31, --------------------------------------------------------------- 1998 1999 2000 -------- -------- -------- Revenues: Products $ 38,074 $ 43,023 $ 46,390 Services 7,288 11,483 16,908 -------- -------- -------- Total revenues 45,362 54,506 63,298 -------- -------- -------- Operating expenses: Cost of products 8,559 12,418 10,748 Cost of services 3,107 5,804 6,352 Research and development 7,660 9,306 11,215 Selling, general and administrative 15,822 20,638 23,518 Depreciation 2,298 3,865 4,746 Amortization 2,347 3,064 3,428 Non recurring expenses -- 2,705 -- -------- -------- -------- Total operating expenses 39,793 57,800 60,007 -------- -------- -------- Operating income (loss) 5,569 (3,294) 3,291 Financial expenses, net (661) (484) (552) -------- -------- -------- Income (loss) before income taxes 4,908 (3,778) 2,739 Income taxes 356 -- (380) -------- -------- -------- Net income (loss) $ 4,552 $ (3,778) $ 2,359 ======== ======== ======== Basic income (loss) per share $ 0.66 $ (0.31) $ 0.17 ======== ======== ======== Number of shares used in computing basic income (loss) per share 6,850 12,205 13,504 ======== ======== ======== Diluted income (loss) per share $ 0.49 $ (0.31) $ 0.17 ======== ======== ======== Number of shares used in computing diluted income (loss) per share 9,306 12,205 13,789 ======== ======== ========
(more) 10 PARADIGM GEOPHYSICAL LIMITED CONSOLIDATED STATEMENTS OF OPERATIONS - ------------------------------------------------------------------------------- U.S. DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS
THREE MONTHS ENDED DECEMBER, 31 ----------------------------------- 1999 2000 -------- -------- Revenues: Products $ 13,496 $ 16,413 Services 2,947 4,483 -------- -------- Total revenues 16,443 20,896 -------- -------- Operating expenses: Cost of products 3,090 3,719 Cost of services 1,538 1,982 Research and development 2,405 3,433 Selling, general and administrative 7,162 7,881 Depreciation 1,037 1,259 Amortization 785 944 -------- -------- Total operating expenses 16,017 19,218 -------- -------- Operating income 426 1,678 Financial expenses, net (151) (200) -------- -------- Income before income taxes 275 1,478 Income taxes -- (275) -------- -------- Net income $ 275 $ 1,203 ======== ======== Basic income per share $ 0.02 $ 0.08 ======== ======== Number of shares used in computing basic income per share 13,026 14,642 ======== ======== Diluted income per share $ 0.02 $ 0.08 ======== ======== Number of shares used in computing diluted income per share 13,026 14,793 ======== ========
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