-----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, Q43LGzg0GovqRcb77raNbFlN21ZoYCZTaJZWCBAeEy5LhaVmkwimaXIsxMEx2Of2 taLdZL59d0FeTK6+sqBEcQ== 0000950123-02-000746.txt : 20020414 0000950123-02-000746.hdr.sgml : 20020414 ACCESSION NUMBER: 0000950123-02-000746 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020129 FILED AS OF DATE: 20020129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARADIGM GEOPHYSICAL LTD CENTRAL INDEX KEY: 0000931131 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29538 FILM NUMBER: 02520208 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 y57008e6-k.txt PARADIGM GEOPHYSICAL LTD. 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 2002 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-..................... Attached to the Registrant's Form 6-K for the month of January 2002 and incorporated by reference herein is the Registrant's news release dated January 29, 2002. 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: 29 January, 2002 [PARADIGM GEOPHYSICAL LOGO] FOR IMMEDIATE RELEASE PARADIGM GEOPHYSICAL REPORTS FOURTH QUARTER AND YEAR-END RESULTS FOURTH QUARTER REVENUE $19 MILLION, 7 PERCENT GROWTH OVER THIRD QUARTER ANNUAL REVENUE $72.8 MILLION, 15 PERCENT REVENUE GROWTH OVER 2000 NEW YORK, JANUARY 29, 2002: Paradigm Geophysical (NASDAQ:PGEO) today announced its fourth quarter and year-end results for the period ending December 31, 2001. HIGHLIGHTS FOURTH QUARTER - - TOTAL REVENUES FOR THE QUARTER reached $19.0 million, an increase of 7 percent over the third quarter 2001 revenues of $17.8 million. - - EPS FOR THE QUARTER before restructuring charges were pro-forma $0.06, and $0.02 after restructuring charges, compared to $0.01 for the third quarter this year. - - RESTRUCTURING CHARGE of $0.5 million in fourth quarter, implementing previously announced resource optimization program, and consolidation of our operations in France. - - EBITDA for the quarter was $2.7 million, a 10 percent increase over the third quarter this year. - - CASH FLOW PER SHARE for the fourth quarter of this year was $0.15. YEAR OVER YEAR - - TOTAL REVENUES FOR THE YEAR 2001 were $72.8 million, 15 percent growth over $63.3 million for 2000. o EPS FOR THE YEAR were pro-forma $0.18 before restructuring charges and $0.14 after restructuring charges, compared to $0.17 for 2000. - - EBITDA FOR THE YEAR was $12.1 million, a 7 percent increase over $11.4 million for 2000. - - CASH FLOW PER SHARE was $0.72, a 5 percent decrease over $0.76 for 2000. SUMMARY KEY RESULTS AND COMPARATORS QUARTERLY BASIS
-------------------------------------------------------------------- Fourth Quarter ------------------------------------------ 2001 2000 % Change Q3 `01 % Change Q4'01 over Q4'01 over Q4'00 Q3'01 -------------------------------------------------------------------- (US$ PER SHARE) EPS: pro-forma before restructuring charges $0.06 $0.08 -31% $0.01 667% after restructuring charges $0.02 $0.08 -73% $0.01 194% CFPS $0.15 $0.23 -35% $0.15 0% - ----------------------------------------------------------------------------------------------------- (US$ MILLION) Revenue $19.0 $20.9 -9% $17.8 7% Operating Income: before restructuring charges $1.2 $1.7 -26% $0.3 312% after restructuring charges $0.7 $1.7 -59% $0.3 131% Net Income: pro-forma before restructuring charges $0.9 $1.2 -27% $0.1 695% after restructuring charges $0.3 $1.2 -72% $0.1 205% --------------------------------------------------------------------
2 FISCAL YEAR BASIS
-------------------------------------------- Fiscal Year -------------------------------------------- 2001 2000 % Change 2001 over 2000 -------------------------------------------- (US$ PER SHARE) EPS: pro-forma before restructuring charges $0.18 $0.17 3% after restructuring charges $0.14 $0.17 -18% CFPS $0.72 $0.77 -5% ----------------------------------------------------------------------------- (US$ MILLION) Revenue $72.8 $63.3 15% Operating Income: before restructuring charges $3.9 $3.3 18% after restructuring charges $3.3 $3.3 2% Net Income: pro-forma before restructuring charges $2.7 $2.4 13% after restructuring charges $2.1 $2.4 -10% --------------------------------------------
MANAGEMENT COMMENTS Eldad Weiss, Chairman and CEO stated, "We are pleased to report revenue growth for the year 2001 of 15 percent over 2000, and a 7 percent revenue increase over the third quarter. We view these results as positive in the context of the unfavorable energy sector and geopolitics since September 11." "We previously announced a restructuring program to consolidate our French operations and optimize resources worldwide. We have commenced this program in the fourth quarter. The associated restructuring charge is expected to be about $1.3 million, of which $0.5 million was taken the fourth quarter. "We believe that the technological innovations we announced early in the third quarter are finding increasing market acceptance. This, along with the anticipated positive impact on earnings from the restructuring program, is 3 expected to add certainty to achieving the earnings per share guidance range of between $0.33 and $0.42 for the year." DETAILED RESULTS QUARTERLY BASIS
----------------------------------------------------------------------- Fourth Quarter ---------------------------------------- 2001 2000 % Change Q3'01 % Change Q4'01 over Q4'01 over Q4'00 Q3'01 ----------------------------------------------------------------------- (US$ MILLION) Product Revenues $13.9 $16.4 -16% $11.2 24% Services Revenues $5.2 $4.5 15% $6.6 -22% Operating Expenses: before restructuring charges $17.8 $19.2 -8% $17.5 2% after restructuring charges $18.3 $19.2 -5% $17.5 5% Cash Flow $2.3 $3.4 -31% $2.3 3% EBITDA $2.7 $3.9 -30% $2.5 10% -----------------------------------------------------------------------
FISCAL YEAR BASIS
------------------------------------------- Fiscal Year ------------------------------------------- 2001 2000 % Change year over year ------------------------------------------- (US$ MILLION) Product Revenues $50.8 $46.4 9% Services Revenues $22.0 $16.9 30% Operating Expenses: before restructuring charges $68.9 $60.0 15% after restructuring charges $69.4 $60.0 16% Cash Flow $10.9 $10.5 4% EBITDA $12.1 $11.5 7% -------------------------------------------
4 PRODUCT REVENUES: We achieved a 24 percent increase over third quarter product revenues, including renewals of several multi-year enterprise-wide software agreements. For the year 2001, product revenues increased by 9 percent over 2000. SERVICES REVENUES: The service group continues to grow, on a year over year basis. Growth for 2001 was 30 percent over 2000. The 22 percent decline in services revenues over the third quarter reflects primarily delays due to our changeover to new processing technology, and the shutdown of some lower profitability service operations. We expect service revenues to grow to $6 million in the first quarter of 2002. OPERATING EXPENSES: Operating expenses before restructuring charges were $17.8 million, a 2 percent increase over the third quarter. With the restructuring charges, the fourth quarter reflected a 5 percent increase in expenses over the third quarter. 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 22 offices in 17 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," "could", "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) political risk and uncertainty in the global economy and within the energy sector, (2) regional conflicts in oil producing countries, (3) future capital expenditures by oil and gas companies, (4) fluctuations and absolute levels of international oil prices, (5) the need for increased Company investment to support new product and new service introductions, (6) the company's ability to raise needed additional capital, (7) rapid technological changes that could make the company's products less 5 desirable or obsolete, (8) market acceptance of the Company's products and services, (9) changes in product sales mix, (10) product transitions by the Company and its competitors, (11) the impact of competitive products and pricing, (12) 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 29, 2001, its 2000 Annual Report and its regular Quarterly Reports. The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made. For more information please contact: PARADIGM GEOPHYSICAL LTD. Investor Relations Phone: +972-9-970-9306 Fax: +972-9-970-9319 Email: ir@paradigmgeo.com THE RUTH GROUP Denise Roche Phone: +1-646-546-7008 Fax: +1-646-536-7100 Email: droche@theruthgroup.com 6 PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------- U.S. DOLLARS IN THOUSANDS
DECEMBER 31, DECEMBER 31, 2000 2001 ------------------- -------------------- AUDITED AUDITED ------------------- -------------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 8,647 $ 11,755 Trade receivables, net 22,707 28,306 Accrued income 4,077 5,451 Other receivables and prepaid expenses 4,110 5,686 ------------------- -------------------- Total current assets 39,541 51,198 ------------------- -------------------- LONG-TERM TRADE RECEIVABLES 221 - ------------------- -------------------- SEVERANCE PAY FUNDS 1,076 1,525 ------------------- -------------------- PROPERTY AND EQUIPMENT, NET 13,318 15,902 ------------------- -------------------- OTHER ASSETS, NET 25,605 30,561 ------------------- -------------------- $ 79,761 $ 99,186 =================== ====================
1 PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------- U.S. DOLLARS IN THOUSANDS
DECEMBER 31, DECEMBER 31, 2000 2001 ------------------- -------------------- AUDITED AUDITED ------------------- -------------------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Short-term bank loans $ 4,528 $ 5,500 Current maturities of long-term bank loans 3,112 1,278 Current maturities of capital lease obligations 546 260 Trade payables 6,045 3,555 Other payables and accrued expenses 9,931 12,835 Note payable - 6,318 Deferred revenues 4,519 3,810 ------------------- -------------------- Total current liabilities 28,681 33,556 ------------------- -------------------- LONG TERM LIABILITIES: Long-term bank loans, net of current maturities 1,277 5,099 Convertible note - 8,000 Capital lease obligations, net of current maturities 206 - Other lease obligations 517 288 Accrued severance pay 2,338 2,907 Deferred income tax liability 273 261 ------------------- -------------------- Total long-term liabilities 4,611 16,555 ------------------- -------------------- SHAREHOLDERS' EQUITY 46,469 49,075 ------------------- -------------------- $ 79,761 $ 99,186 =================== ====================
2 PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME - -------------------------------------------------------------------------------- U.S. DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS
YEAR ENDED THREE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2000 2001 2000 2001 ------------- ------------- ------------- -------------- AUDITED UNAUDITED ------------------------------ -------------------------------- Revenues: Products $ 46,390 $ 50,765 $ 16,413 $ 13,852 Services 16,908 22,001 4,483 5,151 ------------- ------------- ------------- -------------- 63,298 72,766 20,896 19,003 ------------- ------------- ------------- -------------- Operating expenses: Cost of products 10,816 10,592 3,719 2,322 Cost of services 6,352 9,793 1,982 2,902 Research and development 11,215 12,847 3,433 2,923 Sales and marketing, general and administrative 23,518 26,850 7,881 7,615 Depreciation 4,746 5,589 1,259 1,191 Amortization of intangible assets 3,360 3,214 944 818 Restructuring charges - 540 - 540 ------------- ------------- ------------- -------------- Total operating expenses 60,007 69,425 19,218 18,311 ------------- ------------- ------------- -------------- Operating income 3,291 3,341 1,678 692 Financial expenses, net (552) (642) (200) (262) ------------- ------------- ------------- -------------- Income before taxes on income 2,739 2,699 1,478 430 Taxes on income (380) (569) (275) (95) ------------- ------------- ------------- -------------- Net income $ 2,359 $ 2,130 $ 1,203 $ 335 ============= ============= ============= ============== Basic net earnings per share $ 0.17 $ 0.14 $ 0.08 $ 0.02 ============= ============= ============= ============== Number of shares used in computing basic net earnings per share 13,504 14,817 14,642 14,892 ============= ============= ============= ============== Diluted net earnings per share $ 0.17 $ 0.14 $ 0.08 $ 0.02 ============= ============= ============= ============== Number of shares used in computing Diluted income (loss) per share 13,789 15,124 14,793 15,610 ============= ============= ============= ==============
3 SEGMENT REPORTING
4TH QUARTER FISCAL YEAR ---------------------------- ---------------------------- (US$ MIL.) 2001 2000 2001 2000 - ---------------------------------------------------------------- ---------------------------- PRODUCTS Revenues $13.8 $16.4 $50.8 $46.4 Cost of Revenues $2.3 $3.7 $10.6 $10.8 Depreciation $0.2 $0.2 $0.7 $0.6 - ---------------------------------------------------------------------------------------------- SEGMENT PROFIT CONTRIBUTION $11.3 $12.5 $39.5 $35.0 % SEGMENT PROFIT CONTRIBUTION 82% 76% 78% 75% Segment Capital 2.6 2.6 2.6 2.6 - ---------------------------------------------------------------------------------------------- PROFIT CONTRIBUTION % SEGMENT CAPITAL 435% 481% 1518% 1346% - ---------------------------------------------------------------------------------------------- SERVICES Revenues $5.2 $4.4 $22.0 $16.9 Cost of Revenues $2.9 $2.0 $9.8 $6.4 Depreciation $0.4 $0.4 $2.2 $1.8 - ---------------------------------------------------------------------------------------------- SEGMENT PROFIT CONTRIBUTION $1.9 $2.0 $10.0 $8.7 % SEGMENT PROFIT CONTRIBUTION 37% 45% 45% 52% Segment Capital 10.5 8.5 10.5 8.5 - ---------------------------------------------------------------------------------------------- PROFIT CONTRIBUTION % SEGMENT CAPITAL 18% 24% 95% 102% - ----------------------------------------------------------------------------------------------
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