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Nice Ltd. Earnings Release 2017
6950_rns_2017-11-02_bea491e9-132e-4e1b-8111-3b61deeb8eb5.pdf
Earnings Release
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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 2017 (Report No. 1)
Commission File Number: 0-27466
NICE LTD.
(Translation of Registrant's Name into English)
13 Zarchin Street, P.O. Box 690, Ra'anana 4310602, Israel (Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F 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): ____
THE GAAP FINANCIAL STATEMENTS ATTACHED TO THE PRESS RELEASE ATTACHED HERETO AS EXHIBIT 99.1 OF THIS REPORT ON FORM 6-K ARE HEREBY INCORPORATED BY REFERENCE INTO NICE LTD.`S ("NICE") REGISTRATION STATEMENTS ON FORM S-8 (REGISTRATION STATEMENT NOS. 333-166364, 333-168100, 333-171165, 333-162795, 333-162110, 333-06784, 333-08146, 333-11842, 333-09350, 333-11154, 333-111112, 333-111113, 333-134355, 333- 144589, 333-145981, 333-153230, 333-177510, 333-179408, 333-181375, 333-191176, 333-199904, 333-210341, 333-210343, 333- 210344 and 333-214584), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
CONTENTS
This Report on Form 6-K of NICE consists of the following documents, which are attached hereto and incorporated by reference herein:
99.1 Press Release: NICE Exceeds Revenue Guidance with 36% Growth Driven by Continued Strong Cloud Momentum for the Third Quarter 2017, Dated November 2, 2017
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.
NICE-SYSTEMS LTD.
By: /s/ Yechiam Cohen Name: Yechiam Cohen Title: Corporate VP Finance
Dated November 2, 2017
EXHIBIT INDEX
99.1 Press Release: NICE Exceeds Revenue Guidance with 36% Growth Driven by Continued Strong Cloud Momentum for the Third Quarter 2017, Dated November 2, 2017
NICE Exceeds Revenue Guidance with 36% Growth Driven by Continued Strong Cloud Momentum for the Third Quarter 2017
Recurring Revenue Accounted for Nearly 70% of Total Revenue Cash Flow from Operations for the First Three Quarters of 2017 Exceeds \$300 Million
Hoboken, New Jersey, November 2, 2017 - NICE (NASDAQ: NICE) today announced results for the third quarter 2017 ended September 30, 2017.
Third Quarter 2017 Financial Highlights
| GAAP | Non-GAAP |
|---|---|
| Revenue growth of 36% year-over-year | Revenue growth of 36% year-over-year |
| Gross profit increased 30% year-over-year to \$207 | Gross profit increased 34% year-over-year to \$233 |
| million | million |
| Operating income of \$33 million, down 8% year-over |
Operating income of \$78 million, up 22% year-over-year |
| year | |
| Operating margin of 10.3% compared to 15.2% last year | Operating margin of 24.0% compared to 26.7% last year |
| Diluted EPS from continuing operations of \$0.42 versus |
Diluted EPS from continuing operations of \$0.95 versus |
| \$0.53 last year, down 21% year-over-year |
\$0.83 last year, up 14% year-over-year |
| Cash flow from operations increased 155% year-over | |
| year to \$106 million |
"We are pleased to report another excellent quarter as all four of our strategic pillars - omni-channel, cloud, analytics and artificial intelligence - are powering the strong momentum we are seeing in our business. These pillars have given us the ability to address a much larger market, further widen our industry lead and drive a meaningful shift in market share," said Barak Eilam, CEO of NICE.
Mr. Eilam continued, "In the third quarter, recurring revenue accounted for nearly 70% of total revenue and we saw a double-digit sequential increase in cloud revenue compared to the second quarter of 2017. These solid results were bolstered by CXone, which is the industry's first fully integrated, open, customer experience cloud platform for companies of all sizes. Since the launch of CXone, which happened just three months ago, we are now addressing cloud opportunities in all market segments, and even more so in the higher end of the market, and our pipeline is rapidly building. Moreover, we have seen strong growth in our CXone DEVone partner ecosystem, now encompassing over 80 partners, providing further evidence of market acceptance of our platform."
GAAP Financial Highlights for the Third Quarter Ended September 30:
The following GAAP financial data, excluding cash flow and cash balance, are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2017 and 2016.
Revenues: Third quarter 2017 total revenues increased 36.1% to \$322.8 million compared to \$237.2 million for the third quarter of 2016.
Gross Profit: Third quarter 2017 gross profit increased to \$207.4 million compared to \$159.1 million for the third quarter of 2016, and gross margin was 64.3% compared to 67.1% for the third quarter of 2016.
Operating Income: Third quarter 2017 operating income was \$33.1 million compared to \$36.0 million for the third quarter of 2016, and operating margin was 10.3% compared to 15.2% for the third quarter of 2016.
Net Income from Continuing Operations: Third quarter 2017 net income and net margin were \$26.2 million and 8.1%, respectively, compared to \$32.4 million and 13.7%, respectively, for the third quarter of 2016.
Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the third quarter of 2017 were \$0.42, compared to \$0.53 in the third quarter of 2016.
Operating Cash Flow and Cash Balance: Third quarter 2017 operating cash flow was \$105.8 million. In the third quarter, \$4.3 million was used for share repurchases. As of September 30, 2017, total cash and cash equivalents, short term investments and marketable securities were \$494.1 million, and total debt was \$445.6 million net of issuance costs and the equity component associated with our convertible debt.
Non-GAAP Financial Highlights for the Third Quarter Ended September 30:
The following non-GAAP financial data are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2017 and 2016.
Revenues: Third quarter 2017 non-GAAP total revenues were \$326.8 million, up 36.0% from \$240.3 million for the third quarter of 2016.
Gross Profit: Third quarter 2017 non-GAAP gross profit increased to \$232.5 million compared to \$173.6 million for the third quarter of 2016, and non-GAAP gross margin was 71.2%, compared to 72.2% for the third quarter of 2016.
Operating Income: Third quarter 2017 non-GAAP operating income increased to \$78.3 million compared to \$64.2 million for the third quarter of 2016, and non-GAAP operating margin was 24.0% compared to 26.7% for the third quarter of 2016.
Net Income from Continuing Operations: Third quarter 2017 non-GAAP net income increased to \$58.9 million compared to \$50.7 million for the third quarter of 2016, and non-GAAP net income margin was 18.0% compared to 21.1% for the third quarter of 2016.
Fully Diluted Earnings Per Share from Continuing Operations: Third quarter 2017 non-GAAP fully diluted earnings per share increased 14.5% to \$0.95, compared to \$0.83 for the third quarter of 2016.
Full Year 2017 Guidance:
For the full year 2017, due to better visibility, the Company is narrowing the expected ranges and increasing the expected midpoints of non-GAAP revenue and non-GAAP earnings per share guidance.
Full year 2017 non-GAAP revenue guidance is expected to be in a range of \$1,338 million to \$1,350 million and the expected midpoint of non-GAAP revenue guidance increased to \$1,344 million. Full year 2017 non-GAAP earnings per share guidance is expected to be in a range of \$4.00 to \$4.10 and the expected midpoint of non-GAAP earnings per share guidance increased to \$4.05.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, November 2nd , 2017 at 8:30 AM ET, 12:30 GMT, 14:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial in to the following numbers: United States 1-866-804-8688 or +1-718-354-1175, International +44(0)1296-480-100, United Kingdom 0- 800-783-0906, Israel 1-809-344-364. The Passcode is 351 941 47. Additional access numbers can be found at http://www.btconferencing.com/globalaccess/?bid=54_attended. The call will be webcast live on the Company's website at http://www.nice.com/news-and-events/ir-events. An online replay will also be available approximately two hours following the call. A telephone replay of the call will be available for 7 days after the live broadcast, and may be accessed by dialing: United States 1-877-482-6144, International +44(0)20-7136-9233, United Kingdom 0-800-032- 9687. The Passcode for the replay is 741 301 21.
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, share-based compensation, and certain business combination accounting entries, amortization of discount on long term debt, realized gain from substantial liquidation of marketable securities and tax adjustment re non-GAAP adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income.
About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.
Investors
Marty Cohen, +1 551 256 5354, [email protected], ET Yisca Erez, +972 9 775-3798, [email protected], CET
Media Contact
Ilana Hart, +972 9 775-3818, [email protected]
Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE' marks, please see: http://www.nice.com/nice-trademarks.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including the statements by Mr. Eilam, are based on the current beliefs, expectations and assumptions of the management of NICE Ltd. (the Company). In some cases, such forwardlooking statements can be identified by terms such as believe, expect, may, will, intend, project, plan, estimate or similar words. Forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results or performance of the Company to differ materially from those described herein, including but not limited to the impact of the global economic environment on the Company's customer base (particularly financial services firms) potentially impacting our business and financial condition; competition; changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements; the effect of newly enacted or modified laws, regulation or standards on the Company and our products, and the risk that we will not be able to successfully execute on the Company's cloud business strategy and generate profitability. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission, including the Company's Annual Report on Form 20-F. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company undertakes no obligation to update or revise them, except as required by law.
NICE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS of INCOME
U.S. dollars in thousands (except per share amounts)
| Quarter ended September 30, |
Year to date September 30, |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2017 Unaudited |
2016 Unaudited |
2017 Unaudited |
2016 Unaudited |
|||||
| Revenue: | ||||||||
| Product | \$ | 66,931 | \$ | 68,617 | \$ | 204,124 | \$ | 195,277 |
| Services | 159,441 | 155,444 | 476,093 | 459,141 | ||||
| Cloud | 96,383 | 13,126 | 259,700 | 37,264 | ||||
| Total revenue | 322,755 | 237,187 | 939,917 | 691,682 | ||||
| Cost of revenue: | ||||||||
| Product | 12,944 | 11,815 | 39,668 | 39,786 | ||||
| Services | 52,618 | 61,122 | 165,892 | 181,412 | ||||
| Cloud | 49,812 | 5,127 | 139,152 | 13,773 | ||||
| Total cost of revenue | 115,374 | 78,064 | 344,712 | 234,971 | ||||
| Gross profit | 207,381 | 159,123 | 595,205 | 456,711 | ||||
| Operating Expenses: | ||||||||
| Research and development, net | 45,135 | 33,606 | 130,975 | 100,646 | ||||
| Selling and marketing | 87,363 | 61,878 | 254,258 | 176,366 | ||||
| General and administrative | 31,197 | 24,456 | 91,758 | 72,227 | ||||
| Amortization of acquired intangible assets | 10,566 | 3,155 | 31,319 | 10,412 | ||||
| Total operating expenses | 174,261 | 123,095 | 508,310 | 359,651 | ||||
| Operating income | 33,120 | 36,028 | 86,895 | 97,060 | ||||
| Finance and other income (expense), net | (4,335) | 4,968 | (16,713) | 11,665 | ||||
| Income from continuing operations before tax | 28,785 | 40,996 | 70,182 | 108,725 | ||||
| Taxes on income | 2,612 | 8,554 | 6,279 | 15,647 | ||||
| Net income from continuing operations | 26,173 | 32,442 | 63,903 | 93,078 | ||||
| Discontinued operations | ||||||||
| Loss from discontinued operations | - | (2,143) | - | (2,259) | ||||
| Net loss from discontinued operations | - | (2,143) | - | (2,259) | ||||
| Net income | \$ | 26,173 | \$ | 30,299 | \$ | 63,903 | \$ | 90,819 |
| Basic earnings per share from continuing operations | \$ | 0.43 | \$ | 0.54 | \$ | 1.06 | \$ | 1.56 |
| Basic earnings (loss) per share from discontinued operations | \$ | - | \$ | (0.03) | \$ | - | \$ | (0.04) |
| Basic earnings per share | \$ | 0.43 | \$ | 0.51 | \$ | 1.06 | \$ | 1.52 |
| Diluted earnings per share from continuing operations | \$ | 0.42 | \$ | 0.53 | \$ | 1.03 | \$ | 1.53 |
| Diluted earnings (loss) per share from discontinued operations | \$ | - | \$ | (0.03) | \$ | - | \$ | (0.04) |
| Diluted earnings per share | \$ | 0.42 | \$ | 0.50 | \$ | 1.03 | \$ | 1.49 |
| Weighted average number of shares outstanding used to compute: |
||||||||
| Basic earnings (loss) per share | 60,502 | 59,765 | 60,304 | 59,563 | ||||
| Diluted earnings (loss) per share | 62,220 | 61,119 | 61,979 | 60,930 |
NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS
U.S. dollars in thousands (except per share amounts)
| Quarter ended | Year to date | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | ||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||
| GAAP revenues | \$ | 322,755 | \$ | 237,187 | \$ | 939,917 | \$ | 691,682 | |
| Valuation adjustment on acquired deferred product revenue | 37 | 75 | 302 | 1,450 | |||||
| Valuation adjustment on acquired deferred service revenue | 824 | 1,572 | 3,915 | 4,004 | |||||
| Valuation adjustment on acquired deferred cloud revenue | 3,135 | 1,454 | 5,994 | 4,672 | |||||
| Non-GAAP revenues | \$ | 326,751 | \$ | 240,288 | \$ | 950,128 | \$ | 701,808 | |
| GAAP cost of revenue | \$ | 115,374 | \$ | 78,064 | \$ | 344,712 | \$ | 234,971 | |
| Amortization of acquired intangible assets on cost of product | (6,072) | (6,285) | (18,486) | (20,167) | |||||
| Amortization of acquired intangible assets on cost of services | (987) | (3,208) | (5,354) | (6,681) | |||||
| Amortization of acquired intangible assets on cost of cloud | (11,756) | - | (33,706) | - | |||||
| Valuation adjustment on acquired deferred cost of services | 371 | - | 1,133 | - | |||||
| Cost of product revenue adjustment (1,3) | (158) | (124) | (494) | (314) | |||||
| Cost of services revenue adjustment (1,2,3) | (1,903) | (1,638) | (5,625) | (4,847) | |||||
| Cost of cloud revenue adjustment (1,2) | (649) | (85) | (2,132) | (207) | |||||
| Non-GAAP cost of revenue | \$ | 94,220 | \$ | 66,724 | \$ | 280,048 | \$ | 202,755 | |
| GAAP gross profit | \$ | 207,381 | \$ | 159,123 | \$ | 595,205 | \$ | 456,711 | |
| Gross profit adjustments | 25,150 | 14,441 | 74,875 | 42,342 | |||||
| Non-GAAP gross profit | \$ | 232,531 | \$ | 173,564 | \$ | 670,080 | \$ | 499,053 | |
| GAAP operating expenses | \$ | 174,261 | \$ | 123,095 | \$ | 508,310 | \$ | 359,651 | |
| Research and development (1,2,3) | (2,204) | (1,385) | (6,651) | (4,462) | |||||
| Sales and marketing (1,2,3) | (5,651) | (4,069) | (17,160) | (11,139) | |||||
| General and administrative (1,2,3) | (1,640) | (5,153) | (7,027) | (13,246) | |||||
| Amortization of acquired intangible assets | (10,566) | (3,155) | (31,319) | (10,412) | |||||
| Non-GAAP operating expenses | \$ | 154,200 | \$ | 109,333 | \$ | 446,153 | \$ | 320,392 | |
| GAAP finance & other income (expense), net | \$ | (4,335) | \$ | 4,968 | \$ | (16,713) | \$ | 11,665 | |
| Amortization of discount on long term debt | 2,139 | - | 11,398 | - | |||||
| Realized gain from substantial liquidation of marketable securities | - | (2,711) | - | (2,711) | |||||
| Non-GAAP finance & other income (expense), net | \$ | (2,196) | \$ | 2,257 | \$ | (5,315) | \$ | 8,954 | |
| GAAP taxes on income | \$ | 2,612 | \$ | 8,554 | \$ | 6,279 | \$ | 15,647 | |
| Tax adjustments re non-GAAP adjustments | 14,611 | 7,228 | 42,298 | 23,753 | |||||
| Non-GAAP taxes on income | \$ | 17,223 | \$ | 15,782 | \$ | 48,577 | \$ | 39,400 | |
| GAAP net income | \$ | 26,173 | \$ | 32,442 | \$ | 63,903 | \$ | 93,078 | |
| Valuation adjustment on acquired deferred revenue | 3,996 | 3,101 | 10,211 | 10,126 | |||||
| Valuation adjustment on acquired deferred cost of service of revenue | (371) | - | (1,133) | - | |||||
| Amortization of acquired intangible assets | 29,381 | 12,648 | 88,865 | 37,260 | |||||
| Share-based compensation (1) | 14,016 | 9,458 | 40,900 | 25,714 | |||||
| Re-organization expenses (2) | (3,067) | 1,523 | (3,067) | 3,293 | |||||
| Acquisition related expenses (3) | 1,256 | 1,473 | 1,256 | 5,208 | |||||
| Amortization of discount on long term debt | 2,139 | - | 11,398 | - | |||||
| Realized gain from substantial liquidation of marketable securities | - | (2,711) | - | (2,711) | |||||
| Tax adjustments re non-GAAP adjustments | (14,611) | (7,228) | (42,298) | (23,753) | |||||
| Non-GAAP net income | \$ | 58,912 | \$ | 50,706 | \$ | 170,035 | \$ | 148,215 | |
| GAAP diluted earnings per share | \$ | 0.42 | \$ | 0.53 | \$ | 1.03 | \$ | 1.53 | |
| Non-GAAP diluted earnings per share | \$ | 0.95 | \$ | 0.83 | \$ | 2.74 | \$ | 2.43 | |
| Shares used in computing GAAP diluted earnings per share | 62,220 | 61,119 | 61,979 | 60,930 | |||||
| Shares used in computing Non-GAAP diluted earnings per share | 62,220 | 61,119 | 61,979 | 60,930 |
NICE SYSTEMS LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
U.S. dollars in thousands
(1) Share-based Compensation
| Quarter ended September 30, |
Year to date | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | |||||||||||
| Cost of product revenue | 2017 | 2016 | 2017 | 2016 | |||||||
| \$ | (158) | \$ | (114) | \$ | (494) | \$ | (304) | ||||
| Cost of service revenue | (1,903) | (1,630) | (5,625) | (4,570) | |||||||
| Cost of cloud revenue | (649) | (85) | (2,132) | (231) | |||||||
| Research and development | (2,204) | (1,383) | (6,651) | (3,541) | |||||||
| Sales and marketing | (5,576) | (4,008) | (17,085) | (10,441) | |||||||
| General and administrative | (3,526) | (2,238) | (8,913) | (6,627) | |||||||
| \$ | (14,016) | \$ | (9,458) | \$ | (40,900) | \$ | (25,714) |
(2) Re-organization expenses
| Quarter ended September 30, |
Year to date September 30, |
|||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | |||
| Cost of service revenue | \$ - |
\$ (1) |
\$ | - | \$ | (270) |
| Cost of cloud revenue | - | - | - | 24 | ||
| Research and development | - | - | - | (896) | ||
| Sales and marketing | - | - | - | (150) | ||
| General and administrative | 3,067 | (1,522) | 3,067 | (2,001) | ||
| \$ 3,067 |
\$ (1,523) |
\$ | 3,067 | \$ | (3,293) |
(3) Acquisition related expenses
| Quarter ended September 30, |
Year to date September 30, |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | |||||||
| Cost of product revenue | \$ | - | \$ | (10) | \$ | - | \$ | (10) | ||
| Cost of service revenue | - | (7) | - | (7) | ||||||
| Research and development | - | (2) | - | (25) | ||||||
| Sales and marketing | (75) | (61) | (75) | (548) | ||||||
| General and administrative | (1,181) | (1,393) | (1,181) | (4,618) | ||||||
| \$ | (1,256) | \$ | (1,473) | \$ | (1,256) | \$ | (5,208) |
NICE LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
| September 30, 2017 |
December 31, 2016 |
||
|---|---|---|---|
| Unaudited | Unaudited | ||
| ASSETS | |||
| CURRENT ASSETS: | |||
| Cash and cash equivalents | \$ 320,929 |
\$ 157,026 |
|
| Short-term investments | 53,675 | 30,287 | |
| Trade receivables | 195,346 | 260,220 | |
| Prepaid expenses and other current assets | 75,173 | 57,966 | |
| Current assets of discontinued operations | 2,009 | 3,734 | |
| Total current assets | 647,132 | 509,233 | |
| LONG-TERM ASSETS: | |||
| Long-term investments | 119,472 | 98,726 | |
| Property and equipment, net | 114,654 | 87,678 | |
| Deferred tax assets | 15,706 | 14,093 | |
| Other intangible assets, net | 557,387 | 618,735 | |
| Goodwill | 1,302,756 | 1,284,710 | |
| Other long-term assets | 18,845 | 18,701 | |
| Total long-term assets | 2,128,820 | 2,122,643 | |
| TOTAL ASSETS | \$ 2,775,952 |
\$ 2,631,876 |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| CURRENT LIABILITIES: | |||
| Current maturities of long term loan | \$ - |
\$ 21,164 |
|
| Trade payables | 27,163 | 25,634 | |
| Current portion of deferred revenues and advances from customers | 201,898 | 149,801 | |
| Accrued expenses and other liabilities | 275,921 | 273,134 | |
| Current liabilities of discontinued operations | 176 | 3,077 | |
| Total current liabilities | 505,158 | 472,810 | |
| LONG-TERM LIABILITIES: | |||
| Deferred revenues and advances from customers | 42,855 | 22,710 | |
| Deferred tax liabilities | 98,403 | 146,952 | |
| Long-term debt | 445,574 | 444,016 | |
| Other long-term liabilities | 28,618 | 34,056 | |
| Total long-term liabilities | 615,450 | 647,734 | |
| SHAREHOLDERS' EQUITY | 1,655,344 | 1,511,332 | |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | \$ 2,775,952 |
\$ 2,631,876 |
NICE LTD. AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENTS U.S. dollars in thousands
| Quarter ended Year to date September 30, September 30, |
||||
|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | |
| Unaudited | Unaudited | Unaudited | Unaudited | |
| Operating Activities | ||||
| Net income | \$ 26,173 |
\$ 30,299 |
\$ 63,903 |
\$ 90,819 |
| Adjustments to reconcile net income to net cash provided by operating activities | ||||
| Depreciation and amortization | 39,153 | 16,932 | 115,309 | 50,332 |
| Stock based compensation | 14,016 | 9,457 | 40,900 | 25,714 |
| Amortization of premium and discount and accrued interest on marketable securities | 273 | 714 | 424 | 2,355 |
| Deferred taxes, net | (12,646) | (4,815) | (34,188) | (17,512) |
| Changes in operating assets and liabilities: | ||||
| Trade Receivables | 10,930 | (13,691) | 72,810 | 40,678 |
| Prepaid expenses and other current assets | (32,264) | (1,340) | (40,251) | 3,428 |
| Trade payables | 7,605 | (372) | 636 | 4,917 |
| Accrued expenses and other current liabilities | 52,829 | 18,890 | 17,228 | (29,548) |
| Deferred revenue | 1,660 | (13,659) | 65,176 | 16,196 |
| Long term liabilities | (3,583) | 172 | (5,189) | 101 |
| Gain on sale and loss on disposal of discontinued operations | - | 1,990 | - | 1,990 |
| Realized gain on marketable securities | - | (2,817) | - | (3,366) |
| Amortization of discount on long term debt | 2,139 | - | 11,398 | - |
| Other | (461) | (339) | (926) | (283) |
| Net cash provided by operating activities | 105,824 | 41,421 | 307,230 | 185,821 |
| Investing Activities | ||||
| Purchase of property and equipment | (7,899) | (7,025) | (31,422) | (18,165) |
| Purchase of Investments | (53,791) | - | (96,017) | (47,221) |
| Proceeds from Investments | 15,610 | 340,487 | 51,626 | 420,965 |
| Capitalization of software development costs | (7,730) | (1,948) | (21,046) | (4,706) |
| Repayment from sale of discontinued operations | - | (1,990) | - | (1,990) |
| Payments for business acquisitions, net of cash acquired | (37,880) | - | (37,880) | (151,328) |
| Net cash provided by (used in) investing activities | (91,690) | 329,524 | (134,739) | 197,555 |
| Financing Activities | ||||
| Proceeds from issuance of shares upon exercise of share options | 4,412 | 8,092 | 16,787 | 21,261 |
| Purchase of treasury shares | (4,267) | (2,924) | (20,314) | (35,017) |
| Dividends paid | - | (9,568) | (9,637) | (28,604) |
| Capital Lease payments | - | (515) | - | (695) |
| Repayment of long term debt | - | - | (260,000) | - |
| Proceeds from issuance of exchangeable notes | - | - | 260,842 | - |
| Net cash provided by (used in) financing activities | 145 | (4,915) | (12,322) | (43,055) |
| Effect of exchange rates on cash and cash equivalents | 2,028 | (912) | 3,734 | (127) |
| Net change in cash and cash equivalents | 16,307 | 365,118 | 163,903 | 340,194 |
| Cash and cash equivalents, beginning of period | 304,622 | 301,007 | 157,026 | 325,931 |
| Cash and cash equivalents, end of period | \$ 320,929 |
\$ 666,125 |
\$ 320,929 |
\$ 666,125 |
*Certain comparative figures have been reclassified to conform to the current year presentation.
נייס מדווחת על הכנסות מעל התחזיות עם צמיחה של 36% ברבעון השלישי של 2017 שנבעו מהמשך מומנטום חזק בפתרונות בענן
הכנסות חוזרות ממנויים )Revenue Recurring (היוו קרוב ל- 70% מסך ההכנסות
תזרים המזומנים מפעילות שוטפת לשלושת הרבעונים הראשונים של 2017 עבר את ה- 300 מיליון דולר
הובוקן, ניו ג'רזי, 2 בנובמבר, 2017 – נייס )נאסד"ק: NICE )פרסמה היום את התוצאות לרבעון השלישי של 2017 שהסתיימו ב30- בספטמבר, .2017
עיקרי התוצאות לרבעון השלישי:
| GAAP | Non-GAAP |
|---|---|
| לאשתקד | לאשתקד |
| בהשוואה | בהשוואה |
| בהכנסות | בהכנסות |
| 36% | 36% |
| גידול של | גידול של |
| מאשתקד | מאשתקד |
| ל 30% | ל 34% |
| ר, גידול ש | ר, גידול ש |
| מיליון דול | מיליון דול |
| של 207 | של 233 |
| רווח גולמי | רווח גולמי |
| מאשתקד של 8% ר, ירידה מיליון דול לי של 33 רווח תפעו |
מאשתקד ל 22% ר, גידול ש מיליון דול 78 לי של רווח תפעו |
| אשתקד | אשתקד |
| 15.2% | 26.7% |
| לעומת | לעומת |
| 10.3% | 24.0% |
| של | י של |
| ח תפעולי | ח התפעול |
| שיעור רוו | שיעור רוו |
| וואה ל- | וואה ל- |
| דולר בהש | דולר בהש |
| 0.42 | של 0.95 |
| ת של | משכת |
| לות נמשכ | מפעילות נ |
| מלא מפעי | מלא |
| ה בדילול | ה בדילול |
| רווח למני | רווח למני |
| מאשתקד | מאשתקד |
| של 21% | של 14% |
| קד, ירידה | קד, גידול |
| דולר אשת | דולר אשת |
| 0.53 | 0.83 |
| לשנה בהשוואה 155% ת גדל ב- ילות שוטפ מנים מפע תזרים מזו |
|
| ר מיליון דול 106 ל- שעברה, |
"אנו שמחים לדווח על רבעון מצוין נוסף כאשר כל ארבעת נדבכי האסטרטגיה שלנו – artificial ,analytics ,cloud ,channel-omni intelligence – מניעים את המומנטום החזק שאנו רואים בעסקים שלנו. ארבעת הנדבכים האלו מאפשרים לנו לפנות לשוק גדול הרבה יותר מבעבר, להמשיך ולהרחיב את המובילות שלנו בתעשייה ולהוביל לשינוי משמעותי בנתח השוק", אמר ברק עילם, מנכ"ל נייס.
מר עילם הוסיף, "ברבעון השלישי, הכנסות חוזרות ממנויים היוו כ- 70% מסך ההכנסות ודיווחנו על גידול דו ספרתי בהכנסות מענן בהשוואה לרבעון השני של .2017 תוצאות חזקות אלו קיבלו חיזוק ע"י CXone, פלטפורמת חווית הלקוח הראשונה בתעשייה המבוססת ענן, אחודה, פתוחה ומתאימה לארגונים בכל סדר גודל. מאז השקת CXone, לפני שלושה חודשים, אנו מנצלים הזדמנויות בתחום הענן בכל השווקים, ואף יותר מכך בפלח השוק העליון, והזדמנויות המכירה העתידיות שלנו בתחום זה מצטברות במהירות. בנוסף, אנו רואים גידול מהיר בהיקף קהילת השותפים העסקיים והטכנולוגים שלנו במסגרת תכנית DEVone CXone, המונה כיום מעל ל- 80 שותפים. הגידול המהיר בקהילה זו מהווה עדות נוספת לאימוץ הפלטפורמה שלנו בשוק".
עיקרי התוצאות הפיננסיות )GAAP )לרבעון השלישי שהסתיים ב- 30 בספטמבר:
נתוני ה- GAAP המוצגים כאן, מלבד נתוני תזרים המזומנים ויתרת המזומנים, הינם נתונים פיננסים של הפעילות הנמשכת, ואינם כוללים את תוצאות חטיבות ה- Intelligence וה- Security Physical ל2017- ול- .2016
הכנסות: ההכנסות ברבעון השלישי של 2017 גדלו ב36.1%- ל- 322.8 מיליון דולר, לעומת 237.2 מיליון דולר ברבעון השלישי של .2016
רווח גולמי: הרווח הגולמי ברבעון השלישי של 2017 גדל ל- 207.4 מיליון דולר לעומת 159.1 מיליון דולר ברבעון השלישי של .2016 שיעור הרווח הגולמי היה 64.3% לעומת 67.1% ברבעון השלישי של .2016
רווח תפעולי: הרווח התפעולי ברבעון השלישי של 2017 הסתכם ב- 33.1 מיליון דולר לעומת 36.0 מיליון דולר ברבעון השלישי של .2016 שיעור הרווח התפעולי היה 10.3% לעומת 15.2% ברבעון השלישי של .2016
רווח נקי מפעילות נמשכת: הרווח הנקי ושיעור הרווח הנקי ברבעון השלישי של 2017 הסתכמו ב- 26.2 מיליון דולר ו,8.1%- בהתאמה, לעומת 32.4 מיליון דולר ו- ,13.7% בהתאמה ברבעון השלישי של .2016
רווח למניה בדילול מלא מפעילות נמשכת: הרווח למניה בדילול מלא ברבעון השלישי של 2017 הסתכם ב- 0.42 דולר לעומת 0.53 דולר ברבעון השלישי של .2016
תזרים המזומנים מפעילות שוטפת ויתרת מזומנים: תזרים המזומנים מפעילות שוטפת ברבעון השלישי של 2017 היה 105.8 מיליון דולר. ברבעון השלישי 4.3 מיליון דולר שימשו לרכישה חוזרת של מניות. נכון ל30- בספטמבר ,2017 יתרות המזומנים ושווי המזומנים, וכן השקעות לטווח קצר וארוך הסתכמו ב- 494.1 מיליון דולר. סך החוב הסתכם ב- 445.6 מיליון דולר, בניכוי הוצאות הנפקה ומרכיב ההמרה באגרות החוב.
עיקרי התוצאות הפיננסיות )GAAP-Non )לרבעון השלישי שהסתיים ב- 30 בספטמבר:
נתוני ה- GAAP-non המוצגים כאן הינם נתונים פיננסים של הפעילות הנמשכת, ואינם כוללים את תוצאות חטיבות ה- Intelligence וה- Security Physical ל2017- ול- .2016
הכנסות: ההכנסות )GAAP-Non )ברבעון השלישי של 2017 הסתכמו ב- 326.8 מיליון דולר, גידול של 36.0% לעומת 240.3 מיליון דולר ברבעון השלישי של .2016
רווח גולמי: הרווח הגולמי )GAAP-Non )ברבעון השלישי של 2017 גדל ל- 232.5 מיליון דולר לעומת 173.6 מיליון דולר. שיעור הרווח הגולמי )GAAP-Non )הסתכם ב- 71.2% לעומת 72.2% ברבעון השלישי של .2016
רווח תפעולי: הרווח התפעולי )GAAP-Non )ברבעון השלישי של 2017 גדל ל- 78.3 מיליון דולר לעומת 64.2 מיליון דולר ברבעון השלישי של .2016 שיעור הרווח התפעולי )GAAP-Non )הסתכם ב- 24.0% לעומת 26.7% ברבעון השלישי של .2016
רווח נקי מפעילות נמשכת: הרווח הנקי )GAAP-Non )ברבעון השלישי של 2017 גדל ל- 58.9 מיליון דולר לעומת 50.7 מיליון דולר ברבעון השלישי של .2016 שיעור הרווח הנקי )GAAP-Non )הסתכם ב- 18.0% לעומת 21.1% ברבעון השלישי של .2016
רווח למניה בדילול מלא מפעילות נמשכת: הרווח )GAAP-Non )למניה בדילול מלא ברבעון השלישי של 2017 גדל ל- 0.95 דולר, גידול של 14.5% לעומת 0.83 דולר ברבעון השלישי של .2016
תחזית לשנת :2017
בשל ראות טובה יותר, החברה מצמצמת את טווח התחזיות של ההכנסות )GAAP-non )והרווח )GAAP-non )למניה בדילול מלא לשנת ,2017 ומעלה את אמצע טווח התחזיות להכנסות )GAAP-non )ולרווח )GAAP-non )למניה בדילול מלא.
סך ההכנסות )GAAP-Non )בשנת 2017 צפוי להסתכם ב- 1,338 מיליון דולר עד 1,350 מיליון דולר, ואמצע טווח תחזית ההכנסות )GAAP-non )עלתה ל- 1,344 מיליון דולר. הרווח )GAAP-Non )למניה בדילול מלא בשנת 2017 צפוי להסתכם ב- 4.00 דולר עד 4.10 דולר, ואמצע טווח תחזית הרווח )GAAP-non )למניה עלתה ל- 4.05 דולר.
שיחת ועידה לדיון בתוצאות הרבעוניות
הנהלת נייס תארח שיחת ועידה לדיון בתוצאות הפיננסיות ובתחזית החברה היום, 2 בנובמבר, ,2017 בשעה 8:30 בבוקר שעון החוף המזרחי של ארה"ב, 12:30 לפי שעון גריניץ' ו14:30- לפי שעון ישראל. להשתתפות בשיחה יש לחייג את המספרים הבאים: מארה"ב: 1-866-804-8688 או .+1-718-354-1175 ממדינות אחרות 1296-480-100(0)+44; מבריטניה 0-800-783-0906; מישראל: .1-809-344-364 קוד הכניסה הוא 47 941 .351 מספרי גישה נוספים מוצגים ב- attended_54=bid?/globalaccess/com.btconferencing.www://http. השיחה תשודר באינטרנט בשידור חי באתר החברה בכתובת events-ir/events-and-news/com.nice.www://http ותהיה זמינה להאזנה למשך שעתיים אחרי השיחה. הקלטה של השיחה תעמוד לרשות המעוניינים למשך 7 ימים אחרי השידור החי וניתן להאזין לה באמצעות חיוג המספר 1-877- 482-6144 מארה"ב, 20-7136-9233(0)+44 ממדינות אחרות ו0-800-032-9687- מבריטניה. קוד הכניסה להקלטה הוא .741 301 21
אודות נייס
נייס )NICE :NASDAQ, ת"א: נייס( הינה המובילה העולמית במתן פתרונות תוכנה, הן ברישיונות תוכנה והן בענן, המאפשרים לארגונים לנקוט בפעולה הבאה הטובה ביותר באמצעות כלים אנליטיים המנתחים מידע מובנה ושאינו מובנה. הפתרונות של נייס מסייעים לארגונים לשפר את חוויית הלקוח, להבטיח ציות לרגולציה, להיאבק בפשיעה פיננסית ולשמור על נכסים. הפתרונות של נייס נמצאים בשימוש של יותר מ25,000- ארגונים ביותר מ150- מדינות, כולל מעל 85 מהחברות המדורגות ב100- Fortune. www.nice.com
מסמך זה מהווה תרגום נוחות בלבד לעיקרי הדוחות ולהודעה לעיתונות באנגלית שפורסמה בארה"ב, המחייבת מבחינת החברה, והכוללת מידע נוסף, בין היתר בנוגע להפרשים בין GAAP ל- GAAP-Non.
Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE marks, please see: http://www.nice.com/nice-trademarks.
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including the statements by Mr. Eilam, are based on the current beliefs, expectations and assumptions of the management of NICE Ltd. (the Company). In some cases, such forwardlooking statements can be identified by terms such as believe, expect, may, will, intend, project, plan, estimate or similar words. Forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results or performance of the Company to differ materially from those described herein, including but not limited to the impact of the global economic environment on the Company's customer base (particularly financial services firms) potentially impacting our business and financial condition; competition; changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements; the effect of newly enacted or modified laws, regulation or standards on the Company and our products, and the risk that we will not be able to successfully execute on the Company's cloud business strategy and generate profitability. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission, including the Company's Annual Report on Form 20-F. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company undertakes no obligation to update or revise them, except as required by law.