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Nice Ltd. Earnings Release 2016
6950_rns_2017-02-16_1290dd3e-ab51-46f3-bf05-bf384f6fe0a1.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 February 2016 (Report No. 6)
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. 333-06784, 333-08146, 333-11842, 333- 09350, 333-11154, 333-111112, 333-111113, 333-134355, 333-144589, 333-145981, 333-153230, 333-162110, 333-162795, 333- 166364, 333-168100, 333-171165, 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333-210344 and 333-214584), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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 Reports 10% Growth in GAAP Revenue and 11% Growth in Non-GAAP Revenue for Full Year 2016, Dated February 16, 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 February 16, 2017
EXHIBIT INDEX
99.1 Press Release: NICE Reports 10% Growth in GAAP Revenue and 11% Growth in Non-GAAP Revenue for Full Year 2016, Dated February 16, 2017
NICE Reports 10% Growth in GAAP Revenue and 11% Growth in Non-GAAP Revenue for Full Year 2016
Company Reports Continued Strength in Analytics and Record Number of New Customers
Hoboken, New Jersey, February 16, 2017 - NICE (NASDAQ: NICE) today announced results for the fourth quarter and full year 2016 ended December 31, 2016.
Full Year 2016 Financial Highlights
| GAAP | Non-GAAP |
|---|---|
| Revenue growth of 10% year-over-year | Revenue growth of 11% year-over-year |
| Gross margin of 66.7% compared to 67.2% last year | Gross margin of 72.0% compared to 70.6% last year |
| Operating profit of \$134 million, compared to \$166 million | Operating profit of \$273 million, up 16% year-over-year |
| last year | |
| Operating margin of 13.2% compared to 17.9% last year | Operating margin of 26.5% compared to 25.4% last year |
| Effective tax rate of 14.8% compared to 18.0% last year |
Effective tax rate of 21.4% compared to 19% last year |
| Diluted EPS from continuing operations of \$2.02 versus | Diluted EPS from continuing operations of \$3.61 versus |
| \$2.29 last year | \$3.18 last year, 14% growth |
Fourth Quarter 2016 Financial Highlights
| GAAP | Non-GAAP |
|---|---|
| Revenue growth of 18% year-over-year | Revenue growth of 20% year-over-year |
| Gross margin of 68.3% compared to 70.0% last year | Gross margin of 73.9% compared to 72.9% last year |
| Operating profit of \$37 million, compared to \$64 million | Operating profit of \$94 million, up 16% year-over-year |
| last year | |
| Operating margin of 11.5% compared to 23.3% last year | Operating margin of 28.6% compared to 29.7% last year |
| Effective tax rate of 16.1% compared to 12.4% last year | Effective tax rate of 22.1% compared to 18.9% last year |
| Diluted EPS from continuing operations of \$0.49 versus | Diluted EPS from continuing operations of \$1.18 versus |
| \$0.93 last year | \$1.09 last year, 8% growth |
"We are pleased to end the year on a high note with a strong fourth quarter performance that culminated in 11% growth in non-GAAP total revenue for 2016," said Barak Eilam, CEO of NICE. "Fourth quarter results reflected across-theboard growth in each of our business segments and further strength in analytics."
Mr. Eilam continued, "2016 marked a year of excellent execution amid a very busy period in which we launched many new products, took on a record number of new customers and made two significant acquisitions, while seeing continued expansion of our solutions within our customer base. As we head into 2017, we are well positioned for continued success with the industry's leading cloud and analytics assets, and healthy end markets. I believe we are in one of the strongest competitive positions that we have ever been, and we are looking forward to the opportunities that lie ahead in 2017 and beyond."
GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
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 2016 and 2015.
Revenues: Fourth quarter 2016 total revenues increased 18.4% to \$323.9 million compared to \$273.6 million for the fourth quarter of 2015.
Full year 2016 total revenues increased 9.6% to \$1,015.5 million compared to \$926.9 million for the full year 2015.
Gross Profit: Fourth quarter 2016 gross profit and gross margin were \$221.1 million and 68.3%, respectively, compared to \$191.5 million and 70.0%, respectively, for the fourth quarter of 2015. Full year 2016 gross profit and gross margin were \$677.8 million and 66.7%, respectively, from \$623.3 million and 67.2%, respectively, for the same period last year.
Operating Income: Fourth quarter 2016 operating income and operating margin were \$37.1 million and 11.5%, respectively, compared to \$63.7 million and 23.3%, respectively, for the fourth quarter of 2015. Full year 2016 operating income and operating margin were \$134.2 million and 13.2%, respectively, compared to \$166.1 million and 17.9%, respectively, for the full year 2015.
Net Income from Continuing Operations: Fourth quarter 2016 net income and net margin were \$30.0 million and 9.3%, respectively, compared to \$56.9 million and 20.8%, respectively, for the fourth quarter of 2015. Full year 2016 net income and net margin were \$123.1 million and 12.1%, respectively, compared to \$140.6 million and 15.2%, respectively, for the full year 2015.
Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the fourth quarter of 2016 were \$0.49, compared to \$0.93 in the fourth quarter of 2015. Fully diluted earnings per share for the full year 2016 were \$2.02 compared to \$2.29 for the full year 2015.
Operating Cash Flow and Cash Balance: Fourth quarter 2016 operating cash flow was \$37.7 million. Full year cash flow from operations reached \$220.3 million. In the fourth quarter, \$8.6 million was used for share repurchases and \$9.6 million for dividends. As of December 31, 2016, total cash and cash equivalents, short term investments and marketable securities were \$286.0 million, and total debt was \$465.2 million.
Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
The following non-GAAP financial data are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2016 and 2015.
Revenues: Fourth quarter 2016 non-GAAP total revenues were \$328.5 million, up 20.1% from \$273.6 million for the fourth quarter of 2015.
Non-GAAP total revenues for the full year 2016 increased 11.1% to \$1,030.3 million compared to \$927.0 million for the full year 2015.
Gross Profit: Fourth quarter 2016 non-GAAP gross profit and non-GAAP gross margin increased to \$242.8 million and 73.9%, respectively, from \$199.5 million and 72.9%, respectively, for the fourth quarter of 2015. Full year 2016 non-GAAP gross profit and non-GAAP gross margin increased to \$741.9 million and 72.0%, respectively, compared to \$654.4 million and 70.6%, respectively, for the same period last year.
Operating Income: Fourth quarter 2016 non-GAAP operating income increased to \$93.9 million compared to \$81.2 million, and non-GAAP operating margin was 28.6% compared to 29.7% for the fourth quarter of 2015. Full year 2016 non-GAAP operating income and non-GAAP operating margin increased to \$272.6 million and 26.5%, respectively, compared to \$235.5 million and 25.4%, respectively, for the full year 2015.
Net Income from Continuing Operations: Fourth quarter 2016 non-GAAP net income increased to \$72.4 million compared to \$66.9 million, and non-GAAP net income margin was 22.0% compared to 24.4% for the fourth quarter of 2015.
Full year 2016 non-GAAP net income and non-GAAP net margin increased to \$220.6 million and 21.4%, respectively, compared to \$195.0 million and 21.0%, respectively, for the same period last year.
Fully Diluted Earnings Per Share from Continuing Operations: Fourth quarter 2016 non-GAAP fully diluted earnings per share increased 8.3% to \$1.18, compared to \$1.09 for the fourth quarter of 2015. Full year 2016 non-GAAP fully diluted earnings per share increased 13.5% to \$3.61 compared to \$3.18 for the full year 2015.
Dividend Declaration
The Company declared a cash dividend for the fourth quarter of 2016 of \$0.16 per share. The record date will be February 27th, 2017 and the payment date will be March 15th, 2017. Tax will be withheld at a rate of 15%.
First Quarter and Full Year 2017 Guidance:
First Quarter 2017: First quarter 2017 non-GAAP total revenues are expected to be in a range of \$303 million to \$313 million. First quarter 2017 non-GAAP fully diluted earnings per share are expected to be in a range of \$0.81 to \$0.87.
Full Year 2017: Full year 2017 non-GAAP total revenues are expected to be in a range of \$1,330 million to \$1,354 million. Full year 2017 non-GAAP fully diluted earnings per share are expected to be in a range of \$3.80 to \$4.00.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, February 16 th, 2017 at 8:30 AM ET, 13:30 GMT, 15:30 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 1-809-242-041. The Passcode is 500 634 92. 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 589 323 20.
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, settlement, debt issuance cost, 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, +1 212 574 3635, [email protected], ET Yisca Erez, +972 9 775-3798, [email protected], CET
Media Contact
Erik Snider, +1 877 245 7448, [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 the required approvals for the inContact acquisition may not be received on the expected timeline or at all. 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 December 31, |
Year ended December 31, |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |||||
| Unaudited | Audited | Unaudited | Audited | |||||
| Revenue: | ||||||||
| Product | \$ | 110,975 | \$ | 110,079 | \$ | 306,252 | \$ | 317,900 |
| Services | 212,885 | 163,479 | 709,290 | 608,967 | ||||
| Total revenue | 323,860 | 273,558 | 1,015,542 | 926,867 | ||||
| Cost of revenue: | ||||||||
| Product | 13,246 | 19,125 | 53,032 | 66,363 | ||||
| Services | 89,516 | 62,916 | 284,701 | 237,219 | ||||
| Total cost of revenue | 102,762 | 82,041 | 337,733 | 303,582 | ||||
| Gross profit | 221,098 | 191,517 | 677,809 | 623,285 | ||||
| Operating Expenses: | ||||||||
| Research and development, net | 40,882 | 35,566 | 141,528 | 128,485 | ||||
| Selling and marketing | 91,983 | 63,599 | 268,349 | 225,817 | ||||
| General and administrative | 44,342 | 26,062 | 116,569 | 90,349 | ||||
| Amortization of acquired intangible assets | 6,775 | 2,560 | 17,187 | 12,528 | ||||
| Total operating expenses | 183,982 | 127,787 | 543,633 | 457,179 | ||||
| Operating income | 37,116 | 63,730 | 134,176 | 166,106 | ||||
| Finance and other income (expense), net | (1,360) | 1,188 | 10,305 | 5,304 | ||||
| Income from continuing operations before tax | 35,756 | 64,918 | 144,481 | 171,410 | ||||
| Taxes on income | 5,765 | 8,034 | 21,412 | 30,832 | ||||
| Net income from continuing operations | 29,991 | 56,884 | 123,069 | 140,578 | ||||
| Discontinued operations | ||||||||
| Income (loss) from discontinued operations | (5,976) | (1,621) | (8,235) | 152,459 | ||||
| Taxes on income (tax benefits) | (2,086) | (2,130) | (2,086) | 34,206 | ||||
| Net income (loss) from discontinued operations | (3,890) | 509 | (6,149) | 118,253 | ||||
| Net income | \$ | 26,101 | \$ | 57,393 | \$ | 116,920 | \$ | 258,831 |
| Basic earnings per share from continuing operations | \$ | 0.50 | \$ | 0.95 | \$ | 2.06 | \$ | 2.36 |
| Basic earnings (loss) per share from discontinued operations | \$ | (0.06) | \$ | 0.01 | \$ | (0.10) | \$ | 1.99 |
| Basic earnings per share | \$ | 0.44 | \$ | 0.96 | \$ | 1.96 | \$ | 4.35 |
| Diluted earnings per share from continuing operations | \$ | 0.49 | \$ | 0.93 | \$ | 2.02 | \$ | 2.29 |
| Diluted earnings (loss) per share from discontinued operations | \$ | (0.06) | \$ | 0.01 | \$ | (0.10) | \$ | 1.93 |
| Diluted earnings per share | \$ | 0.43 | \$ | 0.94 | \$ | 1.92 | \$ | 4.22 |
| Weighted average number of shares outstanding used to compute: |
||||||||
| Basic earnings (loss) per share | 59,977 | 59,651 | 59,667 | 59,552 | ||||
| Diluted earnings (loss) per share | 61,349 | 61,092 | 61,035 | 61,281 |
NICE LTD. AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENTS
U.S. dollars in thousands
| Quarter ended December 31, |
Year to date December 31, |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2016 Unaudited |
2015 Audited |
2016 Unaudited |
2015 Audited |
|||||
| Operating Activities | ||||||||
| Net income | \$ | 26,101 | \$ 57,393 | \$ | 116,920 | \$258,831 | ||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
| Depreciation and amortization | 27,469 | 13,294 | 77,801 | 57,964 | ||||
| Stock based compensation | 14,833 | 7,774 | 40,547 | 28,451 | ||||
| Excess tax benefit from share-based payment arrangements | (4,695) | (3,553) | (7,867) | (7,595) | ||||
| Amortization of premium and discount and accrued interest on marketable securities | 86 | 856 | 2,441 | 2,799 | ||||
| Deferred taxes, net | (8,393) | 14,604 | (25,905) | 10,576 | ||||
| Changes in operating assets and liabilities: | ||||||||
| Trade Receivables | (72,462) | (41,346) | (31,784) | (56,363) | ||||
| Prepaid expenses and other current assets | 1,505 | 2,405 | 4,933 | (1,482) | ||||
| Trade payables | (525) | (9,478) | 4,392 | 2,166 | ||||
| Accrued expenses and other current liabilities | 44,727 | 8,233 | 15,179 | 38,488 | ||||
| Deferred revenue | (6,817) | 1,739 | 9,379 | 54,914 | ||||
| Long term liabilities | 7,443 | 60 | 7,529 | 2,453 | ||||
| Loss (gain) on disposal of discontinued operations | 7,158 | 1,094 | 9,148 | (147,334) | ||||
| Realized loss (gain) on marketable securities | (22) | 225 | (3,388) | (32) | ||||
| Other | 1,288 | 452 | 1,020 | 897 | ||||
| Net cash provided by operating activities | 37,696 | 53,752 | 220,345 | 244,733 | ||||
| Investing Activities | ||||||||
| Purchase of property and equipment | (9,113) | (5,630) | (27,278) | (16,596) | ||||
| Purchase of investments | - | (59,749) | (47,221) | (287,593) | ||||
| Proceeds from investments | 28,915 | 29,388 | 449,880 | 92,542 | ||||
| Capitalization of software development costs | (3,796) | (677) | (8,502) | (1,380) | ||||
| Purchase of intangible assets | (500) | - | (500) | - | ||||
| Proceeds (repayment) from sale of discontinued operations | (7,158) | (1,038) | (9,148) | 186,134 | ||||
| Payments for business acquisitions, net of cash acquired | (1,005,921) | - | (1,157,249) | (1,500) | ||||
| Net cash used in investing activities | (997,573) | (37,706) | (800,018) | (28,393) | ||||
| Financing Activities | ||||||||
| Proceeds from issuance of shares upon exercise of share options and ESPP | 2,264 | 4,521 | 23,525 | 27,532 | ||||
| Purchase of treasury shares | (8,613) | (20,000) | (43,630) | (68,384) | ||||
| Dividends paid | (9,598) | (9,559) | (38,202) | (38,239) | ||||
| Capital Lease payments | (392) | - | (1,087) | - | ||||
| Proceeds from issuance of debt, net of costs | 464,841 | - | 464,841 | - | ||||
| Excess tax benefit from share-based payment arrangements | 4,695 | 3,553 | 7,867 | 7,595 | ||||
| Earnout payments related to acquisitions | - | (11) | - | (297) | ||||
| Net cash provided (used) by financing activities | 453,197 | (21,496) | 413,314 | (71,793) | ||||
| Effect of exchange rates on cash and cash equivalents | (2,419) | (1,349) | (2,546) | (6,113) | ||||
| Net change in cash and cash equivalents | (509,099) | (6,799) | (168,905) | 138,434 | ||||
| Cash and cash equivalents, beginning of period | 666,125 | 332,730 | 325,931 | 187,497 | ||||
| Cash and cash equivalents, end of period | \$ | 157,026 | \$ 325,931 | \$ | 157,026 | \$325,931 |
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | ||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||
| GAAP revenues | \$ | 323,860 | \$ | 273,558 | \$ | 1,015,542 | \$ | 926,867 | |
| Valuation adjustment on acquired deferred product revenue | 526 | - | 1,976 | - | |||||
| Valuation adjustment on acquired deferred service revenue | 4,118 | - | 12,794 | 177 | |||||
| Non-GAAP revenues | \$ | 328,504 | \$ | 273,558 | \$ | 1,030,312 | \$ | 927,044 | |
| GAAP cost of revenue | \$ | 102,762 | \$ | 82,041 | \$ | 337,733 | \$ | 303,582 | |
| Amortization of acquired intangible assets on cost of product | (5,994) | (6,558) | (26,161) | (27,097) | |||||
| Amortization of acquired intangible assets on cost of services | (8,448) | - | (15,129) | - | |||||
| Valuation adjustment on acquired deferred cost of services | 182 | - | 182 | - | |||||
| Cost of product revenue adjustment (1,2,3) | (189) | (132) | (503) | (502) | |||||
| Cost of services revenue adjustment (1,2,3) | (2,612) | (1,244) | (7,666) | (3,291) | |||||
| Non-GAAP cost of revenue | \$ | 85,701 | \$ | 74,107 | \$ | 288,456 | \$ | 272,692 | |
| GAAP gross profit | \$ | 221,098 | \$ | 191,517 | \$ | 677,809 | \$ | 623,285 | |
| Gross profit adjustments | 21,705 | 7,933 | 64,047 | 31,068 | |||||
| Non-GAAP gross profit | \$ | 242,803 | \$ | 199,450 | \$ | 741,856 | \$ | 654,353 | |
| GAAP operating expenses | \$ | 183,982 | \$ | 127,787 | \$ | 543,633 | \$ | 457,179 | |
| Research and development (1,2,3) | (2,150) | (1,426) | (6,612) | (3,618) | |||||
| Sales and marketing (1,2,3) | (6,984) | (3,168) | (18,123) | (11,266) | |||||
| General and administrative (1,2,3) | (19,171) | (2,394) | (32,417) | (10,521) | |||||
| Amortization of acquired intangible assets | (6,775) | (2,560) | (17,187) | (12,528) | |||||
| Settlement and related expenses | - | - | - | (390) | |||||
| Non-GAAP operating expenses | \$ | 148,902 | \$ | 118,239 | \$ | 469,294 | \$ | 418,856 | |
| GAAP finance & other income, net | \$ | (1,360) | \$ | 1,188 | \$ | 10,305 | \$ | 5,304 | |
| Debt issuance cost | 379 | - | 379 | - | |||||
| Realized gain from substantial liquidation of marketable securities | - | - | (2,711) | - | |||||
| Non-GAAP finance & other income, net | \$ | (981) | \$ | 1,188 | \$ | 7,973 | \$ | 5,304 | |
| GAAP taxes on income | \$ | 5,765 | \$ | 8,034 | \$ | 21,412 | \$ | 30,832 | |
| Tax adjustments re non-GAAP adjustments | 14,737 | 7,503 | 38,490 | 14,934 | |||||
| Non-GAAP taxes on income | \$ | 20,502 | \$ | 15,537 | \$ | 59,902 | \$ | 45,766 | |
| GAAP net income | \$ | 29,991 | \$ | 56,884 | \$ | 123,069 | \$ | 140,578 | |
| Valuation adjustment on acquired deferred revenue | 4,644 | - | 14,770 | 177 | |||||
| Valuation adjustment on acquired deferred cost of service of revenue | (182) | - | (182) | - | |||||
| Amortization of acquired intangible assets | 21,217 | 9,118 | 58,477 | 39,625 | |||||
| Share-based compensation (1) | 14,833 | 7,808 | 40,547 | 27,660 | |||||
| Re-organization expenses (2) | 7,780 | 556 | 11,073 | 1,538 | |||||
| Acquisition related expenses (3) | 8,493 | - | 13,701 | - | |||||
| Debt issuance cost | 379 | - | 379 | - | |||||
| Realized gain from substantial liquidation of marketable securities | - | - | (2,711) | - | |||||
| Settlement and related expenses | - | - | - | 390 | |||||
| Tax adjustments re non-GAAP adjustments | (14,737) | (7,503) | (38,490) | (14,934) | |||||
| Non-GAAP net income | \$ | 72,418 | \$ | 66,863 | \$ | 220,633 | \$ | 195,034 | |
| GAAP diluted earnings per share | \$ | 0.49 | \$ | 0.93 | \$ | 2.02 | \$ | 2.29 | |
| Non-GAAP diluted earnings per share | \$ | 1.18 | \$ | 1.09 | \$ | 3.61 | \$ | 3.18 | |
| Shares used in computing GAAP diluted earnings per share | 61,349 | 61,092 | 61,035 | 61,281 | |||||
| Shares used in computing Non-GAAP diluted earnings per share | 61,349 | 61,092 | 61,035 | 61,281 |
NICE LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
U.S. dollars in thousands
(1) Share-based Compensation
| Quarter ended | Year to date | |||||||
|---|---|---|---|---|---|---|---|---|
| Cost of product revenue | December 31, | December 31, | ||||||
| 2016 | 2015 | 2016 | 2015 | |||||
| \$ (189) |
\$ | (132) | \$ | (493) | \$ | (502) | ||
| Cost of service revenue | (2,610) | (1,207) | (7,411) | (3,210) | ||||
| Research and development | (2,140) | (907) | (5,681) | (2,161) | ||||
| Sales and marketing | (5,933) | (3,168) | (16,374) | (11,266) | ||||
| General and administrative | (3,961) | (2,394) | (10,588) | (10,521) | ||||
| \$ (14,833) |
\$ | (7,808) | \$ | (40,547) | \$ | (27,660) |
(2) Re-organization expenses
| Quarter ended December 31, |
Year to date December 31, |
|||||||
|---|---|---|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |||||
| Cost of service revenue | \$ | - | \$ | (37) | \$ | (246) | \$ | (81) |
| Research and development | - | (519) | (896) | (1,457) | ||||
| Sales and marketing | - | - | (150) | - | ||||
| General and administrative | (7,780) | - | (9,781) | - | ||||
| \$ | (7,780) | \$ | (556) | \$ | (11,073) | \$ | (1,538) |
(3) Acquisition related expenses
| Quarter ended December 31, |
Year to date December 31, |
||||||
|---|---|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | ||||
| Cost of product revenue | \$ - |
\$ | - | \$ | (10) | \$ | - |
| Cost of service revenue | (2) | - | (9) | - | |||
| Research and development | (10) | - | (35) | - | |||
| Sales and marketing | (1,051) | - | (1,599) | - | |||
| General and administrative | (7,430) | - | (12,048) | - | |||
| \$ (8,493) |
\$ | - | \$ | (13,701) | \$ | - |
NICE LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
| December 31, 2016 Unaudited |
December 31, 2015 Audited |
||||
|---|---|---|---|---|---|
| ASSETS | |||||
| CURRENT ASSETS: | |||||
| Cash and cash equivalents | \$ | 157,026 | \$ | 325,931 | |
| Short-term investments | 30,287 | 99,195 | |||
| Trade receivables | 260,220 | 177,323 | |||
| Prepaid expenses and other current assets | 57,966 | 43,561 | |||
| Current assets of discontinued operations | 3,734 | 9,142 | |||
| Total current assets | 509,233 | 655,152 | |||
| LONG-TERM ASSETS: | |||||
| Long-term investments | \$ | 98,726 | \$ | 403,249 | |
| Other long-term assets | 18,701 | 17,175 | |||
| Property and equipment, net | 87,678 | 40,593 | |||
| Deferred tax assets | 14,093 | 14,130 | |||
| Other intangible assets, net | 618,735 | 68,202 | |||
| Goodwill | 1,284,710 | 651,112 | |||
| Total long-term assets | 2,122,643 | 1,194,461 | |||
| TOTAL ASSETS | \$ | 2,631,876 | \$ | 1,849,613 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| CURRENT LIABILITIES: | |||||
| Current maturities of long term loan | \$ | 21,164 | \$ | - | |
| Trade payables | 25,634 | 11,719 | |||
| Deferred revenues and advances from customers | 149,801 | 131,125 | |||
| Accrued expenses and other liabilities | 273,134 | 223,255 | |||
| Current liabilities of discontinued operations | 3,077 | 12,744 | |||
| Total current liabilities | 472,810 | 378,843 | |||
| LONG-TERM LIABILITIES: | |||||
| Deferred revenues and advances from customers | \$ | 22,710 | \$ | 20,220 | |
| Deferred tax liabilities | 146,952 | 15,040 | |||
| Long-term loan | 444,016 | - | |||
| Other long-term liabilities | 34,056 | 17,952 | |||
| Long-term liabilities of discontinued operations | - | 2,409 | |||
| Total long-term liabilities | 647,734 | 55,621 | |||
| SHAREHOLDERS' EQUITY | 1,511,332 | 1,415,149 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | \$ | 2,631,876 | \$ | 1,849,613 |
נייס מדווחת על צמיחה של 11% בהכנסות GAAP-Non וצמיחה של 10% בהכנסות GAAP בשנת 2016
החברה מדווחת על המשך מומנטום באנליטיקס ושיא במספר הלקוחות החדשים
הובוקן, ניו ג'רזי, 16 בפברואר, 2017 – נייס )נאסד"ק: NICE )פרסמה היום את התוצאות לרבעון הרביעי ולשנת 2016 שהסתיימו ב31- בדצמבר, .2016
עיקרי התוצאות לשנת :2016
| GAAP | Non-GAAP |
|---|---|
| לאשתקד | לאשתקד |
| בהשוואה | בהשוואה |
| בהכנסות | בהכנסות |
| 10% | 11% |
| גידול של | גידול של |
| אשתקד 67.2% לעומת ל 66.7% ח גולמי ש שיעור רוו |
אשתקד 70.6% לעומת 72.0% ל ח גולמי ש שיעור רוו |
| אשתקד ר מיליון דול 166 ה ל- ר בהשווא מיליון דול 134 לי של רווח תפעו |
מאשתקד ל 16% ר, גידול ש מיליון דול 273 לי של רווח תפעו |
| אשתקד | אשתקד |
| 17.9% | 25.4% |
| לעומת | לעומת |
| 13.2% | 26.5% |
| של | של |
| ח תפעולי | ח תפעולי |
| שיעור רוו | שיעור רוו |
| אשתקד | אשתקד |
| 18.0% | 19.0% |
| לעומת | לעומת |
| 14.8% | 21.4% |
| בי היה | בי היה |
| ס האפקטי | ס האפקטי |
| שיעור המ | שיעור המ |
| וואה ל- | וואה |
| דולר בהש | דולר בהש |
| 2.02 | 3.61 |
| ת של | ת של |
| לות נמשכ | לות נמשכ |
| מלא מפעי | מלא מפעי |
| ה בדילול | ה בדילול |
| רווח למני | רווח למני |
| קד דולר אשת 2.29 |
של 14% קד, גידול דולר אשת 3.18 ל- |
עיקרי התוצאות לרבעון הרביעי של :2016
| GAAP | Non-GAAP |
|---|---|
| לאשתקד | לאשתקד |
| בהשוואה | בהשוואה |
| בהכנסות | בהכנסות |
| 18% | 20% |
| גידול של | גידול של |
| אשתקד | אשתקד |
| 70% | 72.9% |
| לעומת | לעומת |
| ל 68.3% | ל 73.9% |
| ח גולמי ש | ח גולמי ש |
| שיעור רוו | שיעור רוו |
| ר אשתקד מיליון דול 64 ל- בהשוואה ר מיליון דול לי של 37 רווח תפעו |
מאשתקד ל 16% ר, גידול ש מיליון דול לי של 94 רווח תפעו |
| אשתקד | אשתקד |
| 23.3% | 29.7% |
| לעומת | לעומת |
| 11.5% | 28.6% |
| של | של |
| ח תפעולי | ח תפעולי |
| שיעור רוו | שיעור רוו |
| אשתקד | אשתקד |
| 12.4% | 18.9% |
| לעומת | לעומת |
| 16.1% | 22.1% |
| בי היה | בי היה |
| ס האפקטי | ס האפקטי |
| שיעור המ | שיעור המ |
| וואה ל- | וואה ל- |
| דולר בהש | דולר בהש |
| 0.49 | של 1.18 |
| ת של | משכת |
| לות נמשכ | מפעילות נ |
| מלא מפעי | מלא |
| ה בדילול | ה בדילול |
| רווח למני | רווח למני |
| קד דולר אשת 0.93 |
של 8% קד, גידול דולר אשת 1.09 |
"אנו שמחים לסיים את השנה באקורד גבוה עם ביצועים חזקים ברבעון הרביעי של שנת ,2016 ששיאם בגידול של 11% בהכנסות GAAP-non בשנת 2016", אמר ברק עילם, מנכ"ל נייס. "תוצאות הרבעון הרביעי משקפות צמיחה כוללת בכל אחד מהעסקים שלנו והמשך חוזקה באנליטיקס".
מר עילם המשיך, "שנת 2016 היא שנה שהתאפיינה בביצועים חזקים תוך כדי תקופה עמוסה מאוד בה השקנו מספר רב של מוצרים, גייסנו מספר שיא של לקוחות וביצענו שתי רכישות משמעותיות, כל זאת תוך כדי הרחבת המוצרים שלנו בבסיס הלקוחות הקיים. עם כניסתנו לשנת ,2017 אנו ממוצבים היטב להמשך הצלחה באמצעות נכסי הענן והאנליטיקס המובילים בתעשייה ושווקי יעד איתנים. אני מאמין שאנו נמצאים בעמדה תחרותית חזקה ביחס לתעשייה, ואנו ערוכים להזדמנויות שעומדות בפנינו בשנת 2017 ומעבר לה".
עיקרי התוצאות הפיננסיות )GAAP )לרבעון הרביעי שהסתיים ולשנה שהסתיימו ב- 31 בדצמבר :2016
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 ל2016- ול- .2015
הכנסות: ההכנסות ברבעון הרביעי של 2016 גדלו ב18.4%- ל- 323.9 מיליון דולר, לעומת 273.6 מיליון דולר ברבעון הרביעי של .2015 ההכנסות בשנת 2016 גדלו ב9.6%- ל- 1,015.5 מיליון דולר, לעומת 926.9 מיליון דולר בשנת .2015
רווח גולמי: הרווח הגולמי ושיעור הרווח הגולמי ברבעון הרביעי של 2016 הסתכמו ב- 221.1 מיליון דולר ו- ,68.3% בהתאמה, לעומת 191.5 מיליון דולר ו- ,70.0% בהתאמה, ברבעון הרביעי של .2015 הרווח הגולמי ושיעור הרווח הגולמי בשנת 2016 הסתכמו ב- 677.8 מיליון דולר ו- ,66.7% בהתאמה, לעומת 623.3 מיליון דולר ו- 67.2% בהתאמה, בתקופה המקבילה אשתקד.
רווח תפעולי: הרווח התפעולי ושיעור הרווח התפעולי ברבעון הרביעי של 2016 הסתכמו ב- 37.1 מיליון דולר ו- ,11.5% בהתאמה, לעומת 63.7 מיליון דולר ו- ,23.3% בהתאמה, ברבעון הרביעי של .2015 הרווח התפעולי ושיעור הרווח התפעולי בשנת 2016 הסתכמו ב- 134.2 מיליון דולר וב- ,13.2% בהתאמה, לעומת 166.1 מיליון דולר ו- ,17.9% בהתאמה, בשנת .2015
רווח נקי מפעילות נמשכת: הרווח הנקי ושיעור הרווח הנקי ברבעון הרביעי של 2016 הסתכמו ב- 30.0 מיליון דולר ו,9.3%- בהתאמה, לעומת 56.9 מיליון דולר ו- ,20.8% בהתאמה ברבעון הרביעי של .2015 הרווח הנקי ושיעור הרווח הנקי בשנת 2016 הסתכמו ב- 123.1 מיליון דולר ו- ,12.1% בהתאמה, לעומת 140.6 מיליון דולר ו- ,15.2% בהתאמה, בשנת .2015
רווח למניה בדילול מלא מפעילות נמשכת: הרווח למניה בדילול מלא ברבעון הרביעי של 2016 הסתכם ב- 0.49 דולר לעומת 0.93 דולר ברבעון הרביעי של .2015 הרווח למניה בדילול מלא בשנת 2016 היה 2.02 דולר לעומת 2.29 דולר בשנת .2015
תזרים המזומנים מפעילות שוטפת ויתרת מזומנים: תזרים המזומנים מפעילות שוטפת ברבעון הרביעי של 2016 היה 37.7 מיליון דולר. בשנת 2016 תזרים המזומנים מפעילות שוטפת הסתכם ב- 220.3 מיליון דולר. ברבעון הרביעי 8.6 מיליון דולר שימשו לרכישה חוזרת של מניות ו- 9.6 מיליון דולר לתשלום דיבידנד. נכון ל31- בדצמבר ,2016 יתרות המזומנים ושווי המזומנים, וכן השקעות לטווח קצר וארוך הסתכמו ב- 286.0 מיליון דולר. סך החוב הסתכם ב- 465.2 מיליון דולר.
עיקרי התוצאות הפיננסיות )GAAP-Non )לרבעון הרביעי ולשנה שהסתיימו ב- 31 בדצמבר :2016
נתוני ה- GAAP-non המוצגים כאן הינם נתונים פיננסים של הפעילות הנמשכת, ואינם כוללים את תוצאות חטיבות ה- Intelligence וה- Security Physical ל2016- ול- .2015
הכנסות: ההכנסות )GAAP-Non )ברבעון הרביעי של 2016 הסתכמו ב- 328.5 מיליון דולר, גידול של 20.1% לעומת 273.6 מיליון דולר ברבעון הרביעי של .2015 סך ההכנסות )GAAP-Non )בשנת 2016 צמחו ב11.1%- ל- 1,030.3 מיליון דולר לעומת 927.0 מיליון דולר בשנת .2015
רווח גולמי: הרווח הגולמי )GAAP-Non )ברבעון הרביעי של 2016 ושיעור הרווח הגולמי )GAAP-Non )גדלו ל- 242.8 מיליון דולר ו,73.9%- בהתאמה, לעומת 199.5 מיליון דולר ו72.9%- בהתאמה ברבעון הרביעי של .2015 הרווח הגולמי )GAAP-Non )ושיעור הרווח הגולמי בשנת 2016 גדלו ל- 741.9 מיליון דולר ו,72.0%- בהתאמה, לעומת 654.4 מיליון ו,70.6%- בהתאמה, בתקופה המקבילה אשתקד.
רווח תפעולי: הרווח התפעולי )GAAP-Non )ברבעון הרביעי של 2016 גדל ל- 93.9 מיליון דולר לעומת 81.2 מיליון דולר ברבעון הרביעי של .2015 שיעור הרווח התפעולי )GAAP-Non )הסתכם ב- 28.6% לעומת 29.7% ברבעון הרביעי של .2015 הרווח התפעולי )GAAP-Non )ושיעור הרווח התפעולי )GAAP-Non )בשנת 2016 גדלו ל- 272.6 מילון דולר ו26.5%- בהתאמה, לעומת 235.5 מיליון דולר ו25.4%- בהתאמה בשנת .2015
רווח נקי מפעילות נמשכת: הרווח הנקי )GAAP-Non )ברבעון הרביעי של 2016 גדל ל- 72.4 מיליון דולר לעומת 66.9 מיליון דולר ברבעון הרביעי של .2015 שיעור הרווח הנקי )GAAP-Non )הסתכם ב22.0%-- לעומת 24.4% ברבעון הרביעי של .2015 הרווח הנקי )GAAP-Non )ושיעור הרווח הנקי )GAAP-Non )בשנת 2016 עלו ל- 220.6 מיליון דולר ו,21.4%- בהתאמה, לעומת 195.0מיליון דולר ו,21.0%- בהתאמה, בתקופה המקבילה אשתקד.
רווח למניה בדילול מלא מפעילות נמשכת: הרווח )GAAP-Non )למניה בדילול מלא ברבעון הרביעי של 2016 גדל ל- 1.18 דולר, גידול של 8.3% לעומת 1.09 דולר ברבעון הרביעי של .2015 הרווח )GAAP-Non )למניה על בסיס דילול מלא בשנת 2016 גדל ל- 3.61 דולר, גידול של 13.5% מ- 3.18 דולר בשנת .2015
הודעה על חלוקת דיבידנד
החברה הודיעה על חלוקת דיבידנד בסך של 0.16 דולר למניה בגין הרבעון הרביעי של .2016 המועד הקובע הוא 27 בפברואר, 2017 ומועד התשלום הוא 15 במרץ .2017 מס ינוכה בשיעור של .15%
תחזית לרבעון הראשון ולשנת :2017
הרבעון הראשון של :2017 סך ההכנסות )GAAP-Non )ברבעון הראשון של ,2017 צפוי להסתכם ב- 303 מיליון דולר עד 313 מיליון דולר. הרווח )GAAP-Non )למניה בדילול מלא ברבעון הראשון של 2017 צפוי להיות בטווח של 0.81 דולר עד 0.87 דולר.
שנת :2017 סך ההכנסות )GAAP-Non )בשנת 2017 צפוי להסתכם ב- 1,330 מיליון דולר עד 1,354 מיליון דולר. הרווח )GAAP-Non )למניה בדילול מלא בשנת 2017 צפוי להיות בטווח של 3.80 דולר עד 4.00 דולר.
שיחת ועידה לדיון בתוצאות הרבעוניות
הנהלת נייס תארח שיחת ועידה לדיון בתוצאות הפיננסיות ובתחזית החברה היום, 16 בפברואר, ,2017 בשעה 8:30 בבוקר שעון החוף המזרחי של ארה"ב, 13:30 לפי שעון גריניץ' ו15:30- 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: .1-809-242-041 קוד הכניסה הוא 92 634 .500 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 .589 323 20
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 forward-looking 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 the required approvals for the inContact acquisition may not be received on the expected timeline or at all. 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.