[November 10, 2016] |
|
NICE Reports Strong Revenue and EPS Growth for the Third Quarter 2016
NICE (NASDAQ:NICE) today announced results for the third quarter
ended September 30, 2016.
Third Quarter 2016 Financial Highlights
GAAP
|
|
|
Non-GAAP
|
Revenue growth of 7% year-over-year
|
|
|
Revenue growth of 9% year-over-year
|
Gross margin of 67.1% compared to 66.3% last year
|
|
|
Gross margin of 72.2% compared to 69.8% last year
|
Operating profit of $36 million, down 5% year-over-year
|
|
|
Operating profit of $64 million, up 15% year-over-year
|
Operating margin of 15.2% compared to 17.1% last year
|
|
|
Operating margin of 26.7% compared to 25.2% last year
|
Diluted EPS from continuing operations of $0.53 versus $0.48 last
year, 10% growth
|
|
|
Diluted EPS from continuing operations of $0.83 versus $0.75 last
year, 11% growth
|
"We are pleased to report another quarter of solid growth and
profitability," said Barak Eilam, CEO of NICE. "Excluding the impact of
currency exchange rates, we delivered our second consecutive quarter of
double digit revenue growth, as well as, another quarter of double digit
EPS growth."
Mr. Eilam continued, "The customer service market is evolving due to the
need for more sophisticated analytics, the rapid transition to
omni-channel and Cloud. The strategic steps that we have taken including
our technology and portfolio innovation, Nexidia analytics and the
acquisition of inContact, a leader in omni-channel cloud, have
positioned us well to capitalize on the significant market opportunities.
"We are encouraged by the very high level of interest among customers
and partners since the announcement of the inContact acquisition, and we
are extremely pleased by the positive feedback we have received from
them, as well as, the positive reviews from industry analysts."
Dividend Declaration
The Company declared a cash dividend for the third quarter of 2016 of
$0.16 per share. The record date will be November 22th, 2016
and the payment date will be December 6th, 2016. Tax will be
withheld at a rate of 15%.
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 2016 and
2015.
Revenues: Third quarter 2016 total revenues increased 7.3% to
$237.2 million compared to $221.1 million for the third quarter of 2015.
Gross Profit: Third quarter 2016 gross profit and gross margin
increased to $159.1 million and 67.1%, respectively, compared to $146.5
million and 66.3%, respectively, for the third quarter of 2015.
Operating Income: Third quarter 2016 operating income and
operating margin were $36.0 million and 15.2%, respectively, compared to
$37.8 million and 17.1%, respectively, for the third quarter of 2015.
Net Income from Continuing Operations: Third quarter 2016 net
income and net margin increased to $32.4 million and 13.7%,
respectively, compared to $29.5 million and 13.3%, respectively, for the
third quarter of 2015.
Fully Diluted Earnings Per Share from Continuing Operations:
Fully diluted earnings per share for the third quarter of 2016 increased
10.4% to $0.53, compared to $0.48 in the third quarter of 2015.
Operating Cash Flow and Cash Balance: Third quarter 2016
operating cash flow was $39.4 million. In the third quarter, $2.9
million was used for share repurchases and $9.6 million for dividends.
As of September 30, 2016, total cash and cash equivalents, short term
investments and marketable securities were $798.7 million, with no 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 2016 and 2015.
Revenues: Third quarter 2016 non-GAAP total revenues were $240.3
million, up 8.7% from $221.1 million for the third quarter of 2015.
Gross Profit: Third quarter 2016 non-GAAP gross profit and
non-GAAP gross margin increased to $173.6 million and 72.2%,
respectively, from $154.3 million and 69.8%, respectively, for the third
quarter of 2015.
Operating Income: Third quarter 2016 non-GAAP operating income
and non-GAAP operating margin increased to $64.2 million and 26.7%,
respectively, from $55.7 million and 25.2%, respectively, for the third
quarter of 2015.
Net Income from Continuing Operations: Third quarter 2016
non-GAAP net income and non-GAAP net margin increased to $50.7 million
and 21.1%, respectively, from $46.3 million and 21.0%, respectively, for
the third quarter of 2015.
Fully Diluted Earnings Per Share from Continuing Operations:
Third quarter 2016 non-GAAP fully diluted earnings per share increased
10.7% to $0.83, compared to $0.75 for the third quarter of 2015.
Fourth Quarter and Full Year 2016 Guidance:
The following guidance assumes the closing of the inContact acquisition
within two weeks and includes inContact's results for the period from
the closing of the acquisition until the end of the year.
Fourth Quarter 2016: Fourth quarter 2016 non-GAAP total revenues
are expected to be in a range of $320 million to $334 million. Fourth
quarter 2016 non-GAAP fully diluted earnings per share are expected to
be in a range of $1.10 to $1.22.
Full Year 2016: Full year 2016 non-GAAP total revenues are
expected to be in a range of $1,022 million to $1,036 million. Full year
2016 non-GAAP fully diluted earnings per share are expected to be in a
range of $3.53 to $3.65.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, November 10th,
2016 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)1296-311-600, United Kingdom 0-800-678-1161, Israel
1-809-242-041. The Passcode is 551 268 39. 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 840 330 23.
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, 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 enterprise software solutions that empower organizations to
make smarter decisions based on advanced analytics of structured and
unstructured data. NICE solutions help the world's largest organizations
deliver better customer service, ensure compliance, combat fraud and
safeguard citizens. Over 25,000 organizations in more than 150
countries, including over 80 of the Fortune 100 companies, are using
NICE solutions. www.nice.com.
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.
###
NICE LTD. AND SUBSIDIARIES
|
CONSOLIDATED STATEMENTS OF INCOME
|
U.S. dollars in thousands (except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
Year to date
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
68,617
|
|
$
|
68,266
|
|
$
|
195,277
|
|
$
|
207,821
|
|
Services
|
|
|
168,570
|
|
|
152,819
|
|
|
496,405
|
|
|
445,488
|
Total revenue
|
|
|
237,187
|
|
|
221,085
|
|
|
691,682
|
|
|
653,309
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
11,815
|
|
|
15,726
|
|
|
39,786
|
|
|
47,238
|
|
Services
|
|
|
66,249
|
|
|
58,853
|
|
|
195,185
|
|
|
174,303
|
Total cost of revenue
|
|
|
78,064
|
|
|
74,579
|
|
|
234,971
|
|
|
221,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
159,123
|
|
|
146,506
|
|
|
456,711
|
|
|
431,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net
|
|
|
33,606
|
|
|
32,361
|
|
|
100,646
|
|
|
92,919
|
|
Selling and marketing
|
|
|
61,878
|
|
|
51,921
|
|
|
176,366
|
|
|
162,218
|
|
General and administrative
|
|
|
24,456
|
|
|
21,331
|
|
|
72,227
|
|
|
64,287
|
|
Amortization of acquired intangible assets
|
|
|
3,155
|
|
|
3,091
|
|
|
10,412
|
|
|
9,968
|
Total operating expenses
|
|
|
123,095
|
|
|
108,704
|
|
|
359,651
|
|
|
329,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
36,028
|
|
|
37,802
|
|
|
97,060
|
|
|
102,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance and other income, net
|
|
|
4,968
|
|
|
1,505
|
|
|
11,665
|
|
|
4,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before tax
|
|
|
40,996
|
|
|
39,307
|
|
|
108,725
|
|
|
106,492
|
Taxes on income (tax benefit)
|
|
|
8,554
|
|
|
9,855
|
|
|
15,647
|
|
|
22,798
|
Net income from continuing operations
|
|
|
32,442
|
|
|
29,452
|
|
|
93,078
|
|
|
83,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal and income (loss) from operations of discontinued
operations
|
|
|
(2,143)
|
|
|
148,572
|
|
|
(2,259)
|
|
|
154,080
|
|
Taxes on income
|
|
|
-
|
|
|
35,080
|
|
|
-
|
|
|
36,336
|
|
Net income (loss) from discontinued operations
|
|
|
(2,143)
|
|
|
113,492
|
|
|
(2,259)
|
|
|
117,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
30,299
|
|
$
|
142,944
|
|
$
|
90,819
|
|
$
|
201,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share from continuing operations
|
|
$
|
0.54
|
|
$
|
0.49
|
|
$
|
1.56
|
|
$
|
1.40
|
Basic earnings (loss) per share from discontinued operations
|
|
$
|
(0.03)
|
|
$
|
1.91
|
|
$
|
(0.04)
|
|
$
|
1.98
|
Basic earnings per share
|
|
$
|
0.51
|
|
$
|
2.40
|
|
$
|
1.52
|
|
$
|
3.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share from continuing operations
|
|
$
|
0.53
|
|
$
|
0.48
|
|
$
|
1.53
|
|
$
|
1.36
|
Diluted earnings (loss) per share from discontinued operations
|
|
$
|
(0.03)
|
|
$
|
1.85
|
|
$
|
(0.04)
|
|
$
|
1.92
|
Diluted earnings per share
|
|
$
|
0.50
|
|
$
|
2.33
|
|
$
|
1.49
|
|
$
|
3.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding used to compute:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
|
59,765
|
|
|
59,671
|
|
|
59,563
|
|
|
59,519
|
Diluted earnings (loss) per share
|
|
|
61,119
|
|
|
61,418
|
|
|
60,930
|
|
|
61,344
|
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,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
GAAP revenues
|
|
$
|
237,187
|
|
$
|
221,085
|
|
$
|
691,682
|
|
$
|
653,309
|
Valuation adjustment on acquired deferred product revenue
|
|
|
75
|
|
|
-
|
|
|
1,450
|
|
|
-
|
Valuation adjustment on acquired deferred service revenue
|
|
|
3,026
|
|
|
-
|
|
|
8,676
|
|
|
177
|
Non-GAAP revenues
|
|
$
|
240,288
|
|
$
|
221,085
|
|
$
|
701,808
|
|
$
|
653,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of revenue
|
|
$
|
78,064
|
|
$
|
74,579
|
|
$
|
234,971
|
|
$
|
221,541
|
Amortization of acquired intangible assets on cost of product
|
|
|
(6,285)
|
|
|
(6,877)
|
|
|
(20,167)
|
|
|
(20,539)
|
Amortization of acquired intangible assets on cost of services
|
|
|
(3,208)
|
|
|
-
|
|
|
(6,681)
|
|
|
-
|
Cost of product revenue adjustment (1,3)
|
|
|
(124)
|
|
|
(100)
|
|
|
(314)
|
|
|
(371)
|
Cost of services revenue adjustment (1,2,3)
|
|
|
(1,723)
|
|
|
(799)
|
|
|
(5,054)
|
|
|
(2,047)
|
Non-GAAP cost of revenue
|
|
$
|
66,724
|
|
$
|
66,803
|
|
$
|
202,755
|
|
$
|
198,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
159,123
|
|
$
|
146,506
|
|
$
|
456,711
|
|
$
|
431,768
|
Gross profit adjustments
|
|
|
14,441
|
|
|
7,776
|
|
|
42,342
|
|
|
23,134
|
Non-GAAP gross profit
|
|
$
|
173,564
|
|
$
|
154,282
|
|
$
|
499,053
|
|
$
|
454,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
123,095
|
|
$
|
108,704
|
|
$
|
359,651
|
|
$
|
329,392
|
Research and development (1,2,3)
|
|
|
(1,385)
|
|
|
(1,377)
|
|
|
(4,462)
|
|
|
(2,193)
|
Sales and marketing (1,2,3)
|
|
|
(4,069)
|
|
|
(3,094)
|
|
|
(11,139)
|
|
|
(8,098)
|
General and administrative (1,2,3)
|
|
|
(5,153)
|
|
|
(2,560)
|
|
|
(13,246)
|
|
|
(8,127)
|
Amortization of acquired intangible assets
|
|
|
(3,155)
|
|
|
(3,091)
|
|
|
(10,412)
|
|
|
(9,968)
|
Settlement and related expenses
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(390)
|
Non-GAAP operating expenses
|
|
$
|
109,333
|
|
$
|
98,582
|
|
$
|
320,392
|
|
$
|
300,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP finance & other income, net
|
|
$
|
4,968
|
|
$
|
1,505
|
|
$
|
11,665
|
|
$
|
4,116
|
Realized gain from substantial liquidation of marketable securities
|
|
|
(2,711)
|
|
|
-
|
|
|
(2,711)
|
|
|
-
|
Non-GAAP finance & other income, net
|
|
$
|
2,257
|
|
$
|
1,505
|
|
$
|
8,954
|
|
$
|
4,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP taxes on income
|
|
$
|
8,554
|
|
$
|
9,855
|
|
$
|
15,647
|
|
$
|
22,798
|
Tax adjustments re non-GAAP adjustments
|
|
|
7,228
|
|
|
1,024
|
|
|
23,753
|
|
|
7,431
|
Non-GAAP taxes on income
|
|
$
|
15,782
|
|
$
|
10,879
|
|
$
|
39,400
|
|
$
|
30,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) from continuing operations
|
|
$
|
32,442
|
|
$
|
29,452
|
|
$
|
93,078
|
|
$
|
83,694
|
Valuation adjustment on acquired deferred revenue
|
|
|
3,101
|
|
|
-
|
|
|
10,126
|
|
|
177
|
Amortization of acquired intangible assets
|
|
|
12,648
|
|
|
9,968
|
|
|
37,260
|
|
|
30,507
|
Share-based compensation (1)
|
|
|
9,458
|
|
|
6,948
|
|
|
25,714
|
|
|
19,854
|
Re-organization expenses (2)
|
|
|
1,523
|
|
|
982
|
|
|
3,293
|
|
|
982
|
Acquisition related expenses (3)
|
|
|
1,473
|
|
|
-
|
|
|
5,208
|
|
|
-
|
Realized gain from substantial liquidation of marketable securities
|
|
|
(2,711)
|
|
|
-
|
|
|
(2,711)
|
|
|
-
|
Settlement and related expenses
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
390
|
Tax adjustments re non-GAAP adjustments
|
|
|
(7,228)
|
|
|
(1,024)
|
|
|
(23,753)
|
|
|
(7,431)
|
Non-GAAP net income (loss) from continuing operations
|
|
$
|
50,706
|
|
$
|
46,326
|
|
$
|
148,215
|
|
$
|
128,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings (loss) per share from continuing operations
|
|
$
|
0.53
|
|
$
|
0.48
|
|
$
|
1.53
|
|
$
|
1.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per share from continuing operations
|
|
$
|
0.83
|
|
$
|
0.75
|
|
$
|
2.43
|
|
$
|
2.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing GAAP diluted earnings (loss) per share
|
|
|
61,119
|
|
|
61,418
|
|
|
60,930
|
|
|
61,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing Non-GAAP diluted earnings per share
|
|
|
61,119
|
|
|
61,418
|
|
|
60,930
|
|
|
61,344
|
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
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
Cost of product revenue
|
$
|
(114)
|
|
$
|
(100)
|
|
$
|
(304)
|
|
$
|
(371)
|
|
|
Cost of service revenue
|
|
(1,715)
|
|
|
(755)
|
|
|
(4,801)
|
|
|
(2,003)
|
|
|
Research and development
|
|
(1,383)
|
|
|
(439)
|
|
|
(3,541)
|
|
|
(1,255)
|
|
|
Sales and marketing
|
|
(4,008)
|
|
|
(3,094)
|
|
|
(10,441)
|
|
|
(8,098)
|
|
|
General and administrative
|
|
(2,238)
|
|
|
(2,560)
|
|
|
(6,627)
|
|
|
(8,127)
|
|
|
|
$
|
(9,458)
|
|
$
|
(6,948)
|
|
$
|
(25,714)
|
|
$
|
(19,854)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
Re-organization expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
Year to date
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
Cost of service revenue
|
$
|
(1)
|
|
$
|
(44)
|
|
$
|
(246)
|
|
$
|
(44)
|
|
|
Research and development
|
|
-
|
|
|
(938)
|
|
|
(896)
|
|
|
(938)
|
|
|
Sales and marketing
|
|
-
|
|
|
-
|
|
|
(150)
|
|
|
-
|
|
|
General and administrative
|
|
(1,522)
|
|
|
-
|
|
|
(2,001)
|
|
|
-
|
|
|
|
$
|
(1,523)
|
|
$
|
(982)
|
|
$
|
(3,293)
|
|
$
|
(982)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
|
Acquisition related expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
Year to date
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
Cost of product revenue
|
$
|
(10)
|
|
$
|
-
|
|
$
|
(10)
|
|
$
|
-
|
|
|
Cost of service revenue
|
|
(7)
|
|
|
-
|
|
|
(7)
|
|
|
-
|
|
|
Research and development
|
|
(2)
|
|
|
-
|
|
|
(25)
|
|
|
-
|
|
|
Sales and marketing
|
|
(61)
|
|
|
-
|
|
|
(548)
|
|
|
-
|
|
|
General and administrative
|
|
(1,393)
|
|
|
-
|
|
|
(4,618)
|
|
|
-
|
|
|
|
$
|
(1,473)
|
|
$
|
-
|
|
$
|
(5,208)
|
|
$
|
-
|
NICE LTD. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
Unaudited
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
666,125
|
|
$
|
325,931
|
|
Short-term investments
|
|
|
22,253
|
|
|
99,195
|
|
Trade receivables
|
|
|
149,200
|
|
|
177,323
|
|
Prepaid expenses and other current assets
|
|
|
62,100
|
|
|
43,561
|
|
Current assets of discontinued operations
|
|
|
2,672
|
|
|
9,142
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
902,350
|
|
|
655,152
|
|
|
|
|
|
|
|
|
LONG-TERM ASSETS:
|
|
|
|
|
|
|
|
Long-term investments
|
|
|
110,280
|
|
|
403,249
|
|
Other long-term assets
|
|
|
17,440
|
|
|
17,175
|
|
Property and equipment, net*
|
|
|
53,283
|
|
|
40,593
|
|
Deferred tax assets
|
|
|
19,194
|
|
|
14,130
|
|
Other intangible assets, net*
|
|
|
102,034
|
|
|
68,202
|
|
Goodwill
|
|
|
730,736
|
|
|
651,112
|
|
|
|
|
|
|
|
|
|
Total long-term assets
|
|
|
1,032,967
|
|
|
1,194,461
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
1,935,317
|
|
$
|
1,849,613
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
Trade payables
|
|
$
|
18,928
|
|
$
|
11,719
|
|
Deferred revenues and advances from customers
|
|
|
176,858
|
|
|
151,345
|
|
Accrued expenses and other liabilities
|
|
|
222,773
|
|
|
223,255
|
|
Current liabilities of discontinued operations
|
|
|
3,242
|
|
|
12,744
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
421,801
|
|
|
399,063
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
12,913
|
|
|
15,040
|
|
Other long-term liabilities
|
|
|
17,700
|
|
|
17,952
|
|
Long-term liabilities of discontinued operations
|
|
|
2,409
|
|
|
2,409
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
33,022
|
|
|
35,401
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
1,480,494
|
|
|
1,415,149
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
1,935,317
|
|
$
|
1,849,613
|
|
|
|
|
|
|
|
|
*Certain comparative figures have been reclassified to conform to
the current year presentation.
|
NICE LTD. AND SUBSIDIARIES
|
|
CONSOLIDATED CASH FLOW STATEMENTS
|
|
U.S. dollars in thousands
|
|
|
|
|
|
|
Quarter ended
|
|
|
Year to date
|
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
30,299
|
|
$
|
142,944
|
|
$
|
90,819
|
|
$
|
201,438
|
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities
|
|
|
|
|
|
Depreciation and amortization
|
|
|
16,932
|
|
|
14,339
|
|
|
50,332
|
|
|
44,670
|
|
Stock based compensation
|
|
|
9,457
|
|
|
7,402
|
|
|
25,714
|
|
|
20,677
|
|
Excess tax benefit from share-based payment arrangements
|
|
|
(2,024)
|
|
|
(2,028)
|
|
|
(3,172)
|
|
|
(4,042)
|
|
Amortization of premium and discount and accrued interest on
marketable securities
|
|
|
714
|
|
|
730
|
|
|
2,355
|
|
|
1,943
|
|
Deferred taxes, net
|
|
|
(4,815)
|
|
|
2,380
|
|
|
(17,512)
|
|
|
(4,028)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade Receivables
|
|
|
(13,691)
|
|
|
(33,465)
|
|
|
40,678
|
|
|
(15,017)
|
|
|
Prepaid expenses and other current assets
|
|
|
(1,340)
|
|
|
(1,410)
|
|
|
3,428
|
|
|
(3,887)
|
|
|
Trade payables
|
|
|
(372)
|
|
|
3,853
|
|
|
4,917
|
|
|
11,644
|
|
|
Accrued expenses and other current liabilities
|
|
|
18,890
|
|
|
62,534
|
|
|
(29,548)
|
|
|
49,926
|
|
|
Deferred revenue
|
|
|
(13,659)
|
|
|
669
|
|
|
16,196
|
|
|
53,175
|
|
Gain on sale and loss on disposal of discontinued operations
|
|
|
1,990
|
|
|
(148,428)
|
|
|
1,990
|
|
|
(148,428)
|
|
Realized gain on marketable securities
|
|
|
(2,817)
|
|
|
(9)
|
|
|
(3,366)
|
|
|
257
|
|
Other
|
|
|
(167)
|
|
|
(9)
|
|
|
(182)
|
|
|
2,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
39,397
|
|
|
49,502
|
|
|
182,649
|
|
|
211,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(7,022)
|
|
|
(3,006)
|
|
|
(18,165)
|
|
|
(10,966)
|
|
Purchase of Investments
|
|
|
-
|
|
|
(103,697)
|
|
|
(47,221)
|
|
|
(227,844)
|
|
Proceeds from Investments
|
|
|
340,487
|
|
|
20,612
|
|
|
420,965
|
|
|
63,154
|
|
Capitalization of software development costs
|
|
|
(1,948)
|
|
|
(491)
|
|
|
(4,706)
|
|
|
(703)
|
|
Proceeds (repayment) from sale of discontinued operations
|
|
|
(1,990)
|
|
|
167,501
|
|
|
(1,990)
|
|
|
167,501
|
|
Payments for business acquisitions, net of cash acquired
|
|
|
(3)
|
|
|
-
|
|
|
(151,328)
|
|
|
(1,500)
|
|
|
Net cash provided by (used in) investing activities
|
|
|
329,524
|
|
|
80,919
|
|
|
197,555
|
|
|
(10,358)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of shares upon exercise of share options and
ESPP
|
|
|
8,092
|
|
|
5,878
|
|
|
21,261
|
|
|
23,011
|
|
Purchase of treasury shares
|
|
|
(2,924)
|
|
|
(30,000)
|
|
|
(35,017)
|
|
|
(48,384)
|
|
Dividends paid
|
|
|
(9,568)
|
|
|
(9,566)
|
|
|
(28,604)
|
|
|
(28,680)
|
|
Capital Lease Payments
|
|
|
(515)
|
|
|
-
|
|
|
(695)
|
|
|
-
|
|
Excess tax benefit from share-based payment arrangements
|
|
|
2,024
|
|
|
2,028
|
|
|
3,172
|
|
|
4,042
|
|
Earnout payments related to acquisitions
|
|
|
-
|
|
|
(24)
|
|
|
-
|
|
|
(286)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(2,891)
|
|
|
(31,684)
|
|
|
(39,883)
|
|
|
(50,297)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents
|
|
|
(912)
|
|
|
(2,299)
|
|
|
(127)
|
|
|
(4,764)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
365,118
|
|
|
96,438
|
|
|
340,194
|
|
|
145,747
|
Cash and cash equivalents, beginning of period
|
|
|
301,007
|
|
|
236,292
|
|
|
325,931
|
|
|
187,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
666,125
|
|
$
|
332,730
|
|
$
|
666,125
|
|
$
|
333,244
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161110005558/en/
[ Back To TMCnet.com's Homepage ]
|