RA'ANANA, Israel, Oct. 30, 2013 /PRNewswire/ -- NICE
Systems (NASDAQ: NICE) today announced results for the third
quarter ended September 30, 2013.
"We reported solid results for the third quarter of 2013, and we
believe that with the robust demand for our products and a healthy
pipeline of large, multi-product deals, we are well-positioned for
a strong finish to the year, said Zeevi Bregman, President and CEO
of NICE Systems."
Mr. Bregman continued, "In the third quarter, we saw continued
strong growth in our analytics-based applications with ongoing
strong demand. The reason behind the strength is that these
solutions, including real-time analytics, help our customers
improve business results. Our unique blend of solutions is able to
unlock and operationalize the valuable information hidden in Big
Data to better understand relationships and associations among
people, data and systems to help our customers ensure compliance,
enhance operational efficiency, increase revenues, improve the
customer experience and safeguard people and assets."
"Trapped Profit" Release One-Time Payment and Tax
Settlement
In the third quarter of 2013, the Company took advantage of a
special program initiated by the Israeli government on November 12, 2012 with a deadline of November 11, 2013 that allowed Israeli companies
to release "trapped profits" by paying a highly discounted tax
payment and it also settled a multi-year tax audit. As a result,
the Company reported a tax expense of $19.2
million, or $0.31 per share.
Due to the nature of this expense, the Company excluded it from
Non-GAAP results. The total cash payment related to the release of
"trapped profits" and the tax audit settlement was $30.9 million.
Dividend
Declaration
In continuation of its previously announced dividend plan, the
company announced that its Board of Directors, at its meeting on
October 29, 2013, declared a cash
dividend for the third quarter of 2013 of $0.16 per share. The record date will be
November 12, 2013, and the payment
date will be November 26, 2013. Tax
will be withheld at a rate of 15%.
Non-GAAP Financial Highlights for the Third Quarter Ended
September 30, 2013:
Revenues: Third quarter 2013 non-GAAP total revenues were
$230.1 million, up 4.2% from
$220.9 million for the third quarter
of 2012.
Gross Profit: Third quarter 2013 non-GAAP gross profit
and non-GAAP gross margin increased to $151.2 million and 65.7%, respectively, from
$145 million and 65.6%, respectively,
for the third quarter of 2012.
Operating Income: Third quarter 2013 non-GAAP operating
income was $42.2 million compared to
$42.1 million in third quarter 2012.
Non-GAAP operating margin was 18.4% compared to 19.1% in the third
quarter of 2012.
Net Income: Third quarter 2013 non-GAAP net income was
$38.2 million compared to
$39.7 million in third quarter 2012.
Non-GAAP net margin was 16.6% compared to 18% in third quarter of
2012.
Fully Diluted Earnings Per Share: Third quarter 2013
non-GAAP fully diluted earnings per share was $0.62 compared to $0.64 in the third quarter of 2012.
GAAP Financial Highlights for the Third Quarter Ended
September 30, 2013:
Revenues: Third quarter 2013 total revenues increased 5%
to $229.9 million compared to
$218.9 million for the third quarter
of 2012.
Gross Profit: Third quarter 2013 gross profit and gross
margin increased to $139.3 million
and 60.6%, respectively, compared to $130.5
million and 59.6%, respectively, for the third quarter of
2012.
Operating Income: Third quarter 2013 operating income and
operating margin increased to $15.8
million and 6.9%, respectively, compared to $13.3 million and 6.1%, respectively, for the
third quarter of 2012.
Net Income (Loss): Third quarter 2013 loss was
$3.7 compared to net income of
$16.8 million for the third quarter
of 2012.
Fully Diluted Earnings Per Share (Loss): Fully diluted
loss per share of $0.06 for the third
quarter of 2013 compared to $0.27
earnings per share for the third quarter of 2012.
Operating Cash Flow and Cash Balance: Third quarter 2013
operating cash flow was negative $15.6
million. This is a result of the cash payment of
$30.9 million associated with the tax
expense described above. Excluding this payment, cash flow from
operations would have been $15.3
million, compared to $11.6 million
dollars for the third quarter of 2012. In the third quarter,
$16.6 million was used for share
repurchases and $9.7 million for
dividends. As of September 30, 2013,
total cash and cash equivalents, short term investments and
marketable securities were $444
million, with no debt.
Fourth Quarter and Full Year 2013 Guidance:
Fourth Quarter 2013: Fourth quarter 2013 non-GAAP total
revenues are expected to be in a range of $260 million to $275 million. Fourth quarter 2013
non-GAAP fully diluted earnings per share are expected to be in a
range of $0.72 to $0.77.
Full Year 2013: Full year 2013 non-GAAP total revenues
are expected to be in a range of $940
million to $955 million. Full year 2013 non-GAAP fully
diluted earnings per share are expected to be in a range of
$2.55 to $2.60.
Quarterly Results Conference Call
NICE management will host its earnings conference call today,
October 30th, 2013 at
8:30 AM EDT, 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
1-809-242-041. The Passcode is 880 304 19. 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 2 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 90526208.
Non-GAAP financial measures consist of GAAP financial measures
adjusted to exclude: amortization of acquired intangible assets,
restructuring, re-organization expenses, share-based compensation,
certain business combination accounting entries, the related tax
effects thereon and tax settlement and "trapped profits" release
one-time payment. 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. The
intangible assets created in the acquisitions of Merced are
preliminary and subject to further review and completion of
valuation analyses.
About NICE
NICE (NASDAQ: NICE) is the worldwide leader
of software solutions that deliver strategic insights by capturing
and analyzing mass quantities of structured and unstructured data
in real time from multiple sources, including phone calls, mobile
apps, emails, chat, social media, and video. NICE's solutions
enable organizations to take the Next-Best-Action to improve
customer experience and business results, ensure compliance, fight
financial crime, and safeguard people and assets. NICE solutions
are used by over 25,000 organizations in more than 150 countries,
including over 80 of the Fortune 100 companies. www.nice.com.
Trademark Note: NICE and the NICE logo are trademarks or
registered trademarks of NICE Systems. All other marks are
trademarks of their respective owners. For a full list of NICE
Systems' marks, please see:
http://www.nice.com/nice-trademarks.
Investors
Marty Cohen, +1 212 574 3635,
ir@nice.com, ET
Anat Earon-Heilborn, +972 9
775-3798, ir@nice.com, CET
Media Contact
Erik
Snider, +1 877 245 7448, erik.snider@nice.com
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
Messer Bregman, are based on the
current expectations of the management of NICE-Systems Ltd. (the
Company) only, and 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) and the resulting uncertainties; 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; pressure on
pricing resulting from competition; and inability to maintain
certain marketing and distribution arrangements. 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 SYSTEMS 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,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
$
86,127
|
|
$
92,115
|
|
$260,895
|
|
$269,221
|
|
Services
|
143,736
|
|
126,744
|
|
418,170
|
|
372,106
|
Total
revenue
|
229,863
|
|
218,859
|
|
679,065
|
|
641,327
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Product
|
28,642
|
|
31,273
|
|
85,146
|
|
93,660
|
|
Services
|
61,920
|
|
57,055
|
|
177,268
|
|
168,852
|
Total cost of
revenue
|
90,562
|
|
88,328
|
|
262,414
|
|
262,512
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
139,301
|
|
130,531
|
|
416,651
|
|
378,815
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Research and
development, net
|
34,536
|
|
30,094
|
|
97,597
|
|
88,910
|
|
Selling and
marketing
|
58,277
|
|
54,892
|
|
176,779
|
|
165,113
|
|
General and
administrative
|
22,865
|
|
22,186
|
|
64,466
|
|
71,649
|
|
Amortization of
acquired intangible assets
|
7,591
|
|
8,225
|
|
23,866
|
|
24,364
|
|
Restructuring
expenses
|
211
|
|
1,884
|
|
211
|
|
1,884
|
Total operating
expenses
|
123,480
|
|
117,281
|
|
362,919
|
|
351,920
|
|
|
|
|
|
|
|
|
|
Operating
income
|
15,821
|
|
13,250
|
|
53,732
|
|
26,895
|
|
|
|
|
|
|
|
|
|
Finance and other
income, net*
|
806
|
|
1,767
|
|
3,010
|
|
6,585
|
|
|
|
|
|
|
|
|
|
Income before taxes
on income
|
16,627
|
|
15,017
|
|
56,742
|
|
33,480
|
Taxes on income (tax
benefit)*
|
20,335
|
|
(1,760)
|
|
25,683
|
|
(2,284)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(3,708)
|
|
$
16,777
|
|
$
31,059
|
|
$
35,764
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
(0.06)
|
|
$
0.28
|
|
$
0.51
|
|
$
0.59
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$
(0.06)
|
|
$
0.27
|
|
$
0.50
|
|
$
0.57
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
outstanding used to
compute:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
60,497
|
|
60,766
|
|
60,413
|
|
61,108
|
Diluted earnings
(loss) per share
|
60,497
|
|
61,971
|
|
61,855
|
|
62,523
|
|
|
|
|
|
|
|
|
|
*Certain comparative
figures have been reclassified to conform to the current year
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
NICE SYSTEMS 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,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
GAAP
revenues
|
$
229,863
|
|
$
218,859
|
|
$
679,065
|
|
$
641,327
|
Valuation adjustment
on acquired deferred product revenue
|
10
|
|
229
|
|
117
|
|
3,930
|
Valuation adjustment
on acquired deferred service revenue
|
238
|
|
1,814
|
|
832
|
|
7,502
|
Non-GAAP
revenues
|
$
230,111
|
|
$
220,902
|
|
$
680,014
|
|
$
652,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of
revenue
|
$
90,562
|
|
$
88,328
|
|
$
262,414
|
|
$
262,512
|
Amortization of
acquired intangible assets on cost of product
|
(9,403)
|
|
(10,364)
|
|
(28,209)
|
|
(31,553)
|
Amortization of
acquired intangible assets on cost of services
|
(977)
|
|
(1,025)
|
|
(2,947)
|
|
(2,734)
|
Valuation adjustment
on acquired deferred cost of services
|
9
|
|
11
|
|
18
|
|
107
|
Cost of product
revenue adjustment (1,2,4)
|
(161)
|
|
(47)
|
|
(406)
|
|
(336)
|
Cost of services
revenue adjustment (1,2,3,4)
|
(1,163)
|
|
(957)
|
|
(3,109)
|
|
(3,012)
|
Non-GAAP cost
of revenue
|
$
78,867
|
|
$
75,946
|
|
$
227,761
|
|
$
224,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
139,301
|
|
$
130,531
|
|
$
416,651
|
|
$
378,815
|
Gross profit
adjustments
|
11,943
|
|
14,425
|
|
35,602
|
|
48,960
|
Non-GAAP gross
profit
|
$
151,244
|
|
$
144,956
|
|
$
452,253
|
|
$
427,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$
123,480
|
|
$
117,281
|
|
$
362,919
|
|
$
351,920
|
Research and
development (1,2,3)
|
(860)
|
|
(546)
|
|
(1,940)
|
|
(2,652)
|
Sales and marketing
(1,2,3)
|
(2,778)
|
|
(1,426)
|
|
(7,065)
|
|
(6,072)
|
General and
administrative (1,2,3)
|
(1,954)
|
|
(2,089)
|
|
(6,028)
|
|
(6,797)
|
Amortization of
acquired intangible assets
|
(7,591)
|
|
(8,225)
|
|
(23,866)
|
|
(24,364)
|
Acquisition related
expenses (4)
|
(1,091)
|
|
-
|
|
(1,091)
|
|
(4,348)
|
Settlement and
related expenses
|
-
|
|
(267)
|
|
-
|
|
(267)
|
Restructuring
expenses
|
(211)
|
|
(1,884)
|
|
(211)
|
|
(1,884)
|
Non-GAAP operating
expenses
|
$
108,995
|
|
$
102,844
|
|
$
322,718
|
|
$
305,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP finance &
other income, net
|
$
806
|
|
$
1,767
|
|
$
3,010
|
|
$
6,585
|
Acquisition related
expenses (4)
|
126
|
|
-
|
|
126
|
|
-
|
Non-GAAP finance
& other income, net
|
$
932
|
|
$
1,767
|
|
$
3,136
|
|
$
6,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP taxes on
income
|
$
20,335
|
|
$
(1,760)
|
|
$
25,683
|
|
$
(2,284)
|
"Trapped profits" one
time payment and tax settlement
|
(19,189)
|
|
-
|
|
(19,189)
|
|
-
|
Tax adjustments re
non-GAAP adjustments
|
3,786
|
|
5,949
|
|
12,850
|
|
20,145
|
Non-GAAP taxes on
income
|
$
4,932
|
|
$
4,189
|
|
$
19,344
|
|
$
17,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
(3,708)
|
|
$
16,777
|
|
$
31,059
|
|
$
35,764
|
Valuation adjustment
on acquired deferred revenue
|
248
|
|
2,043
|
|
949
|
|
11,432
|
Valuation adjustment
on acquired deferred cost of services
|
(9)
|
|
(11)
|
|
(18)
|
|
(107)
|
Amortization of
acquired intangible assets
|
17,971
|
|
19,614
|
|
55,022
|
|
58,651
|
Share-based
compensation (1)
|
6,732
|
|
4,961
|
|
17,974
|
|
17,712
|
Re-organization
expenses (2)
|
193
|
|
-
|
|
553
|
|
746
|
Acquisition related
compensation expense (3)
|
(13)
|
|
104
|
|
17
|
|
367
|
Acquisition related
expenses (4)
|
1,221
|
|
-
|
|
1,221
|
|
4,392
|
Restructuring
expenses
|
211
|
|
1,884
|
|
211
|
|
1,884
|
Settlement and
related expenses
|
-
|
|
267
|
|
-
|
|
267
|
Tax settlement and
"trapped profits" release one time payment
|
19,189
|
|
-
|
|
19,189
|
|
-
|
Tax adjustments re
non-GAAP adjustments
|
(3,786)
|
|
(5,949)
|
|
(12,850)
|
|
(20,145)
|
Non-GAAP net
income
|
$
38,249
|
|
$
39,690
|
|
$
113,327
|
|
$
110,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings
(loss) per share
|
$
(0.06)
|
|
$
0.27
|
|
$
0.50
|
|
$
0.57
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per share
|
$
0.62
|
|
$
0.64
|
|
$
1.83
|
|
$
1.77
|
|
|
|
|
|
|
|
|
|
Shares used in
computing GAAP diluted earnings (loss) per share
|
60,497
|
|
61,971
|
|
61,855
|
|
62,523
|
|
|
|
|
|
|
|
|
|
Shares used in
computing Non-GAAP diluted earnings per share
|
61,979
|
|
61,971
|
|
61,855
|
|
62,523
|
NICE SYSTEMS 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,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Cost of product
revenue
|
$
(157)
|
|
$
(47)
|
|
$
(397)
|
|
$
(331)
|
|
Cost of service
revenue
|
(1,163)
|
|
(952)
|
|
(2,986)
|
|
(2,899)
|
|
Research and
development
|
(876)
|
|
(461)
|
|
(1,927)
|
|
(2,173)
|
|
Sales and
marketing
|
(2,593)
|
|
(1,412)
|
|
(6,754)
|
|
(5,512)
|
|
General and
administrative
|
(1,943)
|
|
(2,089)
|
|
(5,910)
|
|
(6,797)
|
|
|
$
(6,732)
|
|
$
(4,961)
|
|
$
(17,974)
|
|
$
(17,712)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Re-organization
expenses
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Year to
date
|
|
|
September
30,
|
|
September
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Cost of product
revenue
|
$
-
|
|
$
-
|
|
$
(5)
|
|
$
-
|
|
Cost of service
revenue
|
-
|
|
-
|
|
(123)
|
|
(52)
|
|
Research and
development
|
-
|
|
-
|
|
-
|
|
(177)
|
|
Sales and
marketing
|
(182)
|
|
-
|
|
(307)
|
|
(517)
|
|
General and
administrative
|
(11)
|
|
-
|
|
(118)
|
|
-
|
|
|
$
(193)
|
|
$
-
|
|
$
(553)
|
|
$
(746)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Acquisition
related compensation expense
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Year to
date
|
|
|
September
30,
|
|
September
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Cost of service
revenue
|
$
-
|
|
$
(5)
|
|
$
-
|
|
$
(22)
|
|
Research and
development
|
16
|
|
(85)
|
|
(13)
|
|
(302)
|
|
Sales and
marketing
|
(3)
|
|
(14)
|
|
(4)
|
|
(43)
|
|
|
$
13
|
|
$
(104)
|
|
$
(17)
|
|
$
(367)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Acquisition
related expenses
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Year to
date
|
|
|
September
30,
|
|
September
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Cost of product
revenue
|
$
(4)
|
|
$
-
|
|
$
(4)
|
|
$
(5)
|
|
Cost of service
revenue
|
-
|
|
-
|
|
-
|
|
(39)
|
|
Research and
development
|
(109)
|
|
-
|
|
(109)
|
|
(31)
|
|
Sales and
marketing
|
(105)
|
|
-
|
|
(105)
|
|
100
|
|
General and
administrative
|
(877)
|
|
-
|
|
(877)
|
|
(4,417)
|
|
Other expense,
net
|
(126)
|
|
-
|
|
(126)
|
|
-
|
|
|
$
(1,221)
|
|
$
-
|
|
$
(1,221)
|
|
$
(4,392)
|
|
|
|
|
|
|
|
|
|
NICE SYSTEMS LTD.
AND SUBSIDIARIES
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
102,950
|
|
$
98,596
|
|
|
Short-term
investments
|
|
88,221
|
|
199,955
|
|
|
Trade
receivables
|
|
157,831
|
|
155,426
|
|
|
Other receivables and
prepaid expenses
|
|
45,299
|
|
37,626
|
|
|
Inventories
|
|
15,221
|
|
13,897
|
|
|
Deferred tax
assets
|
|
17,095
|
|
15,564
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
426,617
|
|
521,064
|
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
|
Marketable
securities
|
|
252,702
|
|
146,154
|
|
|
Other long-term
assets
|
|
28,863
|
|
28,676
|
|
|
Property and
equipment, net
|
|
44,256
|
|
41,278
|
|
|
Other intangible
assets, net
|
|
185,614
|
|
228,746
|
|
|
Goodwill
|
|
702,649
|
|
695,027
|
|
|
|
|
|
|
|
|
|
Total long-term
assets
|
|
1,214,084
|
|
1,139,881
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
1,640,701
|
|
$
1,660,945
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Trade
payables
|
|
$
24,343
|
|
$
20,553
|
|
|
Deferred
revenues
|
|
147,218
|
|
150,424
|
|
|
Accrued expenses and
other liabilities
|
|
192,608
|
|
212,452
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
364,169
|
|
383,429
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
39,320
|
|
58,341
|
|
|
Other long-term
liabilities
|
|
30,429
|
|
28,087
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
69,749
|
|
86,428
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
1,206,783
|
|
1,191,088
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
1,640,701
|
|
$
1,660,945
|
|
|
|
|
|
|
|
|
NICE SYSTEMS LTD.
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
CONSOLIDATED CASH
FLOW STATEMENTS
|
|
|
|
|
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Year to
date
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(3,708)
|
|
$
16,777
|
|
$
31,059
|
|
$
35,764
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities
|
|
|
|
|
|
|
|
|
Depreciation,
amortization and other
|
22,937
|
|
24,753
|
|
69,307
|
|
72,218
|
|
Stock based
compensation
|
6,732
|
|
4,960
|
|
17,973
|
|
17,711
|
|
Excess tax shortfall
(benefit) from share-based payment arrangements
|
(353)
|
|
122
|
|
(363)
|
|
60
|
|
Net recognized losses
(gains) on investments and derivatives
|
727
|
|
200
|
|
3,524
|
|
(749)
|
|
Gain on sale of
intangible assets
|
-
|
|
-
|
|
-
|
|
(1,125)
|
|
Deferred taxes,
net
|
(5,157)
|
|
(5,972)
|
|
(14,398)
|
|
(19,681)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Trade
Receivables
|
(3,664)
|
|
(8,466)
|
|
(3,669)
|
|
2,453
|
|
|
Other receivables and
prepaid expenses
|
1,392
|
|
(4,801)
|
|
(3,961)
|
|
433
|
|
|
Inventories
|
455
|
|
1,566
|
|
(1,379)
|
|
3,467
|
|
|
Trade
payables
|
(1,425)
|
|
(4,305)
|
|
3,517
|
|
2,834
|
|
|
Accrued expenses and
other current liabilities*
|
(3,302)
|
|
14,039
|
|
(22,036)
|
|
(3,045)
|
|
|
Deferred
revenue*
|
(30,588)
|
|
(28,038)
|
|
(1,763)
|
|
(17,140)
|
|
|
Other long-term
liabilities
|
319
|
|
761
|
|
(87)
|
|
364
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) operating activities
|
(15,635)
|
|
11,596
|
|
77,724
|
|
93,564
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
(7,033)
|
|
(6,786)
|
|
(15,359)
|
|
(20,464)
|
|
Proceeds from sale of
property and equipment
|
19
|
|
3
|
|
23
|
|
1,010
|
|
Purchase of
investments
|
(28,697)
|
|
(66,437)
|
|
(203,578)
|
|
(139,176)
|
|
Proceeds from
investments
|
70,807
|
|
36,534
|
|
198,881
|
|
160,092
|
|
Capitalization of
software development costs
|
(236)
|
|
(386)
|
|
(815)
|
|
(1,141)
|
|
Proceeds from sale of
intangible assets, net
|
-
|
|
-
|
|
-
|
|
1,125
|
|
Payments for
acquisitions, net of cash acquired
|
(21,361)
|
|
-
|
|
(21,361)
|
|
(155,503)
|
|
Proceeds upon the
realization of investment in an affiliate
|
588
|
|
-
|
|
588
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) investing activities
|
14,087
|
|
(37,072)
|
|
(41,621)
|
|
(154,057)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of shares upon exercise of share options and
ESPP
|
12,367
|
|
2,926
|
|
27,387
|
|
25,650
|
|
Purchase of treasury
shares
|
(16,573)
|
|
(28,327)
|
|
(39,565)
|
|
(93,446)
|
|
Dividends
paid
|
(9,693)
|
|
-
|
|
(19,349)
|
|
-
|
|
Excess tax benefit
(shortfall) from share-based payment arrangements
|
353
|
|
(122)
|
|
363
|
|
(60)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used
in financing activities
|
(13,546)
|
|
(25,523)
|
|
(31,164)
|
|
(67,856)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
294
|
|
(446)
|
|
(585)
|
|
(1,244)
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
(14,800)
|
|
(51,445)
|
|
4,354
|
|
(129,593)
|
Cash and cash
equivalents, beginning of period
|
117,750
|
|
126,289
|
|
98,596
|
|
204,437
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$ 102,950
|
|
$
74,844
|
|
$102,950
|
|
$
74,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Certain comparative
figures have been reclassified to conform to the current year
presentation.
|
SOURCE NICE Systems