RA'ANANA, Israel, Nov. 5, 2014 /PRNewswire/ -- NICE Systems
(NASDAQ: NICE) today announced results for the third quarter ended
September 30, 2014.
"We are very pleased with our strong performance for the third
quarter," said Barak Eilam, CEO of
NICE. "These results reflect the initial impact of the plan we
began to execute in the second quarter of this year. This plan
included a focus on improving execution, streamlining the business
and increasing profitability. We have made good progress so far -
organic growth accelerated and profitability improved.
Additionally, analytic applications, which are at the core of our
strategy, continue to perform well.
"We are in the right markets at the right time as demand around
the key drivers of our business, including customer experience,
compliance and regulation and security, continues to be strong from
organizations worldwide. With continued robust demand for our
products and a solid pipeline, we believe we are well positioned
for a strong finish to the year."
Dividend Declaration
The company declared a cash dividend for the third quarter of
2014 of $0.16 per share. The record
date will be November
17th, 2014 and the payment date will be
December 2nd, 2014. Tax
will be withheld at a rate of 15%.
Non-GAAP Financial Highlights for the Third Quarter Ended
September 30:
Revenues: Third quarter 2014 non-GAAP total revenues were
$250.0 million, up 8.6% from
$230.1 million for the third quarter
of 2013.
Gross Profit: Third quarter 2014 non-GAAP gross profit
increased to $162.6 from $151.2 million in the third quarter of 2013.
Non-GAAP gross margin was 65.0% compared to 65.7% in the third
quarter of 2013.
Operating Income: Third quarter 2014 non-GAAP operating
income and non-GAAP operating margin increased to $47.0 million and 18.8%, respectively, from
$42.2 million and 18.4%, respectively
for the third quarter of 2013.
Net Income: Third quarter 2014 non-GAAP net income and
non-GAAP net margin increased to $42.5
million and 17.0%, respectively, from $38.2 million and 16.6%, respectively for the
third quarter of 2013.
Fully Diluted Earnings per Share: Third quarter 2014
non-GAAP fully diluted earnings per share increased 12.9% to
$0.70, compared to $0.62 for the third quarter of 2013.
GAAP Financial Highlights for the Third Quarter Ended
September 30:
Revenues: Third quarter 2014 total revenues increased
8.7% to $249.9 million compared to
$229.9 million for the third quarter
of 2013.
Gross Profit: Third quarter 2014 gross profit and gross
margin increased to $153.9 million
and 61.6%, respectively, compared to $139.3
million and 60.6%, respectively in the third quarter of
2013.
Operating Income: Third quarter 2014 operating income and
operating margin increased to $24.9
million and 10.0%, respectively, compared to $15.8 million and 6.9%, respectively in the third
quarter of 2013.
Net Income: Third quarter 2014 net income and net margin
were $26.9 million and 10.8%,
respectively, compared to a loss of $3.7
million in the third quarter of 2013.
Fully Diluted Earnings per Share: Fully diluted earnings
per share for the third quarter of 2014 were $0.44 compared to fully diluted loss per share of
$0.06 for the third quarter of
2013.
Operating Cash Flow and Cash Balance: Third quarter 2014
operating cash flow was $33.8
million. In the third quarter, $32.4
million was used for share repurchases and $9.4 million for dividends. As of September 30, 2014, total cash and cash
equivalents, and short and long term investments were $449.2 million, with no debt.
Fourth Quarter and Full Year 2014 Guidance:
Fourth Quarter 2014: Fourth quarter 2014 non-GAAP total
revenues are expected to be in a range of $285 million to $300 million. Fourth quarter 2014
non-GAAP fully diluted earnings per share are expected to be in a
range of $0.89 to $1.01
Full Year 2014: Full year 2014 non-GAAP total revenues
are expected to be in a range of $1,003
million to $1,018 million. Full year 2014 non-GAAP fully
diluted earnings per share are expected to be in a range of
$2.73 to $2.85.
Quarterly Results Conference Call
NICE management will host its earnings conference call today,
November 5th, 2014 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 235 027 71. 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 70546353.
Non-GAAP financial measures consist of GAAP financial measures
adjusted to exclude: amortization of acquired intangible assets,
re-organization expenses, restructuring expenses, share-based
compensation, certain business combination accounting entries, tax
settlement and "trapped profits" release one time payment and tax
adjustments 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 Systems (NASDAQ: NICE) is the worldwide leading provider of
software solutions that enable organizations to take the next best
action in order to improve customer experience and business
results, ensure compliance, fight financial crime, and safeguard
people and assets. NICE's solutions empower organizations to
capture, analyze, and apply, in real time, insights from both
structured and unstructured Big Data. This data comes from multiple
sources, including phone calls, mobile apps, emails, chat, social
media, video, and transactions. 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
Yisca Erez, +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 Eilam, 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,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product
|
$ 91,383
|
|
$ 86,127
|
|
$ 256,322
|
|
$260,895
|
|
Services
|
158,558
|
|
143,736
|
|
461,200
|
|
418,170
|
Total
revenue
|
249,941
|
|
229,863
|
|
717,522
|
|
679,065
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Product
|
29,608
|
|
28,642
|
|
87,834
|
|
85,146
|
|
Services
|
66,474
|
|
61,920
|
|
191,980
|
|
177,268
|
Total cost of
revenue
|
96,082
|
|
90,562
|
|
279,814
|
|
262,414
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
153,859
|
|
139,301
|
|
437,708
|
|
416,651
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
Research and
development, net
|
36,929
|
|
34,536
|
|
110,492
|
|
97,597
|
|
Selling and
marketing
|
62,045
|
|
58,277
|
|
186,191
|
|
176,779
|
|
General and
administrative
|
23,224
|
|
22,865
|
|
65,167
|
|
64,466
|
|
Amortization of
acquired intangible assets
|
4,544
|
|
7,591
|
|
16,384
|
|
23,866
|
|
Restructuring
expenses
|
2,176
|
|
211
|
|
5,552
|
|
211
|
Total operating
expenses
|
128,918
|
|
123,480
|
|
383,786
|
|
362,919
|
|
|
|
|
|
|
|
|
|
Operating
income
|
24,941
|
|
15,821
|
|
53,922
|
|
53,732
|
|
|
|
|
|
|
|
|
|
Finance and other
income, net
|
823
|
|
806
|
|
2,125
|
|
3,010
|
|
|
|
|
|
|
|
|
|
Income before taxes
on income
|
25,764
|
|
16,627
|
|
56,047
|
|
56,742
|
Taxes on income (tax
benefit)
|
(1,128)
|
|
20,335
|
|
3,047
|
|
25,683
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ 26,892
|
|
$ (3,708)
|
|
$ 53,000
|
|
$ 31,059
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$ 0.46
|
|
$ (0.06)
|
|
$ 0.89
|
|
$ 0.51
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
$ 0.44
|
|
$ (0.06)
|
|
$ 0.87
|
|
$ 0.50
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
outstanding used to
compute:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
58,939
|
|
60,497
|
|
59,500
|
|
60,413
|
Diluted earnings
(loss) per share
|
60,475
|
|
60,497
|
|
61,012
|
|
61,855
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
GAAP
revenues
|
$249,941
|
|
$229,863
|
|
$717,522
|
|
$679,065
|
Valuation adjustment
on acquired deferred product revenue
|
-
|
|
10
|
|
-
|
|
117
|
Valuation adjustment
on acquired deferred service revenue
|
32
|
|
238
|
|
677
|
|
832
|
Non-GAAP
revenues
|
$249,973
|
|
$230,111
|
|
$718,199
|
|
$680,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of
revenue
|
$ 96,082
|
|
$ 90,562
|
|
$279,814
|
|
$262,414
|
Amortization of
acquired intangible assets on cost of product
|
(7,631)
|
|
(9,403)
|
|
(25,353)
|
|
(28,209)
|
Amortization of
acquired intangible assets on cost of services
|
-
|
|
(977)
|
|
(327)
|
|
(2,947)
|
Valuation adjustment
on acquired deferred cost of services
|
-
|
|
9
|
|
-
|
|
18
|
Cost of product
revenue adjustment (1,2,4)
|
(328)
|
|
(161)
|
|
(525)
|
|
(406)
|
Cost of services
revenue adjustment (1,2,3)
|
(708)
|
|
(1,163)
|
|
(3,750)
|
|
(3,109)
|
Non-GAAP cost
of revenue
|
$ 87,415
|
|
$ 78,867
|
|
$249,859
|
|
$227,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$153,859
|
|
$139,301
|
|
$437,708
|
|
$416,651
|
Gross profit
adjustments
|
8,699
|
|
11,943
|
|
30,632
|
|
35,602
|
Non-GAAP gross
profit
|
$162,558
|
|
$151,244
|
|
$468,340
|
|
$452,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
expenses
|
$128,918
|
|
$123,480
|
|
$383,786
|
|
$362,919
|
Research and
development (1,2,3)
|
(145)
|
|
(860)
|
|
(2,073)
|
|
(1,940)
|
Sales and marketing
(1,2,3)
|
(3,331)
|
|
(2,778)
|
|
(10,574)
|
|
(7,065)
|
General and
administrative (1,2,3)
|
(3,182)
|
|
(1,954)
|
|
(10,391)
|
|
(6,028)
|
Amortization of
acquired intangible assets
|
(4,544)
|
|
(7,591)
|
|
(16,384)
|
|
(23,866)
|
Acquisition related
expenses (4)
|
-
|
|
(1,091)
|
|
(220)
|
|
(1,091)
|
Restructuring
expenses
|
(2,176)
|
|
(211)
|
|
(5,552)
|
|
(211)
|
Non-GAAP operating
expenses
|
$115,540
|
|
$108,995
|
|
$338,592
|
|
$322,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP finance &
other income, net
|
$ 823
|
|
$ 806
|
|
$ 2,125
|
|
$ 3,010
|
Acquisition related
expenses (4)
|
-
|
|
126
|
|
-
|
|
126
|
Amortization of an
investment in affiliate
|
180
|
|
-
|
|
361
|
|
-
|
Non-GAAP finance
& other income, net
|
$ 1,003
|
|
$ 932
|
|
$ 2,486
|
|
$ 3,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP taxes on
income
|
$ (1,128)
|
|
$ 20,335
|
|
$ 3,047
|
|
$ 25,683
|
"Trapped profits" one
time payment and tax settlement
|
-
|
|
(19,189)
|
|
-
|
|
(19,189)
|
Tax adjustments re
non-GAAP adjustments
|
6,672
|
|
3,786
|
|
17,234
|
|
12,850
|
Non-GAAP taxes on
income
|
$ 5,544
|
|
$ 4,932
|
|
$ 20,281
|
|
$ 19,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$ 26,892
|
|
$ (3,708)
|
|
$ 53,000
|
|
$ 31,059
|
Valuation adjustment
on acquired deferred revenue
|
32
|
|
248
|
|
677
|
|
949
|
Valuation adjustment
on acquired deferred cost of services
|
-
|
|
(9)
|
|
-
|
|
(18)
|
Amortization of
acquired intangible assets
|
12,175
|
|
17,971
|
|
42,064
|
|
55,022
|
Share-based
compensation (1)
|
7,694
|
|
6,732
|
|
22,602
|
|
17,974
|
Re-organization
expenses (2)
|
-
|
|
193
|
|
4,711
|
|
553
|
Acquisition related
compensation expense (3)
|
-
|
|
(13)
|
|
-
|
|
17
|
Acquisition related
expenses (4)
|
-
|
|
1,221
|
|
220
|
|
1,221
|
Restructuring
expenses
|
2,176
|
|
211
|
|
5,552
|
|
211
|
Amortization of an
investment in affiliate
|
180
|
|
-
|
|
361
|
|
-
|
Tax settlement and
"trapped profits" release one time payment
|
-
|
|
19,189
|
|
-
|
|
19,189
|
Tax adjustments re
non-GAAP adjustments
|
(6,672)
|
|
(3,786)
|
|
(17,234)
|
|
(12,850)
|
Non-GAAP net
income
|
$ 42,477
|
|
$ 38,249
|
|
$111,953
|
|
$113,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings
(loss) per share
|
$ 0.44
|
|
$ (0.06)
|
|
$ 0.87
|
|
$ 0.50
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per share
|
$ 0.70
|
|
$ 0.62
|
|
$ 1.83
|
|
$ 1.83
|
|
|
|
|
|
|
|
|
|
Shares used in
computing GAAP diluted earnings (loss) per share
|
60,475
|
|
60,497
|
|
61,012
|
|
61,855
|
|
|
|
|
|
|
|
|
|
Shares used in
computing Non-GAAP diluted earnings per share
|
60,475
|
|
61,979
|
|
61,012
|
|
61,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Cost of product
revenue
|
$ (328)
|
|
$ (157)
|
|
$ (525)
|
|
$ (397)
|
|
Cost of service
revenue
|
(708)
|
|
(1,163)
|
|
(3,114)
|
|
(2,986)
|
|
Research and
development
|
(145)
|
|
(876)
|
|
(2,015)
|
|
(1,927)
|
|
Sales and
marketing
|
(3,331)
|
|
(2,593)
|
|
(9,955)
|
|
(6,754)
|
|
General and
administrative
|
(3,182)
|
|
(1,943)
|
|
(6,993)
|
|
(5,910)
|
|
|
$ (7,694)
|
|
$ (6,732)
|
|
$ (22,602)
|
|
$ (17,974)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Re-organization
expenses
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Year to
date
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Cost of product
revenue
|
$ -
|
|
$ -
|
|
$ -
|
|
$ (5)
|
|
Cost of service
revenue
|
-
|
|
-
|
|
(636)
|
|
(123)
|
|
Research and
development
|
-
|
|
-
|
|
(58)
|
|
-
|
|
Sales and
marketing
|
-
|
|
(182)
|
|
(619)
|
|
(307)
|
|
General and
administrative
|
-
|
|
(11)
|
|
(3,398)
|
|
(118)
|
|
|
$ -
|
|
$ (193)
|
|
$ (4,711)
|
|
$ (553)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Acquisition
related compensation expense
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Year to
date
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Research and
development
|
$
-
|
|
$ 16
|
|
$ -
|
|
$ (13)
|
|
Sales and
marketing
|
-
|
|
(3)
|
|
-
|
|
(4)
|
|
|
$
-
|
|
$ 13
|
|
$ -
|
|
$ (17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Acquisition
related expenses
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Year to
date
|
|
|
September
30,
|
|
September
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Cost of product
revenue
|
$ -
|
|
$ (4)
|
|
$ -
|
|
$ (4)
|
|
Research and
development
|
-
|
|
(109)
|
|
-
|
|
(109)
|
|
Sales and
marketing
|
-
|
|
(105)
|
|
(9)
|
|
(105)
|
|
General and
administrative
|
-
|
|
(877)
|
|
(211)
|
|
(877)
|
|
Other expense,
net
|
-
|
|
(126)
|
|
-
|
|
(126)
|
|
|
$ -
|
|
$ (1,221)
|
|
$ (220)
|
|
$ (1,221)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NICE SYSTEMS LTD.
AND SUBSIDIARIES
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
118,937
|
|
$ 119,545
|
|
|
Short-term
investments
|
|
86,760
|
|
82,826
|
|
|
Trade
receivables
|
|
170,565
|
|
189,323
|
|
|
Other receivables and
prepaid expenses
|
|
37,371
|
|
39,849
|
|
|
Inventories
|
|
14,082
|
|
13,448
|
|
|
Deferred tax
assets
|
|
15,784
|
|
15,625
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
443,499
|
|
460,616
|
|
|
|
|
|
|
|
|
LONG-TERM
ASSETS:
|
|
|
|
|
|
|
Long-term
investments
|
|
243,489
|
|
240,782
|
|
|
Other long-term
assets
|
|
36,837
|
|
33,253
|
|
|
Property and
equipment, net
|
|
42,650
|
|
44,343
|
|
|
Other intangible
assets, net
|
|
126,791
|
|
170,125
|
|
|
Goodwill
|
|
700,975
|
|
707,939
|
|
|
|
|
|
|
|
|
|
Total long-term
assets
|
|
1,150,742
|
|
1,196,442
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$ 1,594,241
|
|
$ 1,657,058
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Trade
payables
|
|
$
18,199
|
|
$ 25,962
|
|
|
Deferred revenues and
advances from customers
|
|
165,092
|
|
144,536
|
|
|
Accrued expenses and
other liabilities
|
|
182,963
|
|
213,693
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
366,254
|
|
384,191
|
|
|
|
|
|
|
|
|
LONG-TERM
LIABILITIES:
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
26,018
|
|
37,841
|
|
|
Other long-term
liabilities
|
|
30,008
|
|
30,230
|
|
|
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
56,026
|
|
68,071
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
1,171,961
|
|
1,204,796
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$ 1,594,241
|
|
$ 1,657,058
|
|
|
|
|
|
|
|
|
NICE SYSTEMS LTD.
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
CONSOLIDATED CASH
FLOW STATEMENTS
|
|
|
|
|
|
|
|
U.S. dollars in
thousands
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Year to
date
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ 26,892
|
|
$ (3,708)
|
|
$ 53,000
|
|
$ 31,059
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
17,123
|
|
22,812
|
|
57,203
|
|
69,181
|
|
Stock based
compensation
|
7,691
|
|
6,732
|
|
22,595
|
|
17,973
|
|
Excess tax benefit
from share-based payment arrangements
|
(395)
|
|
(353)
|
|
(683)
|
|
(363)
|
|
Amortization of
premium and discount and accrued interest on marketable
securities*
|
599
|
|
533
|
|
1,616
|
|
3,517
|
|
Deferred taxes,
net
|
(3,346)
|
|
(5,157)
|
|
(13,908)
|
|
(14,398)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Trade
Receivables
|
1,407
|
|
(3,664)
|
|
17,492
|
|
(3,669)
|
|
|
Other receivables and
prepaid expenses
|
652
|
|
1,392
|
|
229
|
|
(3,961)
|
|
|
Inventories
|
1,051
|
|
455
|
|
(908)
|
|
(1,379)
|
|
|
Trade
payables
|
(5,340)
|
|
(1,425)
|
|
(7,587)
|
|
3,517
|
|
|
Accrued expenses and
other current liabilities
|
(1,649)
|
|
(3,302)
|
|
(32,020)
|
|
(22,036)
|
|
|
Deferred
revenue
|
(10,930)
|
|
(30,588)
|
|
21,705
|
|
(1,763)
|
|
Other*
|
7
|
|
638
|
|
(625)
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) operating activities
|
33,762
|
|
(15,635)
|
|
118,109
|
|
77,724
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
(3,795)
|
|
(7,033)
|
|
(12,850)
|
|
(15,359)
|
|
Proceeds from sale of
property and equipment
|
16
|
|
19
|
|
36
|
|
23
|
|
Purchase of
Investments
|
(19,658)
|
|
(28,697)
|
|
(105,241)
|
|
(203,578)
|
|
Proceeds from
Investments
|
23,879
|
|
70,807
|
|
97,367
|
|
198,881
|
|
Capitalization of
software development costs
|
(228)
|
|
(236)
|
|
(704)
|
|
(815)
|
|
Payments for other
investments
|
(5)
|
|
(21,361)
|
|
(906)
|
|
(21,361)
|
|
Proceeds upon the
realization of investment in an affiliate
|
-
|
|
588
|
|
-
|
|
588
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) investing activities
|
209
|
|
14,087
|
|
(22,298)
|
|
(41,621)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of shares upon exercise of share options and
ESPP
|
3,676
|
|
12,367
|
|
15,506
|
|
27,387
|
|
Purchase of treasury
shares
|
(32,399)
|
|
(16,573)
|
|
(81,578)
|
|
(39,565)
|
|
Dividends
paid
|
(9,437)
|
|
(9,693)
|
|
(28,701)
|
|
(19,349)
|
|
Excess tax benefit
from share-based payment arrangements
|
395
|
|
353
|
|
683
|
|
363
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used
in financing activities
|
(37,765)
|
|
(13,546)
|
|
(94,090)
|
|
(31,164)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
(2,900)
|
|
294
|
|
(2,329)
|
|
(585)
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
(6,694)
|
|
(14,800)
|
|
(608)
|
|
4,354
|
Cash and cash
equivalents, beginning of period
|
125,631
|
|
117,750
|
|
119,545
|
|
98,596
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$ 118,937
|
|
$ 102,950
|
|
$ 118,937
|
|
$102,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Certain comparative
figures have been reclassified to conform to the current year
presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE NICE