| [July 28, 2016] |
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Analytics Drive NICE Second Quarter 2016 Growth
NICE (NASDAQ:NICE) today announced results for the second quarter
ended June 30, 2016.
Second Quarter 2016 Financial Highlights
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GAAP
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Non-GAAP
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Revenue growth of 6% year-over-year
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Revenue growth of 9% year-over-year
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Gross margin of 63.9% compared to 65.8% last year
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Gross margin of 70.4% compared to 69.2% last year
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Operating profit of $24 million, down 25% year-over-year
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Operating profit of $57 million, up 18% year-over-year
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Operating margin of 10.3% compared to 14.5% last year
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Operating margin of 24.0% compared to 22.3% last year
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Diluted EPS of $0.42, same as last year
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Diluted EPS of $0.79 versus $0.64 last year, 23% growth
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"We are pleased to report another strong performance for the second
quarter of 2016," said Barak Eilam, CEO. "We reported non-GAAP revenues
of $235 million, which represented an increase of 9% compared to the
second quarter of last year. Excluding the impact of currency exchange
rates, non-GAAP revenue growth was double digit at 10% percent. Revenue
growth combined with operational excellence led to another quarter of
significant growth in non-GAAP earnings per share. Non-GAAP earnings per
share for the second quarter of 2016 increased 23% compared to the same
period last year."
Mr. Eilam continued, "We witnessed a significant acceleration in both
analytics and the cloud. Our analytics solutions continue to be the
driver of overall growth as an increasing number of our customers, both
existing and new, are rapidly applying our analytics to a greater amount
of use cases. In addition since the announcement of the acquisition of
inContact, the cloud contact center market leader, we have received very
positive feedback from customers and partners. We are seeing
acceleration in the number of customer service organizations moving
toward the cloud and the combined NICE and inContact is well positioned
to take the lead on this market shift."
Dividend Declaration
The Company declared a cash dividend for the second quarter of 2016 of
$0.16 per share. The record date will be August 15th, 2016
and the payment date will be August 31st, 2016. Tax will be
withheld at a rate of 15%.
GAAP Financial Highlights for the Second Quarter Ended June 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: Second quarter 2016 total revenues increased 6.0% to
$228.5 million compared to $215.7 million for the second quarter of 2015.
Gross Profit: Second quarter 2016 gross profit and gross margin
were $146.1 million and 63.9%, respectively, compared to $141.8 million
and 65.8%, respectively, for the second quarter of 2015.
Operating Income: Second quarter 2016 operating income and
operating margin were $23.5 million and 10.3%, respectively, compared to
$31.4 million and 14.5%, respectively, for the second quarter of 2015.
Net Income from Continuing Operations: Second quarter 2016 net
income and net margin were $25.4 million and 11.1%, respectively,
compared to $25.7 million and 11.9%, respectively, for the second
quarter of 2015.
Fully Diluted Earnings Per Share from Continuing Operations:
Fully diluted earnings per share for the second quarter of 2016 was
$0.42, same as in the second quarter of 2015.
Operating Cash Flow and Cash Balance: Second quarter 2016
operating cash flow was $30.3 million. In the second quarter, $9.4
million was used for share repurchases and $9.5 million for dividends.
As of June 30, 2016, total cash and cash equivalents, short term
investments and marketable securities were $775.6 million, with no debt.
Non-GAAP Financial Highlights for the Second Quarter Ended June 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: Second quarter 2016 non-GAAP total revenues were $235.4
million, up 9.1% from $215.7 million for the second quarter of 2015.
Gross Profit: Second quarter 2016 non-GAAP gross profit and
non-GAAP gross margin increased to $165.8 million and 70.4%,
respectively, from $149.3 million and 69.2%, respectively, for the
second quarter of 2015.
Operating Income: Second quarter 2016 non-GAAP operating income
and non-GAAP operating margin increased to $56.6 million and 24.0%,
respectively, from $48.1 million and 22.3%, respectively, for the second
quarter of 2015.
Net Income from Continuing Operations: Second quarter 2016
non-GAAP net income and non-GAAP net margin increased to $47.9 million
and 20.4%, respectively, from $39.5 million and 18.3%, respectively, for
the second quarter of 2015.
Fully Diluted Earnings Per Share from Continuing Operations:
Second quarter 2016 non-GAAP fully diluted earnings per share increased
23.4% to $0.79, compared to $0.64 for the second quarter of 2015.
Third Quarter and Full Year 2016 Guidance:
Third Quarter 2016: Third quarter 2016 non-GAAP total revenues
are expected to be in a range of $234 million to $244 million. Third
quarter 2016 non-GAAP fully diluted earnings per share are expected to
be in a range of $0.78 to $0.84.
Full Year 2016: Full year 2016 non-GAAP total revenues were
reiterated to be in a range of $995 million to $1,015 million. The
Company increased its full year 2016 non-GAAP fully diluted earnings per
share to be in a range of $3.48 to $3.58.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, July 28th,
2016 at 8:30 AM EDT, 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 431 812 26. 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 111 439 27.
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, 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 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. 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; and the effect of newly enacted or modified
laws, regulation or standards on the Company and our products. 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
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CONSOLIDATED STATEMENTS OF INCOME
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U.S. dollars in thousands (except per share amounts)
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Quarter ended
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Year to date
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June 30,
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June 30,
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2016
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2015
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2016
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2015
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Unaudited
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Unaudited
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Unaudited
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Unaudited
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Revenue:
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Product
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$ 61,544
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$ 66,637
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$ 126,660
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$139,555
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Services
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166,984
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149,023
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327,835
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292,669
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Total revenue
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228,528
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215,660
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454,495
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432,224
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Cost of revenue:
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Product
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14,237
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15,096
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27,971
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31,511
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Services
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68,201
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58,734
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128,936
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115,450
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Total cost of revenue
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82,438
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73,830
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156,907
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146,961
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Gross profit
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146,090
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141,830
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297,588
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285,263
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Operating Expenses:
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Research and development, net
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34,519
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30,413
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67,040
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60,558
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Selling and marketing
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58,705
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54,883
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114,488
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110,297
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General and administrative
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24,579
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21,746
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47,771
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42,956
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Amortization of acquired intangible assets
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4,750
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3,423
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7,257
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6,877
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Total operating expenses
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122,553
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110,465
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236,556
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220,688
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Operating income
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23,537
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31,365
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61,032
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64,575
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Finance and other income, net
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2,933
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673
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6,697
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2,610
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Income from continuing operations before tax
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26,470
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32,038
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67,729
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67,185
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Taxes on income (tax benefit)
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1,090
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6,379
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7,093
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12,944
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Net income from continuing operations
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25,380
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25,659
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60,636
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54,241
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Discontinued operations
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Gain on disposal and income (loss) from operations of discontinued
operations
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-
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4,590
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(116)
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5,508
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Taxes on income
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-
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992
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-
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1,255
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Net income (loss) from discontinued operations
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-
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3,598
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(116)
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4,253
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Net income
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$ 25,380
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$ 29,257
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$ 60,520
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$ 58,494
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Basic earnings per share from continuing operations
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$ 0.43
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$ 0.43
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$ 1.02
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$ 0.91
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Basic earnings (loss) per share from discontinued operations
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-
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$ 0.06
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$ (0.00)
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$ 0.07
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Basic earnings per share
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$ 0.43
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$ 0.49
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$ 1.02
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$ 0.98
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Diluted earnings per share from continuing operations
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$ 0.42
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$ 0.42
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$ 1.00
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$ 0.88
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Diluted earnings (loss) per share from discontinued operations
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-
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$ 0.06
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$ (0.00)
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$ 0.07
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Diluted earnings per share
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$ 0.42
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$ 0.48
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$ 1.00
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$ 0.95
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Weighted average number of shares
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outstanding used to compute:
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Basic earnings (loss) per share
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59,490
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59,510
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59,461
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59,441
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Diluted earnings (loss) per share
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60,817
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61,408
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60,834
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61,306
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NICE LTD. AND SUBSIDIARIES
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RECONCILIATION OF GAAP TO NON-GAAP RESULTS
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U.S. dollars in thousands (except per share amounts)
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Quarter ended
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Year to date
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June 30,
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June 30,
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2016
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2015
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2016
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2015
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GAAP revenues
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$ 228,528
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$ 215,660
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$ 454,495
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$ 432,224
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Valuation adjustment on acquired deferred product revenue
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1,291
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-
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1,375
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-
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Valuation adjustment on acquired deferred service revenue
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5,593
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54
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5,650
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177
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Non-GAAP revenues
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$ 235,412
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$ 215,714
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$ 461,520
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$ 432,401
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GAAP cost of revenue
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$ 82,438
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$ 73,830
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$ 156,907
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$ 146,961
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Amortization of acquired intangible assets on cost of product
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(7,590)
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(6,839)
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|
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(13,882)
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(13,663)
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Amortization of acquired intangible assets on cost of services
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(3,472)
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-
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(3,472)
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-
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Cost of product revenue adjustment (1)
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(69)
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(138)
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(190)
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(271)
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Cost of services revenue adjustment (1,2)
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(1,727)
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(450)
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(3,331)
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(1,249)
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Non-GAAP cost of revenue
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$ 69,580
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$ 66,403
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$ 136,032
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$ 131,778
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GAAP gross profit
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$ 146,090
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$ 141,830
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$ 297,588
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|
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$ 285,263
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Gross profit adjustments
|
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19,742
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|
7,481
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|
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|
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27,900
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|
|
15,360
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Non-GAAP gross profit
|
|
$ 165,832
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|
|
$ 149,311
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|
|
|
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$ 325,488
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|
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$ 300,623
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|
|
|
|
|
|
GAAP operating expenses
|
|
$ 122,553
|
|
|
$ 110,465
|
|
|
|
|
$ 236,556
|
|
|
$ 220,688
|
|
Research and development (1,2,3)
|
|
(1,097)
|
|
|
(319)
|
|
|
|
|
(3,078)
|
|
|
(816)
|
|
Sales and marketing (1,2,3)
|
|
(3,724)
|
|
|
(2,379)
|
|
|
|
|
(7,070)
|
|
|
(5,004)
|
|
General and administrative (1,2,3)
|
|
(3,743)
|
|
|
(2,745)
|
|
|
|
|
(8,093)
|
|
|
(5,567)
|
|
Amortization of acquired intangible assets
|
|
(4,750)
|
|
|
(3,423)
|
|
|
|
|
(7,257)
|
|
|
(6,877)
|
|
Settlement and related expenses
|
|
-
|
|
|
(390)
|
|
|
|
|
-
|
|
|
(390)
|
|
Non-GAAP operating expenses
|
|
$ 109,239
|
|
|
$ 101,209
|
|
|
|
|
$ 211,058
|
|
|
$ 202,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP taxes on income
|
|
$ 1,090
|
|
|
$ 6,379
|
|
|
|
|
$ 7,093
|
|
|
$ 12,944
|
|
Tax adjustments re non-GAAP adjustments
|
|
10,516
|
|
|
2,888
|
|
|
|
|
16,525
|
|
|
6,408
|
|
Non-GAAP taxes on income
|
|
$ 11,606
|
|
|
$ 9,267
|
|
|
|
|
$ 23,618
|
|
|
$ 19,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) from continuing operations
|
|
$ 25,380
|
|
|
$ 25,659
|
|
|
|
|
$ 60,636
|
|
|
$ 54,241
|
|
Valuation adjustment on acquired deferred revenue
|
|
6,884
|
|
|
54
|
|
|
|
|
7,025
|
|
|
177
|
|
Amortization of acquired intangible assets
|
|
15,812
|
|
|
10,262
|
|
|
|
|
24,611
|
|
|
20,540
|
|
Share-based compensation (1)
|
|
9,896
|
|
|
6,031
|
|
|
|
|
16,256
|
|
|
12,907
|
|
Re-organization expenses (2)
|
|
464
|
|
|
-
|
|
|
|
|
1,770
|
|
|
-
|
|
Acquisition related expenses (3)
|
|
-
|
|
|
-
|
|
|
|
|
3,736
|
|
|
-
|
|
Settlement and related expenses
|
|
-
|
|
|
390
|
|
|
|
|
-
|
|
|
390
|
|
Tax adjustments re non-GAAP adjustments
|
|
(10,516)
|
|
|
(2,888)
|
|
|
|
|
(16,525)
|
|
|
(6,408)
|
|
Non-GAAP net income (loss) from continuing operations
|
|
$ 47,920
|
|
|
$ 39,508
|
|
|
|
|
$ 97,509
|
|
|
$ 81,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings (loss) per share from continuing operations
|
|
$ 0.42
|
|
|
$ 0.42
|
|
|
|
|
$ 1.00
|
|
|
$ 0.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted earnings per share from continuing operations
|
|
$ 0.79
|
|
|
$ 0.64
|
|
|
|
|
$ 1.60
|
|
|
$ 1.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing GAAP diluted earnings (loss) per share
|
|
60,817
|
|
|
61,408
|
|
|
|
|
60,834
|
|
|
61,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing Non-GAAP diluted earnings per share
|
|
60,817
|
|
|
61,408
|
|
|
|
|
60,834
|
|
|
61,306
|
|
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
|
|
|
|
|
June 30,
|
|
|
|
|
June 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
2016
|
|
|
2015
|
|
|
Cost of product revenue
|
|
$ (69)
|
|
|
$ (138)
|
|
|
|
|
$ (190)
|
|
|
$ (271)
|
|
|
Cost of service revenue
|
|
(1,680)
|
|
|
(450)
|
|
|
|
|
(3,086)
|
|
|
(1,249)
|
|
|
Research and development
|
|
(1,302)
|
|
|
(319)
|
|
|
|
|
(2,158)
|
|
|
(816)
|
|
|
Sales and marketing
|
|
(3,574)
|
|
|
(2,379)
|
|
|
|
|
(6,433)
|
|
|
(5,004)
|
|
|
General and administrative
|
|
(3,271)
|
|
|
(2,745)
|
|
|
|
|
(4,389)
|
|
|
(5,567)
|
|
|
|
|
$ (9,896)
|
|
|
$ (6,031)
|
|
|
|
|
$ (16,256)
|
|
|
$ (12,907)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Re-organization expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Year to date
|
|
|
|
|
June 30,
|
|
|
|
|
June 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
2016
|
|
|
2015
|
|
|
Cost of service revenue
|
|
$ (47)
|
|
|
$ -
|
|
|
|
|
$ (245)
|
|
|
$ -
|
|
|
Research and development
|
|
205
|
|
|
-
|
|
|
|
|
(896)
|
|
|
-
|
|
|
Sales and marketing
|
|
(150)
|
|
|
-
|
|
|
|
|
(150)
|
|
|
-
|
|
|
General and administrative
|
|
(472)
|
|
|
-
|
|
|
|
|
(479)
|
|
|
-
|
|
|
|
|
$ (464)
|
|
|
$ -
|
|
|
|
|
$ (1,770)
|
|
|
$ -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Acquisition related expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Year to date
|
|
|
|
|
June 30,
|
|
|
|
|
June 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
2016
|
|
|
2015
|
|
|
Research and development
|
|
$ -
|
|
|
$ -
|
|
|
|
|
$ (24)
|
|
|
$ -
|
|
|
Sales and marketing
|
|
-
|
|
|
-
|
|
|
|
|
(487)
|
|
|
-
|
|
|
General and administrative
|
|
-
|
|
|
-
|
|
|
|
|
(3,225)
|
|
|
-
|
|
|
|
|
$ -
|
|
|
$ -
|
|
|
|
|
$ (3,736)
|
|
|
$ -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Certain comparative figures have been reclassified to conform to
the current year presentation.
|
|
NICE LTD. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
December 31,
|
|
|
|
|
|
2016
|
|
|
|
|
2015
|
|
|
|
|
|
Unaudited
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$ 301,007
|
|
|
|
|
$ 325,931
|
|
|
Short-term investments
|
|
|
88,521
|
|
|
|
|
99,195
|
|
|
Trade receivables
|
|
|
136,813
|
|
|
|
|
177,323
|
|
|
Prepaid expenses and other current assets
|
|
|
58,876
|
|
|
|
|
43,561
|
|
|
Current assets of discontinued operations
|
|
|
2,073
|
|
|
|
|
9,142
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
587,290
|
|
|
|
|
655,152
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM ASSETS:
|
|
|
|
|
|
|
|
|
|
|
Long-term investments
|
|
|
386,115
|
|
|
|
|
403,249
|
|
|
Other long-term assets
|
|
|
16,843
|
|
|
|
|
17,175
|
|
|
Property and equipment, net
|
|
|
44,515
|
|
|
|
|
39,213
|
|
|
Deferred tax assets
|
|
|
16,490
|
|
|
|
|
14,130
|
|
|
Other intangible assets, net
|
|
|
119,295
|
|
|
|
|
69,582
|
|
|
Goodwill
|
|
|
734,074
|
|
|
|
|
651,112
|
|
|
Long-term assets of discontinued operations
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term assets
|
|
|
1,317,332
|
|
|
|
|
1,194,461
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
$ 1,904,622
|
|
|
|
|
$ 1,849,613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
|
$ 19,337
|
|
|
|
|
$ 11,719
|
|
|
Deferred revenues and advances from customers
|
|
|
191,535
|
|
|
|
|
151,345
|
|
|
Accrued expenses and other liabilities
|
|
|
200,824
|
|
|
|
|
223,255
|
|
|
Current liabilities of discontinued operations
|
|
|
6,444
|
|
|
|
|
12,744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
418,140
|
|
|
|
|
399,063
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
14,889
|
|
|
|
|
15,040
|
|
|
Other long-term liabilities
|
|
|
18,118
|
|
|
|
|
17,952
|
|
|
Long-term liabilities of discontinued operations
|
|
|
2,409
|
|
|
|
|
2,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
35,416
|
|
|
|
|
35,401
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
1,451,066
|
|
|
|
|
1,415,149
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
$ 1,904,622
|
|
|
|
|
$ 1,849,613
|
|
NICE LTD. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CASH FLOW STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
|
|
|
|
|
Year to date
|
|
|
|
|
|
June 30,
|
|
|
|
|
June 30,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
Unaudited
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 25,380
|
|
|
$ 29,257
|
|
|
|
|
$ 60,520
|
|
|
$ 58,494
|
|
|
|
Less loss (income) for the period from discontinued operation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
20,484
|
|
|
15,255
|
|
|
|
|
33,400
|
|
|
30,331
|
|
|
Stock based compensation
|
|
9,826
|
|
|
6,063
|
|
|
|
|
16,257
|
|
|
13,275
|
|
|
Excess tax benefit from share-based payment arrangements
|
|
533
|
|
|
(1,376)
|
|
|
|
|
(1,148)
|
|
|
(2,014)
|
|
|
Amortization of premium and discount and accrued interest on
marketable securities
|
|
672
|
|
|
567
|
|
|
|
|
1,641
|
|
|
1,213
|
|
|
Deferred taxes, net
|
|
(9,111)
|
|
|
(2,888)
|
|
|
|
|
(12,697)
|
|
|
(6,408)
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade Receivables
|
|
14,801
|
|
|
(17,872)
|
|
|
|
|
54,369
|
|
|
18,448
|
|
|
|
Prepaid expenses and other current assets
|
|
(8,268)
|
|
|
978
|
|
|
|
|
4,768
|
|
|
(2,477)
|
|
|
|
Trade payables
|
|
4,428
|
|
|
6,651
|
|
|
|
|
5,289
|
|
|
7,791
|
|
|
|
Accrued expenses and other current liabilities
|
|
(21,724)
|
|
|
14,239
|
|
|
|
|
(48,438)
|
|
|
(12,608)
|
|
|
|
Deferred revenue
|
|
(5,833)
|
|
|
3,580
|
|
|
|
|
29,855
|
|
|
52,506
|
|
|
Other
|
|
(935)
|
|
|
2,562
|
|
|
|
|
(744)
|
|
|
2,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
30,253
|
|
|
57,016
|
|
|
|
|
143,072
|
|
|
161,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
(4,084)
|
|
|
(4,741)
|
|
|
|
|
(11,143)
|
|
|
(7,960)
|
|
|
Purchase of Investments
|
|
(19,269)
|
|
|
(38,164)
|
|
|
|
|
(47,221)
|
|
|
(124,147)
|
|
|
Proceeds from Investments
|
|
41,360
|
|
|
11,560
|
|
|
|
|
80,478
|
|
|
42,542
|
|
|
Capitalization of software development costs
|
|
(1,697)
|
|
|
(212)
|
|
|
|
|
(2,758)
|
|
|
(212)
|
|
|
Payments for business acquisitions, net of cash acquired
|
|
(872)
|
|
|
(1,500)
|
|
|
|
|
(151,325)
|
|
|
(1,500)
|
|
|
|
Net cash provided by (used in) investing activities
|
|
15,438
|
|
|
(33,057)
|
|
|
|
|
(131,969)
|
|
|
(91,277)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of shares upon exercise of share options and
ESPP
|
|
5,655
|
|
|
8,118
|
|
|
|
|
13,169
|
|
|
17,133
|
|
|
Purchase of treasury shares
|
|
(9,420)
|
|
|
(12,096)
|
|
|
|
|
(32,093)
|
|
|
(18,384)
|
|
|
Dividends paid
|
|
(9,519)
|
|
|
(9,528)
|
|
|
|
|
(19,036)
|
|
|
(19,114)
|
|
|
Excess tax benefit from share-based payment arrangements
|
|
(533)
|
|
|
1,376
|
|
|
|
|
1,148
|
|
|
2,014
|
|
|
Earnout payments related to acquisitions
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
(262)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
(13,817)
|
|
|
(12,130)
|
|
|
|
|
(36,812)
|
|
|
(18,613)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rates on cash and cash equivalents
|
|
(580)
|
|
|
1,972
|
|
|
|
|
785
|
|
|
(2,465)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
31,294
|
|
|
13,801
|
|
|
|
|
(24,924)
|
|
|
48,795
|
|
Cash and cash equivalents, beginning of period
|
|
269,713
|
|
|
222,491
|
|
|
|
|
325,931
|
|
|
187,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
$ 301,007
|
|
|
$ 236,292
|
|
|
|
|
$ 301,007
|
|
|
$236,292
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160728005619/en/
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