Exhibit 99.1
NICE Reports 36% Growth in Revenue for the Second Quarter 2017 and
Raises Guidance on Continued Business Momentum
Strong Growth in Both Cloud and Product Revenue
Hoboken, New Jersey, August 3, 2017 - NICE (NASDAQ: NICE) today announced results for the second quarter 2017 ended June 30, 2017.
Second Quarter 2017 Financial Highlights
|
GAAP
|
Non-GAAP
|
|
Revenue growth of 36% year-over-year
|
Revenue growth of 34% year-over-year
|
|
Gross profit increased 35% year-over-year to $198 million
|
Gross profit increased 34% year-over-year to $222 million
|
|
Gross margin of 63.5% compared to 63.9% last year
|
Gross margin of 70.5% compared to 70.4% last year
|
|
Operating income of $26 million, up 10% year-over-year
|
Operating income of $72 million, up 27% year-over-year
|
|
Effective tax rate was 8.9% compared to 4.1% last year
|
Effective tax rate was 20.8% compared to 19.5% last year
|
|
Diluted EPS from continuing operations of $0.33 versus $0.42 last year
|
Diluted EPS from continuing operations of $0.90 versus $0.79 last year
|
|
Cash flow from operations increased 131% year-over-year to $69 million
|
“Our financial performance over the past few years has been highlighted by consistent growth and improvement in profitability, and Q2 added to that momentum with another strong result on both the top and bottom lines. We were also pleased to see significant growth in cloud revenue along with an increase in profitability. Furthermore, our solid execution translated to over 200 million dollars in net cash flow from operations for the first half of 2017,” said Barak Eilam, CEO of NICE. “The foundation of our strength has been our ability to fully execute on the strategic plans we put in place during this period.
“These strategic plans have led to the development of our four strategic pillars of cloud, omni-channel, analytics and artificial intelligence, which are the underpinning of our growth opportunities going forward. These four pillars are also the basis for our new CXone platform, which represents a giant leap forward for NICE and our industry. CXone, which is a unified, true open cloud foundation, along with a developing ecosystem of customers and partners to build and develop world class customer experience solutions, represents a substantial competitive differentiation for NICE, and exemplifies our expanding market leadership.”
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 2017 and 2016.
Revenues: Second quarter 2017 total revenues increased 36.3% to $311.5 million compared to $228.5 million for the second quarter of 2016.
Gross Profit: Second quarter 2017 gross profit increased to $197.9 million compared to $146.1 million for the second quarter of 2016, and gross margin was 63.5% compared to 63.9% for the second quarter of 2016.
Operating Income: Second quarter 2017 operating income increased to $25.8 million compared to $23.5 million for the second quarter of 2016, and operating margin was 8.3% compared to 10.3% for the second quarter of 2016.
Net Income from Continuing Operations: Second quarter 2017 net income and net margin were $20.4 million and 6.6%, respectively, compared to $25.4 million and 11.1%, respectively, for the second quarter of 2016.
Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the second quarter of 2017 were $0.33, compared to $0.42 in the second quarter of 2016.
Operating Cash Flow and Cash Balance: Second quarter 2017 operating cash flow was $68.7 million. In the second quarter, $7.6 million was used for share repurchases. As of June 30, 2017, total cash and cash equivalents, short term investments and marketable securities were $439.9 million, and total debt was $443.5 million net of issuance costs and the equity component associated with our convertible 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 2017 and 2016.
Revenues: Second quarter 2017 non-GAAP total revenues were $315.3 million, up 33.9% from $235.4 million for the second quarter of 2016.
Gross Profit: Second quarter 2017 non-GAAP gross profit increased to $222.3 million compared to $165.8 million for the second quarter of 2016, and non-GAAP gross margin increased to 70.5%, compared to 70.4% for the second quarter of 2016.
Operating Income: Second quarter 2017 non-GAAP operating income increased to $72.0 million compared to $56.6 million for the second quarter of 2016, and non-GAAP operating margin was 22.8% compared to 24.0% for the second quarter of 2016.
Net Income from Continuing Operations: Second quarter 2017 non-GAAP net income increased to $56.0 million compared to $47.9 million for the second quarter of 2016, and non-GAAP net income margin was 17.8% compared to 20.4% for the second quarter of 2016.
Fully Diluted Earnings Per Share from Continuing Operations: Second quarter 2017 non-GAAP fully diluted earnings per share increased 13.9% to $0.90, compared to $0.79 for the second quarter of 2016.
Third Quarter and Full Year 2017 Guidance:
Third Quarter 2017: Third quarter 2017 non-GAAP total revenues are expected to be in a range of $315 million to $325 million. Third quarter 2017 non-GAAP fully diluted earnings per share are expected to be in a range of $0.89 to $0.95.
Full Year 2017: Full year 2017 non-GAAP total revenues are expected to be in the range of $1,330 million to $1,354 million. Full year 2017 non-GAAP fully diluted earnings per share is increased to an expected range of $3.90 to $4.10.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, August 3rd, 2017 at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial in to the following numbers: United States 1-866-804-8688 or +1-718-354-1175, International +44(0)1296-480-100, United Kingdom 0-800-783-0906, Israel 1-809-344-364. The Passcode is 372 736 22. 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 811 001 49.
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, amortization of discount on long term debt and tax adjustment re non-GAAP adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income.
About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.
Investors
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Yisca Erez, +972 9 775-3798, ir@nice.com, CET
Media Contact
Ilana Hart, +972 9 775-3818, ilana.hart@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 we will not be able to successfully execute on the Company’s cloud business strategy and generate profitability. 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.
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 we will not be able to successfully execute on the Company’s cloud business strategy and generate profitability. 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
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
Revenue:
|
||||||||||||||||
|
Product
|
$
|
68,736
|
$
|
61,544
|
$
|
137,193
|
$
|
126,660
|
||||||||
|
Services
|
158,236
|
154,359
|
316,652
|
303,697
|
||||||||||||
|
Cloud
|
84,568
|
12,625
|
163,317
|
24,138
|
||||||||||||
|
Total revenue
|
311,540
|
228,528
|
617,162
|
454,495
|
||||||||||||
|
Cost of revenue:
|
||||||||||||||||
|
Product
|
13,513
|
14,237
|
26,724
|
27,971
|
||||||||||||
|
Services
|
54,558
|
63,265
|
113,274
|
120,290
|
||||||||||||
|
Cloud
|
45,533
|
4,936
|
89,340
|
8,646
|
||||||||||||
|
Total cost of revenue
|
113,604
|
82,438
|
229,338
|
156,907
|
||||||||||||
|
Gross profit
|
197,936
|
146,090
|
387,824
|
297,588
|
||||||||||||
|
Operating Expenses:
|
||||||||||||||||
|
Research and development, net
|
42,886
|
34,519
|
85,840
|
67,040
|
||||||||||||
|
Selling and marketing
|
87,694
|
58,705
|
166,895
|
114,488
|
||||||||||||
|
General and administrative
|
31,334
|
24,579
|
60,561
|
47,771
|
||||||||||||
|
Amortization of acquired intangible assets
|
10,188
|
4,750
|
20,753
|
7,257
|
||||||||||||
|
Total operating expenses
|
172,102
|
122,553
|
334,049
|
236,556
|
||||||||||||
|
Operating income
|
25,834
|
23,537
|
53,775
|
61,032
|
||||||||||||
|
Finance and other income (expense), net
|
(3,388
|
)
|
2,933
|
(12,378
|
)
|
6,697
|
||||||||||
|
Income from continuing operations before tax
|
22,446
|
26,470
|
41,397
|
67,729
|
||||||||||||
|
Taxes on income
|
2,005
|
1,090
|
3,667
|
7,093
|
||||||||||||
|
Net income from continuing operations
|
20,441
|
25,380
|
37,730
|
60,636
|
||||||||||||
|
Discontinued operations
|
||||||||||||||||
|
Loss from discontinued operations
|
-
|
-
|
-
|
(116
|
)
|
|||||||||||
|
Taxes on income
|
-
|
-
|
-
|
-
|
||||||||||||
|
Net loss from discontinued operations
|
-
|
-
|
-
|
(116
|
)
|
|||||||||||
|
Net income
|
$
|
20,441
|
$
|
25,380
|
$
|
37,730
|
$
|
60,520
|
||||||||
|
Basic earnings per share from continuing operations
|
$
|
0.34
|
$
|
0.43
|
$
|
0.63
|
$
|
1.02
|
||||||||
|
Basic earnings (loss) per share from discontinued operations
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(0.00
|
)
|
|||||||
|
Basic earnings per share
|
$
|
0.34
|
$
|
0.43
|
$
|
0.63
|
$
|
1.02
|
||||||||
|
Diluted earnings per share from continuing operations
|
$
|
0.33
|
$
|
0.42
|
$
|
0.61
|
$
|
1.00
|
||||||||
|
Diluted earnings (loss) per share from discontinued operations
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(0.00
|
)
|
|||||||
|
Diluted earnings per share
|
$
|
0.33
|
$
|
0.42
|
$
|
0.61
|
$
|
1.00
|
||||||||
|
Weighted average number of shares
|
||||||||||||||||
|
outstanding used to compute:
|
||||||||||||||||
|
Basic earnings (loss) per share
|
60,277
|
59,490
|
60,203
|
59,461
|
||||||||||||
|
Diluted earnings (loss) per share
|
61,962
|
60,817
|
61,857
|
60,834
|
||||||||||||
|
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
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||
|
GAAP revenues
|
$
|
311,540
|
$
|
228,528
|
$
|
617,162
|
$
|
454,495
|
||||||||
|
Valuation adjustment on acquired deferred product revenue
|
46
|
1,291
|
265
|
1,375
|
||||||||||||
|
Valuation adjustment on acquired deferred service revenue
|
2,094
|
2,375
|
3,091
|
2,432
|
||||||||||||
|
Valuation adjustment on acquired deferred cloud revenue
|
1,648
|
3,218
|
2,859
|
3,218
|
||||||||||||
|
Non-GAAP revenues
|
$
|
315,328
|
$
|
235,412
|
$
|
623,377
|
$
|
461,520
|
||||||||
|
GAAP cost of revenue
|
$
|
113,604
|
$
|
82,438
|
$
|
229,338
|
$
|
156,907
|
||||||||
|
Amortization of acquired intangible assets on cost of product
|
(6,056
|
)
|
(7,590
|
)
|
(12,414
|
)
|
(13,882
|
)
|
||||||||
|
Amortization of acquired intangible assets on cost of services
|
(1,159
|
)
|
(3,472
|
)
|
(4,367
|
)
|
(3,472
|
)
|
||||||||
|
Amortization of acquired intangible assets on cost of cloud
|
(10,975
|
)
|
-
|
(21,950
|
)
|
-
|
||||||||||
|
Valuation adjustment on acquired deferred cost of services
|
331
|
-
|
762
|
-
|
||||||||||||
|
Cost of product revenue adjustment (1)
|
(161
|
)
|
(69
|
)
|
(336
|
)
|
(190
|
)
|
||||||||
|
Cost of services revenue adjustment (1,2)
|
(1,847
|
)
|
(1,666
|
)
|
(3,722
|
)
|
(3,208
|
)
|
||||||||
|
Cost of cloud revenue adjustment (1,2)
|
(714
|
)
|
(61
|
)
|
(1,483
|
)
|
(123
|
)
|
||||||||
|
Non-GAAP cost of revenue
|
$
|
93,023
|
$
|
69,580
|
$
|
185,828
|
$
|
136,032
|
||||||||
|
GAAP gross profit
|
$
|
197,936
|
$
|
146,090
|
$
|
387,824
|
$
|
297,588
|
||||||||
|
Gross profit adjustments
|
24,369
|
19,742
|
49,725
|
27,900
|
||||||||||||
|
Non-GAAP gross profit
|
$
|
222,305
|
$
|
165,832
|
$
|
437,549
|
$
|
325,488
|
||||||||
|
GAAP operating expenses
|
$
|
172,102
|
$
|
122,553
|
$
|
334,049
|
$
|
236,556
|
||||||||
|
Research and development (1,2,3)
|
(2,236
|
)
|
(1,097
|
)
|
(4,447
|
)
|
(3,078
|
)
|
||||||||
|
Sales and marketing (1,2,3)
|
(5,863
|
)
|
(3,724
|
)
|
(11,509
|
)
|
(7,070
|
)
|
||||||||
|
General and administrative (1,2,3)
|
(3,501
|
)
|
(3,743
|
)
|
(5,387
|
)
|
(8,093
|
)
|
||||||||
|
Amortization of acquired intangible assets
|
(10,188
|
)
|
(4,750
|
)
|
(20,753
|
)
|
(7,257
|
)
|
||||||||
|
Non-GAAP operating expenses
|
$
|
150,314
|
$
|
109,239
|
$
|
291,953
|
$
|
211,058
|
||||||||
|
GAAP finance & other income (expense), net
|
$
|
(3,388
|
)
|
$
|
2,933
|
$
|
(12,378
|
)
|
$
|
6,697
|
||||||
|
Amortization of discount on long term debt
|
2,094
|
-
|
9,259
|
-
|
||||||||||||
|
Non-GAAP finance & other income (expense), net
|
$
|
(1,294
|
)
|
$
|
2,933
|
$
|
(3,119
|
)
|
$
|
6,697
|
||||||
|
GAAP taxes on income
|
$
|
2,005
|
$
|
1,090
|
$
|
3,667
|
$
|
7,093
|
||||||||
|
Tax adjustments re non-GAAP adjustments
|
12,696
|
10,516
|
27,687
|
16,525
|
||||||||||||
|
Non-GAAP taxes on income
|
$
|
14,701
|
$
|
11,606
|
$
|
31,354
|
$
|
23,618
|
||||||||
|
GAAP net income
|
$
|
20,441
|
$
|
25,380
|
$
|
37,730
|
$
|
60,636
|
||||||||
|
Valuation adjustment on acquired deferred revenue
|
3,788
|
6,884
|
6,215
|
7,025
|
||||||||||||
|
Valuation adjustment on acquired deferred cost of service of revenue
|
(331
|
)
|
-
|
(762
|
)
|
-
|
||||||||||
|
Amortization of acquired intangible assets
|
28,378
|
15,812
|
59,484
|
24,611
|
||||||||||||
|
Share-based compensation (1)
|
14,322
|
9,896
|
26,884
|
16,256
|
||||||||||||
|
Re-organization expenses (2)
|
-
|
464
|
-
|
1,770
|
||||||||||||
|
Acquisition related expenses (3)
|
-
|
-
|
-
|
3,736
|
||||||||||||
|
Amortization of discount on long term debt
|
2,094
|
-
|
9,259
|
-
|
||||||||||||
|
Tax adjustments re non-GAAP adjustments
|
(12,696
|
)
|
(10,516
|
)
|
(27,687
|
)
|
(16,525
|
)
|
||||||||
|
Non-GAAP net income
|
$
|
55,996
|
$
|
47,920
|
$
|
111,123
|
$
|
97,509
|
||||||||
|
GAAP diluted earnings per share
|
$
|
0.33
|
$
|
0.42
|
$
|
0.61
|
$
|
1.00
|
||||||||
|
Non-GAAP diluted earnings per share
|
$
|
0.90
|
$
|
0.79
|
$
|
1.80
|
$
|
1.60
|
||||||||
|
Shares used in computing GAAP diluted earnings per share
|
61,962
|
60,817
|
61,857
|
60,834
|
||||||||||||
|
Shares used in computing Non-GAAP diluted earnings per share
|
61,962
|
60,817
|
61,857
|
60,834
|
||||||||||||
|
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
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||
|
Cost of product revenue
|
$
|
(161
|
)
|
$
|
(69
|
)
|
$
|
(336
|
)
|
$
|
(190
|
)
|
||||
|
Cost of service revenue
|
(1,847
|
)
|
(1,595
|
)
|
(3,722
|
)
|
(2,939
|
)
|
||||||||
|
Cost of cloud revenue
|
(714
|
)
|
(85
|
)
|
(1,483
|
)
|
(147
|
)
|
||||||||
|
Research and development
|
(2,236
|
)
|
(1,302
|
)
|
(4,447
|
)
|
(2,158
|
)
|
||||||||
|
Sales and marketing
|
(5,863
|
)
|
(3,574
|
)
|
(11,509
|
)
|
(6,433
|
)
|
||||||||
|
General and administrative
|
(3,501
|
)
|
(3,271
|
)
|
(5,387
|
)
|
(4,389
|
)
|
||||||||
|
$
|
(14,322
|
)
|
$
|
(9,896
|
)
|
$
|
(26,884
|
)
|
$
|
(16,256
|
)
|
|||||
|
(2)
|
Re-organization expenses
|
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||
|
Cost of service revenue
|
$
|
-
|
$
|
(71
|
)
|
$
|
-
|
$
|
(269
|
)
|
||||||
|
Cost of cloud revenue
|
-
|
24
|
-
|
24
|
||||||||||||
|
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,
|
|||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||
|
Research and development
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(24
|
)
|
|||||||
|
Sales and marketing
|
-
|
-
|
-
|
(487
|
)
|
|||||||||||
|
General and administrative
|
-
|
-
|
-
|
(3,225
|
)
|
|||||||||||
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(3,736
|
)
|
||||||||
|
NICE LTD. AND SUBSIDIARIES
|
||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||
|
U.S. dollars in thousands
|
|
June 30,
|
December 31,
|
|||||||
|
2017
|
2016
|
|||||||
|
Unaudited
|
Unaudited
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
304,622
|
$
|
157,026
|
||||
|
Short-term investments
|
55,556
|
30,287
|
||||||
|
Trade receivables
|
200,963
|
260,220
|
||||||
|
Prepaid expenses and other current assets
|
72,117
|
57,966
|
||||||
|
Current assets of discontinued operations
|
2,569
|
3,734
|
||||||
|
Total current assets
|
635,827
|
509,233
|
||||||
|
LONG-TERM ASSETS:
|
||||||||
|
Long-term investments
|
79,741
|
98,726
|
||||||
|
Property and equipment, net
|
108,325
|
87,678
|
||||||
|
Deferred tax assets
|
14,841
|
14,093
|
||||||
|
Other intangible assets, net
|
559,619
|
618,735
|
||||||
|
Goodwill
|
1,288,718
|
1,284,710
|
||||||
|
Other long-term assets
|
20,710
|
18,701
|
||||||
|
Total long-term assets
|
2,071,954
|
2,122,643
|
||||||
|
TOTAL ASSETS
|
$
|
2,707,781
|
$
|
2,631,876
|
||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Current maturities of long term loan
|
$
|
-
|
$
|
21,164
|
||||
|
Trade payables
|
18,750
|
25,634
|
||||||
|
Current portion of deferred revenues and advances from customers
|
202,608
|
149,801
|
||||||
|
Accrued expenses and other liabilities
|
243,813
|
273,134
|
||||||
|
Current liabilities of discontinued operations
|
647
|
3,077
|
||||||
|
Total current liabilities
|
465,818
|
472,810
|
||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Deferred revenues and advances from customers
|
35,645
|
22,710
|
||||||
|
Deferred tax liabilities
|
116,331
|
146,952
|
||||||
|
Long-term debt
|
443,516
|
444,016
|
||||||
|
Other long-term liabilities
|
34,106
|
34,056
|
||||||
|
Total long-term liabilities
|
629,598
|
647,734
|
||||||
|
SHAREHOLDERS' EQUITY
|
1,612,365
|
1,511,332
|
||||||
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
2,707,781
|
$
|
2,631,876
|
||||
|
NICE LTD. AND SUBSIDIARIES
|
|||||||
|
CONSOLIDATED CASH FLOW STATEMENTS
|
|||||||
|
U.S. dollars in thousands
|
|
Quarter ended
|
Year to date
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||
|
Unaudited
|
Unaudited
|
Unaudited
|
Unaudited
|
|||||||||||||
|
Operating Activities
|
||||||||||||||||
|
Net income
|
$
|
20,441
|
$
|
25,380
|
$
|
37,730
|
$
|
60,520
|
||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities
|
||||||||||||||||
|
Depreciation and amortization
|
37,013
|
20,484
|
76,156
|
33,400
|
||||||||||||
|
Stock based compensation
|
14,322
|
9,826
|
26,884
|
16,257
|
||||||||||||
|
Amortization of premium and discount and accrued interest on marketable securities
|
(39
|
)
|
672
|
151
|
1,641
|
|||||||||||
|
Deferred taxes, net
|
(9,871
|
)
|
(9,111
|
)
|
(21,542
|
)
|
(12,697
|
)
|
||||||||
|
Changes in operating assets and liabilities:
|
||||||||||||||||
|
Trade Receivables
|
5,581
|
14,801
|
61,880
|
54,369
|
||||||||||||
|
Prepaid expenses and other current assets
|
(1,200
|
)
|
(8,268
|
)
|
(7,987
|
)
|
4,768
|
|||||||||
|
Trade payables
|
(6,857
|
)
|
4,428
|
(6,969
|
)
|
5,289
|
||||||||||
|
Accrued expenses and other current liabilities
|
(4,302
|
)
|
(21,724
|
)
|
(35,601
|
)
|
(48,438
|
)
|
||||||||
|
Deferred revenue
|
12,852
|
(5,833
|
)
|
63,516
|
29,855
|
|||||||||||
|
Long term liabilities
|
(859
|
)
|
(145
|
)
|
(1,606
|
)
|
(71
|
)
|
||||||||
|
Amortization of discount on long term debt
|
2,094
|
-
|
9,259
|
-
|
||||||||||||
|
Other
|
(514
|
)
|
(790
|
)
|
(465
|
)
|
(673
|
)
|
||||||||
|
Net cash provided by operating activities
|
68,661
|
29,720
|
201,406
|
144,220
|
||||||||||||
|
Investing Activities
|
||||||||||||||||
|
Purchase of property and equipment
|
(12,332
|
)
|
(4,084
|
)
|
(22,746
|
)
|
(11,143
|
)
|
||||||||
|
Purchase of Investments
|
(17,227
|
)
|
(19,269
|
)
|
(42,226
|
)
|
(47,221
|
)
|
||||||||
|
Proceeds from Investments
|
4,000
|
41,360
|
36,016
|
80,478
|
||||||||||||
|
Capitalization of software development costs
|
(7,156
|
)
|
(1,697
|
)
|
(14,094
|
)
|
(2,758
|
)
|
||||||||
|
Payments for business acquisitions, net of cash acquired
|
-
|
(872
|
)
|
-
|
(151,325
|
)
|
||||||||||
|
Net cash provided by (used in) investing activities
|
(32,715
|
)
|
15,438
|
(43,050
|
)
|
(131,969
|
)
|
|||||||||
|
Financing Activities
|
||||||||||||||||
|
Proceeds from issuance of shares upon exercise of share options
|
8,642
|
5,655
|
12,375
|
13,169
|
||||||||||||
|
Purchase of treasury shares
|
(7,618
|
)
|
(9,420
|
)
|
(16,047
|
)
|
(32,093
|
)
|
||||||||
|
Dividends paid
|
-
|
(9,519
|
)
|
(9,637
|
)
|
(19,036
|
)
|
|||||||||
|
Repayment of long term debt
|
-
|
-
|
(260,000
|
)
|
-
|
|||||||||||
|
Proceeds from issuance of exchangeable notes
|
-
|
-
|
260,842
|
-
|
||||||||||||
|
Net cash provided by (used in) financing activities
|
1,024
|
(13,284
|
)
|
(12,467
|
)
|
(37,960
|
)
|
|||||||||
|
Effect of exchange rates on cash and cash equivalents
|
901
|
(580
|
)
|
1,707
|
785
|
|||||||||||
|
Net change in cash and cash equivalents
|
37,871
|
31,294
|
147,596
|
(24,924
|
)
|
|||||||||||
|
Cash and cash equivalents, beginning of period
|
266,751
|
269,713
|
157,026
|
325,931
|
||||||||||||
|
Cash and cash equivalents, end of period
|
$
|
304,622
|
$
|
301,007
|
$
|
304,622
|
$
|
301,007
|
||||||||
*Certain comparative figures have been reclassified to conform to the current year presentation.