EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1
 
NICE Exceeds Revenue Guidance with 36% Growth Driven by
Continued Strong Cloud Momentum for the Third Quarter 2017

 Recurring Revenue Accounted for Nearly 70% of Total Revenue
Cash Flow from Operations for the First Three Quarters of 2017 Exceeds $300 Million

Hoboken, New Jersey, November 2, 2017 - NICE (NASDAQ: NICE) today announced results for the third quarter 2017 ended September 30, 2017.
 
Third Quarter 2017 Financial Highlights

GAAP
Non-GAAP
Revenue growth of 36% year-over-year
Revenue growth of 36% year-over-year
Gross profit increased 30% year-over-year to $207 million
Gross profit increased 34% year-over-year to $233 million
Operating income of $33 million, down 8% year-over-year
Operating income of $78 million, up 22% year-over-year
Operating margin of 10.3% compared to 15.2% last year
Operating margin of 24.0% compared to 26.7% last year
Diluted EPS from continuing operations of $0.42 versus $0.53 last year, down 21% year-over-year
Diluted EPS from continuing operations of $0.95 versus $0.83 last year, up 14% year-over-year
Cash flow from operations increased 155% year-over-year to $106 million
  
 
“We are pleased to report another excellent quarter as all four of our strategic pillars - omni-channel, cloud, analytics and artificial intelligence - are powering the strong momentum we are seeing in our business. These pillars have given us the ability to address a much larger market, further widen our industry lead and drive a meaningful shift in market share,” said Barak Eilam, CEO of NICE.
 
Mr. Eilam continued, “In the third quarter, recurring revenue accounted for nearly 70% of total revenue and we saw a double-digit sequential increase in cloud revenue compared to the second quarter of 2017.  These solid results were bolstered by CXone, which is the industry’s first fully integrated, open, customer experience cloud platform for companies of all sizes. Since the launch of CXone, which happened just three months ago, we are now addressing cloud opportunities in all market segments, and even more so in the higher end of the market, and our pipeline is rapidly building.  Moreover, we have seen strong growth in our CXone DEVone partner ecosystem, now encompassing over 80 partners, providing further evidence of market acceptance of our platform.”
 
 
GAAP Financial Highlights for the Third Quarter Ended September 30:
 
The following GAAP financial data, excluding cash flow and cash balance, are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2017 and 2016.
 
Revenues: Third quarter 2017 total revenues increased 36.1% to $322.8 million compared to $237.2 million for the third quarter of 2016.

Gross Profit: Third quarter 2017 gross profit increased to $207.4 million compared to $159.1 million for the third quarter of 2016, and gross margin was 64.3% compared to 67.1% for the third quarter of 2016.

Operating Income: Third quarter 2017 operating income was $33.1 million compared to $36.0 million for the third quarter of 2016, and operating margin was 10.3% compared to 15.2% for the third quarter of 2016.

Net Income from Continuing Operations: Third quarter 2017 net income and net margin were $26.2 million and 8.1%, respectively, compared to $32.4 million and 13.7%, respectively, for the third quarter of 2016.

Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the third quarter of 2017 were $0.42, compared to $0.53 in the third quarter of 2016.

Operating Cash Flow and Cash Balance: Third quarter 2017 operating cash flow was $105.8 million. In the third quarter, $4.3 million was used for share repurchases. As of September 30, 2017, total cash and cash equivalents, short term investments and marketable securities were $494.1 million, and total debt was $445.6 million net of issuance costs and the equity component associated with our convertible debt.
 
Non-GAAP Financial Highlights for the Third Quarter Ended September 30:
 
The following non-GAAP financial data are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2017 and 2016.
 
Revenues: Third quarter 2017 non-GAAP total revenues were $326.8 million, up 36.0% from $240.3 million for the third quarter of 2016.

Gross Profit: Third quarter 2017 non-GAAP gross profit increased to $232.5 million compared to $173.6 million for the third quarter of 2016, and non-GAAP gross margin was 71.2%, compared to 72.2% for the third quarter of 2016.

Operating Income: Third quarter 2017 non-GAAP operating income increased to $78.3 million compared to $64.2 million for the third quarter of 2016, and non-GAAP operating margin was 24.0% compared to 26.7% for the third quarter of 2016.

Net Income from Continuing Operations: Third quarter 2017 non-GAAP net income increased to $58.9 million compared to $50.7 million for the third quarter of 2016, and non-GAAP net income margin was 18.0% compared to 21.1% for the third quarter of 2016.

Fully Diluted Earnings Per Share from Continuing Operations: Third quarter 2017 non-GAAP fully diluted earnings per share increased 14.5% to $0.95, compared to $0.83 for the third quarter of 2016.
 
Full Year 2017 Guidance:
 
For the full year 2017, due to better visibility, the Company is narrowing the expected ranges and increasing the expected midpoints of non-GAAP revenue and non-GAAP earnings per share guidance.
 
Full year 2017 non-GAAP revenue guidance is expected to be in a range of $1,338 million to $1,350 million and the expected midpoint of non-GAAP revenue guidance increased to $1,344 million. Full year 2017 non-GAAP earnings per share guidance is expected to be in a range of $4.00 to $4.10 and the expected midpoint of non-GAAP earnings per share guidance increased to $4.05.
 
 
Quarterly Results Conference Call

NICE management will host its earnings conference call today, November 2nd, 2017 at 8:30 AM ET, 12:30 GMT, 14:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial in to the following numbers: United States 1-866-804-8688 or +1-718-354-1175, International +44(0)1296-480-100, United Kingdom 0-800-783-0906, Israel 1-809-344-364. The Passcode is 351 941 47. 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 741 301 21.
 
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, realized gain from substantial liquidation of marketable securities and tax adjustment re non-GAAP adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income.
 
About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of 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.
 
 

NICE LTD. AND SUBSIDIARIES
              
CONSOLIDATED STATEMENTS of INCOME
              
U.S. dollars in thousands (except per share amounts)
              
 
   
Quarter ended
    
Year to date
  
   
September 30,
    
September 30,
  
   
2017
    
2016
    
2017
    
2016
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Revenue:
                        
Product
  
$
66,931
    
$
68,617
    
$
204,124
    
$
195,277
  
Services
    
159,441
      
155,444
      
476,093
      
459,141
  
Cloud
    
96,383
      
13,126
      
259,700
      
37,264
  
Total revenue
    
322,755
      
237,187
      
939,917
      
691,682
  
                                 
Cost of revenue:
                                
Product
    
12,944
      
11,815
      
39,668
      
39,786
  
Services
    
52,618
      
61,122
      
165,892
      
181,412
  
Cloud
    
49,812
      
5,127
      
139,152
      
13,773
  
Total cost of revenue
    
115,374
      
78,064
      
344,712
      
234,971
  
                                 
Gross profit
    
207,381
      
159,123
      
595,205
      
456,711
  
                                 
Operating Expenses:
                                
Research and development, net
    
45,135
      
33,606
      
130,975
      
100,646
  
Selling and marketing
    
87,363
      
61,878
      
254,258
      
176,366
  
General and administrative
    
31,197
      
24,456
      
91,758
      
72,227
  
Amortization of acquired intangible assets
    
10,566
      
3,155
      
31,319
      
10,412
  
Total operating expenses
    
174,261
      
123,095
      
508,310
      
359,651
  
                                 
Operating income
    
33,120
      
36,028
      
86,895
      
97,060
  
                                 
Finance and other income (expense), net
    
(4,335
)
    
4,968
      
(16,713
)
    
11,665
  
                                 
Income from continuing operations before tax
    
28,785
      
40,996
      
70,182
      
108,725
  
Taxes on income
    
2,612
      
8,554
      
6,279
      
15,647
  
Net income from continuing operations
    
26,173
      
32,442
      
63,903
      
93,078
  
                                 
Discontinued operations
                                
Loss from discontinued operations
    
-
      
(2,143
)
    
-
      
(2,259
)
Net loss from discontinued operations
    
-
      
(2,143
)
    
-
      
(2,259
)
                                 
Net income
  
$
26,173
    
$
30,299
    
$
63,903
    
$
90,819
  
                                 
Basic earnings per share from continuing operations
  
$
0.43
    
$
0.54
    
$
1.06
    
$
1.56
  
Basic earnings (loss) per share from discontinued operations
  
$
-
    
$
(0.03
)
  
$
-
    
$
(0.04
)
Basic earnings per share
  
$
0.43
    
$
0.51
    
$
1.06
    
$
1.52
  
                                 
Diluted earnings per share from continuing operations
  
$
0.42
    
$
0.53
    
$
1.03
    
$
1.53
  
Diluted earnings (loss) per share from discontinued operations
  
$
-
    
$
(0.03
)
  
$
-
    
$
(0.04
)
Diluted earnings per share
  
$
0.42
    
$
0.50
    
$
1.03
    
$
1.49
  
                                 
Weighted average number of shares
                                
outstanding used to compute:
                                
                                 
Basic earnings (loss) per share
    
60,502
      
59,765
      
60,304
      
59,563
  
Diluted earnings (loss) per share
    
62,220
      
61,119
      
61,979
      
60,930
  
 
NICE LTD. AND SUBSIDIARIES
              
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
              
U.S. dollars in thousands (except per share amounts)
              
 
     Quarter ended
September 30,
     Year to date
September 30,
  
   
2017
    
2016
    
2017
    
2016
  
GAAP revenues
  
$
322,755
    
$
237,187
    
$
939,917
    
$
691,682
  
Valuation adjustment on acquired deferred product revenue
    
37
      
75
      
302
      
1,450
  
Valuation adjustment on acquired deferred service revenue
    
824
      
1,572
      
3,915
      
4,004
  
Valuation adjustment on acquired deferred cloud revenue
    
3,135
      
1,454
      
5,994
      
4,672
  
Non-GAAP revenues
  
$
326,751
    
$
240,288
    
$
950,128
    
$
701,808
  
                                 
GAAP cost of  revenue
  
$
115,374
    
$
78,064
    
$
344,712
    
$
234,971
  
Amortization of acquired intangible assets on cost of product
    
(7,059
)
    
(6,285
)
    
(18,486
)
    
(20,167
)
Amortization of acquired intangible assets on cost of services
    
(987
)
    
(3,208
)
    
(5,354
)
    
(6,681
)
Amortization of acquired intangible assets on cost of cloud
    
(11,756
)
    
-
      
(33,706
)
    
-
  
Valuation adjustment on acquired deferred cost of services
    
371
      
-
      
1,133
      
-
  
Cost of product revenue adjustment (1,3)
    
(158
)
    
(124
)
    
(494
)
    
(314
)
Cost of services revenue adjustment (1,2,3)
    
(1,903
)
    
(1,638
)
    
(5,625
)
    
(4,847
)
Cost of cloud revenue adjustment (1,2)
    
(649
)
    
(85
)
    
(2,132
)
    
(207
)
Non-GAAP cost of  revenue
  
$
94,220
    
$
66,724
    
$
280,048
    
$
202,755
  
                                 
GAAP gross profit
  
$
207,381
    
$
159,123
    
$
595,205
    
$
456,711
  
Gross profit adjustments
    
25,150
      
14,441
      
74,875
      
42,342
  
Non-GAAP gross profit
  
$
232,531
    
$
173,564
    
$
670,080
    
$
499,053
  
                                 
GAAP operating expenses
  
$
174,261
    
$
123,095
    
$
508,310
    
$
359,651
  
Research and development (1,2,3)
    
(2,204
)
    
(1,385
)
    
(6,651
)
    
(4,462
)
Sales and marketing (1,2,3)
    
(5,651
)
    
(4,069
)
    
(17,160
)
    
(11,139
)
General and administrative (1,2,3)
    
(1,640
)
    
(5,153
)
    
(7,027
)
    
(13,246
)
Amortization of acquired intangible assets
    
(10,566
)
    
(3,155
)
    
(31,319
)
    
(10,412
)
Non-GAAP operating expenses
  
$
154,200
    
$
109,333
    
$
446,153
    
$
320,392
  
                                 
                                 
GAAP finance & other income (expense), net
  
$
(4,335
)
  
$
4,968
    
$
(16,713
)
  
$
11,665
  
Amortization of discount on long term debt
    
2,139
      
-
      
11,398
      
-
  
Realized gain from substantial liquidation of marketable securities
    
-
      
(2,711
)
    
-
      
(2,711
)
Non-GAAP finance & other income (expense), net
  
$
(2,196
)
  
$
2,257
    
$
(5,315
)
  
$
8,954
  
                                 
GAAP taxes on income
  
$
2,612
    
$
8,554
    
$
6,279
    
$
15,647
  
Tax adjustments re non-GAAP adjustments
    
14,611
      
7,228
      
42,298
      
23,753
  
Non-GAAP taxes on income
  
$
17,223
    
$
15,782
    
$
48,577
    
$
39,400
  
                                 
GAAP net income
  
$
26,173
    
$
32,442
    
$
63,903
    
$
93,078
  
Valuation adjustment on acquired deferred revenue
    
3,996
      
3,101
      
10,211
      
10,126
  
Valuation adjustment on acquired deferred cost of service of revenue
    
(371
)
    
-
      
(1,133
)
    
-
  
Amortization of acquired intangible assets
    
29,381
      
12,648
      
88,865
      
37,260
  
Share-based compensation (1)
    
14,016
      
9,458
      
40,900
      
25,714
  
Re-organization expenses (2)
    
(3,067
)
    
1,523
      
(3,067
)
    
3,293
  
Acquisition related expenses (3)
    
1,256
      
1,473
      
1,256
      
5,208
  
Amortization of discount on long term debt
    
2,139
      
-
      
11,398
      
-
  
Realized gain from substantial liquidation of marketable securities
    
-
      
(2,711
)
    
-
      
(2,711
)
Tax adjustments re non-GAAP adjustments
    
(14,611
)
    
(7,228
)
    
(42,298
)
    
(23,753
)
Non-GAAP net income
  
$
58,912
    
$
50,706
    
$
170,035
    
$
148,215
  
                         
GAAP diluted earnings per share
  
$
0.42
    
$
0.53
    
$
1.03
    
$
1.53
  
                                 
Non-GAAP diluted earnings per share
  
$
0.95
    
$
0.83
    
$
2.74
    
$
2.43
  
                                 
Shares used in computing GAAP diluted earnings per share
    
62,220
      
61,119
      
61,979
      
60,930
  
                                 
Shares used in computing Non-GAAP diluted earnings per share
    
62,220
      
61,119
      
61,979
      
60,930
  
 
 
 
                 
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,
  
           
2017
      
2016
      
2017
      
2016
  
     
Cost of product revenue
  
$
(158
)
  
$
(114
)
  
$
(494
)
  
$
(304
)
     
Cost of service revenue
    
(1,903
)
    
(1,630
)
    
(5,625
)
    
(4,570
)
     
Cost of cloud revenue
    
(649
)
    
(85
)
    
(2,132
)
    
(231
)
     
Research and development
    
(2,204
)
    
(1,383
)
    
(6,651
)
    
(3,541
)
     
Sales and marketing
    
(5,576
)
    
(4,008
)
    
(17,085
)
    
(10,441
)
     
General and administrative
    
(3,526
)
    
(2,238
)
    
(8,913
)
    
(6,627
)
          
$
(14,016
)
  
$
(9,458
)
  
$
(40,900
)
  
$
(25,714
)
 
 
(2
)
Re-organization expenses
                        
           
Quarter ended
    
Year to date
  
           
September 30,
    
September 30,
  
           
2017
      
2016
      
2017
      
2016
  
     
Cost of service revenue
  
$
-
    
$
(1
)
  
$
-
    
$
(270
)
     
Cost of cloud revenue
    
-
      
-
      
-
      
24
  
     
Research and development
    
-
      
-
      
-
      
(896
)
     
Sales and marketing
    
-
      
-
      
-
      
(150
)
     
General and administrative
    
3,067
      
(1,522
)
    
3,067
      
(2,001
)
           
$
3,067
    
$
(1,523
)
  
$
3,067
    
$
(3,293
)
 
 
(3
)
Acquisition related expenses
                                
                                       
          
Quarter ended
    
Year to date
  
          
September 30,
    
September 30,
  
           
2017
      
2016
      
2017
      
2016
  
     
Cost of product revenue
  
$
-
    
$
(10
)
  
$
-
    
$
(10
)
     
Cost of service revenue
    
-
      
(7
)
    
-
      
(7
)
     
Research and development
    
-
      
(2
)
    
-
      
(25
)
     
Sales and marketing
    
(75
)
    
(61
)
    
(75
)
    
(548
)
     
General and administrative
    
(1,181
)
    
(1,393
)
    
(1,181
)
    
(4,618
)
          
$
(1,256
)
  
$
(1,473
)
  
$
(1,256
)
  
$
(5,208
)
 
 
             
NICE LTD. AND SUBSIDIARIES
          
CONDENSED CONSOLIDATED BALANCE SHEETS
          
U.S. dollars in thousands
          
 
   
September 30,
    
December 31,
  
   
2017
    
2016
  
   
Unaudited
    
Unaudited
  
             
ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
320,929
    
$
157,026
  
Short-term investments
    
53,675
      
30,287
  
Trade receivables
    
195,346
      
260,220
  
Prepaid expenses and other current assets
    
75,173
      
57,966
  
Current assets of discontinued operations
    
2,009
      
3,734
  
                 
Total current assets
    
647,132
      
509,233
  
                 
LONG-TERM ASSETS:
                
Long-term investments
    
119,472
      
98,726
  
Property and equipment, net
    
114,654
      
87,678
  
Deferred tax assets
    
15,706
      
14,093
  
Other intangible assets, net
    
557,387
      
618,735
  
Goodwill
    
1,302,756
      
1,284,710
  
Other long-term assets
    
18,845
      
18,701
  
                 
Total long-term assets
    
2,128,820
      
2,122,643
  
                 
TOTAL ASSETS
  
$
2,775,952
    
$
2,631,876
  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
CURRENT LIABILITIES:
                
Current maturities of long term loan
  
$
-
    
$
21,164
  
Trade payables
    
27,163
      
25,634
  
Current portion of deferred revenues and advances from customers
    
201,898
      
149,801
  
Accrued expenses and other liabilities
    
275,921
      
273,134
  
Current liabilities of discontinued operations
    
176
      
3,077
  
                 
Total current liabilities
    
505,158
      
472,810
  
                 
LONG-TERM LIABILITIES:
                
Deferred revenues and advances from customers
    
42,855
      
22,710
  
Deferred tax liabilities
    
98,403
      
146,952
  
Long-term debt
    
445,574
      
444,016
  
Other long-term liabilities
    
28,618
      
34,056
  
                 
Total long-term liabilities
    
615,450
      
647,734
  
                 
SHAREHOLDERS' EQUITY
    
1,655,344
      
1,511,332
  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
2,775,952
    
$
2,631,876
  
                 
 
 
NICE LTD. AND SUBSIDIARIES
              
CONSOLIDATED CASH FLOW STATEMENTS
              
U.S. dollars in thousands
              
 
   
Quarter ended
    
Year to date
  
   
September 30,
    
September 30,
  
   
2017
    
2016
    
2017
    
2016
  
   
Unaudited
    
Unaudited
    
Unaudited
    
Unaudited
  
                         
Operating Activities
                        
                         
Net income
  
$
26,173
    
$
30,299
    
$
63,903
    
$
90,819
  
Adjustments to reconcile net income to net cash provided by operating activities
                                
Depreciation and amortization
    
39,153
      
16,932
      
115,309
      
50,332
  
Stock based compensation
    
14,016
      
9,457
      
40,900
      
25,714
  
Amortization of premium and discount and accrued interest on marketable securities
    
273
      
714
      
424
      
2,355
  
Deferred taxes, net
    
(12,646
)
    
(4,815
)
    
(34,188
)
    
(17,512
)
Changes in operating assets and liabilities:
                                
Trade Receivables
    
10,930
      
(13,691
)
    
72,810
      
40,678
  
Prepaid expenses and other current assets
    
(32,264
)
    
(1,340
)
    
(40,251
)
    
3,428
  
Trade payables
    
7,605
      
(372
)
    
636
      
4,917
  
Accrued expenses and other current liabilities
    
52,829
      
18,890
      
17,228
      
(29,548
)
Deferred revenue
    
1,660
      
(13,659
)
    
65,176
      
16,196
  
Long term liabilities
    
(3,583
)
    
172
      
(5,189
)
    
101
  
Gain on sale and loss on disposal of discontinued operations
    
-
      
1,990
      
-
      
1,990
  
Realized gain on marketable securities
    
-
      
(2,817
)
    
-
      
(3,366
)
Amortization of discount on long term debt
    
2,139
      
-
      
11,398
      
-
  
Other
    
(461
)
    
(339
)
    
(926
)
    
(283
)
  Net cash provided by operating activities
    
105,824
      
41,421
      
307,230
      
185,821
  
                                 
Investing Activities
                                
                                 
Purchase of property and equipment
    
(7,899
)
    
(7,025
)
    
(31,422
)
    
(18,165
)
Purchase of Investments
    
(53,791
)
    
-
      
(96,017
)
    
(47,221
)
Proceeds from Investments
    
15,610
      
340,487
      
51,626
      
420,965
  
Capitalization of software development costs
    
(7,730
)
    
(1,948
)
    
(21,046
)
    
(4,706
)
Repayment from sale of discontinued operations
    
-
      
(1,990
)
    
-
      
(1,990
)
Payments for business acquisitions, net of cash acquired
    
(37,880
)
    
-
      
(37,880
)
    
(151,328
)
  Net cash provided by (used in) investing activities
    
(91,690
)
    
329,524
      
(134,739
)
    
197,555
  
                                 
Financing Activities
                                
                                 
Proceeds from issuance of shares upon exercise of share options
    
4,412
      
8,092
      
16,787
      
21,261
  
Purchase of treasury shares
    
(4,267
)
    
(2,924
)
    
(20,314
)
    
(35,017
)
Dividends paid
    
-
      
(9,568
)
    
(9,637
)
    
(28,604
)
Capital Lease payments
    
-
      
(515
)
    
-
      
(695
)
Repayment of long term debt
    
-
      
-
      
(260,000
)
    
-
  
Proceeds from issuance of exchangeable notes
    
-
      
-
      
260,842
      
-
  
  Net cash provided by (used in) financing activities
    
145
      
(4,915
)
    
(12,322
)
    
(43,055
)
                                 
Effect of exchange rates on cash and cash equivalents
    
2,028
      
(912
)
    
3,734
      
(127
)
                                 
Net change in cash and cash equivalents
    
16,307
      
365,118
      
163,903
      
340,194
  
Cash and cash equivalents, beginning of period
    
304,622
      
301,007
      
157,026
      
325,931
  
                                 
Cash and cash equivalents, end of period
  
$
320,929
    
$
666,125
    
$
320,929
    
$
666,125
  
                                 
*Certain comparative figures have been reclassified to conform to the current year presentation.