Nice Reports 10% Growth in GAAP Revenue and 11% Growth in Non-GAAP Revenue for Full Year 2016
Company Reports Continued Strength in Analytics and Record Number of New Customers
NICE (NASDAQ:NICE) today announced results for the fourth quarter and full year 2016 ended December 31, 2016.
Full Year 2016 Financial Highlights
| GAAP |
|
Non-GAAP |
| Revenue growth of 10% year-over-year |
|
Revenue growth of 11% year-over-year |
| Gross margin of 66.7% compared to 67.2% last year |
|
Gross margin of 72.0% compared to 70.6% last year |
|
Operating profit of $134 million, compared to $166 million
last year
|
|
Operating profit of $273 million, up 16% year-over-year |
| Operating margin of 13.2% compared to 17.9% last year |
|
Operating margin of 26.5% compared to 25.4% last year |
| Effective tax rate of 14.8% compared to 18.0% last year |
|
Effective tax rate of 21.4% compared to 19% last year |
|
Diluted EPS from continuing operations of $2.02 versus
$2.29 last year
|
|
Diluted EPS from continuing operations of $3.61 versus
$3.18 last year, 14% growth
|
Fourth Quarter 2016 Financial Highlights
| GAAP |
|
Non-GAAP |
| Revenue growth of 18% year-over-year |
|
Revenue growth of 20% year-over-year |
| Gross margin of 68.3% compared to 70.0% last year |
|
Gross margin of 73.9% compared to 72.9% last year |
|
Operating profit of $37 million, compared to $64 million
last year
|
|
Operating profit of $94 million, up 16% year-over-year |
| Operating margin of 11.5% compared to 23.3% last year |
|
Operating margin of 28.6% compared to 29.7% last year |
| Effective tax rate of 16.1% compared to 12.4% last year |
|
Effective tax rate of 22.1% compared to 18.9% last year |
|
Diluted EPS from continuing operations of $0.49 versus
$0.93 last year
|
|
Diluted EPS from continuing operations of $1.18 versus
$1.09 last year, 8% growth
|
“We are pleased to end the year on a high note with a strong fourth quarter performance that culminated in 11% growth in
non-GAAP total revenue for 2016,” said Barak Eilam, CEO of NICE. “Fourth quarter results reflected across-the-board growth in each
of our business segments and further strength in analytics.”
Mr. Eilam continued, “2016 marked a year of excellent execution amid a very busy period in which we launched many new products,
took on a record number of new customers and made two significant acquisitions, while seeing continued expansion of our solutions
within our customer base. As we head into 2017, we are well positioned for continued success with the industry’s leading cloud and
analytics assets, and healthy end markets. I believe we are in one of the strongest competitive positions that we have ever been,
and we are looking forward to the opportunities that lie ahead in 2017 and beyond.”
GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
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: Fourth quarter 2016 total revenues increased 18.4% to $323.9 million compared to $273.6 million for the fourth
quarter of 2015.
Full year 2016 total revenues increased 9.6% to $1,015.5 million compared to $926.9 million for the full year 2015.
Gross Profit: Fourth quarter 2016 gross profit and gross margin were $221.1 million and 68.3%, respectively, compared to
$191.5 million and 70.0%, respectively, for the fourth quarter of 2015.
Full year 2016 gross profit and gross margin were $677.8 million and 66.7%, respectively, from $623.3 million and 67.2%,
respectively, for the same period last year.
Operating Income: Fourth quarter 2016 operating income and operating margin were $37.1 million and 11.5%, respectively,
compared to $63.7 million and 23.3%, respectively, for the fourth quarter of 2015.
Full year 2016 operating income and operating margin were $134.2 million and 13.2%, respectively, compared to $166.1 million and
17.9%, respectively, for the full year 2015.
Net Income from Continuing Operations: Fourth quarter 2016 net income and net margin were $30.0 million and 9.3%,
respectively, compared to $56.9 million and 20.8%, respectively, for the fourth quarter of 2015.
Full year 2016 net income and net margin were $123.1 million and 12.1%, respectively, compared to $140.6 million and 15.2%,
respectively, for the full year 2015.
Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the fourth quarter of
2016 were $0.49, compared to $0.93 in the fourth quarter of 2015.
Fully diluted earnings per share for the full year 2016 were $2.02 compared to $2.29 for the full year 2015.
Operating Cash Flow and Cash Balance: Fourth quarter 2016 operating cash flow was $37.7 million. Full year cash flow from
operations reached $220.3 million. In the fourth quarter, $8.6 million was used for share repurchases and $9.6 million for
dividends. As of December 31, 2016, total cash and cash equivalents, short term investments and marketable securities were $286.0
million, and total debt was $465.2 million.
Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31:
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: Fourth quarter 2016 non-GAAP total revenues were $328.5 million, up 20.1% from $273.6 million for the fourth
quarter of 2015.
Non-GAAP total revenues for the full year 2016 increased 11.1% to $1,030.3 million compared to $927.0 million for the full year
2015.
Gross Profit: Fourth quarter 2016 non-GAAP gross profit and non-GAAP gross margin increased to $242.8 million and 73.9%,
respectively, from $199.5 million and 72.9%, respectively, for the fourth quarter of 2015.
Full year 2016 non-GAAP gross profit and non-GAAP gross margin increased to $741.9 million and 72.0%, respectively, compared to
$654.4 million and 70.6%, respectively, for the same period last year.
Operating Income: Fourth quarter 2016 non-GAAP operating income increased to $93.9 million compared to $81.2 million, and
non-GAAP operating margin was 28.6% compared to 29.7% for the fourth quarter of 2015.
Full year 2016 non-GAAP operating income and non-GAAP operating margin increased to $272.6 million and 26.5%, respectively,
compared to $235.5 million and 25.4%, respectively, for the full year 2015.
Net Income from Continuing Operations: Fourth quarter 2016 non-GAAP net income increased to $72.4 million compared to
$66.9 million, and non-GAAP net income margin was 22.0% compared to 24.4% for the fourth quarter of 2015.
Full year 2016 non-GAAP net income and non-GAAP net margin increased to $220.6 million and 21.4%, respectively, compared to $195.0
million and 21.0%, respectively, for the same period last year.
Fully Diluted Earnings Per Share from Continuing Operations: Fourth quarter 2016 non-GAAP fully diluted earnings per
share increased 8.3% to $1.18, compared to $1.09 for the fourth quarter of 2015.
Full year 2016 non-GAAP fully diluted earnings per share increased 13.5% to $3.61 compared to $3.18 for the full year 2015.
Dividend Declaration
The Company declared a cash dividend for the fourth quarter of 2016 of $0.16 per share. The record date will be February
27th, 2017 and the payment date will be March 15th, 2017. Tax will be withheld at a rate of 15%.
First Quarter and Full Year 2017 Guidance:
First Quarter 2017: First quarter 2017 non-GAAP total revenues are expected to be in a range of $303 million to $313
million. First quarter 2017 non-GAAP fully diluted earnings per share are expected to be in a range of $0.81 to $0.87.
Full Year 2017: Full year 2017 non-GAAP total revenues are expected to be in a range of $1,330 million to $1,354 million.
Full year 2017 non-GAAP fully diluted earnings per share are expected to be in a range of $3.80 to $4.00.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, February 16th, 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
1-809-242-041. The Passcode is 500 634 92. 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 589 323 20.
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, debt issuance
cost, 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.
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 the required
approvals for the inContact acquisition may not be received on the expected timeline or at all. 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 ended |
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
Unaudited |
|
|
|
Audited |
|
|
|
Unaudited |
|
|
|
Audited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
$ 110,975 |
|
|
|
$ 110,079 |
|
|
|
$ 306,252 |
|
|
|
$ 317,900 |
|
Services |
|
212,885 |
|
|
|
163,479 |
|
|
|
709,290 |
|
|
|
608,967 |
| Total revenue |
|
323,860 |
|
|
|
273,558 |
|
|
|
1,015,542 |
|
|
|
926,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product |
|
13,246 |
|
|
|
19,125 |
|
|
|
53,032 |
|
|
|
66,363 |
|
Services |
|
89,516 |
|
|
|
62,916 |
|
|
|
284,701 |
|
|
|
237,219 |
| Total cost of revenue |
|
102,762 |
|
|
|
82,041 |
|
|
|
337,733 |
|
|
|
303,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
221,098 |
|
|
|
191,517 |
|
|
|
677,809 |
|
|
|
623,285 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development, net |
|
40,882 |
|
|
|
35,566 |
|
|
|
141,528 |
|
|
|
128,485 |
|
Selling and marketing |
|
91,983 |
|
|
|
63,599 |
|
|
|
268,349 |
|
|
|
225,817 |
|
General and administrative |
|
44,342 |
|
|
|
26,062 |
|
|
|
116,569 |
|
|
|
90,349 |
|
Amortization of acquired intangible assets |
|
6,775 |
|
|
|
2,560 |
|
|
|
17,187 |
|
|
|
12,528 |
| Total operating expenses |
|
183,982 |
|
|
|
127,787 |
|
|
|
543,633 |
|
|
|
457,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
37,116 |
|
|
|
63,730 |
|
|
|
134,176 |
|
|
|
166,106 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance and other income (expense), net |
|
(1,360) |
|
|
|
1,188 |
|
|
|
10,305 |
|
|
|
5,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from continuing operations before tax |
|
35,756 |
|
|
|
64,918 |
|
|
|
144,481 |
|
|
|
171,410 |
| Taxes on income |
|
5,765 |
|
|
|
8,034 |
|
|
|
21,412 |
|
|
|
30,832 |
| Net income from continuing operations |
|
29,991 |
|
|
|
56,884 |
|
|
|
123,069 |
|
|
|
140,578 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations |
|
(5,976) |
|
|
|
(1,621) |
|
|
|
(8,235) |
|
|
|
152,459 |
|
Taxes on income (tax benefits) |
|
(2,086) |
|
|
|
(2,130) |
|
|
|
(2,086) |
|
|
|
34,206 |
|
Net income (loss) from discontinued operations |
|
(3,890) |
|
|
|
509 |
|
|
|
(6,149) |
|
|
|
118,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ 26,101 |
|
|
|
$ 57,393 |
|
|
|
$ 116,920 |
|
|
|
$ 258,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share from continuing operations |
|
$ 0.50 |
|
|
|
$ 0.95 |
|
|
|
$ 2.06 |
|
|
|
$ 2.36 |
| Basic earnings (loss) per share from discontinued operations |
|
$ (0.06) |
|
|
|
$ 0.01 |
|
|
|
$ (0.10) |
|
|
|
$ 1.99 |
| Basic earnings per share |
|
$ 0.44 |
|
|
|
$ 0.96 |
|
|
|
$ 1.96 |
|
|
|
$ 4.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per share from continuing operations |
|
$ 0.49 |
|
|
|
$ 0.93 |
|
|
|
$ 2.02 |
|
|
|
$ 2.29 |
| Diluted earnings (loss) per share from discontinued operations |
|
$ (0.06) |
|
|
|
$ 0.01 |
|
|
|
$ (0.10) |
|
|
|
$ 1.93 |
| Diluted earnings per share |
|
$ 0.43 |
|
|
|
$ 0.94 |
|
|
|
$ 1.92 |
|
|
|
$ 4.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| outstanding used to compute: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings (loss) per share |
|
59,977 |
|
|
|
59,651 |
|
|
|
59,667 |
|
|
|
59,552 |
| Diluted earnings (loss) per share |
|
61,349 |
|
|
|
61,092 |
|
|
|
61,035 |
|
|
|
61,281 |
| NICE LTD. AND SUBSIDIARIES |
| CONSOLIDATED CASH FLOW STATEMENTS |
| U.S. dollars in thousands |
| |
| |
|
|
|
Quarter ended |
|
|
|
Year to date |
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
Unaudited |
|
Audited |
|
|
|
Unaudited |
|
|
|
Audited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
$ 26,101 |
|
|
|
$ 57,393 |
|
|
|
$ 116,920 |
|
|
|
$258,831 |
| Adjustments to reconcile net income to net cash provided by operating
activities |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
27,469 |
|
|
|
13,294 |
|
|
|
77,801 |
|
|
|
57,964 |
|
Stock based compensation |
|
14,833 |
|
|
|
7,774 |
|
|
|
40,547 |
|
|
|
28,451 |
|
Excess tax benefit from share-based payment arrangements |
|
(4,695) |
|
|
|
(3,553) |
|
|
|
(7,867) |
|
|
|
(7,595) |
|
Amortization of premium and discount and accrued interest on marketable
securities |
|
86 |
|
|
|
856 |
|
|
|
2,441 |
|
|
|
2,799 |
|
Deferred taxes, net |
|
(8,393) |
|
|
|
14,604 |
|
|
|
(25,905) |
|
|
|
10,576 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade Receivables |
|
(72,462) |
|
|
|
(41,346) |
|
|
|
(31,784) |
|
|
|
(56,363) |
|
|
Prepaid expenses and other current assets |
|
1,505 |
|
|
|
2,405 |
|
|
|
4,933 |
|
|
|
(1,482) |
|
|
Trade payables |
|
(525) |
|
|
|
(9,478) |
|
|
|
4,392 |
|
|
|
2,166 |
|
|
Accrued expenses and other current liabilities |
|
44,727 |
|
|
|
8,233 |
|
|
|
15,179 |
|
|
|
38,488 |
|
|
Deferred revenue |
|
(6,817) |
|
|
|
1,739 |
|
|
|
9,379 |
|
|
|
54,914 |
|
|
Long term liabilities |
|
7,443 |
|
|
|
60 |
|
|
|
7,529 |
|
|
|
2,453 |
|
Loss (gain) on disposal of discontinued operations |
|
7,158 |
|
|
|
1,094 |
|
|
|
9,148 |
|
|
|
(147,334) |
|
Realized loss (gain) on marketable securities |
|
(22) |
|
|
|
225 |
|
|
|
(3,388) |
|
|
|
(32) |
|
Other |
|
1,288 |
|
|
|
452 |
|
|
|
1,020 |
|
|
|
897 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
37,696 |
|
|
|
53,752 |
|
|
|
220,345 |
|
|
|
244,733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
(9,113) |
|
|
|
(5,630) |
|
|
|
(27,278) |
|
|
|
(16,596) |
|
Purchase of investments |
|
- |
|
|
|
(59,749) |
|
|
|
(47,221) |
|
|
|
(287,593) |
|
Proceeds from investments |
|
28,915 |
|
|
|
29,388 |
|
|
|
449,880 |
|
|
|
92,542 |
|
Capitalization of software development costs |
|
(3,796) |
|
|
|
(677) |
|
|
|
(8,502) |
|
|
|
(1,380) |
|
Purchase of intangible assets |
|
(500) |
|
|
|
- |
|
|
|
(500) |
|
|
|
- |
|
Proceeds (repayment) from sale of discontinued operations |
|
(7,158) |
|
|
|
(1,038) |
|
|
|
(9,148) |
|
|
|
186,134 |
|
Payments for business acquisitions, net of cash acquired |
|
(1,005,921) |
|
|
|
- |
|
|
|
(1,157,249) |
|
|
|
(1,500) |
|
|
Net cash used in investing activities |
|
(997,573) |
|
|
|
(37,706) |
|
|
|
(800,018) |
|
|
|
(28,393) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of shares upon exercise of share options and
ESPP |
|
2,264 |
|
|
|
4,521 |
|
|
|
23,525 |
|
|
|
27,532 |
|
Purchase of treasury shares |
|
(8,613) |
|
|
|
(20,000) |
|
|
|
(43,630) |
|
|
|
(68,384) |
|
Dividends paid |
|
(9,598) |
|
|
|
(9,559) |
|
|
|
(38,202) |
|
|
|
(38,239) |
|
Capital Lease payments |
|
(392) |
|
|
|
- |
|
|
|
(1,087) |
|
|
|
- |
|
Proceeds from issuance of debt, net of costs |
|
464,841 |
|
|
|
- |
|
|
|
464,841 |
|
|
|
- |
|
Excess tax benefit from share-based payment arrangements |
|
4,695 |
|
|
|
3,553 |
|
|
|
7,867 |
|
|
|
7,595 |
|
Earnout payments related to acquisitions |
|
- |
|
|
|
(11) |
|
|
|
- |
|
|
|
(297) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided (used) by financing activities |
|
453,197 |
|
|
|
(21,496) |
|
|
|
413,314 |
|
|
|
(71,793) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Effect of exchange rates on cash and cash equivalents |
|
(2,419) |
|
|
|
(1,349) |
|
|
|
(2,546) |
|
|
|
(6,113) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net change in cash and cash equivalents |
|
(509,099) |
|
|
|
(6,799) |
|
|
|
(168,905) |
|
|
|
138,434 |
| Cash and cash equivalents, beginning of period |
|
666,125 |
|
|
|
332,730 |
|
|
|
325,931 |
|
|
|
187,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents, end of period |
|
$ 157,026 |
|
|
|
$ 325,931 |
|
|
|
$ 157,026 |
|
|
|
$325,931 |
| 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 |
|
|
|
|
|
December 31, |
|
|
|
|
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
2016 |
|
|
|
2015 |
| GAAP revenues |
|
|
|
$ 323,860 |
|
|
|
$ 273,558 |
|
|
|
|
|
$ 1,015,542 |
|
|
|
$ 926,867 |
| Valuation adjustment on acquired deferred product revenue |
|
526 |
|
|
|
- |
|
|
|
|
|
1,976 |
|
|
|
- |
| Valuation adjustment on acquired deferred service revenue |
|
4,118 |
|
|
|
- |
|
|
|
|
|
12,794 |
|
|
|
177 |
| Non-GAAP revenues |
|
|
|
$ 328,504 |
|
|
|
$ 273,558 |
|
|
|
|
|
$ 1,030,312 |
|
|
|
$ 927,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP cost of revenue |
|
|
|
$ 102,762 |
|
|
|
$ 82,041 |
|
|
|
|
|
$ 337,733 |
|
|
|
$ 303,582 |
| Amortization of acquired intangible assets on cost of product |
|
(5,994) |
|
|
|
(6,558) |
|
|
|
|
|
(26,161) |
|
|
|
(27,097) |
| Amortization of acquired intangible assets on cost of services |
|
(8,448) |
|
|
|
- |
|
|
|
|
|
(15,129) |
|
|
|
- |
| Valuation adjustment on acquired deferred cost of services |
|
182 |
|
|
|
- |
|
|
|
|
|
182 |
|
|
|
- |
| Cost of product revenue adjustment (1,2,3) |
|
|
|
(189) |
|
|
|
(132) |
|
|
|
|
|
(503) |
|
|
|
(502) |
| Cost of services revenue adjustment (1,2,3) |
|
|
|
(2,612) |
|
|
|
(1,244) |
|
|
|
|
|
(7,666) |
|
|
|
(3,291) |
| Non-GAAP cost of revenue |
|
|
|
$ 85,701 |
|
|
|
$ 74,107 |
|
|
|
|
|
$ 288,456 |
|
|
|
$ 272,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP gross profit |
|
|
|
$ 221,098 |
|
|
|
$ 191,517 |
|
|
|
|
|
$ 677,809 |
|
|
|
$ 623,285 |
| Gross profit adjustments |
|
|
|
21,705 |
|
|
|
7,933 |
|
|
|
|
|
64,047 |
|
|
|
31,068 |
| Non-GAAP gross profit |
|
|
|
$ 242,803 |
|
|
|
$ 199,450 |
|
|
|
|
|
$ 741,856 |
|
|
|
$ 654,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP operating expenses |
|
|
|
$ 183,982 |
|
|
|
$ 127,787 |
|
|
|
|
|
$ 543,633 |
|
|
|
$ 457,179 |
| Research and development (1,2,3) |
|
|
|
(2,150) |
|
|
|
(1,426) |
|
|
|
|
|
(6,612) |
|
|
|
(3,618) |
| Sales and marketing (1,2,3) |
|
|
|
(6,984) |
|
|
|
(3,168) |
|
|
|
|
|
(18,123) |
|
|
|
(11,266) |
| General and administrative (1,2,3) |
|
|
|
(19,171) |
|
|
|
(2,394) |
|
|
|
|
|
(32,417) |
|
|
|
(10,521) |
| Amortization of acquired intangible assets |
|
|
|
(6,775) |
|
|
|
(2,560) |
|
|
|
|
|
(17,187) |
|
|
|
(12,528) |
| Settlement and related expenses |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
(390) |
| Non-GAAP operating expenses |
|
|
|
$ 148,902 |
|
|
|
$ 118,239 |
|
|
|
|
|
$ 469,294 |
|
|
|
$ 418,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP finance & other income, net |
|
|
|
$ (1,360) |
|
|
|
$ 1,188 |
|
|
|
|
|
$ 10,305 |
|
|
|
$ 5,304 |
| Debt issuance cost |
|
|
|
379 |
|
|
|
- |
|
|
|
|
|
379 |
|
|
|
- |
| Realized gain from substantial liquidation of marketable
securities |
|
- |
|
|
|
- |
|
|
|
|
|
(2,711) |
|
|
|
- |
| Non-GAAP finance & other income, net |
|
|
|
$ (981) |
|
|
|
$ 1,188 |
|
|
|
|
|
$ 7,973 |
|
|
|
$ 5,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP taxes on income |
|
|
|
$ 5,765 |
|
|
|
$ 8,034 |
|
|
|
|
|
$ 21,412 |
|
|
|
$ 30,832 |
| Tax adjustments re non-GAAP adjustments |
|
|
|
14,737 |
|
|
|
7,503 |
|
|
|
|
|
38,490 |
|
|
|
14,934 |
| Non-GAAP taxes on income |
|
|
|
$ 20,502 |
|
|
|
$ 15,537 |
|
|
|
|
|
$ 59,902 |
|
|
|
$ 45,766 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP net income |
|
|
|
$ 29,991 |
|
|
|
$ 56,884 |
|
|
|
|
|
$ 123,069 |
|
|
|
$ 140,578 |
| Valuation adjustment on acquired deferred revenue |
|
|
|
4,644 |
|
|
|
- |
|
|
|
|
|
14,770 |
|
|
|
177 |
| Valuation adjustment on acquired deferred cost of service of revenue |
|
(182) |
|
|
|
- |
|
|
|
|
|
(182) |
|
|
|
- |
| Amortization of acquired intangible assets |
|
|
|
21,217 |
|
|
|
9,118 |
|
|
|
|
|
58,477 |
|
|
|
39,625 |
| Share-based compensation (1) |
|
|
|
14,833 |
|
|
|
7,808 |
|
|
|
|
|
40,547 |
|
|
|
27,660 |
| Re-organization expenses (2) |
|
|
|
7,780 |
|
|
|
556 |
|
|
|
|
|
11,073 |
|
|
|
1,538 |
| Acquisition related expenses (3) |
|
|
|
8,493 |
|
|
|
- |
|
|
|
|
|
13,701 |
|
|
|
- |
| Debt issuance cost |
|
|
|
379 |
|
|
|
- |
|
|
|
|
|
379 |
|
|
|
- |
| Realized gain from substantial liquidation of marketable securities |
|
- |
|
|
|
- |
|
|
|
|
|
(2,711) |
|
|
|
- |
| Settlement and related expenses |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
- |
|
|
|
390 |
| Tax adjustments re non-GAAP adjustments |
|
|
|
(14,737) |
|
|
|
(7,503) |
|
|
|
|
|
(38,490) |
|
|
|
(14,934) |
| Non-GAAP net income |
|
|
|
$ 72,418 |
|
|
|
$ 66,863 |
|
|
|
|
|
$ 220,633 |
|
|
|
$ 195,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP diluted earnings per share |
|
|
|
$ 0.49 |
|
|
|
$ 0.93 |
|
|
|
|
|
$ 2.02 |
|
|
|
$ 2.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP diluted earnings per share |
|
|
|
$ 1.18 |
|
|
|
$ 1.09 |
|
|
|
|
|
$ 3.61 |
|
|
|
$ 3.18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares used in computing GAAP diluted earnings per share |
|
61,349 |
|
|
|
61,092 |
|
|
|
|
|
61,035 |
|
|
|
61,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares used in computing Non-GAAP diluted earnings per share |
|
61,349 |
|
|
|
61,092 |
|
|
|
|
|
61,035 |
|
|
|
61,281 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
|
December 31, |
|
|
|
|
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
Cost of product revenue |
|
|
|
$ (189) |
|
|
|
$ (132) |
|
|
|
|
|
$ (493) |
|
|
|
$ (502) |
|
Cost of service revenue |
|
|
|
(2,610) |
|
|
|
(1,207) |
|
|
|
|
|
(7,411) |
|
|
|
(3,210) |
|
Research and development |
|
|
|
(2,140) |
|
|
|
(907) |
|
|
|
|
|
(5,681) |
|
|
|
(2,161) |
|
Sales and marketing |
|
|
|
(5,933) |
|
|
|
(3,168) |
|
|
|
|
|
(16,374) |
|
|
|
(11,266) |
|
General and administrative |
|
|
|
(3,961) |
|
|
|
(2,394) |
|
|
|
|
|
(10,588) |
|
|
|
(10,521) |
|
|
|
|
|
$ (14,833) |
|
|
|
$ (7,808) |
|
|
|
|
|
$ (40,547) |
|
|
|
$ (27,660) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (2) |
Re-organization expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
|
|
|
Year to date |
|
|
|
|
|
December 31, |
|
|
|
|
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
Cost of service revenue |
|
|
|
$ - |
|
|
|
$ (37) |
|
|
|
|
|
$ (246) |
|
|
|
$ (81) |
|
Research and development |
|
|
|
- |
|
|
|
(519) |
|
|
|
|
|
(896) |
|
|
|
(1,457) |
|
Sales and marketing |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
(150) |
|
|
|
- |
|
General and administrative |
|
|
|
(7,780) |
|
|
|
- |
|
|
|
|
|
(9,781) |
|
|
|
- |
|
|
|
|
|
$ (7,780) |
|
|
|
$ (556) |
|
|
|
|
|
$ (11,073) |
|
|
|
$ (1,538) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (3) |
Acquisition related expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended |
|
|
|
|
|
Year to date |
|
|
|
|
|
December 31, |
|
|
|
|
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
Cost of product revenue |
|
|
|
$ - |
|
|
|
$ - |
|
|
|
|
|
$ (10) |
|
|
|
$ - |
|
Cost of service revenue |
|
|
|
(2) |
|
|
|
- |
|
|
|
|
|
(9) |
|
|
|
- |
|
Research and development |
|
|
|
(10) |
|
|
|
- |
|
|
|
|
|
(35) |
|
|
|
- |
|
Sales and marketing |
|
|
|
(1,051) |
|
|
|
- |
|
|
|
|
|
(1,599) |
|
|
|
- |
|
General and administrative |
|
|
|
(7,430) |
|
|
|
- |
|
|
|
|
|
(12,048) |
|
|
|
- |
|
|
|
|
|
$ (8,493) |
|
|
|
$ - |
|
|
|
|
|
$ (13,701) |
|
|
|
$ - |
| NICE LTD. AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
| U.S. dollars in thousands |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
Unaudited |
|
|
|
Audited |
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CURRENT ASSETS: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
$ 157,026 |
|
|
|
$ 325,931 |
|
Short-term investments |
|
|
|
30,287 |
|
|
|
99,195 |
|
Trade receivables |
|
|
|
260,220 |
|
|
|
177,323 |
|
Prepaid expenses and other current assets |
|
|
|
57,966 |
|
|
|
43,561 |
|
Current assets of discontinued operations |
|
|
|
3,734 |
|
|
|
9,142 |
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
|
509,233 |
|
|
|
655,152 |
|
|
|
|
|
|
|
|
|
|
| LONG-TERM ASSETS: |
|
|
|
|
|
|
|
|
|
Long-term investments |
|
|
|
$ 98,726 |
|
|
|
$ 403,249 |
|
Other long-term assets |
|
|
|
18,701 |
|
|
|
17,175 |
|
Property and equipment, net |
|
|
|
87,678 |
|
|
|
40,593 |
|
Deferred tax assets |
|
|
|
14,093 |
|
|
|
14,130 |
|
Other intangible assets, net |
|
|
|
618,735 |
|
|
|
68,202 |
|
Goodwill |
|
|
|
1,284,710 |
|
|
|
651,112 |
|
|
|
|
|
|
|
|
|
|
|
Total long-term assets |
|
|
|
2,122,643 |
|
|
|
1,194,461 |
|
|
|
|
|
|
|
|
|
|
| TOTAL ASSETS |
|
|
|
$ 2,631,876 |
|
|
|
$ 1,849,613 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
|
Current maturities of long term loan |
|
|
|
$ 21,164 |
|
|
|
$ - |
|
Trade payables |
|
|
|
25,634 |
|
|
|
11,719 |
|
Deferred revenues and advances from customers |
|
|
|
149,801 |
|
|
|
131,125 |
|
Accrued expenses and other liabilities |
|
|
|
273,134 |
|
|
|
223,255 |
|
Current liabilities of discontinued operations |
|
|
|
3,077 |
|
|
|
12,744 |
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
|
472,810 |
|
|
|
378,843 |
|
|
|
|
|
|
|
|
|
|
| LONG-TERM LIABILITIES: |
|
|
|
|
|
|
|
|
|
Deferred revenues and advances from customers |
|
|
|
$ 22,710 |
|
|
|
$ 20,220 |
|
Deferred tax liabilities |
|
|
|
146,952 |
|
|
|
15,040 |
|
Long-term loan |
|
|
|
444,016 |
|
|
|
- |
|
Other long-term liabilities |
|
|
|
34,056 |
|
|
|
17,952 |
|
Long-term liabilities of discontinued operations |
|
|
|
- |
|
|
|
2,409 |
|
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities |
|
|
|
647,734 |
|
|
|
55,621 |
|
|
|
|
|
|
|
|
|
|
| SHAREHOLDERS' EQUITY |
|
|
|
1,511,332 |
|
|
|
1,415,149 |
|
|
|
|
|
|
|
|
|
|
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
$ 2,631,876 |
|
|
|
$ 1,849,613 |
NICE
Investors
Marty Cohen, +1 212 574 3635
ir@nice.com, ET
or
Yisca Erez, +972 9 775-3798
ir@nice.com, CET
or
Media Contact
Erik Snider, +1 877 245 7448
erik.snider@nice.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20170216005491/en/