sixkq22005

 

 

 

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 

 

FORM 6-K/A

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For August 3, 2005

 

NICE-SYSTEMS LTD.

(Translation of Registrant's Name into English)

 

 

8 Hapnina Street, P.O. Box 690, Ra'anana, Israel

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the Registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F    X       Form 40-F  ___

 

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as

permitted by Regulations S-T Rule 101(b)(1):

 

Yes  ____  No    X  

 

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(7):

 

Yes  ____  No    X  

 

Indicate by check mark whether by fur-nishing the information contained in this Form 6-K, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes  ____  No    X  

 

If "Yes" is marked, indicate below the file number as-signed to the Registrant in connection with Rule 12g3-2(b):  82- _N/A__

 

Page 1 of 7 Pages

 

 

____ 1 ____ 


 

THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO NICE-SYSTEMS LTD.`S ("NICE") REGISTRATION STATEMENTS ON FORM F-3 (REGISTRATION STATEMENT NOS. 333-12350 AND 333-12996) AND NICE`S REGISTRATION STATEMENTS ON FORM S-8 (REGISTRATION STATEMENT NOS. 333-6784, 333-8146, 333-9350, 333-11842, 333-7414, 333-9352, 333-11154 , 333-13686, 333-111112 ,333-111113 AND 333-109766), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

 

 

CONTENTS

 

Press Release: Nice Systems Reports 2005 second Quarter  Results.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

____ 2 ____ 


 

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

NICE-SYSTEMS LTD.

 

 

By:  /s/  Ran Oz

Name:  Ran Oz

Title: Corporate Vice President

And Chief Financial Officer

 

 

 

 

Dated: August 3,  2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

____ 3 ____ 


 

 

 

 

 

 

NICE Reports Record 2005 Second Quarter Earnings

Highlights:

Q2 record revenue at excess of $72.2 million

Q2 pro-forma gross margin improved to 56.7%

Pro forma EPS was $0.36, up 38% from Q2 2004

Integration of Dictaphones CRS business on track

 

Ra'anana, Israel, August 3, 2005 - NICE Systems (NASDAQ: NICE), the global provider of advanced solutions that enable organizations to extract insight from interactions to drive performance, today announced record results for the second quarter ending June 30, 2005.

 

Second quarter 2005 revenue was at a company record high of $72.2 million.  Second quarter revenue represents an 18% increase over $61.3 million in the same quarter of 2004.

 

Second quarter pro-forma gross margin, which excludes amortization of intangible assets, was 56.7%, an improvement from the 54.5% reported in the second quarter of 2004.

 

The company reported a second quarter pro forma operating profit of $7.1 million and operating margins of 9.8%, compared with $4.1 million and 6.8% in the second quarter of 2004.

 

Pro-forma net income, was $7.3 million or $0.36 per fully diluted share in the second quarter of 2005, up from $4.7 million or $0.26 per fully diluted share in the same quarter of 2004. On GAAP basis Second quarter net income was $6.8 million, or $0.33 per fully diluted share, compared with net income of $4.5 million, or $0.24 per share, on a fully diluted basis, in the second quarter of 2004.  

Total cash and equivalents at June 30, 2005 were at $169.3 million, even after the $38.5 million cash acquisition of Dictaphone CRS assets.  DSO`s for the second quarter stood at 73 days.

Commenting on the quarter, Haim Shani, Chief Executive Officer of NICE, said, "This was another outstanding quarter for NICE, with record results.   We are extremely pleased by the strong momentum we are seeing in both the enterprise and public and security sectors, each driven by increasing demand for our products across the board.  The increase in demand is particularly gratifying as it reflects successful execution of our near and long-term strategy for strengthening our position as the global leader in providing Insight from Interactions solutions."

"On June 1st we announced the completion of the Dictaphone CRS acquisition.  We are on track with the integration and are pleased by the pace at which we are progressing."

"We are encouraged by the strong momentum of both the enterprise and public and security sectors, and further to this success and the fast and smooth integration of Dictaphone CRS, we are raising our annual guidance to revenues at $304 - $309 million from the previous guidance of $295-$300 million and pro-forma EPS to $1.55 - 1.63 from $1.50-1.60.  We are also introducing first-time guidance for Q3 with a 28% - 32% growth in revenues to $81 - $84 million from the $63.5 million reported in the third quarter of last year. In terms of earnings, we expect pro-forma EPS to be between $0.38 and $0.42 per share, a 36% - 50% increase over the third quarter 2004 EPS of $0.28."

 

 

 

 

 

 

Conference Call
NICE will host a conference call to discuss the results and its business outlook today at 8:30 a.m. EST (15:30 Israel). The call will be broadcast live on the internet via NICE's website at www.nice.com.  A telephone replay will be available for up to 72 hours after the call. The replay information: US Toll-free: 1-866-276-1485; International: +972-3-925-5930; Israel: 03-925-5930.  

 

Pro forma basis results exclude the amortization of acquired intangible assets of $0.49 million in Q2 2005 and $0.23 million in Q2 2004. A reconciliation between results on a GAAP and pro forma basis is provided in a table immediately following the Consolidated Statement of Operations (Pro Forma Basis).

 

About NICE

NICE Systems (NASDAQ: NICE) is the leading provider of Insight from Interactions, based on advanced content analytics of telephony, web, radio and video communications.  NICE's solutions improve business and operational performance, as well as security.  NICE has over 23,000 customers in 100 countries, including the world's top 10 banks and over 75% of the Fortune 100 companies.  More information is available at www.nice.com.

Trademark Note: 3600 View, Agent@home, Big Picture Technology, Executive Connect, Executive Insight*, Experience Your Customer, Investigator, Lasting Loyalty, Listen Learn Lead, MEGACORDER, Mirra, My Universe, NICE, NiceAdvantage, NICE Analyzer, NiceCall, NiceCLS, NiceCMS, NICE Feedback, NiceFix, NiceGuard, NICE Learning, NICE Link, NiceLog, NICE Perform, ScreenSense, NiceScreen, NiceSoft, NICE Storage Center, NiceTrack, NiceUniverse, NiceUniverse LIVE, NiceVision, NiceVision Harmony, NiceVision Mobile, NiceVision Pro, NiceVision Virtual, NiceWatch, Renaissance, Secure Your Vision, Tienna, Wordnet and other product names and services mentioned herein are trademarks and registered trademarks of NICE Systems Ltd. All other registered and unregistered trademarks are the property of their respective owners.
*Only in
Australia

 

Media

 

 

Galit Belkind

NICE Systems  

galit.belkind@nice.com  

+1 877 245 7448

 

Investors

 

 

Amit Scheinmann

NICE Systems

ir@nice.com

+1 877 245 7449

 

 

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations of the management of NICE Systems Ltd. (the Company) only, and are subject to a number of risk factors and uncertainties, including but not limited to changes in technology and market requirements, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products and applications, difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel, loss of market share, pressure on pricing resulting from competition, and inability to maintain certain marketing and distribution arrangements, which could cause the actual results or performance of the Company to differ materially from those described therein. We undertake no obligation to update these forward-looking statements. 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NICE SYSTEMS LTD. AND SUBSIDIARIES

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

U.S. dollars in thousands (except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

June 30,

 

June 30,

 

2004

 

2005

 

2004

 

2005

 

Unaudited

 

Unaudited

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Product

$44,157

 

$47,673

 

$85,554

 

$94,950

Services

17,112

 

24,557

 

34,058

 

43,402

Total revenue

61,269

 

72,230

 

119,612

 

138,352

 

 

 

 

 

 

 

 

Cost of revenue

 

 

 

 

 

 

 

Product

15,761

 

15,346

 

30,616

 

30,903

Services

12,241

 

16,243

 

24,364

 

30,234

Total cost of revenue

28,002

 

31,589

 

54,980

 

61,137

 

 

 

 

 

 

 

 

Gross Profit

33,267

 

40,641

 

64,632

 

77,215

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

Research and development, net

6,218

 

6,999

 

12,433

 

13,756

Selling and marketing

15,231

 

17,949

 

30,404

 

33,979

General and administrative

7,819

 

8,901

 

15,684

 

17,241

Amortization of acquired intangible assets

87

 

206

 

175

 

244

Total operating expenses

29,355

 

34,055

 

58,696

 

65,220

 

 

 

 

 

 

 

 

Operating income

3,912

 

6,586

 

5,936

 

11,995

 

 

 

 

 

 

 

 

Financial income, net

1,177

 

1,245

 

2,078

 

2,297

 

 

 

 

 

 

 

 

Income before taxes on income

5,089

 

7,831

 

8,014

 

14,292

Taxes on income

585

 

1,030

 

895

 

1,715

 

 

 

 

 

 

 

 

Net income from continuing operations

4,504

 

6,801

 

7,119

 

12,577

 

 

 

 

 

 

 

 

Net income from discontinued operation

-

 

-

 

3,236

 

-

 

 

 

 

 

 

 

 

Net income  

$4,504

 

$6,801

 

$10,355

 

$12,577

 

 

 

 

 

 

 

 

Basic income per share from continuing operations

$0.26

 

$0.36

 

$0.41

 

$0.68

Basic income per share from discontinued operation

-

 

-

 

$0.19

 

-

Basic income per share

$0.26

 

$0.36

 

$0.60

 

$0.68

 

 

 

 

 

 

 

 

Diluted income per share from continuing operations

$0.24

 

$0.33

 

$0.38

 

$0.63

Diluted income per share from discontinued operation

-

 

-

 

$0.17

 

-

Diluted income per share

$0.24

 

$0.33

 

$0.56

 

$0.63

 

 

 

 

 

 

 

 

Weighted average number of shares

 

 

 

 

 

 

 

outstanding used to compute:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per share

17,395

 

18,768

 

17,251

 

18,590

Diluted income per share

18,553

 

20,305

 

18,561

 

20,083

 

 

 

 

 

 

 

 

 

 

 

 

NICE provides pro-forma net income and pro forma earnings per share data as additional information to its operating results. These measures are not in accordance with or an alternative for, GAAP and may be different from pro-forma measures used by other companies. The company believes that this presentation of pro-forma data provides useful information to management and investors regarding certain additional financial and business trends relating to its financial condition and result of operations. In addition, the Company's management uses these measures for reviewing the financial results of the Company and for budget purposes:

 

 

 

 

NICE SYSTEMS LTD. AND SUBSIDIARIES

 

 

 

 

 

 

 

FOR COMPARATIVE PURPOSES

 

 

 

 

 

 

 

NET INCOME AND INCOME PER SHARE EXCLUDING DISCONTINUED OPERATION AND  AMORTIZATION OF ACQUIRED INTANGIBLE ASSETS

 

 

 

 

U.S. dollars in thousands (except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

June 30,

 

June 30,

 

2004

 

2005

 

2004

 

2005

 

Unaudited

 

Unaudited

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

GAAP net income

$4,504

 

$6,801

 

$10,355

 

$12,577

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income from discontinued operation

-

 

-

 

(3,236)

 

-

 

 

 

 

 

 

 

 

Amortization of acquired intangible assets

 

 

 

 

 

 

 

  Included in gross profit

149

 

289

 

299

 

440

  Included in operating expenses

87

 

206

 

175

 

244

Non-GAAP net income from continuing operations

$4,740

 

$7,296

 

$7,593

 

$13,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP basic income per share from continuing

operations

$0.27

 

$0.39

 

$0.44

 

$0.71

Non-GAAP diluted income per share from continuing

operations

$0.26

 

$0.36

 

$0.41

 

$0.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NICE SYSTEMS LTD. AND SUBSIDIARIES

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

June 30,

 

 

 

2004

 

2005

 

 

 

Audited

 

Unaudited

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

Cash and cash equivalents

 

 

$ 26,579

 

$34,953

Short-term bank deposits

 

 

175

 

126

Marketable securities

 

 

24,348

 

22,620

Trade receivables

 

 

46,407

 

54,951

Other receivables and prepaid expenses

 

 

7,937

 

8,064

Inventories

 

 

12,615

 

20,296

Assets of discontinued operation

 

 

652

 

653

 

 

 

 

 

 

Total current assets

 

 

118,713

 

141,663

 

 

 

 

 

 

LONG-TERM INVESTMENTS:

 

 

 

 

 

Long-term marketable securities

 

 

114,805

 

111,621

Other long-term investments

 

 

9,410

 

9,207

 

 

 

 

 

 

Total long-term investments

 

 

124,215

 

120,828

 

 

 

 

 

 

PROPERTY AND EQUIPMENT, NET

 

 

16,981

 

15,683

 

 

 

 

 

 

OTHER ASSETS, NET

 

 

12,665

 

26,087

 

 

 

 

 

 

GOODWILL

 

 

25,745

 

49,432

 

 

 

 

 

 

TOTAL ASSETS

 

 

$298,319

 

$353,693

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Trade payables

 

 

$11,975

 

$17,121

Accrued expenses and other liabilities

 

 

55,302

 

83,560

Liabilities of discontinued operation

 

 

8

 

6

 

 

 

 

 

 

Total current liabilities

 

 

67,285

 

100,687

 

 

 

 

 

 

LONG-TERM LIABILITIES

 

 

8,163

 

8,237

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

222,871

 

244,769

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

$298,319

 

$353,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NICE SYSTEMS LTD. AND SUBSIDIARIES

 

 

 

 

 

 

 

CONSOLIDATED CASH FLOW STATEMENTS

 

 

 

 

 

 

 

U.S. dollars in thousands

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

June 30,

 

June 30,

 

2004

 

2005

 

2004

 

2005

 

Unaudited

 

Unaudited

 

Unaudited

 

Unaudited

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$4,504

 

$6,801

 

$10,355

 

$12,577

Less income for the period from discontinued operation

-

 

-

 

(3,236)

 

-

Adjustments required to reconcile net income to net cash

 

 

 

 

 

 

 

provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

3,396

 

2,951

 

6,908

 

5,961

Accrued severance pay, net

97

 

248

 

88

 

199

Amortization of discount (premium) and accrued interest

 

 

 

 

 

 

 

  on marketable securities

445

 

164

 

748

 

445

Decrease (increase) in trade receivables

(1,449)

 

3,133

 

139

 

(276)

Decrease (increase) in other receivables and prepaid expenses

(1,290)

 

712

 

(142)

 

(45)

Decrease (increase) in inventories

988

 

(1,499)

 

1,291

 

(1,295)

Increase (decrease) in trade payables

533

 

1,609

 

(1,078)

 

4,706

Increase in accrued expenses and other liabilities

937

 

5,068

 

788

 

9,656

Other

(36)

 

35

 

(25)

 

70

 

 

 

 

 

 

 

 

Net cash provided by operating activities from continuing operations

8,125

 

19,222

 

15,836

 

31,998

Net cash provided by operating activities from discontinued operation

646

 

-

 

850

 

-

 

 

 

 

 

 

 

 

Net cash provided by operating activities

8,771

 

19,222

 

16,686

 

31,998

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

(1,355)

 

(1,351)

 

(3,189)

 

(2,722)

Proceeds from sale of property and equipment

60

 

44

 

60

 

45

Investment in short-term bank deposits

(32)

 

(3)

 

(39)

 

(25)

Proceeds from short-term bank deposits

24

 

33

 

71

 

67

Proceeds from maturity of short-term marketable securities

7,685

 

95,625

 

14,985

 

149,460

Investment in short-term marketable securities

(2,000)

 

(67,425)

 

(2,000)

 

(132,825)

Proceeds of call of long-term held-to-maturity marketable securities

4,002

 

6,130

 

19,802

 

6,130

Investment in long-term held-to-maturity marketable securities

(32,507)

 

(9,225)

 

(67,863)

 

(18,298)

Capitalization of software development costs

(231)

 

(210)

 

(674)

 

(427)

Payment for acquisition of certain assets and liabilities of Dictaphone CRS Division

-

 

(38,939)

 

-

 

(38,939)

Decrease in accrued acquisition costs

-

 

-

 

(75)

 

-

Payment in respect of terminated contract from TCS acquisition

-

 

-

 

(1,483)

 

-

Proceeds from related party in respect of TCS acquisition

-

 

-

 

4,013

 

2,531

 

 

 

 

 

 

 

 

Net cash used by investing activities from continuing operations

(24,354)

 

(15,321)

 

(36,392)

 

(35,003)

Net cash provided by investing activities from discontinued operation

-

 

-

 

4,136

 

-

 

 

 

 

 

 

 

 

Net cash used by investing activities

(24,354)

 

(15,321)

 

(32,256)

 

(35,003)

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of shares and exercise of share options, net

1,896

 

5,766

 

9,918

 

11,469

 

 

 

 

 

 

 

 

Net cash provided by financing activities

1,896

 

5,766

 

9,918

 

11,469

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash

(61)

 

(134)

 

(77)

 

(90)

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

(13,748)

 

9,533

 

(5,729)

 

8,374

Cash and cash equivalents at beginning of period

37,878

 

25,420

 

29,859

 

26,579

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

$24,130

 

$34,953

 

$24,130

 

$34,953

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

____ 4 ____