RA’ANANA, Israel--(BUSINESS WIRE)--NICE Systems (NASDAQ: NICE) today announced results for the fourth quarter and the full year ended December 31, 2015.
Fourth Quarter 2015 Non-GAAP Financial Highlights:
- Revenue of $274 million, up 5% year-over-year
- Record gross margin of 72.9% compared to 72.4% last year
- Record operating profit of $81 million, 17% increase year-over-year
- Record operating margin of 29.7% compared to 26.8% last year
- Record fully diluted earnings per share of $1.09, up 12% year-over-year
Full Year 2015 Non-GAAP Financial Highlights:
- Revenue of $927 million, up 6% year-over-year
- Gross margin of 70.6% compared to 69.4% last year
- Record operating profit of $235 million, 22% increase year-over-year
- Operating margin increased to 25.4% compared to 22.1% last year
- Record fully diluted earnings per share of $3.18, up 17% year-over-year
“We are pleased to report a strong finish to the year,” said Barak Eilam, CEO of NICE. “Excluding foreign currency exchange rates, revenues grew 8.3% for the fourth quarter of 2015, compared to the same period in 2014. In addition, we reported 12% growth in earnings per share, which was supported by a record 29.7% operating margin.”
Mr. Eilam continued, “Ending 2015 as we did, encapsulates what I believe can be characterized as a truly transformative year for NICE. It was a year in which we managed significant and valuable changes to the business while delivering solid results. The fundamental changes that we made will continue to benefit NICE for the long term and are part of a broader journey that we expect will have a long-lasting, positive impact on the company both operationally and financially. As we look forward into 2016, I believe that we are well-positioned for further growth and profitability as we move ahead with our vision and strategic plan in place.”
Dividend Declaration
The Company declared a cash dividend for the fourth quarter of 2015 of $0.16 per share. The record date will be February 24th, 2016 and the payment date will be March 9th, 2016. Tax will be withheld at a rate of 15%.
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 Physical Security divisions for both 2015 and 2014.
Revenues: Fourth quarter 2015 non-GAAP total revenues were $273.6 million, up 5.4% from $259.5 million for the fourth quarter of 2014. Non-GAAP total revenues for the full year 2015 increased 6.2% to $927.0 million compared to $872.8 million for the full year 2014.
Gross Profit: Fourth quarter 2015 non-GAAP gross profit and non-GAAP gross margin increased to $199.5 million and 72.9%, respectively, from $188.0 million and 72.4%, respectively, for the fourth quarter of 2014. Full year 2015 non-GAAP gross profit and non-GAAP gross margin increased to $654.4 million and 70.6%, respectively, compared to $605.5 million and 69.4%, respectively, for the same period last year.
Operating Income: Fourth quarter 2015 non-GAAP operating income and non-GAAP operating margin increased to $81.2 million and 29.7%, respectively, from $69.6 million and 26.8%, respectively, for the fourth quarter of 2014. Full year 2015 non-GAAP operating income and non-GAAP operating margin increased to $235.5 million and 25.4%, respectively, compared to $192.5 million and 22.1%, respectively, for the full year 2014.
Net Income from Continuing Operations: Fourth quarter 2015 non-GAAP net income and non-GAAP net margin increased to $66.9 million and 24.4%, respectively, from $58.9 million and 22.7%, respectively, for the fourth quarter of 2014. Full year 2015 non-GAAP net income and non-GAAP net margin increased to $195.0 million and 21.0%, respectively, compared to $165.5 million and 19.0%, respectively, for the same period last year.
Fully Diluted Earnings Per Share from Continuing Operations: Fourth quarter 2015 non-GAAP fully diluted earnings per share increased 12.4% to $1.09, compared to $0.97 for the fourth quarter of 2014. Full year 2015 non-GAAP fully diluted earnings per share increased to $3.18, up 16.9% from $2.72 for the full year 2014.
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 Physical Security divisions for both 2015 and 2014.
Revenues: Fourth quarter 2015 total revenues increased 5.5% to $273.6 million compared to $259.4 million for the fourth quarter of 2014. Full year 2014 total revenues increased 6.3% to $926.9 million compared to $872.0 million for the full year 2014.
Gross Profit: Fourth quarter 2015 gross profit and gross margin increased to $191.5 million and 70.0%, respectively, from $179.7 million and 69.3%, respectively, for the fourth quarter of 2014. Full year 2015 gross profit and gross margin increased to $623.3 million and 67.2%, respectively, from $568.5 million and 65.2%, respectively, for the same period last year.
Operating Income: Fourth quarter 2015 operating income and operating margin increased to $63.7 million and 23.3%, respectively, from $55.7 million and 21.5%, respectively, for the fourth quarter of 2014. Full year 2015 operating income and operating margin increased to $166.1 million and 17.9%, respectively, compared to $106.3 million and 12.2%, respectively, for the full year 2014.
Net Income from Continuing Operations: Fourth quarter 2015 net income and net margin increased to $56.9 million and 20.8%, respectively, compared to $48.5 million and 18.7%, respectively, for the fourth quarter of 2014. Full year 2015 net income and net margin increased to $140.6 million and 15.2%, respectively, compared to $100.2 million and 11.5%, respectively, for the full year 2014.
Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the fourth quarter of 2015 increased 16.3% to $0.93, compared to $0.80 for the fourth quarter of 2014. Fully diluted earnings per share for the full year 2015 were $2.29 compared to $1.64 for the full year 2014.
Operating Cash Flow and Cash Balance: Fourth quarter 2015 operating cash flow was $53.8 million. Full year cash flow from operations reached $244.7 million. In the fourth quarter, $20.0 million was used for share repurchases and $9.6 million for dividends. As of December 31, 2015, total cash and cash equivalents, short term investments and marketable securities were $828.4 million, with no debt.
First Quarter and Full-Year 2016 Guidance:
First Quarter 2016: First quarter 2016 non-GAAP total revenues are expected to be in a range of $220 million to $230 million. First quarter 2016 non-GAAP fully diluted earnings per share are expected to be in a range of $0.71 to $0.77.
Full-Year 2016: Full-year 2016 non-GAAP total revenues are expected to be in the range of $995 million to $1,015 million. Full-year 2016 non-GAAP fully diluted earnings per share are expected to be in a range of $3.38 to $3.52.
Full year guidance includes the acquisition of Nexidia, which is expected to close by the end of Q1.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, February 11th, 2016 at 8:30 AM EST, 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 469 670 43. 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 451 563 12.
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, restructures expenses, share-based compensation, certain business combination accounting entries, settlement and related expenses and tax adjustment re non-GAAP adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income.
About NICE
NICE Systems (NASDAQ: NICE) is the worldwide leading provider of software solutions that enable organizations to take the next best action in order to improve customer experience and business results, ensure compliance, fight financial crime, and safeguard people and assets. NICE’s solutions empower organizations to capture, analyze, and apply, in real time, insights from both structured and unstructured Big Data. This data comes from multiple sources, including phone calls, mobile apps, emails, chat, social media, video, and transactions. NICE solutions are used by over 25,000 organizations in more than 150 countries, including over 80 of the Fortune 100 companies. www.nice.com.
Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE Systems. All other marks are trademarks of their respective owners. For a full list of NICE Systems' 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-Systems Ltd. (the Company). In some cases, such forward-looking statements can be identified by terms such as believe, expect, may, will, intend, project, plan, estimate or similar words. Forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results or performance of the Company to differ materially from those described herein, including but not limited to the impact of the global economic environment on the Company’s customer base (particularly financial services firms) potentially impacting our business and financial condition; competition; changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements; and the effect of newly enacted or modified laws, regulation or standards on the Company and our products. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission, including the Company’s Annual Report on Form 20-F. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company undertakes no obligation to update or revise them, except as required by law.
| NICE SYSTEMS LTD. AND SUBSIDIARIES | |||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| U.S. dollars in thousands (except per share amounts) | |||||||||||||
| Quarter ended | Year to date | ||||||||||||
| December 31, | December 31, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | ||||||||||
| Revenue: | |||||||||||||
| Product | $ | 110,079 | $ | 109,101 | $ | 317,900 | $ | 289,560 | |||||
| Services | 163,479 | 150,281 | 608,967 | 582,435 | |||||||||
| Total revenue | 273,558 | 259,382 | 926,867 | 871,995 | |||||||||
| Cost of revenue: | |||||||||||||
| Product | 19,125 | 17,609 | 66,363 | 63,919 | |||||||||
| Services | 62,916 | 62,065 | 237,219 | 239,592 | |||||||||
| Total cost of revenue | 82,041 | 79,674 | 303,582 | 303,511 | |||||||||
| Gross profit | 191,517 | 179,708 | 623,285 | 568,484 | |||||||||
| Operating Expenses: | |||||||||||||
| Research and development, net | 35,566 | 31,197 | 128,485 | 123,141 | |||||||||
| Selling and marketing | 63,599 | 69,483 | 225,817 | 231,097 | |||||||||
| General and administrative | 26,062 | 19,712 | 90,349 | 83,360 | |||||||||
| Amortization of acquired intangible assets | 2,560 | 3,644 | 12,528 | 19,157 | |||||||||
| Restructuring expenses | - | - | - | 5,435 | |||||||||
| Total operating expenses | 127,787 | 124,036 | 457,179 | 462,190 | |||||||||
| Operating income | 63,730 | 55,672 | 166,106 | 106,294 | |||||||||
| Finance and other income, net | 1,188 | 1,278 | 5,304 | 3,765 | |||||||||
| Income from continuing operations before tax | 64,918 | 56,950 | 171,410 | 110,059 | |||||||||
| Taxes on income | 8,034 | 8,405 | 30,832 | 9,909 | |||||||||
| Net income from continuing operations | 56,884 | 48,545 | 140,578 | 100,150 | |||||||||
| Discontinued operation | |||||||||||||
|
Gain on disposal and (loss) income from discontinued operations |
(1,621 | ) | 2,027 | 152,459 | 4,965 | ||||||||
| Taxes on income (tax benefit) | (2,130 | ) | 497 | 34,206 | 2,040 | ||||||||
| Net income on discontinued operations | 509 | 1,530 | 118,253 | 2,925 | |||||||||
| Net income | $ | 57,393 | $ | 50,075 | $ | 258,831 | $ | 103,075 | |||||
| Basic earnings per share from continuing operations | $ | 0.95 | $ | 0.82 | $ | 2.36 | $ | 1.69 | |||||
| Basic earnings per share from discontinued operations | $ | 0.01 | $ | 0.03 | $ | 1.99 | $ | 0.05 | |||||
| Basic earnings per share | $ | 0.96 | $ | 0.85 | $ | 4.35 | $ | 1.74 | |||||
| Diluted earnings per share from continuing operations | $ | 0.93 | $ | 0.80 | $ | 2.29 | $ | 1.64 | |||||
| Diluted earnings per share from discontinued operations | $ | 0.01 | $ | 0.03 | $ | 1.93 | $ | 0.05 | |||||
| Diluted earnings per share | $ | 0.94 | $ | 0.83 | $ | 4.22 | $ | 1.69 | |||||
|
Weighted average numbers of shares outstanding used to compute: |
|||||||||||||
| Basic earnings per share | 59,651 | 58,951 | 59,552 | 59,362 | |||||||||
| Diluted earnings per share | 61,092 | 60,551 | 61,281 | 60,895 | |||||||||
| NICE SYSTEMS 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, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| GAAP revenues | $ | 273,558 | $ | 259,382 | $ | 926,867 | $ | 871,995 | ||||||||
| Valuation adjustment on acquired deferred service revenue | 117 | 177 | 794 | |||||||||||||
| Non-GAAP revenues | $ | 273,558 | $ | 259,499 | $ | 927,044 | $ | 872,789 | ||||||||
| GAAP cost of revenue | $ | 82,041 | $ | 79,674 | $ | 303,582 | $ | 303,511 | ||||||||
| Amortization of acquired intangible assets on cost of product | (6,558 | ) | (6,994 | ) | (27,097 | ) | (30,771 | ) | ||||||||
| Amortization of acquired intangible assets on cost of services | - | - | - | (326 | ) | |||||||||||
| Cost of product revenue adjustment (1,2) | (132 | ) | (134 | ) | (502 | ) | (475 | ) | ||||||||
| Cost of services revenue adjustment (1,2) | (1,244 | ) | (1,024 | ) | (3,291 | ) | (4,671 | ) | ||||||||
| Non-GAAP cost of revenue | $ | 74,107 | $ | 71,522 | $ | 272,692 | $ | 267,268 | ||||||||
| GAAP gross profit | $ | 191,517 | $ | 179,708 | $ | 623,285 | $ | 568,484 | ||||||||
| Gross profit adjustments | 7,933 | 8,269 | 31,068 | 37,038 | ||||||||||||
| Non-GAAP gross profit | $ | 199,450 | $ | 187,977 | $ | 654,353 | $ | 605,522 | ||||||||
| GAAP operating expenses | $ | 127,787 | $ | 124,036 | $ | 457,179 | $ | 462,190 | ||||||||
| Research and development (1,2) | (1,426 | ) | (620 | ) | (3,618 | ) | (2,483 | ) | ||||||||
| Sales and marketing (1,2) | (3,168 | ) | (2,877 | ) | (11,266 | ) | (12,917 | ) | ||||||||
| General and administrative (1,2) | (2,394 | ) | (2,458 | ) | (10,521 | ) | (12,847 | ) | ||||||||
| Amortization of acquired intangible assets | (2,560 | ) | (3,644 | ) | (12,528 | ) | (19,157 | ) | ||||||||
| Acquisition related expenses (3) | - | 4,002 | - | 3,789 | ||||||||||||
| Settlement and related expenses | - | (75 | ) | (390 | ) | (75 | ) | |||||||||
| Restructuring expenses | - | - | - | (5,435 | ) | |||||||||||
| Non-GAAP operating expenses | $ | 118,239 | $ | 118,364 | $ | 418,856 | $ | 413,065 | ||||||||
| GAAP taxes on income | $ | 8,034 | $ | 8,405 | $ | 30,832 | $ | 9,909 | ||||||||
| Tax adjustments re non-GAAP adjustments | 7,503 | 3,557 | 14,934 | 20,791 | ||||||||||||
| Non-GAAP taxes on income | $ | 15,537 | $ | 11,962 | $ | 45,766 | $ | 30,700 | ||||||||
| GAAP net income | $ | 56,884 | $ | 48,545 | $ | 140,578 | $ | 100,150 | ||||||||
| Valuation adjustment on acquired deferred revenue | - | 117 | 177 | 794 | ||||||||||||
| Amortization of acquired intangible assets | 9,118 | 10,638 | 39,625 | 50,254 | ||||||||||||
| Share-based compensation (1) | 7,808 | 6,879 | 27,660 | 28,547 | ||||||||||||
| Re-organization expenses (2) | 556 | 234 | 1,538 | 4,846 | ||||||||||||
| Acquisition related expenses (3) | - | (4,002 | ) | - | (3,789 | ) | ||||||||||
| Restructuring expenses | - | - | - | 5,435 | ||||||||||||
| Settlement and related expenses | - | 75 | 390 | 75 | ||||||||||||
| Tax adjustments re non-GAAP adjustments | (7,503 | ) | (3,557 | ) | (14,934 | ) | (20,791 | ) | ||||||||
| Non-GAAP net income | $ | 66,863 | $ | 58,929 | $ | 195,034 | $ | 165,521 | ||||||||
| GAAP diluted earnings per share | $ | 0.93 | $ | 0.80 | $ | 2.29 | $ | 1.64 | ||||||||
| Non-GAAP diluted earnings per share | $ | 1.09 | $ | 0.97 | $ | 3.18 | $ | 2.72 | ||||||||
| Shares used in computing GAAP diluted earnings per share | 61,092 | 60,551 | 61,281 | 60,895 | ||||||||||||
| Shares used in computing Non-GAAP diluted earnings per share | 61,092 | 60,551 | 61,281 | 60,895 | ||||||||||||
| 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 | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||
| Cost of product revenue | $ | (132 | ) | $ | (134 | ) | $ | (502 | ) | $ | (475 | ) | ||||||
| Cost of service revenue | (1,207 | ) | (987 | ) | (3,210 | ) | (3,998 | ) | ||||||||||
| Research and development | (907 | ) | (620 | ) | (2,161 | ) | (2,483 | ) | ||||||||||
| Sales and marketing | (3,168 | ) | (2,905 | ) | (11,266 | ) | (12,367 | ) | ||||||||||
| General and administrative | (2,394 | ) | (2,233 | ) | (10,521 | ) | (9,224 | ) | ||||||||||
| $ | (7,808 | ) | $ | (6,879 | ) | $ | (27,660 | ) | $ | (28,547 | ) | |||||||
| (2) |
Re-organization expenses |
|||||||||||||||||
| Quarter ended | Year to date | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||
| Cost of service revenue | $ | (37 | ) | $ | (37 | ) | $ | (81 | ) | $ | (673 | ) | ||||||
| Research and development | (519 | ) | - | (1,457 | ) | - | ||||||||||||
| Sales and marketing | - | 28 | - | (550 | ) | |||||||||||||
| General and administrative | - | (225 | ) | - | (3,623 | ) | ||||||||||||
| $ | (556 | ) | $ | (234 | ) | $ | (1,538 | ) | $ | (4,846 | ) | |||||||
| (3) |
Acquisition related expenses |
|||||||||||||||||
| Quarter ended | Year to date | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||
| General and administrative | - | 4,002 | - | 3,789 | ||||||||||||||
| $ | - | $ | 4,002 | $ | - | $ | 3,789 | |||||||||||
| NICE SYSTEMS LTD. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| U.S. dollars in thousands | ||||||||
| December 31, | December 31, | |||||||
| 2015 | 2014 | |||||||
| Unaudited | Unaudited | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 325,931 | $ | 187,497 | ||||
| Short-term investments | 99,195 | 65,744 | ||||||
| Trade receivables | 177,323 | 155,628 | ||||||
| Other receivables and prepaid expenses | 37,363 | 33,288 | ||||||
| Inventories | 6,198 | 6,969 | ||||||
| Current assets of discontinued operations | 9,142 | 36,351 | ||||||
| Total current assets | 655,152 | 485,477 | ||||||
| LONG-TERM ASSETS: | ||||||||
| Long-term investments | 403,249 | 246,721 | ||||||
| Other long-term assets | 17,175 | 18,921 | ||||||
| Property and equipment, net | 39,213 | 40,170 | ||||||
| Deferred tax assets | 14,130 | 18,853 | ||||||
| Other intangible assets, net | 69,582 | 109,509 | ||||||
| Goodwill | 651,112 | 659,657 | ||||||
| Long-term assets of discontinued operations | - | 53,644 | ||||||
| Total long-term assets | 1,194,461 | 1,147,475 | ||||||
| TOTAL ASSETS | $ | 1,849,613 | $ | 1,632,952 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 11,719 | $ | 9,088 | ||||
| Deferred revenues and advances from customers | 151,345 | 122,528 | ||||||
| Accrued expenses and other liabilities | 223,041 | 192,240 | ||||||
| Current liabilities of discontinued operations | 12,744 | 54,357 | ||||||
| Total current liabilities | 398,849 | 378,213 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Deferred tax liabilities | 15,040 | 14,176 | ||||||
| Other long-term liabilities | 18,166 | 19,004 | ||||||
| Long-term liabilities of discontinued operations | 2,409 | 8,103 | ||||||
| Total long-term liabilities | 35,615 | 41,283 | ||||||
| SHAREHOLDERS' EQUITY | 1,415,149 | 1,213,456 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,849,613 | $ | 1,632,952 | ||||
| NICE SYSTEMS LTD. AND SUBSIDIARIES | ||||||||||||||||||||
| CONSOLIDATED CASH FLOW STATEMENTS | ||||||||||||||||||||
| U.S. dollars in thousands | ||||||||||||||||||||
| Quarter ended | Year to date | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||||||
|
Operating Activities |
||||||||||||||||||||
| Net income | $ | 57,393 | $ | 50,075 | $ | 258,831 | $ | 103,075 | ||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||||||||||||||||||||
| Depreciation and amortization | 13,294 | 16,146 | 57,964 | 73,349 | ||||||||||||||||
| Stock based compensation | 7,774 | 7,219 | 28,451 | 29,814 | ||||||||||||||||
| Excess tax benefit from share-based payment arrangements | (3,553 | ) | (522 | ) | (7,595 | ) | (1,205 | ) | ||||||||||||
| Amortization of premium and discount and accrued interest on marketable securities | 856 | 455 | 2,799 | 2,071 | ||||||||||||||||
| Deferred taxes, net | 14,604 | (13,877 | ) | 10,576 | (27,785 | ) | ||||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||
| Trade Receivables | (41,346 | ) | (12,685 | ) | (56,363 | ) | 4,807 | |||||||||||||
| Other receivables and prepaid expenses | 824 | 2,054 | (5,590 | ) | 2,283 | |||||||||||||||
| Inventories | 1,581 | 581 | 4,108 | (327 | ) | |||||||||||||||
| Trade payables | (9,478 | ) | (6,194 | ) | 2,166 | (13,781 | ) | |||||||||||||
| Accrued expenses and other current liabilities | 8,233 | 41,355 | 38,488 | 9,335 | ||||||||||||||||
| Deferred revenue | 1,739 | (18,281 | ) | 54,914 | 3,424 | |||||||||||||||
| Gain on sale and loss on disposal of discontinued operations | 1,094 | - | (147,334 | ) | - | |||||||||||||||
| Other | 737 | (2,166 | ) | 3,318 | (2,791 | ) | ||||||||||||||
| Net cash provided by operating activities | 53,752 | 64,160 | 244,733 | 182,269 | ||||||||||||||||
|
Investing Activities |
||||||||||||||||||||
| Purchase of property and equipment | (5,630 | ) | (3,909 | ) | (16,600 | ) | (16,759 | ) | ||||||||||||
| Proceeds from sale of property and equipment | - | 1 | 4 | 37 | ||||||||||||||||
| Purchase of Investments | (59,749 | ) | (38,447 | ) | (287,593 | ) | (143,688 | ) | ||||||||||||
| Proceeds from Investments | 29,388 | 55,774 | 92,542 | 153,141 | ||||||||||||||||
| Capitalization of software development costs | (677 | ) | (204 | ) | (1,380 | ) | (908 | ) | ||||||||||||
| Payments for business acquisitions, net of cash acquired | - | - | (1,500 | ) | (748 | ) | ||||||||||||||
| Proceeds from sales of discontinued operations | (1,038 | ) | - | 186,134 | - | |||||||||||||||
| - | ||||||||||||||||||||
| Net cash provided by (used in) investing activities | (37,706 | ) | 13,215 | (28,393 | ) | (8,925 | ) | |||||||||||||
|
Financing Activities |
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| Proceeds from issuance of shares upon exercise of share options and ESPP | 4,521 | 14,020 | 27,532 | 29,526 | ||||||||||||||||
| Purchase of treasury shares | (20,000 | ) | (12,689 | ) | (68,384 | ) | (94,267 | ) | ||||||||||||
| Dividends paid | (9,559 | ) | (9,441 | ) | (38,239 | ) | (38,142 | ) | ||||||||||||
| Excess tax benefit from share-based payment arrangements | 3,553 | 522 | 7,595 | 1,205 | ||||||||||||||||
| Earnout payments related to acquisitions | (11 | ) | - | (297 | ) | (158 | ) | |||||||||||||
| Net cash used in financing activities | (21,496 | ) | (7,588 | ) | (71,793 | ) | (101,836 | ) | ||||||||||||
| Effect of exchange rates on cash and cash equivalents | (1,349 | ) | (1,227 | ) | (6,113 | ) | (3,556 | ) | ||||||||||||
| Net change in cash and cash equivalents | (6,799 | ) | 68,560 | 138,434 | 67,952 | |||||||||||||||
| Cash and cash equivalents, beginning of period | 332,730 | 118,937 | 187,497 | 119,545 | ||||||||||||||||
| Cash and cash equivalents, end of period | $ | 325,931 | $ | 187,497 | $ | 325,931 | $ | 187,497 | ||||||||||||