HOBOKEN, N.J.--(BUSINESS WIRE)--NICE (NASDAQ: NICE) today announced results for the fourth quarter and full year 2017 ended December 31, 2017.
Full Year 2017 Financial Highlights
GAAP | Non-GAAP | |
Record revenue of $1,332 million, growth of 31% year- |
Record revenue of $1,346 million, growth of 31% year-over-year | |
Gross margin of 64.8% compared to 66.7% last year | Gross margin of 71.6% compared to 72.0% last year | |
Operating income of $150 million compared to $134 million |
Record operating income of $336 million compared to $273 |
|
Operating margin of 11.3% compared to 13.2% last year | Operating margin of 25.0% compared to 26.5% last year | |
Record diluted EPS from continuing operations of $2.31 |
Record diluted EPS from continuing operations of $4.10 |
|
Record operating cash flow of $395 million compared to |
Fourth Quarter 2017 Financial Highlights
GAAP | Non-GAAP | |
Record revenue of $392 million, growth of 21% year-over- |
Record revenue of $396 million, growth of 20% year-over- |
|
Gross margin of 68.4% compared to 68.3% last year | Record gross margin of 74.2% compared to 73.9% last year | |
Operating income of $63 million compared to $37 million |
Record operating income of $112 million compared to $94 |
|
Operating margin of 16.1% compared to 11.5% last year | Operating margin of 28.4% compared to 28.6% last year | |
Record diluted EPS from continuing operations of $1.27 |
Record diluted EPS from continuing operations of $1.35 |
|
Operating cash flow more than doubled to $87 million |
“We ended the year on a high note as we demonstrated strong momentum across the board,” said Barak Eilam, CEO of NICE. “The strong performance in 2017 is attributed to the ongoing successful execution of our NICE2B strategic plan, which was first introduced one year ago.”
Mr. Eilam continued, “As we move forward, we are confident about the opportunities ahead. Our addressable market has increased five-fold; cloud, which now represents approximately 30% of our total revenue, is expected to grow to more than 50% of our total revenue in the years to come; analytics, which has fueled our growth will continue to expand with the addition of artificial intelligence; and, we now have the platform and an effective go-to-market to address all segments of the market, both large and small enterprises.
“We are stepping into 2018 with continued momentum. Furthermore, we expect to exit 2018 with a cloud revenue run rate of half a billion dollars and to continue to grow our operating income at a double digit rate.”
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 2017 and 2016.
Revenues: Fourth quarter 2017 total revenues increased 21.1% to
$392.2 million compared to $323.9 million for the fourth quarter of 2016.
Full
year 2017 total revenues increased 31.2% to $1,332.2 million compared to
$1,015.5 million for the full year 2016.
Gross Profit: Fourth quarter 2017 gross profit and gross margin
increased to $268.3 million and 68.4%, respectively, compared to $221.1
million and 68.3%, respectively, for the fourth quarter of 2016.
Full
year 2017 gross profit increased to $863.5 million compared to $677.8
million and gross margin was 64.8% compared to 66.7% for the full year
2016.
Operating Income: Fourth quarter 2017 operating income and
operating margin increased to $63.2 million and 16.1%, respectively,
compared to $37.1 million and 11.5%, respectively, for the fourth
quarter of 2016.
Full year 2017 operating income increased to
$150.1 million compared to $134.2 million and operating margin was 11.3%
compared to 13.2% for the full year 2016.
Net Income from Continuing Operations: Fourth quarter 2017 net
income and net income margin increased to $79.4 million and 20.2%,
respectively, compared to $30.0 million and 9.3%, respectively, for the
fourth quarter of 2016.
Full year 2017 net income increased to
$143.3 million compared to $123.1 million net income margin was 10.8%,
compared to 12.1%, for the full year 2016.
Fully Diluted Earnings Per Share from Continuing Operations:
Fully diluted earnings per share for the fourth quarter of 2017
increased to $1.27 compared to $0.49 in the fourth quarter of 2016.
Fully
diluted earnings per share for the full year 2017 increased to $2.31
compared to $2.02 for the full year 2016.
Operating Cash Flow and Cash Balance: Fourth quarter 2017 operating cash flow was $86.6 million. Full year operating cash flow reached $394.7 million. In the fourth quarter, $4.1 million was used for share repurchases and $24.4 million in the full year of 2017. As of December 31, 2017, total cash and cash equivalents, short term investments and marketable securities were $525.1 million, and total debt was $447.6 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 2017 and 2016.
Revenues: Fourth quarter 2017 non-GAAP total revenues increased
to $395.8 million, up 20.5% from $328.5 million for the fourth quarter
of 2016.
Non-GAAP total revenues for the full year 2017 increased
30.6% to $1,345.9 million compared to $1,030.3 million for the full year
2016.
Gross Profit: Fourth quarter 2017 non-GAAP gross profit and
non-GAAP gross margin increased to $293.5 million and 74.2%,
respectively, from $242.8 million and 73.9%, respectively, for the
fourth quarter of 2016.
Full year 2017 non-GAAP gross profit
increased to $963.6 million compared to $741.9 million and non-GAAP
gross margin was 71.6% compared to 72.0% for the full year 2016.
Operating Income: Fourth quarter 2017 non-GAAP operating income
increased to $112.4 million compared to $93.9 million, and non-GAAP
operating margin was 28.4% compared to 28.6% for the fourth quarter of
2016.
Full year 2017 non-GAAP operating income increased to $336.3
million compared to $272.6 million and non-GAAP operating margin 25.0%
compared to 26.5% for the full year 2016.
Net Income from Continuing Operations: Fourth quarter 2017
non-GAAP net income increased to $84.5 million compared to $72.4
million, and non-GAAP net income margin was 21.3% compared to 22.0% for
the fourth quarter of 2016.
Full year 2017 non-GAAP net income
increased to $254.5 million compared to $220.6 million and non-GAAP net
margin was 18.9% compared to 21.4% for the full year 2016.
Fully Diluted Earnings Per Share from Continuing Operations:
Fourth quarter 2017 non-GAAP fully diluted earnings per share increased
14.4% to $1.35, compared to $1.18 for the fourth quarter of 2016.
Full
year 2017 non-GAAP fully diluted earnings per share increased 13.6% to
$4.10 compared to $3.61 for the full year 2016.
First Quarter and Full Year 2018 Guidance:
Effective January 1st, 2018, the company adopted ASC 606 using the modified retrospective method. 2018 financial data will be reported in both ASC 606 and ASC 605.
Guidance for the first quarter and the full-year 2018 is provided using the accounting standard ASC 605 in order to provide better transparency and comparability to 2017 financial data, which was reported under ASC 605.
First Quarter 2018: First quarter 2018 non-GAAP total revenues are expected to be in a range of $328 million to $338 million. First quarter 2018 non-GAAP fully diluted earnings per share are expected to be in a range of $0.97 to $1.03.
Full Year 2018: Full year 2018 non-GAAP total revenues are expected to be in a range of $1,430 million to $1,454 million. Full year 2018 non-GAAP fully diluted earnings per share are expected to be in a range of $4.40 to $4.60.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, February 15th, 2018 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)1296-311-600, United Kingdom 0-800-678-1161, Israel 1-809-344-364. The Passcode is 658 808 66. 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 646 562 13.
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 and tax reform 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 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 | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Unaudited | Audited | Unaudited | Audited | ||||||||||||
Revenue: | |||||||||||||||
Product | $ 114,822 | $ 110,975 | $ 318,946 | $ 306,252 | |||||||||||
Services | 175,947 | 164,642 | 652,040 | 623,783 | |||||||||||
Cloud | 101,466 | 48,243 | 361,166 | 85,507 | |||||||||||
Total revenue | 392,235 | 323,860 | 1,332,152 | 1,015,542 | |||||||||||
Cost of revenue: | |||||||||||||||
Product | 11,397 | 13,246 | 51,065 | 53,032 | |||||||||||
Services | 59,128 | 68,610 | 225,020 | 250,022 | |||||||||||
Cloud | 53,436 | 20,906 | 192,588 | 34,679 | |||||||||||
Total cost of revenue | 123,961 | 102,762 | 468,673 | 337,733 | |||||||||||
Gross profit | 268,274 | 221,098 | 863,479 | 677,809 | |||||||||||
Operating Expenses: | |||||||||||||||
Research and development, net | 50,132 | 40,882 | 181,107 | 141,528 | |||||||||||
Selling and marketing | 107,070 | 91,983 | 361,328 | 268,349 | |||||||||||
General and administrative | 37,313 | 44,342 | 129,071 | 116,569 | |||||||||||
Amortization of acquired intangible assets | 10,583 | 6,775 | 41,902 | 17,187 | |||||||||||
Total operating expenses | 205,098 | 183,982 | 713,408 | 543,633 | |||||||||||
Operating income | 63,176 | 37,116 | 150,071 | 134,176 | |||||||||||
Finance and other income (expense), net | (3,698) | (1,360) | (20,411) | 10,305 | |||||||||||
Income from continuing operations before tax | 59,478 | 35,756 | 129,660 | 144,481 | |||||||||||
Taxes on income (tax benefits) | (19,910) | 5,765 | (13,631) | 21,412 | |||||||||||
Net income from continuing operations | 79,388 | 29,991 | 143,291 | 123,069 | |||||||||||
Discontinued operations | |||||||||||||||
Loss from discontinued operations | - | (5,976) | - | (8,235) | |||||||||||
Tax benefits | - | (2,086) | - | (2,086) | |||||||||||
Net loss from discontinued operations | - | (3,890) | - | (6,149) | |||||||||||
Net income | $ 79,388 | $ 26,101 | $ 143,291 | $ 116,920 | |||||||||||
Basic earnings per share from continuing operations | $ 1.30 | $ 0.50 | $ 2.37 | $ 2.06 | |||||||||||
Basic earnings (loss) per share from discontinued operations | $ - | $ (0.06) | $ - | $ (0.10) | |||||||||||
Basic earnings per share | $ 1.30 | $ 0.44 | $ 2.37 | $ 1.96 | |||||||||||
Diluted earnings per share from continuing operations | $ 1.27 | $ 0.49 | $ 2.31 | $ 2.02 | |||||||||||
Diluted earnings (loss) per share from discontinued operations | $ - | $ (0.06) | $ - | $ (0.10) | |||||||||||
Diluted earnings per share | $ 1.27 | $ 0.43 | $ 2.31 | $ 1.92 | |||||||||||
Weighted average number of shares | |||||||||||||||
outstanding used to compute: | |||||||||||||||
Basic earnings (loss) per share | 60,861 | 59,977 | 60,444 | 59,667 | |||||||||||
Diluted earnings (loss) per share | 62,534 | 61,349 | 62,119 | 61,035 |
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, | ||||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||||
GAAP revenues | $ 392,235 | $ 323,860 | $ 1,332,152 | $ 1,015,542 | |||||||||||||||
Valuation adjustment on acquired deferred product revenue | 15 | 526 | 317 | 1,976 | |||||||||||||||
Valuation adjustment on acquired deferred service revenue | 752 | 2,929 | 4,667 | 6,932 | |||||||||||||||
Valuation adjustment on acquired deferred cloud revenue | 2,760 | 1,189 | 8,754 | 5,862 | |||||||||||||||
Non-GAAP revenues | $ 395,762 | $ 328,504 | $ 1,345,890 | $ 1,030,312 | |||||||||||||||
GAAP cost of revenue | $ 123,961 | $ 102,762 | $ 468,673 | $ 337,733 | |||||||||||||||
Amortization of acquired intangible assets on cost of product | (5,296) | (5,994) | (23,782) | (26,161) | |||||||||||||||
Amortization of acquired intangible assets on cost of services | (987) | (2,961) | (6,341) | (9,642) | |||||||||||||||
Amortization of acquired intangible assets on cost of cloud | (12,646) | (5,487) | (46,352) | (5,487) | |||||||||||||||
Valuation adjustment on acquired deferred cost of services | 353 | 182 | 1,486 | 182 | |||||||||||||||
Cost of product revenue adjustment (1,3) | (189) | (189) | (683) | (503) | |||||||||||||||
Cost of services revenue adjustment (1,2,3) | (2,071) | (2,122) | (7,696) | (6,969) | |||||||||||||||
Cost of cloud revenue adjustment (1,2) | (833) | (490) | (2,965) | (697) | |||||||||||||||
Non-GAAP cost of revenue | $ 102,292 | $ 85,701 | $ 382,340 | $ 288,456 | |||||||||||||||
GAAP gross profit | $ 268,274 | $ 221,098 | $ 863,479 | $ 677,809 | |||||||||||||||
Gross profit adjustments | 25,196 | 21,705 | 100,071 | 64,047 | |||||||||||||||
Non-GAAP gross profit | $ 293,470 | $ 242,803 | $ 963,550 | $ 741,856 | |||||||||||||||
GAAP operating expenses | $ 205,098 | $ 183,982 | $ 713,408 | $ 543,633 | |||||||||||||||
Research and development (1,2,3) | (2,394) | (2,150) | (9,045) | (6,612) | |||||||||||||||
Sales and marketing (1,2,3) | (6,083) | (6,984) | (23,243) | (18,123) | |||||||||||||||
General and administrative (1,2,3) | (4,983) | (19,171) | (12,010) | (32,417) | |||||||||||||||
Amortization of acquired intangible assets | (10,583) | (6,775) | (41,902) | (17,187) | |||||||||||||||
Non-GAAP operating expenses | $ 181,055 | $ 148,902 | $ 627,208 | $ 469,294 | |||||||||||||||
GAAP finance & other income (expense), net | $ (3,698) | $ (1,360) | $ (20,411) | $ 10,305 | |||||||||||||||
Amortization of discount on long term debt | 2,149 | 379 | 13,547 | 379 | |||||||||||||||
Realized gain from substantial liquidation of marketable securities | - | - | - | (2,711) | |||||||||||||||
Non-GAAP finance & other income (expense), net | $ (1,549) | $ (981) | $ (6,864) | $ 7,973 | |||||||||||||||
GAAP taxes on income | $ (19,910) | $ 5,765 | $ (13,631) | $ 21,412 | |||||||||||||||
Tax adjustments re non-GAAP adjustments | 15,373 | 14,737 | 57,671 | 38,490 | |||||||||||||||
Tax reform adjustment | 30,923 | - | 30,923 | - | |||||||||||||||
Non-GAAP taxes on income | $ 26,386 | $ 20,502 | $ 74,963 | $ 59,902 | |||||||||||||||
GAAP net income | $ 79,388 | $ 29,991 | $ 143,291 | $ 123,069 | |||||||||||||||
Valuation adjustment on acquired deferred revenue | 3,527 | 4,644 | 13,738 | 14,770 | |||||||||||||||
Valuation adjustment on acquired deferred cost of service of revenue | (353) | (182) | (1,486) | (182) | |||||||||||||||
Amortization of acquired intangible assets | 29,512 | 21,217 | 118,377 | 58,477 | |||||||||||||||
Share-based compensation (1) | 16,080 | 14,833 | 56,980 | 40,547 | |||||||||||||||
Re-organization expenses (income) (2) | - | 7,780 | (3,067) | 11,073 | |||||||||||||||
Acquisition related expenses (3) | 473 | 8,493 | 1,729 | 13,701 | |||||||||||||||
Amortization of discount on long term debt | 2,149 | 379 | 13,547 | 379 | |||||||||||||||
Realized gain from substantial liquidation of marketable securities | - | - | - | (2,711) | |||||||||||||||
Tax adjustments re non-GAAP adjustments and tax reform | (46,296) | (14,737) | (88,594) | (38,490) | |||||||||||||||
Non-GAAP net income | $ 84,480 | $ 72,418 | $ 254,515 | $ 220,633 | |||||||||||||||
GAAP diluted earnings per share | $ 1.27 | $ 0.49 | $ 2.31 | $ 2.02 | |||||||||||||||
Non-GAAP diluted earnings per share | $ 1.35 | $ 1.18 | $ 4.10 | $ 3.61 | |||||||||||||||
Shares used in computing GAAP diluted earnings per share | 62,534 | 61,349 | 62,119 | 61,035 | |||||||||||||||
Shares used in computing Non-GAAP diluted earnings per share | 62,534 | 61,349 | 62,119 | 61,035 |
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, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Cost of product revenue | $ (189) | $ (189) | $ (683) | $ (493) | ||||||||||||||||
Cost of service revenue | (2,064) | (2,120) | (7,689) | (6,690) | ||||||||||||||||
Cost of cloud revenue | (833) | (490) | (2,965) | (721) | ||||||||||||||||
Research and development | (2,387) | (2,140) | (9,038) | (5,681) | ||||||||||||||||
Sales and marketing | (6,022) | (5,933) | (23,107) | (16,374) | ||||||||||||||||
General and administrative | (4,585) | (3,961) | (13,498) | (10,588) | ||||||||||||||||
$ (16,080) | $ (14,833) | $ (56,980) | $ (40,547) | |||||||||||||||||
(2) |
Re-organization (expenses) income |
|||||||||||||||||||
Quarter ended | Year to date | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Cost of service revenue | $ - | $ - | $ - | $ (270) | ||||||||||||||||
Cost of cloud revenue | - | - | - | 24 | ||||||||||||||||
Research and development | - | - | - | (896) | ||||||||||||||||
Sales and marketing | - | - | - | (150) | ||||||||||||||||
General and administrative | - | (7,780) | 3,067 | (9,781) | ||||||||||||||||
$ - | $ (7,780) | $ 3,067 | $ (11,073) | |||||||||||||||||
(3) |
Acquisition related expenses |
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Quarter ended | Year to date | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Cost of product revenue | $ - | $ - | $ - | $ (10) | ||||||||||||||||
Cost of service revenue | (7) | (2) | (7) | (9) | ||||||||||||||||
Research and development | (7) | (10) | (7) | (35) | ||||||||||||||||
Sales and marketing | (61) | (1,051) | (136) | (1,599) | ||||||||||||||||
General and administrative | (398) | (7,430) | (1,579) | (12,048) | ||||||||||||||||
$ (473) | $ (8,493) | $ (1,729) | $ (13,701) |
NICE LTD. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED CASH FLOW STATEMENTS | ||||||||||||||||
U.S. dollars in thousands | ||||||||||||||||
Quarter ended | Year to date | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Unaudited | Audited | Unaudited | Audited | |||||||||||||
Operating Activities |
||||||||||||||||
Net income | $ 79,388 | $ 26,101 | $143,291 | $ 116,920 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||||
Depreciation and amortization | 40,992 | 27,469 | 156,301 | 77,801 | ||||||||||||
Stock based compensation | 16,080 | 14,833 | 56,980 | 40,547 | ||||||||||||
Amortization of premium and discount and accrued interest on marketable securities | 222 | 86 | 646 | 2,441 | ||||||||||||
Deferred taxes, net | (36,696) | (8,393) | (70,884) | (25,905) | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Trade Receivables | (35,075) | (72,462) | 37,735 | (31,784) | ||||||||||||
Prepaid expenses and other current assets | 6,856 | 10,214 | (6,839) | 2,078 | ||||||||||||
Trade payables | 2,029 | (525) | 2,665 | 4,392 | ||||||||||||
Accrued expenses and other current liabilities | 34,162 | 35,978 | 25,541 | 17,994 | ||||||||||||
Deferred revenue | (23,552) | (6,817) | 41,624 | 9,379 | ||||||||||||
Long term liabilities | (117) | 7,443 | (5,169) | 7,529 | ||||||||||||
Gain on sale and loss on disposal of discontinued operations | - | 7,158 | - | 9,148 | ||||||||||||
Realized gain on marketable securities | - | (22) | - | (3,388) | ||||||||||||
Amortization of discount on long term debt | 2,149 | 379 | 13,547 | 379 | ||||||||||||
Other | 150 | 949 | (776) | 681 | ||||||||||||
Net cash provided by operating activities | 86,588 | 42,391 | 394,662 | 228,212 | ||||||||||||
Investing Activities |
||||||||||||||||
Purchase of property and equipment | (8,467) | (9,113) | (39,889) | (27,278) | ||||||||||||
Purchase of Investments | (37,406) | - | (133,423) | (47,221) | ||||||||||||
Proceeds from Investments | 12,669 | 28,915 | 64,295 | 449,880 | ||||||||||||
Capitalization of software development costs | (6,890) | (3,796) | (27,936) | (8,502) | ||||||||||||
Investments in affiliates and other purchases | - | (1,500) | - | (1,500) | ||||||||||||
Repayment from sale of discontinued operations | - | (7,158) | - | (9,148) | ||||||||||||
Payments for business acquisitions, net of cash acquired | (38,147) | (1,004,921) | (76,027) | (1,156,249) | ||||||||||||
Net cash used in investing activities | (78,241) | (997,573) | (212,980) | (800,018) | ||||||||||||
Financing Activities |
||||||||||||||||
Proceeds from issuance of shares upon exercise of share options | 2,453 | 2,264 | 19,240 | 23,525 | ||||||||||||
Purchase of treasury shares | (4,114) | (8,613) | (24,428) | (43,630) | ||||||||||||
Dividends paid | - | (9,598) | (9,637) | (38,202) | ||||||||||||
Capital Lease payments | - | (392) | (137) | (1,087) | ||||||||||||
Repayment of long term debt | - | - | (260,000) | - | ||||||||||||
Proceeds from issuance of debt, net of costs | - | 464,841 | - | 464,841 | ||||||||||||
Proceeds from issuance of exchangeable notes | - | - | 260,135 | - | ||||||||||||
Net cash provided by (used in) financing activities | (1,661) | 448,502 | (14,827) | 405,447 | ||||||||||||
Effect of exchange rates on cash and cash equivalents | 687 | (2,419) | 4,421 | (2,546) | ||||||||||||
Net change in cash and cash equivalents | 7,373 |
(509,099) |
|
171,276 | (168,905) | |||||||||||
Cash and cash equivalents, beginning of period | 320,929 | 666,125 | 157,026 | 325,931 | ||||||||||||
Cash and cash equivalents, end of period | $ 328,302 | $ 157,026 | $328,302 | $ 157,026 |
NICE LTD. AND SUBSIDIARIES | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
U.S. dollars in thousands | |||||
December 31, | December 31, | ||||
2017 | 2016 | ||||
Unaudited | Audited | ||||
ASSETS | |||||
CURRENT ASSETS: | |||||
Cash and cash equivalents | $ 328,302 | $ 157,026 | |||
Short-term investments | 63,951 | 30,287 | |||
Trade receivables | 230,729 | 260,220 | |||
Prepaid expenses and other current assets | 68,032 | 57,966 | |||
Discontinued operations | 2,042 | 3,734 | |||
Total current assets | 693,056 | 509,233 | |||
LONG-TERM ASSETS: | |||||
Long-term investments | 132,820 | 98,726 | |||
Property and equipment, net | 118,275 | 87,678 | |||
Deferred tax assets | 11,850 | 14,093 | |||
Other intangible assets, net | 551,347 | 618,735 | |||
Goodwill | 1,318,242 | 1,284,710 | |||
Other long-term assets | 19,496 | 18,701 | |||
Total long-term assets | 2,152,030 | 2,122,643 | |||
TOTAL ASSETS | $ 2,845,086 | $ 2,631,876 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
CURRENT LIABILITIES: | |||||
Current maturities of long term loan | $ - | $ 21,164 | |||
Trade payables | 29,438 | 25,634 | |||
Deferred revenues and advances from customers | 184,564 | 149,801 | |||
Accrued expenses and other liabilities | 309,161 | 273,134 | |||
Discontinued operations | 189 | 3,077 | |||
Total current liabilities | 523,352 | 472,810 | |||
LONG-TERM LIABILITIES: | |||||
Deferred revenues and advances from customers | 37,550 | 22,710 | |||
Deferred tax liabilities | 57,796 | 146,952 | |||
Long-term debt | 447,642 | 444,016 | |||
Other long-term liabilities | 29,185 | 34,056 | |||
Total long-term liabilities | 572,173 | 647,734 | |||
SHAREHOLDERS' EQUITY | 1,749,561 | 1,511,332 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,845,086 | $ 2,631,876 |