EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

 
Exhibit 99.1


 
NICE Reports Strong Growth in Revenue and Profitability for the Third
Quarter 2018 and Increases Full-Year 2018 Revenue and EPS Guidance
 
Strong Double Digit Growth in Operating Income and Earnings Per Share

Recurring Revenue Increased to 72% of Total Revenue
 
Hoboken, New Jersey, November 8, 2018 - NICE (NASDAQ: NICE) today announced results for the third quarter and nine months ended September 30, 2018.
 
Third Quarter 2018 Financial Highlights

GAAP
Non-GAAP
Revenue of $356 million, growth of 10% year-over-year
Revenue of $356 million, growth of 9% year-over-year
Cloud revenue of $117 million, growth of 21% year-over-year
Cloud revenue of $120 million, growth of 20% year-over-year
Gross margin of 65.3% compared to 64.3% last year
Gross margin of 70.7% compared to 71.2% last year
Operating income of $47 million compared to $33 million last year, 41% growth year-over-year
Operating income of $91 million compared to $78 million last year, 16% growth year-over-year
Operating margin of 13.1% compared to 10.3% last year
Operating margin of 25.5% compared to 24.0% last year
Diluted EPS of $0.62 versus $0.42 last year, 48% growth year-over-year
Diluted EPS of $1.12 versus $0.95 last year, 18% growth year-over-year

The GAAP column of the table contains the financial highlights of the third quarter 2018 under ASC 606 with the comparison period under ASC 605.

The non-GAAP column of the table contains the financial highlights of the third quarter 2018 under ASC 605 with the comparison period under ASC 605.
 
“The results reported for the third quarter of 2018 reflect our continued focus on driving excellent execution around our strategic pillars of cloud, analytics and artificial intelligence that led to strong growth on both the top and bottom lines.  As we look forward to ending the year on a high note, we now expect to exit 2018 with a cloud revenue run rate of $550 million up from our previous expectation of $500 million, while continuing to drive profitability,” said Barak Eilam, CEO of NICE.

Mr. Eilam continued, “CXone, our open cloud platform which has gained tremendous market presence among our customers and high regard from industry analysts in just a little over one year since it was introduced, has been our vehicle to deliver our strategic pillars to the customer engagement market.  We are now proceeding on a similar course with X-Sight, which was announced just a few weeks ago.  X-Sight is the industry’s first financial crime and compliance platform-as-a-service that combines advanced analytics and AI, automated data management, and robotics all delivered through the cloud.

“It is clearly evident that the platform strategy embodies the present and future for NICE. With X-Sight and CXone, we now have two significant, market leading, open, cloud platforms to help further penetrate our large and growing addressable market.”
 

GAAP Financial Highlights for the Third Quarter Ended September 30:
 
The GAAP numbers presented below for the third quarter 2018 are under ASC 606 and the comparison period GAAP numbers for the third quarter 2017 are under ASC 605
 
Revenues: Third quarter 2018 total revenues increased 10.4% to $356.2 million compared to $322.8 million for the third quarter of 2017.

Gross Profit: Third quarter 2018 gross profit and gross margin increased to $232.7 million and 65.3%, respectively, compared to $207.4 million and 64.3%, respectively, for the third quarter of 2017.

Operating Income: Third quarter 2018 operating income and operating margin increased to $46.7 million and 13.1%, respectively, compared to $33.1 million and 10.3%, respectively, for the third quarter of 2017.

Net Income: Third quarter 2018 net income and net income margin increased to $39.3 million and 11.0%, respectively, compared to $26.2 million and 8.1%, respectively, for the third quarter of 2017.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the third quarter of 2018 increased to $0.62 compared to $0.42 in the third quarter of 2017.

Operating Cash Flow and Cash Balance: Third quarter 2018 operating cash flow was $87.0 million. As of September 30, 2018, total cash and cash equivalents, short term investments and marketable securities were $656.3 million, and total debt was $453.9 million.
 
Non-GAAP Financial Highlights for the Third Quarter Ended September 30:
 
The non-GAAP numbers presented below for the third quarter 2018 and for the comparison period non-GAAP numbers for the third quarter 2017 are both under ASC 605.
 
Revenues: Third quarter 2018 non-GAAP total revenues increased to $356.4 million, up 9.1% from $326.8 million for the third quarter of 2017.

Gross Profit: Third quarter 2018 non-GAAP gross profit increased to $252.1 compared to $232.5 million for the third quarter of 2017. Non-GAAP gross margin was 70.7% compared to 71.2% for the third quarter of 2017.

Operating Income: Third quarter 2018 non-GAAP operating income and non-GAAP operating margin increased to $90.8 million and 25.5%, respectively, from $78.3 million and 24.0%, respectively, for the third quarter of 2017.

Net Income: Third quarter 2018 non-GAAP net income and non-GAAP net income margin increased to $71.6 million and 20.1%, respectively, from $58.9 million and 18.0%, respectively, for the third quarter of 2017.

Fully Diluted Earnings Per Share: Third quarter 2018 non-GAAP fully diluted earnings per share increased 17.9% to $1.12, compared to $0.95 for the third quarter of 2017.
 
Full Year 2018 Guidance:
 
Guidance for 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.
 
The Company increased full-year 2018 non-GAAP total revenues to be in an expected range of $1,450 million to $1,466 million and increased full-year 2018 non-GAAP fully diluted earnings per share to be in an expected range of $4.53 to $4.69.
 
The guidance includes the acquisition of Mattersight. The Company expects Mattersight to contribute an annual revenue run rate in a range of $32 million to $38 million.
 

 
Adoption of the New Revenue Recognition Standard - ASC 606
 
NICE adopted the new revenue recognition accounting standard, Accounting Standards Codification ("ASC") 606, effective January 1, 2018, on a modified retrospective basis. Financial results for reporting periods during 2018 are presented in compliance with the ASC 606. Historical financial results for reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard, ASC 605. This press release includes additional information to reconcile the impacts of the adoption of the new revenue recognition standard on the Company's financial results for the quarter ended September 30, 2018.
 
Quarterly Results Conference Call

NICE management will host its earnings conference call today, November 8th, 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 538 470 63. 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 295 658 73.
 
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, share-based compensation, certain business combination accounting entries, amortization of discount on long term debt, re-organization expenses, ASC 606 to ASC 605 adjustments and tax adjustment re non-GAAP adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income.
 
About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.

Investors
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Yisca Erez, +972 9 775-3798, ir@nice.com, CET
 
Media Contact
Chris Irwin-Dudek, +1 (551) 256-5140, Chris.Irwin-Dudek@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. In some cases, forward-looking statements may be identified by words such as “believe,” “expect,” “seek,” “may,” “will,” “intend,” “should,” “project,” “anticipate,” “plan,” and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.
 
Forward looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.  These factors, include, but are not limited to, risks associated with competition, success and growth of the Company’s cloud Software-as-a-Service business, cyber security attacks or other security breaches against the Company, privacy concerns and legislation impacting the Company’s business, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, changes in general economic and business conditions, rapidly changing technology, changes in currency exchange rates and interest rates, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel (including, with respect to the Company’s acquisition of Mattersight Corporation), successful execution of the Company’s growth strategy, the effects of tax reforms and of newly enacted or modified laws, regulation or standards on the Company and its products, and other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”). You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this presentation speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.
 

NICE LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share amounts)
 
 
 
Quarter ended
   
Year to date
 
 
 
September 30,
   
September 30,
 
 
 
2018
   
2017
   
2018
   
2017
 
 
 
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
Revenue:
                       
Product
 
$
60,097
   
$
66,931
   
$
170,864
   
$
204,124
 
Services
   
179,113
     
159,441
     
533,458
     
476,093
 
Cloud
   
116,996
     
96,383
     
329,368
     
259,700
 
Total revenue
   
356,206
     
322,755
     
1,033,690
     
939,917
 
 
                               
Cost of revenue:
                               
Product
   
7,854
     
12,944
     
23,386
     
39,668
 
Services
   
55,046
     
52,618
     
170,584
     
165,892
 
Cloud
   
60,559
     
49,812
     
166,690
     
139,152
 
Total cost of revenue
   
123,459
     
115,374
     
360,660
     
344,712
 
 
                               
Gross profit
   
232,747
     
207,381
     
673,030
     
595,205
 
 
                               
Operating expenses:
                               
Research and development, net
   
47,701
     
45,135
     
137,023
     
130,975
 
Selling and marketing
   
90,492
     
87,363
     
270,238
     
254,258
 
General and administrative
   
37,560
     
31,197
     
107,048
     
91,758
 
Amortization of acquired intangible assets
   
10,341
     
10,566
     
31,512
     
31,319
 
Total operating expenses
   
186,094
     
174,261
     
545,821
     
508,310
 
 
                               
Operating income
   
46,653
     
33,120
     
127,209
     
86,895
 
 
                               
Finance and other expense, net
   
2,195
     
4,335
     
9,100
     
16,713
 
 
                               
Income before tax
   
44,458
     
28,785
     
118,109
     
70,182
 
Taxes on income
   
5,175
     
2,612
     
21,065
     
6,279
 
Net income
 
$
39,283
   
$
26,173
   
$
97,044
   
$
63,903
 
 
                               
Basic earnings per share
 
$
0.64
   
$
0.43
   
$
1.58
   
$
1.06
 
 
                               
Diluted earnings per share
 
$
0.62
   
$
0.42
   
$
1.54
   
$
1.03
 
 
                               
Weighted average number of shares
                               
outstanding used to compute:
                               
 
                               
Basic earnings per share
   
61,448
     
60,502
     
61,239
     
60,304
 
Diluted earnings per share
   
63,660
     
62,220
     
63,157
     
61,979
 
 

NICE LTD. AND SUBSIDIARIES
         
RECONCILIATION OF GAAP TO NON-GAAP RESULTS AND ASC 606 TO NON-GAAP ASC 605
 
U.S. dollars in thousands (except per share amounts)
         
 
 
 
Quarter ended
   
Year to date
 
 
 
September 30,
   
September 30,
 
 
 
2018
   
2017
   
2018
   
2017
 
GAAP revenues
 
$
356,206
   
$
322,755
   
$
1,033,690
   
$
939,917
 
Valuation adjustment on acquired deferred product revenue
   
12
     
37
     
97
     
302
 
Valuation adjustment on acquired deferred services revenue
   
82
     
824
     
588
     
3,915
 
Valuation adjustment on acquired deferred cloud revenue
   
2,329
     
3,135
     
5,631
     
5,994
 
ASC 606 to ASC 605 revenue adjustment
   
(2,183
)
   
-
     
2,775
     
-
 
Non-GAAP revenues
 
$
356,446
   
$
326,751
   
$
1,042,781
   
$
950,128
 
 
                               
GAAP cost of revenue
 
$
123,459
   
$
115,374
   
$
360,660
   
$
344,712
 
Amortization of acquired intangible assets on cost of product
   
(1,094
)
   
(6,072
)
   
(5,019
)
   
(18,486
)
Amortization of acquired intangible assets on cost of services
   
(1,523
)
   
(987
)
   
(3,333
)
   
(5,354
)
Amortization of acquired intangible assets on cost of cloud
   
(12,937
)
   
(11,756
)
   
(38,397
)
   
(33,706
)
Valuation adjustment on acquired deferred cost of cloud
   
594
     
371
     
1,254
     
1,133
 
Cost of product revenue adjustment (1)
   
(59
)
   
(158
)
   
(247
)
   
(494
)
Cost of services revenue adjustment (1)
   
(2,113
)
   
(1,903
)
   
(5,762
)
   
(5,625
)
Cost of cloud revenue adjustment (1,3)
   
(2,352
)
   
(649
)
   
(3,766
)
   
(2,132
)
ASC 606 to ASC 605 cost of revenue adjustment
   
323
     
-
     
650
     
-
 
Non-GAAP cost of revenue
 
$
104,298
   
$
94,220
   
$
306,040
   
$
280,048
 
 
                               
GAAP gross profit
 
$
232,747
   
$
207,381
   
$
673,030
   
$
595,205
 
Gross profit adjustments
   
19,401
     
25,150
     
63,711
     
74,875
 
Non-GAAP gross profit
 
$
252,148
   
$
232,531
   
$
736,741
   
$
670,080
 
 
                               
GAAP operating expenses
 
$
186,094
   
$
174,261
   
$
545,821
   
$
508,310
 
Research and development (1,3)
   
(2,638
)
   
(2,204
)
   
(6,777
)
   
(6,651
)
Sales and marketing (1,3)
   
(9,004
)
   
(5,651
)
   
(22,158
)
   
(17,160
)
General and administrative (1,2,3)
   
(6,206
)
   
(1,640
)
   
(15,156
)
   
(7,027
)
Amortization of acquired intangible assets
   
(10,341
)
   
(10,566
)
   
(31,512
)
   
(31,319
)
ASC 606 to ASC 605 operating expenses adjustment
   
3,459
     
-
     
6,543
         
Non-GAAP operating expenses
 
$
161,364
   
$
154,200
   
$
476,761
   
$
446,153
 
 
                               
GAAP finance & other expense, net
 
$
2,195
   
$
4,335
   
$
9,100
   
$
16,713
 
Amortization of discount on long-term debt
   
(2,234
)
   
(2,139
)
   
(6,491
)
   
(11,398
)
Non-GAAP finance & other expense (income), net
 
$
(39
)
 
$
2,196
   
$
2,609
   
$
5,315
 
 
                               
GAAP taxes on income
 
$
5,175
   
$
2,612
   
$
21,065
   
$
6,279
 
Tax adjustments re non-GAAP adjustments
   
15,322
     
14,611
     
34,413
     
42,298
 
Tax adjustment re ASC 606 to ASC 605
   
(1,264
)
   
-
     
(935
)
   
-
 
Non-GAAP taxes on income
 
$
19,233
   
$
17,223
   
$
54,543
   
$
48,577
 
 
                               
GAAP net income
 
$
39,283
   
$
26,173
   
$
97,044
   
$
63,903
 
Valuation adjustment on acquired deferred revenue
   
2,423
     
3,996
     
6,316
     
10,211
 
Valuation adjustment on acquired deferred cost of cloud revenue
   
(594
)
   
(371
)
   
(1,254
)
   
(1,133
)
Amortization of acquired intangible assets
   
25,895
     
29,381
     
78,261
     
88,865
 
Share-based compensation (1)
   
17,258
     
14,016
     
48,752
     
40,900
 
Re-organization expenses (2)
   
-
     
(3,067
)
   
-
     
(3,067
)
Acquisition related expenses (3)
   
5,114
     
1,256
     
5,114
     
1,256
 
Amortization of discount on long term debt
   
2,234
     
2,139
     
6,491
     
11,398
 
Tax adjustments re non-GAAP adjustments
   
(15,322
)
   
(14,611
)
   
(34,413
)
   
(42,298
)
ASC 606 to ASC 605 adjustments
   
(4,701
)
   
-
     
(3,483
)
   
-
 
Non-GAAP net income
 
$
71,590
   
$
58,912
   
$
202,828
   
$
170,035
 
 
                               
GAAP diluted earnings per share
 
$
0.62
   
$
0.42
   
$
1.54
   
$
1.03
 
 
                               
Non-GAAP diluted earnings per share
 
$
1.12
   
$
0.95
   
$
3.21
   
$
2.74
 
 
                               
Shares used in computing GAAP diluted earnings per share
   
63,660
     
62,220
     
63,157
     
61,979
 
 
                               
Shares used in computing non-GAAP diluted earnings per share
   
63,660
     
62,220
     
63,157
     
61,979
 
 
 

NICE LTD. AND SUBSIDIARIES
             
RECONCILIATION OF GAAP TO NON-GAAP RESULTS AND ASC 606 TO NON-GAAP ASC 605 (continued)
 
U.S. dollars in thousands
             
 
(1)       Share-based Compensation
                       
  
 
Quarter ended
   
Year to date
 
  
 
September 30,
   
September 30,
 
 
 
2018
   
2017
   
2018
   
2017
 
            Cost of product revenue
 
$
(59
)
 
$
(158
)
 
$
(247
)
 
$
(494
)
            Cost of services revenue
   
(2,113
)
   
(1,903
)
   
(5,762
)
   
(5,625
)
            Cost of cloud revenue
   
(718
)
   
(649
)
   
(2,132
)
   
(2,132
)
            Research and development
   
(1,567
)
   
(2,204
)
   
(5,706
)
   
(6,651
)
            Sales and marketing
   
(8,930
)
   
(5,576
)
   
(22,084
)
   
(17,085
)
            General and administrative
   
(3,871
)
   
(3,526
)
   
(12,821
)
   
(8,913
)
  
 
$
(17,258
)
 
$
(14,016
)
 
$
(48,752
)
 
$
(40,900
)
 
(2)       Re-organization expenses
                       
 
 
Quarter ended
   
Year to date
 
 
 
September 30,
   
September 30,
 
 
 
2018
   
2017
   
2018
   
2017
 
            General and administrative
   
-
   
$
3,067
     
-
   
$
3,067
 
 
 
$
-
   
$
3,067
   
$
-
   
$
3,067
 
 
(3)       Acquisition related expenses
                       
 
                       
 
 
Quarter ended
   
Year to date
 
 
 
September 30,
   
September 30,
 
 
 
2018
   
2017
   
2018
   
2017
 
            Cost of cloud revenue
 
$
(1,634
)
 
$
-
   
$
(1,634
)
 
$
-
 
            Research and development
   
(1,071
)
   
-
     
(1,071
)
   
-
 
            Sales and marketing
   
(74
)
   
(75
)
   
(74
)
   
(75
)
            General and administrative
   
(2,335
)
   
(1,181
)
   
(2,335
)
   
(1,181
)
 
 
$
(5,114
)
 
$
(1,256
)
 
$
(5,114
)
 
$
(1,256
)
 

 
NICE LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
 
 
 
September 30,
   
December 31,
 
 
 
2018
   
2017
 
 
 
Unaudited
   
Audited
 
ASSETS
           
 
           
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
276,170
   
$
328,302
 
Short-term investments
   
172,942
     
63,951
 
Trade receivables
   
219,818
     
230,729
 
Prepaid expenses and other current assets
   
96,745
     
70,074
 
 
               
Total current assets
   
765,675
     
693,056
 
 
               
LONG-TERM ASSETS:
               
Long-term investments
   
207,234
     
132,820
 
Property and equipment, net
   
132,310
     
118,275
 
Deferred tax assets
   
15,298
     
11,850
 
Other intangible assets, net
   
536,974
     
551,347
 
Goodwill
   
1,368,756
     
1,318,242
 
Other long-term assets
   
68,461
     
19,496
 
 
               
Total long-term assets
   
2,329,033
     
2,152,030
 
 
               
TOTAL ASSETS
 
$
3,094,708
   
$
2,845,086
 
 
               
LIABILITIES AND SHAREHOLDERS' EQUITY
               
 
               
CURRENT LIABILITIES:
               
Trade payables
 
$
23,698
   
$
29,438
 
Deferred revenues and advances from customers
   
198,210
     
184,564
 
Accrued expenses and other liabilities
   
347,852
     
309,350
 
 
               
Total current liabilities
   
569,760
     
523,352
 
 
               
LONG-TERM LIABILITIES:
               
Deferred revenues and advances from customers
   
39,179
     
37,550
 
Deferred tax liabilities
   
48,489
     
57,796
 
Long-term debt
   
453,887
     
447,642
 
Other long-term liabilities
   
32,486
     
29,185
 
 
               
Total long-term liabilities
   
574,041
     
572,173
 
 
               
SHAREHOLDERS' EQUITY
   
1,950,907
     
1,749,561
 
 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
3,094,708
   
$
2,845,086
 
 
 

 
NICE LTD. AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENTS
U.S. dollars in thousands
 
 
 
Quarter ended
   
Year to date
 
 
 
September 30,
   
September 30,
 
 
 
2018
   
2017
   
2018
   
2017
 
 
 
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
Operating Activities
                       
 
                       
Net income
   
39,283
     
26,173
     
97,044
     
63,903
 
Depreciation and amortization
   
39,426
     
39,153
     
114,283
     
115,309
 
Stock based compensation
   
17,258
     
14,016
     
48,752
     
40,900
 
Amortization of premium and discount and accrued interest on marketable securities
   
137
     
273
     
(170
)
   
424
 
Deferred taxes, net
   
(13,142
)
   
(12,646
)
   
(33,054
)
   
(34,188
)
Changes in operating assets and liabilities:
                               
Trade Receivables
   
(5,771
)
   
10,930
     
(3,083
)
   
72,810
 
Prepaid expenses and other current assets
   
(4,233
)
   
(32,264
)
   
(32,461
)
   
(40,251
)
Trade payables
   
(8,940
)
   
7,605
     
(6,608
)
   
636
 
Accrued expenses and other current liabilities
   
34,643
     
52,829
     
24,179
     
17,228
 
Deferred revenue
   
(15,279
)
   
1,660
     
71,827
     
65,176
 
Long term liabilities
   
573
     
(3,583
)
   
(214
)
   
(5,189
)
Amortization of discount on long term debt
   
2,234
     
2,139
     
6,491
     
11,398
 
Other
   
847
     
(461
)
   
720
     
(926
)
  Net cash provided by operating activities
   
87,036
     
105,824
     
287,706
     
307,230
 
 
                               
Investing Activities
                               
 
                               
Purchase of property and equipment
   
(7,957
)
   
(7,899
)
   
(21,521
)
   
(31,422
)
Purchase of Investments
   
(96,544
)
   
(53,791
)
   
(284,467
)
   
(96,017
)
Proceeds from Investments
   
40,093
     
15,610
     
99,802
     
51,626
 
Capitalization of software development costs
   
(7,450
)
   
(7,730
)
   
(22,926
)
   
(21,046
)
Payments for business acquisitions, net of cash acquired
   
(105,046
)
   
(37,880
)
   
(105,046
)
   
(37,880
)
  Net cash used in investing activities
   
(176,904
)
   
(91,690
)
   
(334,158
)
   
(134,739
)
 
                               
Financing Activities
                               
 
                               
Proceeds from issuance of shares upon exercise of share options
   
10,533
     
4,412
     
17,976
     
16,787
 
Purchase of treasury shares
   
-
     
(4,267
)
   
(10,613
)
   
(20,314
)
Dividends paid
   
-
     
-
     
-
     
(9,637
)
Repayment of long term debt
   
-
     
-
     
-
     
(260,000
)
Proceeds from issuance of debt, net of costs
   
-
     
-
     
-
     
260,842
 
Repayment of short-term bank loan
   
(8,436
)
   
-
     
(8,436
)
   
-
 
  Net cash provided by (used in) financing activities
   
2,097
     
145
     
(1,073
)
   
(12,322
)
 
                               
Effect of exchange rates on cash and cash equivalents
   
(875
)
   
2,028
     
(4,607
)
   
3,734
 
 
                               
Net change in cash and cash equivalents
   
(88,646
)
   
16,307
     
(52,132
)
   
163,903
 
Cash and cash equivalents, beginning of period
   
364,816
     
304,622
     
328,302
     
157,026
 
 
                               
Cash and cash equivalents, end of period
   
276,170
     
320,929
     
276,170
     
320,929