UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
October 29, 2003
Tecnomatix Technologies Ltd.
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(Exact Name of Registrant as specified in the charter)
N/A
(Translation of Registrant's name into English)
Israel
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(Jurisdiction of incorporation or organization)
16 Hagalim Avenue, Herzlia 46733, Israel
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(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 whether the registrant by furnishing the
information contained in this Form 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 ]
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.
TECNOMATIX TECHNOLOGIES LTD.
By: /s/ Harel Beit-On
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Harel Beit-On
Chairman of the Board of Directors and Chief Executive Officer
Dated: October 29, 2003
Company Contact: Company Investor Contact: Investor Contact:
- ---------------- ------------------------- -----------------
Tecnomatix Technologies Tecnomatix Technologies The Ruth Group
Ltd. Ltd. David Pasquale
Oren Steinberg Marsha Shalvi +646-536-7006
+972-9-9594755 +972-9-9594733 dpasquale@theruthgroup.com
osteinberg@tecnomatix.com +972-54-942180
mshalvi@tecnomatix.com
TECNOMATIX ANNOUNCES THIRD QUARTER 2003 RESULTS
Herzlia, Israel, October 29, 2003 - Tecnomatix Technologies Ltd.
(NASDAQ-TCNO), the driving force in Manufacturing Process Management (MPM),
today announced its financial results for the third quarter ended September 30,
2003.
Revenues for the third quarter of 2003 were $20.3 million, compared to
$20.1 million for the third quarter of 2002. Net loss for the third quarter of
2003 was $(4.7) million or $(0.43) per diluted share, compared to a net loss of
$(0.2) million or $(0.02) per diluted share for the third quarter of 2002.
Excluding the special charges of $4.4 million associated with the USDATA
acquisition, the Company's net loss for the third quarter of 2003 was $(0.2)
million or $(0.02) per diluted share.
As of September 30, 2003, the Company had a $48.4 million balance of cash
and cash equivalents, short-term investments and long-term investments, compared
to $36.5 million as of June 30, 2003.
"The third quarter was a productive quarter for Tecnomatix. During this
quarter, which is typically a seasonally slow one, we maintained financial
stability, reported a positive cash flow, booked a steady stream of new and
repeat orders, and continued to execute on the initiatives that will drive our
growth and profitability," said Harel Beit-On, chairman and chief executive
officer of Tecnomatix Technologies.
"We are encouraged by our success in expanding our relationships with
existing customers and the adoption of our MPM solutions by new ones. This
quarter, we closed a steady stream of repeat orders from world-leading companies
like General Motors, Ford, Siemens, BMW, Fiat Auto, FoxConn and Artysen. New
customer wins included Teleste, a Finish electronics company; TREMEC, a Mexican
Tier 1 automotive supplier; Kanto Autoworks Ltd., a Japanese Tier 1 automotive
supplier; and a major Japanese automotive OEM, which adopted our eMPower
Machining solution after a two-year evaluation period by its Powertrain
division. We are particularly pleased that a growing number of our key customers
are reporting the benefits of using our eMPower solutions and holding
discussions with us on multi-year deployment agreements.
"We are happy with our progress in China, where interest in our products
is growing in line with the increasing manufacturing capacity in this region.
This quarter, another automotive company, the second this year, chose our
eMPower CarBody Solution. In line with our strategy to address this fast-growing
market, we are investing more resources in China during the coming months to
meet customer demand and give the appropriate services to our customers.
"During the quarter, we completed the acquisition of substantially all the
assets and liabilities of USDATA corporation, as scheduled. We moved swiftly to
integrate all USDATA processes into our existing operations and strengthened the
USDATA team with some of Tecnomatix's senior executives. In additon, the USDATA
products have been re-branded as Tecnomatix FactoryLink and Tecnomatix Xfactory.
Tecnomatix can now offer customers an end-to-end solution from the new product
introduction phase through the execution cycle. Manufacturers will be able to
respond quickly to market demands and deliver what their customers want, when
they want them and at lower costs. We believe that this acquistion will
contribute to our profitability in the first half of 2004.
"In summary, this has been a productive quarter, as we made progress in
our core MPM business, closing some initial deals and repeat orders for our
eMPower Enterprise Solution as well as increasing our pipeline for the future,"
continued Beit-On. "In addition, we made significant steps in expanding our
Company and its offering to become a major supplier of manufacturing software
from planning through production."
Forward-Looking Guidance
Oren Steinberg, chief financial officer and executive vice president of
Tecnomatix Technologies said, "Our focus in the fourth quarter will remain on
increasing sales, maintaining our cost controls, and overseeing a smooth
integration of USDATA activities. Going forward, we expect sequential revenue
growth of 5-10% in the fourth quarter 2003 with similar profitability. In 2004,
we expect to see revenue growth of 10-15% year over year with improved
profitability."
Investor Conference Call / Webcast Details
Tecnomatix will review detailed third quarter 2003 results on October 29, 2003
at 8:30AM EST. The conference call-in number is 973-935-8504. A replay will be
available from 12:30PM EST on October 29 through midnight EST, November 5. The
replay number is 973-341-3080. The confirmation identification for both, the
live call and replay is 4224229. The live call and replay will also be
accessible over the web at http://investor.tecnomatix.com.
About Tecnomatix Technologies and eMPower
Tecnomatix Technologies Ltd. is the driving force in Manufacturing Process
Management (MPM). Today's leading global manufacturers are adopting MPM
solutions to expand revenue potential and reduce costs by accelerating product
introductions, shortening time to volume, and optimizing production execution.
eMPower enables our customers to succeed with its collaborative, open platform
and applications for defining, simulating, managing, and executing manufacturing
processes across the extended enterprise. For more information on eMPower
products and solutions for MPM, please visit www.tecnomatix.com.
This press release includes forward-looking statements, within the meaning of
the Private Securities Litigation Reform Act of 1995, which are subject to risks
and uncertainties that could cause actual results to differ materially from
those anticipated. Such statements may relate to the Company's plans, objectives
and expected financial and operating results. The risks and uncertainties that
may affect forward-looking statements include, but are not limited to: currency
fluctuations, global economic and political conditions, market demand for
Tecnomatix products and services, long sales cycles, new product developments,
assimilating future acquisitions, maintaining relationships with customers and
partners, and increased competition. For more details about the risks and
uncertainties of the business, refer to the Company's filings with the
Securities and Exchange Commission. Tecnomatix undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
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TECNOMATIX TECHNOLOGIES LTD.
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Consolidated Statements of Operations
U.S $ in thousands, except per share data Nine months ended Three months ended
9/30/2003 9/30/2002 9/30/2003 9/30/2002
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Revenues
Software license fees 24,139 26,487 7,925 8,403
Services 36,918 34,110 12,378 11,660
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Total revenues 61,057 60,597 20,303 20,063
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Costs and expenses
Software license fees 6,254 5,683 1,983 1,909
Services 10,910 11,238 3,562 3,592
Amortization of acquired intangibles 23 1,914 23 574
Research and development, net 10,671 10,930 3,249 3,581
Selling and marketing 29,977 27,013 10,515 8,964
General and administrative 3,623 3,527 1,055 1,255
In-process research and development 3,193 -- 3,193 --
Acqusition and related costs 1,217 -- 1,217 --
Restructuring costs and assets impairment 1,487 -- -- --
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Total costs and expenses 67,355 60,305 24,797 19,875
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Operating income (loss) (6,298) 292 (4,494) 188
Financial income (expense), net 476 (861) (122) (190)
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Income (loss) before taxes on income (5,822) (569) (4,616) (2)
Provision for income taxes (41) 26 (40) (58)
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Income (loss) after taxes on income (5,863) (543) (4,656) (60)
Equity share in net income (loss) of an affiliate company (74) (334) (25) (111)
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Net income (loss) (5,937) (877) (4,681) (171)
========== ========== ========== ==========
Basic earnings (loss) per share:
Net Income (loss) (0.55) (0.08) (0.43) (0.02)
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Diluted earnings (loss) per share:
Net Income (loss) (0.55) (0.08) (0.43) (0.02)
========== ========== ========== ==========
Weighted average number of shares outstanding:
Basic 10,761,537 10,573,119 10,929,256 10,627,905
========== ========== ========== ==========
Diluted 10,761,537 10,573,119 10,929,256 10,627,905
========== ========== ========== ==========
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TECNOMATIX TECHNOLOGIES LTD.
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Condensed Consolidated Balance Sheets
U.S $ in thousands
9/30/2003 12/31/2002
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Current Assets:
Cash and cash equivalents 11,901 10,466
Short-term investments 3,153 5,981
Receivables:
Trade 27,716 27,671
Related parties 231 97
Other and prepaid expenses 7,008 5,284
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Total current assets 50,009 49,499
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Non-current receivables 1,065 915
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Long-term investments in bonds 32,996 25,472
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Property and equipment, net 5,591 6,108
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Goodwill, net 25,577 17,210
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Acquired intangibles, net 2,556 --
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Other assets, net 16,247 16,613
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Total assets 134,041 115,817
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Current Liabilities:
Current maturities of 5.25% convetible subordinated notes 14,799 --
Payables:
Trade 2,582 2,950
Deffered Revenue 8,587 4,659
Other and accrued expenses 17,354 14,956
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Total current liabilities 43,322 22,565
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Accrued severance pay, net 1,016 907
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Long-term loans:
Accrued restructuring expense 1,838 --
5.25% Convertible subordinated notes -- 37,428
Loan from a Bank 25,000 --
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Total long-term loans 26,838 37,428
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Shareholders' equity 62,865 54,917
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Total liabilities and shareholders' equity 134,041 115,817
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