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
February 11, 2004
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 [m]
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
Dated: February 11, 2004
Company Contact: Company Investor Contact: Investor Contact:
- ---------------- ------------------------- -----------------
Tecnomatix Technologies Ltd. Tecnomatix Technologies Ltd. The Ruth Group
Oren Steinberg Marsha Shalvi David Pasquale
+1-603-765-5294 +972-9-959-4733 +646-536-7006
+972-9-9594755 +972-54-942-180 dpasquale@theruthgroup.com
osteinberg@tecnomatix.com mshalvi@tecnomatix.com
TECNOMATIX ANNOUNCES FOURTH QUARTER
AND FULL YEAR 2003 RESULTS
- Company Reports Record Revenues for the Fourth Quarter of 2003 -
- Company Appoints New Chief Executive Officer -
Herzlia, Israel, February 11, 2004 - Tecnomatix Technologies Ltd. (NASDAQ:
TCNO), the driving force in Manufacturing Process Management (MPM) solutions,
announced today its financial results for the fourth quarter and full year ended
December 31, 2003. Separately, the Company announced that Jaron Lotan, president
and chief operating officer, has been appointed chief executive officer,
effective immediately. He will continue to hold the position of president of
Tecnomatix. Harel Beit-On, who has served as chairman and chief executive
officer of the Company for the past eight years, will continue to serve as the
active chairman of the Tecnomatix Board of Directors.
Revenues for the fourth quarter of 2003 were $25.2 million, compared to
$21.4 million for the fourth quarter of 2002. This represents a record high for
quarterly revenues, as well as a 24% sequential and 18% year-over-year increase.
Operating loss for the fourth quarter of 2003 was $4.4 million, compared to an
operating loss of $2.0 million for the fourth quarter of 2002. Net loss for the
fourth quarter of 2003 was $4.4 million or $0.37 per diluted share, compared to
a net loss of $2.0 million or $0.18 per diluted share for the fourth quarter of
2002.
Excluding special charges aggregating to $3.5 million associated with
impairment of capitalized software development costs, impairment of software
asset acquired from third party, restructuring costs and asset impairment,
in-process research and development and acquisition related costs, and
amortization of acquired intangibles, the Company's net loss for the fourth
quarter of 2003 was $0.9 million or $0.07 per diluted share.(1)
For the full year 2003, revenues were $86.3 million, compared to revenues
of $82.0 million for the full year 2002. Operating loss for the full year 2003
was $10.7 million, compared to an operating loss of $1.7 million for the full
year 2002. Net loss for the full year 2003 was $10.3 million or $0.94 per
diluted share, compared to a net loss of $2.8 million or $0.27 per diluted share
for the full year 2002.
Excluding special charges aggregating to $9.4 million associated with
impairment of capitalized software development costs, impairment of software
asset acquired from third party, restructuring
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(1) The Company's management believes that the presentation of operating income
(loss) and net income (loss) excluding special charges provides useful
information to investors because management does not consider special charges
and asset impairment, in-process research and development and acquisition
related costs, and amortization of acquired intangibles, to be part of the
Company's on-going operations or meaningful in evaluating the Company's future.
costs and asset impairment, in-process research and development and acquisition
related costs, and amortization of acquired intangibles, the Company's net loss
for the full year 2003 was $0.9 million or $0.08 per diluted share.(1)
The Company reported a positive cash flow of $1.5 million from operating
activities for the fourth quarter of 2003, and $6.3 million from operating
activities for the full year 2003. As of December 31, 2003, the Company had
$33.8 million of cash and cash equivalents, short-term investments and long-term
investments.
Fourth Quarter 2003 Highlights
"This quarter was very important for Tecnomatix as we achieved significant
goals," said Harel Beit-On, chairman of Tecnomatix. "We reported record revenues
with sequential growth in all lines of our business and across all territories.
We established a new shop-floor line of business to address the growing demand
for production management solutions. Most importantly, we received the largest
ever endorsement of our MPM offering when we signed a 4-year global agreement
with a major automotive manufacturer with expected revenues of more than $50
million over the next four years.
"This agreement - the most extensive deployment ever in the history of
Tecnomatix - firmly establishes Tecnomatix as the global leader and driving
force in the multi-billion dollar MPM market. As we continue to gain momentum
with the world's leading manufacturers, we believe that this decision will be a
driver for other companies to adopt global MPM strategies as they recognize the
invaluable manufacturing efficiencies and cost benefits of implementing our
eMPower solutions throughout the enterprise.
"The strong revenue growth in the fourth quarter was driven by organic
growth, including follow-on orders from existing customers and several
significant new customer wins, as well as the addition of our new shop-floor
offering. This quarter does not include revenue contribution from the major $50
million agreement, as this will start ramping up in 2004.
Summary of Year 2003
"2003 was a year of accomplishments as we executed several initiatives to
achieve our long-term business objectives and received endorsements for our MPM
strategy from customers and partners. Most importantly, we brought the Company
back to growth with revenues up year-over-year.
"During 2003, we gained market share and increased traction for MPM with
initial orders from several major electronics and automotive OEMs and suppliers,
and a steady stream of repeat orders from companies like Audi, BMW, Ford,
General Motors, Magna Steyr, Mazda, Schneider Electric, Siemens, Solectron and
Volkswagen.
"We executed on our strategy to broaden the footprint of MPM into other
high-potential areas of manufacturing when we acquired the assets and
liabilities of USDATA, including its highly regarded FactoryLink and Xfactory
products. This acquisition will enable us to expand our business by addressing
the high-growth production management domain, as well as entering into new
industries.
"In addition, we strengthened our position as a market leader in the
electronics manufacturing software industry with the launch of our new eMPower
for Electronics, an end-to-end solution that supports printed circuit board
(PCB) assembly processes from planning, costing and optimization through
production and delivery. This platform has been adopted by over 100 new
customers, which join our electronics customer base of over 1,500 companies.
"Finally, we saw positive results from our alliance with UGS PLM
Solutions, the product life-cycle management subsidiary of EDS. Since forming
the strategic alliance with EDS in late 2002, both parties have invested
considerable resources in development, marketing and sales training projects.
Towards the end of 2003, we began to see the fruits of these investments, as the
relationship was instrumental in the addition of several new customers and the
progress of global MPM implementations by some of our mutual customers. We
continue to invest in sales and R&D projects with UGS PLM Solutions and expect
to release a joint offering in mid-2004."
Forward-Looking Guidance
"During the fourth quarter of 2003, we exercised our option to redeem all
of the Company's outstanding 5.25% Convertible Subordinated Notes due August
2004, which further improved our balance sheet," said Oren Steinberg, chief
financial officer and executive vice president. "We enter 2004 in a position of
leadership, stability and strength. Our focus in 2004 will remain on increasing
sales, maintaining our cost controls, and increasing profitability. For the full
year, we expect to be profitable on a quarterly basis, and to achieve revenue
growth of approximately 15% year-over-year."
Management Transition
Beit-On continued, "After eighteen years with Tecnomatix, including eight
years of serving as its CEO, I am transferring the management of the Company to
Jaron with both pride and confidence. I have been fortunate to lead a great team
of people in building an industry leader with superior vision, technology and
the ability to execute. The Board and I are fully confident that Jaron will take
Tecnomatix from strength to strength. As active chairman, I will continue to
contribute to the strategic development of Tecnomatix, and to advance relations
with key customers, strategic partners and the investment community."
"It is with great honor that I take over the reins from Harel," said
Lotan. "Under his leadership, Tecnomatix has established itself as a clear
leader in the MPM space with an impressive customer base of over 5,000 of the
world's top manufacturers, key strategic alliances with industry leaders like
EDS, and a proven product offering from planning through production. As we move
ahead, Tecnomatix' strategy to grow the Company and deliver shareholder value
remains clear: we will focus on growth by helping our customers expand their MPM
deployments; we will maintain our leadership position by providing superior
products and expertise; we will develop our alliances with industry leaders to
expand our market reach, and we will implement operating efficiency to increase
our profits."
Conference Call Information
Tecnomatix will review detailed fourth quarter 2003 results on February
11, 2004 at 8:30AM EST. The conference call-in number is 973-935-8504. A replay
will be available from 12:30PM EST on Febraury 11 through midnight EST, February
18. The replay number is 973-341-3080. The confirmation identification for both
the live call and replay is 4473316. 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.
- Tables Follow -
TECNOMATIX TECHNOLOGIES LTD.
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Consolidated Statements of Operations
U.S $ in thousands, except per share data Twelve months ended Three months ended
12/31/2003 12/31/2002 12/31/2003 12/31/2002
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Revenues
Software license fees 36,033 36,385 11,894 9,898
Services 50,224 45,620 13,306 11,510
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Total revenues 86,257 82,005 25,200 21,408
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Costs and expenses
Software license fees 10,114 8,062 3,860 2,379
Services 15,281 15,005 4,371 3,767
Amortization of acquired intangibles 136 2,491 113 577
Impairment of capitalized software development costs 2,180 -- 1,292 --
Research and development, net 14,960 14,812 4,289 3,882
Selling and marketing 42,491 36,887 12,514 9,874
General and administrative 4,673 5,013 1,050 1,486
Write-off of long-term investment -- 457 -- 457
Impairment of software asset acquired from third-party 937 375 937 375
In-process R&D and acquisition related costs 3,530 -- 8 --
Restructuring costs and assets impairment 2,659 651 1,172 651
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Total costs and expenses 96,961 83,753 29,606 23,448
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Operating income (loss) (10,704) (1,748) (4,406) (2,040)
Financial income (expense), net 679 (799) 203 62
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Income (loss) before taxes on income (10,025) (2,547) (4,203) (1,978)
Provision for income taxes (212) 148 (171) 122
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Income (loss) after taxes on income (10,237) (2,399) (4,374) (1,856)
Equity share in net income (loss) of an affiliate company (103) (431) (29) (97)
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Net income (loss) (10,340) (2,830) (4,403) (1,953)
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Basic earnings (loss) per share:
Net Income (loss) (0.94) (0.27) (0.37) (0.18)
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Diluted earnings (loss) per share:
Net Income (loss) (0.94) (0.27) (0.37) (0.18)
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Weighted average number of shares outstanding:
Basic 11,054,556 10,607,140 11,914,113 10,695,830
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Diluted 11,054,556 10,607,140 11,914,113 10,695,830
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TECNOMATIX TECHNOLOGIES LTD.
Condensed Consolidated Balance Sheets
U.S $ in thousands
12/31/2003 12/31/2002
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Current Assets:
Cash and cash equivalents 9,232 10,466
Short-term investments 70 5,981
Receivables:
Trade 29,190 27,671
Other and prepaid expenses 5,747 5,284
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Total current assets 44,239 49,402
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Non-current receivables 1,108 915
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Long-term investments 24,556 25,569
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Property and equipment, net 5,628 6,108
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Goodwill, net 26,124 17,210
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Acquired intangibles, net 2,443 --
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Other assets, net 13,046 16,613
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Total assets 117,144 115,817
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Current Liabilities:
Current maturities of long-term loans 833 --
Payables:
Trade 4,644 2,950
Deffered Revenue 7,130 4,659
Other and accrued expenses 19,163 14,956
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Total current liabilities 31,770 22,565
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Accrued severance pay, net 1,095 907
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Long-term loans:
Accrued restructuring expense 1,716 --
5.25% Convertible subordinated notes -- 37,428
Loan from a Bank 24,167 --
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Total long-term loans 25,883 37,428
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Shareholders' equity 58,396 54,917
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Total liabilities and shareholders' equity 117,144 115,817
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