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
For the Month of June 2003
GENESYS S.A.
(Exact name of registrant as specified in its charter)
L'Acropole, 954-980 avenue Jean Mermoz, 34000 Montpellier, FRANCE
(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
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Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1):____
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7):____
Indicate by check mark whether by furnishing the information contained in
this Form, the registrant 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
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If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-_______________.
THIS REPORT OF FOREIGN ISSUER ON FORM 6-K IS INCORPORATED BY REFERENCE INTO THE
REGISTRATION STATEMENT ON FORM F-3 OF GENESYS S.A. (No. 333-105304)
Index:
Item 1:
Managements' Discussion and Analysis of Financial Condition and Results of
Operations
Item 2:
US GAAP Financial Statements
Consolidated Balance Sheets at December 31, 2002 and March 31, 2003(unaudited)
Consolidated Statements of Operations (unaudited) for the Three Months Ended
March 31, 2002 and March 31, 2003
Notes to the Consolidated Statements of Operations (unaudited)
Managements' Discussion and Analysis of Financial Condition and Results of
Operations
The following discussion relates to our financial results for the three months
ended March 31, 2003, as reported under U.S. generally accepted accounting
principles (GAAP). On May 14, 2003, we filed a press release under Form 6-K that
discussed our financial results for the three months ended March 31, 2003,
reported under French generally accepted accounting principles (French GAAP).
Three Months Ended March 31, 2003 compared to Three Months Ended March 31, 2002
Results of Operations
Total call volumes were 325.6 million minutes for the first quarter of 2003, up
22.2% from the prior year. Automated services call volumes were up 52.4% from
the first quarter of 2002 and increased 6.9% sequentially. Automated services
represented approximately 62.2% of revenue and 80.6% of audio call volumes in
the first quarter of 2003.
Revenue decreased 17.7% to (euro)45.7 million, from (euro)55.5 million in the
prior year period. The revenue decline was primarily due to the continuing shift
to automated services, which carry higher margins but generate lower per-minute
revenues than operator assisted services, the weakening US dollar, and price
erosion. Despite the revenue decrease, gross margin was 63.0% compared to 57.8%
in the first quarter 2002, primarily driven by the shift to automated services
and higher productivity in the call centers.
Selling, general and administrative expenses and research and development
expenses declined (euro)8.8 million to (euro)21.2 million, or 29.4%, compared to
the first quarter of 2002, primarily due to our cost reduction programs.
Operating profit in the first quarter of 2003 was (euro)5.0 million, compared to
an operating loss of (euro)5.3 million in the first quarter of 2002.
Earnings before interest, taxes, depreciation and amortization (EBITDA*) totaled
(euro)10.6 million in the first quarter of 2003, resulting in an EBITDA margin
of 23.1%, compared to (euro)6.7 million in the prior year period, or an EBITDA
margin of 12.1%. Although EBITDA is not a generally accepted accounting
principle measurement, we present it as a supplement to our GAAP financial
information because we believe that EBITDA is a meaningful measure of
performance, because it presents our results of operations without the
potentially volatile impact (which can be substantial) of goodwill impairment
and the non-cash impacting nature of depreciation and amortization. See attached
Note to consolidated statements of operations for reconciliation of Operating
Income and EBITDA.
Net income was (euro)6.8 million, or (euro)0.43 per share in the first quarter
of 2003, compared with a loss of (euro)8.0 million, or (euro)0.52 per share, in
the same period in the prior year.
Liquidity and Capital Resources
Cash increased to (euro)15.8 million, up (euro)5.8 million from the fourth
quarter of 2002.
As previously announced, we have reached preliminary agreements, subject to
several conditions and to final documentation, to extend the maturities under
our bank credit facility and convertible debt. We also previously announced our
intention to pursue a capital increase of up to (euro)8 million in 2003.
GENESYS S.A.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December 31, March 31,
2002 2003
-------------- --------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents........................................(euro) 9,976 (euro) 15,811
Accounts receivable, less allowances of(euro)3,502 at
December 31, 2002 and(euro)3,505 at March 31, 2003............. 35,930 37,325
Inventory........................................................ 72 62
Prepaid expenses................................................. 1,874 2,108
Other current assets............................................. 5,261 5,629
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Total current assets...................................... 53,113 60,935
Property and equipment, net........................................ 32,234 29,276
Goodwill and other intangibles, net................................ 158,213 157,519
Investment in affiliated company................................... 118 123
Deferred tax assets................................................ 361 340
Deferred financing costs, net...................................... 3,797 3,419
Other assets....................................................... 1,897 1,583
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Total assets....................................(euro)249,733 (euro)253,195
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank overdrafts..................................................(euro) 3,417 (euro) 3,334
Accounts payable................................................. 14,344 13,904
Accrued liabilities.............................................. 7,178 8,152
Accrued compensation............................................. 6,555 8,090
Tax payable...................................................... 8,998 10,179
Deferred revenue................................................. 352 448
Current portion of long-term debt................................ 1,143 1,108
Current portion of capitalized lease obligations................. 191 354
Current portion of deferred tax liability........................ 3,097 3,097
Current portion of other long-term liability..................... 2,284 825
Other current liabilities........................................ 1,759 620
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Total current liabilities................................. 49,318 50,111
Long-term portion of long-term debt................................ 120,165 116,031
Long-term portion of capitalized lease obligations................. 149 19
Long term portion of deferred tax liability........................ 20,666 19,894
Other long-term liability.......................................... 6,644 5,548
Commitments and contingencies...................................... -- --
Shareholders' equity:
Ordinary shares;(euro)5.00 nominal value;
15,409,933 and 15,471,204 shares issued and outstanding
at December 31, 2002 and March 31, 2003, respectively.......... 77,050 77,356
Common shares to be issued:(euro)5.00 nominal value; 137,347
and 76,076 shares at December 31, 2002 and March 31, 2003,
respectively................................................... 687 380
Additional paid-in capital....................................... 194,217 194,217
Accumulated other comprehensive income........................... 6,980 8,881
Deferred compensation............................................ (220) (158)
Accumulated deficit.............................................. (225,172) (218,333)
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53,542 62,343
Less cost of treasury shares: 22,131 shares at December 2002
and March 31, 2003............................................. (751) (751)
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Total shareholders' equity................................ 52,791 61,592
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Total liabilities and shareholders' equity......(euro)249,733 (euro)253,195
============= =============
GENESYS S.A.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except share data)
Three months ended March 31,
2002 2003
------------- -------------
Revenue:
Services.........................................................(euro) 54,940 (euro) 45,571
Products......................................................... 512 83
------------- -------------
55,452 45,654
Cost of revenue:
Services......................................................... 22,934 16,813
Products......................................................... 485 59
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23,419 16,872
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Gross profit....................................................... 32,033 28,782
Operating expenses:
Research and development......................................... 1,260 1,032
Selling and marketing............................................ 13,508 8,676
General and administrative....................................... 15,210 11,469
Restructuring charge............................................. 3,671 --
Amortization of intangibles...................................... 3,649 2,615
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Total operating expenses................................. 37,298 23,792
Operating income (loss)............................................ (5,265) 4,990
Financial income (expense)
Interest income.................................................. 58 59
Interest expense................................................. (2,297) (2,452)
Foreign exchange gain............................................ (540) 4,688
Other financial income (expense), net............................ (275) (288)
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Financial income (expense), net.................................... (3,054) 2,007
Equity in loss of affiliated company............................... (8) 4
------------- -------------
Income (loss) before taxes......................................... (8,327) 7,001
Income tax (expense) credit........................................ 349 (166)
------------- -------------
Net income (loss)........................................(euro) (7,978) (euro) 6,835
============= =============
Basic net income (loss) per share..................................(euro) (0.52) (euro) (0.44)
============= =============
Diluted net income (loss) per share................................(euro) (0.52) (euro) (0.43)
============= =============
Number of shares used in computing basic net income
(loss) per share................................................. 15,528,376 15,547,280
Dilution effect on convertible notes............................... -- 605,631
Number of shares used in computing diluted net income
(loss) per share................................................. 15,528,376 16,152,911
GENESYS S.A.
NOTES TO THE CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands)
Three months ended March 31,
2002 2003
------------- -------------
Operating income (loss)............................................(euro) (5,265) (euro) 4,990
Depreciation....................................................... 4,665 2,954
Amortization of intangibles........................................ 3,649 2,615
EBITDA........................................................... 3,049 10,559
============== =============
Restructuring charge 3,671 --
EBITDA before non-recurring charges...............................(euro) 6,720 (euro) 10,559
============= =============
(1) We believe that EBITDA is a meaningful measure of performance, because it
presents our results of operations without the potentially volatile impact
( which can be substantial) of goodwill impairment and the non-cash
impacting nature of depreciation and amortization.
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.
Dated: June 5, 2003
GENESYS SA
By: /s/ Francois Legros
-------------------
Name: Francois Legros
Title: Chairman and Chief Executive
Officer