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 November 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
--- ---
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
--- ---
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-_______________.
Genesys Conferencing Logo
Genesys Conferencing Reports Financial Results
for the Third Quarter Ended September 30, 2003
Denver, Colorado, and Montpellier, France, November 13, 2003 - Genesys
Conferencing (Euronext: 3955) (Nasdaq: GNSY), a leading multimedia conferencing
specialist, today reported financial results (unaudited) for the third quarter
ended September 30, 2003. All financial results are reported under French
Generally Accepted Accounting Principles (GAAP).
Improving Profitability and Cost Reduction Efforts
Comparisons for the third quarter versus the prior year included:
o Total call volumes increased 8.5% to 322.1 million minutes
o Revenue decreased 22.6% to (euro)36.3 million, with automated services
representing 68.3% of revenue
o Gross margin increased to 62.5%
o EBITDA* increased to (euro)7.1 million, with EBITDA margins improving to
19.5%
o Net loss improved 50.3% to (euro)3.8 million, including previously announced
(euro)1.6 million production center restructuring charge
o Cash and cash equivalents increased by (euro)14.4 million from Q4 2002 to
(euro)24.4 million
"We are continuing to direct the migration towards our higher-margin automated
conferencing services. We are also initiating an innovative bundled pricing
strategy to support the adoption of our unique, fully integrated multimedia
conferencing solutions," stated Francois Legros, Chairman and Chief Executive
Officer of Genesys Conferencing. "By implementing additional operating
efficiencies and productivity improvements, we are aiming to enhance our leading
service quality and further our improved profitability."
Total call volumes were 322.1 million minutes, up 8.5% from the same period in
2002, while automated services call volumes rose 26.2% from the third quarter of
2002. Automated services represented approximately 68.3% of revenue and 84.5% of
audio call volumes in the third quarter of 2003, as compared to 54.7% and 72.7%
in the third quarter 2002, respectively.
Revenue decreased 22.6% to (euro)36.3 million, from (euro)46.9 million in the
third quarter of 2002. The revenue decline, which was anticipated, was primarily
due to the weak U.S. dollar, the continuing shift toward automated services
(which carry higher margins but generate lower per-minute revenues than
operator-assisted services) and price erosion. Despite the revenue decrease,
gross margin was 62.5% compared to 56.7% in the third quarter of 2002, primarily
as a result of greater cost efficiencies and higher productivity of the
consolidated production centers, as well as the continuing improvement of our
mix of higher margin automated services.
Selling, general and administrative expenses and research and development
expenses declined (euro)5.6 million to (euro)18.2 million, a 23.7% decline
compared to the third quarter of 2002. The improvement in selling, general and
administrative expenses is primarily due to the Company's continuing
cost-reduction initiatives, including the greater centralization of certain
operations and functional groups. Operating profit in the third quarter of 2003
was (euro)155,000, compared to an operating loss of (euro)1.3 million in the
third quarter of 2002.
Earnings before interest, taxes, depreciation and amortization (EBITDA*) totaled
(euro)7.1 million in the third quarter of 2003, resulting in an EBITDA margin of
19.5%, compared to (euro)6.2 million in the third quarter of 2002, or an EBITDA
margin of 13.2%.
Net loss was (euro)3.8 million, or (euro)0.23 per share, in the third quarter of
2003, compared with a loss of (euro)7.7 million, or (euro)0.50 per share, in the
same period last year. Cash increased to (euro)24.4 million, up (euro)14.4
million from the fourth quarter of 2002.
Gross cash and cash equivalents increased to (euro)24.4 million as of September
30, 2003 from (euro)10.3 million as of September 30, 2002.
"Continuing improvement of our liquidity and profitability remains a high
priority and a focus of the strategic initiatives that we are implementing as we
prepare our business plans for 2004", stated Michael E. Savage, Executive Vice
President and Chief Financial Officer.
Guidance for 2003
The following contains forward-looking guidance regarding the Company's
financial outlook. The following is based on current expectations.
The company confirms its previously disclosed guidance as follows:
o Automated services are anticipated to be in the range of 68%-72% of revenue
for the fourth quarter of 2003
o EBITDA for 2003 is anticipated to be in the range of (euro)36 million -
(euro)40 million
However, the Company now anticipates that revenue for 2003 will be approximately
(euro)160 million due to our expectations regarding the continued industry price
erosion and the continuing weakness of the U.S. Dollar as compared to the Euro.
Third Quarter 2003 Conference Call and Webcast
Chairman and Chief Executive Officer Francois Legros and Executive Vice
President and Chief Financial Officer Michael E. Savage will host a conference
call on November 13, 2003, at 5:30 p.m. Central European Time or 11:30 a.m.
Eastern Standard Time. The conference call will be webcast live. The call may be
accessed at www.genesys.com. A replay of the call will also be available at
www.genesys.com.
See financial tables below.
* * * * * *
*EBITDA is not a generally accepted accounting principle measurement and is
presented solely as a supplemental disclosure. See attached note A to
consolidated statements of operations for reconciliation of operating income and
EBITDA.
Forward-Looking Statements
This release contains statements that constitute forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements other than historical information or
statements of current condition. These statements appear in a number of places
in this release and include statements concerning the parties' intent, belief or
current expectations regarding future events and trends affecting the parties'
financial condition or results of operations. Forward-looking statements are not
guarantees of future performance and involve risks and uncertainties, and actual
results may differ materially from those in the forward-looking statements as a
result of various factors. Some of these factors are described in the Form 20-F
that was filed by Genesys with the Securities and Exchange Commission on May 15,
2003. Although management of the parties believe that their expectations
reflected in the forward-looking statements are reasonable based on information
currently available to them, they cannot assure you that the expectations will
prove to have been correct. Accordingly, you should not place undue reliance on
these forward-looking statements. In any event, these statements speak only as
of the date of this release. Except to the extent required by law, the parties
undertake no obligation to revise or update any of them to reflect events or
circumstances after the date of this release, or to reflect new information or
the occurrence of unanticipated events.
About Genesys Conferencing
Genesys Conferencing is a global leader in integrated multimedia conferencing,
providing a full range of practical and innovative real-time collaboration and
conferencing services to over 18,000 clients worldwide. A leading multimedia
conferencing specialist, with an unmatched global presence, Genesys Conferencing
has established its integrated multimedia technology in 20 countries throughout
Europe, Asia Pacific and North America. Genesys Conferencing is listed on the
Nouveau Marche in Paris (Euronext: 3955) and Nasdaq (GNSY). Additional
information is available at www.genesys.com.
At Genesys Conferencing
Michael E. Savage
Executive Vice President and Chief Financial Officer
Phone: +33 4 99 13 27 66
mike.savage@genesys.com
Marine Pouvreau
Investor Relations
Phone: +33 4 99 13 25 17
marine.pouvreau@genesys.com
Tricia Heinrich
Public Relations
Phone: +1 415 608 6651
tricia.heinrich@genesys.com
GENESYS CONFERENCING
Consolidated Balance Sheets (French GAAP)
(in thousands of Euros, except share data)
At Dec.31, 2002 At Sept. 30, 2003
--------------- -----------------
ASSETS (unaudited)
Fixed assets:
Goodwill, net (euro) 77 504 (euro) 68 802
Intangible assets, net 80 715 72 243
Tangible assets, net 27 502 21 807
Financial assets, net 1 194 1 059
Investments in affiliated companies 118 115
--------------- ---------------
Total fixed assets 187 033 164 026
Current assets:
Inventory 72 40
Accounts receivable, less allowances (Eur 3,502 and Eur 2,128 at
December 31,2002 and Sept. 30, 2003, respectively) (euro) 35 929 (euro) 34 859
Deferred tax assets 361 154
Other current assets 7 919 5 990
Prepaid expenses and deferred charges 5 834 5 460
Marketable securities 109 11 558
Cash at bank 9 886 12 835
--------------- ---------------
Total current assets 60 110 70 896
--------------- ---------------
TOTAL ASSETS (euro) 247 143 (euro) 234 922
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Shareholders' equity:
Ordinary shares, nominal value of Eur 5 per share, 15,409,933 shares
issued and outstanding at December 31,2002 and Eur 1 per share,
18,297,139 shares issued and outstanding and September 30, 2003,
respectively (euro) 77 051 (euro) 18 297
Common shares to be issued 1 332 141
Additional paid-in capital 180 652 185 093
Additional paid-in capital to be issued 6 344 3 890
Accumulated deficit (103 250) (137 954)
Net loss for the period (96 617) (2 281)
Currency translation adjustments 8 111 12 131
--------------- ---------------
Total shareholders' equity 73 623 79 317
Provisions for risks and charges: 7 505 6 165
Long-term debt:
Long-term portion of long-term debt 119 537 98 468
Long-term portion of capitalized lease obligations 673 193
--------------- ---------------
Total long-term debt 120 210 98 661
Current liabilities
Bank overdrafts 3 417 4 231
Accounts payable and accrued liabilities 20 276 14 391
Tax payable and deferred compensation 15 553 16 426
Current portion of long-term debt 2 390 13 362
Current portion of capitalized lease obligations 1 844 826
Deferred revenue 352 223
Other liabilities 1 973 1 320
--------------- ---------------
Total current liabilities 45 805 50 779
--------------- ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (euro) 247 143 (euro) 234 922
=============== ===============
GENESYS CONFERENCING
Unaudited Consolidated Statements of Operations (French GAAP)
(in thousands of Euros, except share data)
Three months ended Sept. 30, Nine months ended Sept. 30,
------------------------------------------------------------------------------
2002 2003 2002 2003
---- ---- ---- ----
Revenue:
Services (euro) 46 296 (euro) 36 225 (euro) 153 544 (euro) 123 921
Products 567 67 1 426 295
------------------------------------- ------------------------------------
46 863 36 292 154 970 124 216
Cost of revenue:
Services 19 894 13 555 65 838 44 415
Products 411 55 1 114 199
------------------------------------- ------------------------------------
20 305 13 610 66 952 44 614
------------------------------------- ------------------------------------
Gross Profit 26 558 22 682 88 018 79 602
Operating expenses:
Research and development 1 159 1 043 3 607 3 128
Selling and marketing 11 828 9 300 39 200 28 460
General and administrative 11 239 8 231 44 234 29 218
Restructuring charge - 1 562 - 1 562
Amortization of intangible assets 3 643 2 391 10 933 7 175
(Note A)
------------------------------------- ------------------------------------
27 869 22 527 97 974 69 543
------------------------------------- ------------------------------------
Operating income / (loss) (1 311) 155 (9 956) 10 059
Financial expenses, net (Note B) (3 251) (1 937) (9 107) (5 766)
Equity in income/(loss) of affiliated
companies (4) (4) (15) 11
Income tax expense (Note C) (836) (535) (2 594) (2 576)
Amortization of goodwill (2 296) (1 503) (7 464) (4 009)
------------------------------------- ------------------------------------
Net loss (euro) (7 698) (euro) (3 824) (euro) (29 136) (euro) (2 281)
===================================== =====================================
Basic and diluted net loss per share (euro) (0.50) (euro) (0.23) (euro) (1.87) (euro) (0.14)
============= ============= ============= =============
Number of outstanding shares used in
computing basic and diluted net loss per
share 15 547 280 16 829 643 15 540 009 15 974 734
GENESYS CONFERENCING
Notes to the Statements of Operations (unaudited)
( in thousands of euros)
NOTE A- EBITDA calculation Three months ended Nine months ended
September 30, September 30,
------------------------------------------------------------------------
2002 2003 2002 2003
---- ---- ---- ----
General and administrative expenses (euro) 11 239 (euro) 8 231 (euro) 44 234 (euro) 29 218
Amortization of deferred acquisition and (423) (409) (1 251) (1 186)
deferred financing costs
Non recurrent income (charges) 22 (119) 92 (141)
---------------------------------- -----------------------------------
Operating general and administrative expenses
restated for the above items (euro) 10 838 (euro) 7 703 (euro) 43 075 (euro) 27 891
================================== ===================================
Operating income (loss) (euro) (1 311) (euro) 155 (euro) (9 956) (euro) 10 059
Amortization of deferred acquisition
and deferred financing costs 423 409 1 251 1 186
Amortization of intangible assets 3 643 2 391 10 933 7 175
Non recurrent charges (income) (22) 119 (92) 141
---------------------------------- -----------------------------------
Operating income
restated for the above items 2 733 3 074 2 136 18 561
---------------------------------- -----------------------------------
Depreciation and provisions 3 471 2 391 14 247 9 021
Penalty for early termination of a Rich Media - - 3 231 -
contract
Restructuring charge - 1 607 - 1 607
---------------------------------- -----------------------------------
EBITDA (euro) 6 204 (euro) 7 072 (euro) 19 614 (euro) 29 189
---------------------------------- -----------------------------------
NOTE B- DETAIL OF FINANCIAL
EXPENSES, NET 2002 2003 2002 2003
Interest and other financial income (euro) 258 (euro) 11 (euro) 164 (euro) 389
Foreign exchange gains 31 25 2 090 2 077
---------------------------------- -----------------------------------
Total financial income 289 36 2 254 2 466
Interest and other financial expenses 2 614 1 676 7 811 5 805
Foreign exchange losses 926 297 3 550 2 427
---------------------------------- -----------------------------------
Total financial charges 3 540 1 973 11 361 8 232
Financial expenses, net (euro) (3 251) (euro) (1 937) (euro) (9 107) (euro) (5 766)
================================== ===================================
NOTE C- DETAIL OF INCOME
TAX EXPENSE 2002 2003 2002 2003
Deferred tax credit (expense) (euro) 1 (euro) (202) (euro) 10 (euro) (233)
Income tax expense (837) (333) (2 604) (2 343)
---------------------------------- -----------------------------------
Total income tax expense (euro) (836) (euro) (535) (euro) (2 594) (euro) (2 576)
================================== ===================================
US GAAP ANNEX
GENESYS S.A.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December 31, September 30,
2002 2003
------------- -------------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents...............................................(euro) 9,976 (euro) 24,393
Accounts receivable, less allowances of (euro)3,502 at December 31,
2002 and (euro)2,128 at September 30, 2003............................ 35,930 34,859
Inventory............................................................... 72 40
Prepaid expenses........................................................ 1,874 2,658
Other current assets.................................................... 5,261 4,234
-------------- --------------
Total current assets............................................. 53,113 66,184
Property and equipment, net............................................... 32,234 26,727
Goodwill and other intangibles, net....................................... 158,213 148,307
Investment in affiliated company.......................................... 118 115
Deferred tax assets....................................................... 361 154
Deferred financing costs, net............................................. 3,797 2,953
Other assets.............................................................. 1,897 1,637
-------------- --------------
Total assets...........................................(euro) 249,733 (euro) 246,077
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank overdrafts.........................................................(euro) 3,417 (euro) 4,231
Accounts payable........................................................ 14,344 9,139
Accrued liabilities..................................................... 7,178 7,805
Accrued compensation.................................................... 6,555 7,479
Tax payable............................................................. 8,998 8,947
Deferred revenue........................................................ 352 223
Current portion of long-term debt....................................... 1,143 10,809
Current portion of capitalized lease obligations........................ 191 125
Current portion of deferred tax liability............................... 3,097 3,097
Current portion of other long-term liability............................ 2,284 794
Other current liabilities............................................... 1,759 1,068
-------------- --------------
Total current liabilities........................................ 49,318 53,717
Long-term portion of long-term debt....................................... 120,165 99,163
Long-term portion of capitalized lease obligations........................ 149 54
Long term portion of deferred tax liability............................... 20,666 18,178
Other long-term liability................................................. 6,644 3,850
Commitments and contingencies............................................. -- --
Shareholders' equity:
Ordinary shares; (euro)5.00 and (euro) 1.00 nominal value at December
31, 2002 and September 30, 2003, respectively; 15,409,933 and
18,297,139 shares issued and outstanding at December 31, 2002 and
Sept. 30, 2003, respectively............................................. 77,050 18,297
Common shares to be issued:(euro)5.00 and (euro)1.00 nominal value at
December 31, 2002 and September 30, 2003, respectively; 137,347 and
65,085 shares at December 31, 2002 and September 30, 2003, respectively.. 687 65
Additional paid-in capital.............................................. 194,217 198,042
Accumulated other comprehensive income.................................. 6,980 9,107
Deferred compensation................................................... (220) (720)
Accumulated deficit..................................................... (225,172) (152,925)
-------------- --------------
53,542 71,866
Less cost of treasury shares: 22,131 shares at December 2002
and September 30, 2003................................................ (751) (751)
-------------- --------------
Total shareholders' equity....................................... 52,791 71,115
-------------- --------------
Total liabilities and shareholders' equity.............(euro) 249,733 (euro) 246,077
============== ==============
GENESYS S.A.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in thousands, except share data)
Three months ended Sept. 30, Nine months ended Sept. 30,
---------------------------- ----------------------------
2002 2003 2002 2003
----------- ----------- ----------- -----------
Revenue:
Services.................................(euro) 46,296 (euro) 36,225 (euro) 152,835 (euro) 123,921
Products................................. 567 67 1,426 295
------------- ------------- -------------- --------------
46,863 36,292 154,261 124,216
Cost of revenue:
Services................................. 19,894 13,574 65,838 44,564
Products................................. 411 55 1,114 199
------------- ------------- -------------- --------------
20,305 13,629 66,952 44,763
------------- ------------- -------------- --------------
Gross profit............................... 26,558 22,663 87,309 79,453
Operating expenses:
Research and development................. 1,159 1,044 3,607 3,128
Selling and marketing.................... 11,828 9,300 39,200 28,460
General and administrative............... 10,866 8,097 42,447 28,430
Restructuring charge..................... -- -- 3,671 --
Amortization of intangibles............... 3,790 2,608 11,271 7,834
------------- ------------- -------------- --------------
Total operating expenses......... 27,643 21,049 100,196 67,852
Operating income (loss).................... (1,085) 1,614 (12,887) 11,601
Financial income (expense)
Interest income.......................... 10 16 99 195
Interest expense......................... (2,595) (1,851) (7,703) (5,556)
Foreign exchange gain (loss)............. (895) 285 (1,460) 5,615
Other financial expense, net............. (34) (87) (829) (857)
------------- ------------- -------------- --------------
Financial expense, net..................... (3,514) (1,637) (9,893) (603)
Equity in income (loss) of affiliated
company.................................... (4) (4) (15) 11
------------- ------------- -------------- --------------
Income (loss) before taxes................. (4,603) (27) (22,795) 11,009
Income tax (expense) credit................ 369 406 1,020 (88)
------------- ------------- -------------- --------------
Net income (loss)................(euro) (4,234) (euro) 379 (euro) (21,775) (euro) 10,921
============= ============= ============== ==============
Basic net income (loss) per share..........(euro) (0.27) (euro) 0.02 (euro) (1.40) (euro) 0.68
============= ============= ============== ==============
Diluted net income (loss) per share........(euro) (0.27) (euro) 0.02 (euro) (1.40) (euro) 0.66
============= ============= ============== ==============
Number of shares used in computing basic
net income (loss) per share................ 15,547,280 16,829,643 15,540,009 15,974,734
Dilution effect on convertible notes....... -- 552,188 -- 552,188
Number of shares used in computing
diluted net income (loss) per share........ 15,547,280 17,381,831 15,540,009 16,526,922
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: November 13, 2003
GENESYS SA
By: /s/ Francois Legros
---------------------------------------
Name: Francois Legros
Title: Chairman and Chief Executive Officer