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 24, 2002
Tecnomatix Technologies Ltd.
----------------------------
(Exact Name of Registrant as specified in the charter)
N/A
(Translation of Registrant's name into English)
Israel
(Jurisdiction of incorporation or organization)
16 Hagalim Avenue, Herzliya 46733, Israel
-----------------------------------------
(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 ]
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Enclosure: Press Release dated October 24, 2002, announcing third quarter 2002
results.
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
--------------------------
Harel Beit-On
Chairman of the Board of Directors and Chief Executive Officer
Dated: October 24, 2002
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Tecnomatix Announces Third Quarter 2002 Results; Company Reports
Stable Sequential Revenues and Increase in MPM Business
HERZLIA, Israel--Oct. 24, 2002--Tecnomatix Technologies, Ltd.
(NASDAQ: TCNO), the driving force in Manufacturing Process Management
(MPM) solutions, today announced its financial results for the third
quarter, ended September 30, 2002.
All financial figures in this press release are pro forma results.
Pro forma results exclude amortization of goodwill and acquired
intangibles related to acquisitions. A reconciliation of pro forma
with GAAP net income is included in the summary financial data which
is attached to this press release.
For the third quarter 2002, the Company is reporting pro forma
revenues of $20.1 million, compared to $21.1 million for the same
period last year. Operating income for the quarter was $0.8 million,
compared to an operating loss of $0.6 million for the third quarter in
2001. Net income for the third quarter 2002 was $0.4 million or $0.04
per diluted share, compared to a net loss of $0.9 million or a net
loss of $0.08 per diluted share for the same period last year. The
Company ended the quarter with $44.6 million in cash and cash
equivalents, short-term investments and long-term investments.
"I am pleased with our progress this quarter," said Harel Beit-On,
chairman and chief executive officer. "Despite the continuing slowdown
in IT spending, particularly in the electronics industry and Japan, we
are reporting stable sequential revenues in a traditionally weak third
quarter. Lower revenues in Japan were offset by growth in Europe and
in the USA.
"We continued to achieve significant wins for our MPM solutions,
with several companies choosing Tecnomatix as their MPM partner.
Moreover, the number of long-standing customers expanding their
deployments is increasing, including Bosch, General Motors, Kuka,
Volkswagen and their suppliers. This quarter, MPM license revenues
represent 39% of our software license revenues."
Beit-On continued, "After long evaluations, PSA Peugeot Citroen -
Europe's second largest automotive manufacturer - chose Tecnomatix MPM
to standardize machining work flow and processes for its powertrain
division. With this multi-million dollar contract, PSA is now the
largest deployer of our MPM powertrain solutions. Its mainstream
deployment of MPM powertrain solutions, in what has typically been an
underpenetrated domain, confirms that Tecnomatix is the leader in all
automotive manufacturing domains.
"Furthermore, we established a partnership with EDS whereby
Tecnomatix solutions will be an integral part of the EDS PLM
environment. This strategic relationship with EDS enables us to
provide a more robust product offering, expands our coverage of the
MPM market, and further solidifies our market position as the MPM
partner of choice for any PLM strategy. EDS and Tecnomatix teams are
already working to deliver an integrated PLM-MPM solution and have
started joint sales cycles at key customers.
"We have also acquired Teradyne's CIMbridge division, which
provides software solutions to the PCB assembly market. This
acquisition extends our leadership position and customer base in the
electronics manufacturing industry and strengthens our long-standing
partnership with Teradyne, one of the world's leading electronics
equipment providers. CIMbridge solutions will be integrated into
Tecnomatix' MPM solutions, giving CIMbridge's over 300 customers a
broader product line spanning test, assembly, box build and execution.
"To ensure that we maintain this leadership position, we have
strengthened our management team with the appointment of Jaron Lotan
as president and chief operating officer. Lotan joins Tecnomatix from
Orbotech, Ltd., where he served as Corporate Executive Vice President
for Business and Strategy. He brings a wealth of experience to this
position from his years of building Orbotech's business, and we look
forward to his contribution to Tecnomatix."
Beit-On concluded, "During this challenging economic climate, we
have stayed the course, reporting stable revenues and improving our
operating position. I continue to be enthusiastic about the market
potential for MPM solutions and our leadership position in this
emerging space."
About Tecnomatix Technologies
Tecnomatix Technologies, Ltd. (NASDAQ: TCNO) 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 enhancing manufacturing's ability to support the
business strategy of choice. These companies are using Tecnomatix
eMPower MPM solutions to accelerate product introductions, shorten
time to volume, and optimize 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 additional information about why automotive, electronics,
aerospace and other discrete manufacturing leaders -- such as BMW,
Ford, GM, TWR, Mazda, Comau, Faurecia, Sanmina-SCI, Solectron, Nortel,
Philips, Boeing, Airbus, GE Aircraft Engines, Lockheed Martin - have
been turning to Tecnomatix MPM solutions, visit www.tecnomatix.com
Certain statements made herein that use the words "estimate",
"project", "intend", "expect", "believe" and similar expressions are
intended to identify forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements involve known and unknown risks and
uncertainties which could cause the actual results, performance or
achievements of the Company to be materially different from those
which may be expressed or implied by such statements, including, among
others, changes in general economic and business conditions and
specifically, changes in the level of activity in the automotive
industry, decline in demand to the Company's products, inability to
timely develop and introduce new technologies, products and
applications and loss of market share and pressure on prices resulting
from competition. For additional information regarding these and other
risks and uncertainties associated with the Company's business,
reference is made to the Company's reports filed from time to time
with the Securities and Exchange Commission.
TECNOMATIX TECHNOLOGIES LTD.
- --------------------------------------------------------------
Condensed Consolidated Balance Sheets
U.S $ in thousands
09/30/2002 12/31/2001
--------------- -------------
Current Assets:
Cash and cash equivalents 10,966 21,670
Short-term investments 199 29,515
Receivables:
Trade 27,207 23,110
Related parties 653 417
Other and prepaid expenses 4,349 5,988
--------------- -------------
Total current assets 43,374 80,700
--------------- -------------
Non-current receivables 890 808
--------------- -------------
Long-Term Investments:
Bonds 33,047 -
Other 457 457
--------------- -------------
Total Long-term investments 33,504 457
--------------- -------------
Property and equipment, net 6,275 7,359
--------------- -------------
Goodwill, net 16,162 15,409
--------------- -------------
Acquired intangibles, net 505 2,195
--------------- -------------
Other assets, net 16,692 16,451
--------------- -------------
Total assets 117,402 123,379
=============== =============
Current Liabilities:
Short-term credits - 687
Payables:
Trade 1,820 2,267
Deffered Revenue 5,697 4,774
Other and accrued expenses 12,006 15,214
--------------- -------------
Total current liabilities 19,523 22,942
--------------- -------------
Provision for losses from
investment in an
affiliate company 429 95
--------------- -------------
Accrued severance pay, net 595 681
--------------- -------------
5.25% Convertible
subordinated notes 41,117 43,765
--------------- -------------
Minority interest in
consolidated subsidiary - 3
--------------- -------------
Shareholders' equity 55,738 55,893
--------------- -------------
Total liabilities and
shareholders' equity 117,402 123,379
=============== =============
TECNOMATIX TECHNOLOGIES LTD.
- --------------------------------------------------------------
PRO-FORMA RESULTS (a)
U.S $ in thousands,
except per share data Nine months ended Three months ended
09/30/2002 09/30/2001 09/30/2002 09/30/2001
---------- ---------- ---------- ----------
Revenues
Software license fees 26,487 31,930 8,403 9,487
Services 34,110 33,768 11,660 11,624
------------ ------------ ---------- ----------
Total revenues 60,597 65,698 20,063 21,111
------------ ------------ ---------- ----------
Costs and expenses
Software license fees 5,683 5,561 1,909 1,661
Services 11,238 11,444 3,592 3,765
Research and
development, net 10,930 15,332 3,581 4,343
Selling and marketing 27,013 34,955 8,964 10,775
General and
administrative 3,527 3,780 1,255 1,168
------------ ------------ ---------- ----------
Total costs and
expenses 58,391 71,072 19,301 21,712
------------ ------------ ---------- ----------
Operating income (loss) 2,206 (5,374) 762 (601)
Financial income
(expense), net (861) (b) 1,605 (190) 64
------------ ------------ ---------- ----------
Income (loss) before
taxes on income 1,345 (3,769) 572 (537)
Provision for income
taxes 26 (336) (58) (186)
------------ ------------ ---------- ----------
Income (loss) after
taxes on income 1,371 (4,105) 514 (723)
Equity share in
net income (loss) of
an affiliate company (334) (403) (111) (149)
------------ ------------ ---------- ----------
Net income (loss) 1,037 (b)(4,508) 403 (872)
============ ============ ========== ==========
Diluted earnings
(loss) per share:
Net Income (loss) 0.09 (b)(0.44) 0.04 (0.08)
============ ============ ========== ==========
Weighted average
number of shares
outstanding:
Diluted 11,230,111 10,340,397 10,999,593 10,409,094
============ ============ ========== ===========
(a) Excluding Amortization of Goodwill and Acquired Intangibles
(b) Including reclassification of capital gain from repurchase of
convertible bonds in accordance with SFAS145
TECNOMATIX TECHNOLOGIES LTD.
- --------------------------------------------------------------
Reconciliation of Pro Forma and GAAP Net Income (Loss)
Consolidated Statements of Operations
U.S $ in thousands
The following pro forma supplemental information provides a
reconciliation between pro forma net income (loss) and net income
(loss) according to generally accepted accounting principles (GAAP).
This pro forma information is not prepared in accordance with GAAP.
Nine months ended Three months ended
09/30/2002 09/30/2001 09/30/2002 09/30/2001
Pro forma net
income (loss) 1,037 (4,508) 403 (872)
Reconciling items to
GAAP net income
(loss) :-
Amortization of
goodwill - (2,940) - (980)
Amortization of
acquired intangibles (1,914) (2,863) (574) (954)
--------- ---------- ---------- -----------
Total pro forma
adjustments (1,914) (5,803) (574) (1,934)
--------- ---------- ---------- -----------
GAAP net income (loss) (877) (10,311) (171) (2,806)
========= ========== ========== ===========
TECNOMATIX TECHNOLOGIES LTD.
- --------------------------------------------------------------
Consolidated Statements of Operations
U.S $ in thousands, except per share data
Nine months ended Three months ended
09/30/2002 09/30/2001 09/30/2002 09/30/2001
---------- ---------- ---------- ----------
Revenues
Software license fees 26,487 31,930 8,403 9,487
Services 34,110 33,768 11,660 11,624
---------- ----------- ------------ ------------
Total revenues 60,597 65,698 20,063 21,111
---------- ----------- ------------ ------------
Costs and expenses
Software license fees 5,683 5,561 1,909 1,661
Services 11,238 11,444 3,592 3,765
Amortization of
goodwill - 2,940 - 980
Amortization of
acquired intangibles 1,914 2,863 574 954
Research and
development, net 10,930 15,332 3,581 4,343
Selling and marketing 27,013 34,955 8,964 10,775
General and
administrative 3,527 3,780 1,255 1,168
---------- ----------- ------------ ------------
Total costs
and expenses 60,305 76,875 19,875 23,646
---------- ----------- ------------ ------------
Operating income
(loss) 292 (11,177) 188 (2,535)
Financial income
(expense), net (861) (a) 1,605 (190) 64
---------- ----------- ------------ ------------
Income (loss) before
taxes on income (569) (9,572) (2) (2,471)
Provision for
income taxes 26 (336) (58) (186)
---------- ----------- ------------ ------------
Income (loss) after
taxes on income (543) (9,908) (60) (2,657)
Equity share in
net income (loss)
of an affiliate
company (334) (403) (111) (149)
---------- ----------- ------------ ------------
Income (loss) before
extraordinary item (877) (a)(10,311) (171) (2,806)
Extraordinary item - - - -
---------- ----------- ------------ ------------
Net income (loss) (877) (10,311) (171) (2,806)
========== =========== ============ ============
Basic earnings
(loss) per share:
Income (loss) before
Extraordinary Item (0.08) (a) (1.00) (0.02) (0.27)
Extraordinary Item - - - -
---------- ----------- ------------ ------------
Net Income (loss) (0.08) (1.00) (0.02) (0.27)
========== =========== ============ ============
Diluted earnings
(loss) per share:
Income (loss) before
Extraordinary Item (0.08) (a) (1.00) (0.02) (0.27)
Extraordinary Item - - - -
---------- ----------- ------------ ------------
Net Income (loss) (0.08) (1.00) (0.02) (0.27)
========== =========== ============ ============
Weighted average
number of shares
outstanding:
Basic 10,573,119 10,340,397 10,627,905 10,409,094
============ =========== =========== ============
Diluted 10,573,119 10,340,397 10,627,905 10,409,094
============ =========== =========== ============
(a) Including reclassification of capital gain from repurchase of
convertible bonds in accordance with SFAS145
CONTACT: Tecnomatix Technologies, Ltd.
Oren Steinberg, 603/765-5294 or +972-9-9594703
osteinberg@tecnomatix.com
or
Marsha Shalvi, +972-9-9594733
mshalvi@tecnomatix.com
or
Investor Contact:
Lippert/Heilshorn & Assoc.
Jody Burfening, 212/838-3777
jbs@lhai.com
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