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 13, 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, Herzliya 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 ]
Enclosure: Press Release dated February 13, 2003, announcing fourth quarter and
full year 2002 results.
Tecnomatix Announces Fourth Quarter and Full Year 2002 Results
HERZLIA, Israel--(BUSINESS WIRE)--Feb. 13, 2003--Tecnomatix
Technologies, Ltd. (NASDAQ: TCNO), the driving force for Manufacturing
Process Management (MPM) solutions, announced today its financial
results for the fourth quarter and full year ended December 31, 2002.
All financial figures in the press release are pro forma results.
Pro forma results exclude non-recurring amortization of goodwill and
acquired intangibles related to acquisitions, restructuring costs and
asset impairment.
For the fourth quarter ended December 31, 2002, the Company is
reporting revenues of $21.4 million, operating income of $20 thousand
and net income of $0.1 million, or $0.01 per diluted share. This
compares to the fourth quarter ended December 31, 2001, when the
Company reported revenues of $21.2 million, operating income of $0.5
million and net income of $0.2 million, or $0.02 per diluted share.
The Company ended the quarter with $41.8 million in cash and cash
equivalents, short-term investments and long-term investments.
The Company reported revenues for 2002 of $82.0 million, operating
income of $2.2 million and net income of $1.1 million, or $0.1 per
diluted share. This compares to the year ended December 31, 2001, when
the Company reported revenues of $86.9 million, an operating loss of
$4.9 million and a net loss of $4.3 million, or $(0.42) per diluted
share.
Fourth Quarter 2002 Highlights
"We met our goals this quarter with solid execution of our key
business initiatives," said Harel Beit-On, chairman and chief
executive officer of Tecnomatix. "We achieved sequential revenue
growth in all our businesses and territories, and reported a positive
cash flow. Most important, we continued to see strong adoption of our
MPM enterprise solutions by new and existing customers, including
Ford, General Motors, Mazda, Siemens, Teradyne, Tesco and Venture.
"This quarter, we intensified our efforts in our partnership with
EDS, investing nearly $500,000 in R&D and sales training programs. As
a result of these efforts, the first integrated EDS/Tecnomatix product
will be delivered to customers during first quarter 2003; several EDS
sales teams have been trained and are now dedicated to selling our
eMPower solutions -- significantly increasing our sales capacity in
the US."
Summary of Year 2002
"During 2002, we made broad advances in implementing our strategy,
despite the ongoing soft IT spending environment," continued Beit-On.
"We enhanced our product offerings. We signed several important
strategic agreements. We gained recognition by AMR, CIMdata, Daratech,
Frost & Sullivan, Gartner and others as the leader in a fast-growing
area of manufacturing IT. And we gained market share, winning every
benchmark and a steady stream of repeat orders for our eMPower
Enterprise Solutions from companies like Audi, BMW, Ford, General
Motors, Mazda, PSA Peugeot Citroen, Schneider Electric and Volkswagen.
"By the end of the year, with over 220 enterprise projects around
the world and over 100 corporations having chosen eMPower Enterprise
Solutions as their MPM standard solution, these licenses accounted for
over 38% of our total software revenues --up from 28% in 2001.
"Particularly noteworthy in 2002, was our strategic alliance with
EDS whereby Tecnomatix solutions will be an integral part of the EDS
product lifecycle management (PLM) environment. This strategic
relationship with EDS is expanding our market coverage, channels and
deployment capabilities, providing our mutual customers with a robust
solution from pre-planning to operational planning, and further
solidifying our market position as the MPM partner of choice for any
PLM strategy.
"In addition, we reinforced our long-time relationship with
Siemens Automation and Drives by extending our joint development
agreement for the eM-PLC product. We also acquired Teradyne's
CIMBridge CAD/CAM optimization software product line, adding 300 users
to our customer base.
"During the year, we launched Oracle-based eMPower 6, which
supports industry standards and provides scalability and expandability
within the PLM environment. We released a PC-based version of our
popular robotics simulation product and continued to enhance eMPower
for Electronics(TM) which represents the most advanced MPM platform
for electronics on the market today."
Looking Forward to 2003
Beit-On concluded, "We enter 2003, in a position of leadership,
stability and strength. Our strategy remains clear: we will focus on
growth by generating new and repeat sales; we will work closely with
EDS and our other partners to expand our market coverage; and we will
increase our efforts to promote both our MPM enterprise solutions and
stand-alone products.
"We have set challenging goals in uncertain times. But with our
dedicated people, best-in-class solutions, alliance partners and
proven customer successes, we are on the road to growth and increased
profitability."
Conference Call Information
Tecnomatix will hold a conference call to discuss its fourth
quarter results on February 13, 2003 at 8:30am EST. To access the
conference call, please dial (703) 871-3597 by 8:20am. A replay of the
conference call will also be available approximately two hours after
the completion of the live conference call. To access the replay,
please dial (888) 266-2081 (international callers dial
+1.703.925-2533), reservation #6387057. The replay will be available
until 11:00pm EST on February 20.
About Tecnomatix Technologies, Ltd.
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, 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.
PRO-FORMA RESULTS (a)
U.S $ in thousands, except per share data
Twelve months ended Three months ended
12/31/2002 12/31/2001 12/31/2002 12/31/2001
----------- ----------- ----------- -----------
Revenues
Software license fees 36,385 42,316 9,898 10,386
Services 45,620 44,584 11,510 10,816
----------- ----------- ----------- -----------
Total revenues 82,005 86,900 21,408 21,202
----------- ----------- ----------- -----------
Costs and expenses
Software license fees 8,062 7,851 2,379 2,290
Services 15,520 15,268 4,282 3,824
Research and
development, net 14,297 19,216 3,367 3,884
Selling and marketing 36,887 44,624 9,874 9,669
General and
administrative 5,013 4,855 1,486 1,075
----------- ----------- ----------- -----------
Total costs and
expenses 79,779 91,814 21,388 20,742
----------- ----------- ----------- -----------
Operating income (loss) 2,226 (4,914) 20 460
Financial income
(expense), net (799) 1,192 62 (413)
----------- ----------- ----------- -----------
Income (loss) before
taxes on income 1,427 (3,722) 82 47
Provision for income
taxes 148 (54) 122 282
----------- ----------- ----------- -----------
Income (loss) after
taxes on income 1,575 (3,776) 204 329
Equity share in net
income (loss) of an
affiliate company (431) (532) (97) (129)
----------- ----------- ----------- -----------
Net income (loss) 1,144 (4,308) 107 200
=========== =========== =========== ===========
Diluted earnings (loss)
per share:
Net Income (loss) 0.10 (0.42) 0.01 0.02
=========== =========== =========== ===========
Weighted average number
of shares outstanding:
Diluted 11,165,319 10,366,125 10,957,570 11,144,411
=========== =========== =========== ===========
(a) Excluding Amortization of Goodwill and Acquired Intangibles,
Restructuring Costs and Assets Impairment
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.
Twelve months ended Three months ended
12/31/2002 12/31/2001 12/31/2002 12/31/2001
----------- ----------- ----------- -----------
Pro forma net income
(loss) 1,144 (4,308) 107 200
Reconciling items to
GAAP net income
(loss) :-
Restructuring costs
and assets impairment (1,483) (1,843) (1,483) (1,843)
Amortization of
goodwill - (3,942) - (1,002)
Amortization of
acquired intangibles (2,491) (3,816) (577) (953)
----------- ----------- ----------- -----------
Total pro forma
adjustments (3,974) (9,601) (2,060) (3,798)
----------- ----------- ----------- -----------
GAAP net income (loss) (2,830) (13,909) (1,953) (3,598)
=========== =========== =========== ===========
TECNOMATIX TECHNOLOGIES LTD.
Consolidated Statements of Operations
U.S $ in thousands, except per share data
Twelve months ended Three months ended
12/31/2002 12/31/2001 12/31/2002 12/31/2001
----------- ----------- ----------- -----------
Revenues
Software license fees 36,385 42,316 9,898 10,386
Services 45,620 44,584 11,510 10,816
----------- ----------- ----------- -----------
Total revenues 82,005 86,900 21,408 21,202
----------- ----------- ----------- -----------
Costs and expenses
Software license fees 8,062 7,851 2,379 2,290
Services 15,520 15,268 4,282 3,824
Amortization of
goodwill - 3,942 - 1,002
Amortization of
acquired intangibles 2,491 3,816 577 953
Research and
development, net 14,297 19,216 3,367 3,884
Selling and marketing 36,887 44,624 9,874 9,669
General and
administrative 5,013 4,855 1,486 1,075
Restructuring costs
and assets
impairment 1,483 1,843 1,483 1,843
----------- ----------- ----------- -----------
Total costs and
expenses 83,753 101,415 23,448 24,540
----------- ----------- ----------- -----------
Operating income (loss) (1,748) (14,515) (2,040) (3,338)
Financial income
(expense), net (799) 1,192 62 (413)
----------- ----------- ----------- -----------
Income (loss) before
taxes on income (2,547) (13,323) (1,978) (3,751)
Provision for income
taxes 148 (54) 122 282
----------- ----------- ----------- -----------
Income (loss) after
taxes on income (2,399) (13,377) (1,856) (3,469)
Equity share in net
income (loss) of an
affiliate company (431) (532) (97) (129)
----------- ----------- ----------- -----------
Net income (loss) (2,830) (13,909) (1,953) (3,598)
=========== =========== =========== ===========
Basic earnings (loss)
per share:
Net Income (loss) (0.27) (1.34) (0.18) (0.34)
=========== =========== =========== ===========
Diluted earnings (loss)
per share:
Net Income (loss) (0.27) (1.34) (0.18) (0.34)
=========== =========== =========== ===========
Weighted average number
of shares outstanding:
Basic 10,607,140 10,366,125 10,695,830 10,443,310
=========== =========== =========== ===========
Diluted 10,607,140 10,366,125 10,695,830 10,443,310
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TECNOMATIX TECHNOLOGIES LTD.
Condensed Consolidated Balance Sheets
U.S $ in thousands
12/31/2002 12/31/2001
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Current Assets:
Cash and cash equivalents 10,466 21,670
Short-term investments 5,981 29,515
Receivables:
Trade 27,671 23,110
Related parties 695 417
Other and prepaid expenses 5,212 5,988
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Total current assets 50,025 80,700
----------- ----------
Non-current receivables 915 808
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Long-Term Investments:
Bonds 25,472 -
Other - 457
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Total Long-term investments 25,472 457
Property and equipment, net 6,108 7,359
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Goodwill, net 17,210 15,409
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Acquired intangibles, net - 2,195
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Other assets, net 16,613 16,451
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Total assets 116,343 123,379
=========== ==========
Current Liabilities:
Short-term credits - 687
Payables:
Trade 2,950 2,267
Deffered Revenue 4,659 4,774
Other and accrued expenses 14,956 15,214
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Total current liabilities 22,565 22,942
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Provision for losses from investment in an
affiliate company 526 95
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Accrued severance pay, net 907 681
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5.25% Convertible subordinated notes 37,428 43,765
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Minority interest in consolidated subsidiary - 3
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Shareholders' equity 54,917 55,893
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Total liabilities and shareholders' equity 116,343 123,379
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CONTACT: Company:
Tecnomatix Technologies, Ltd.
Oren Steinberg, +1-603-765-5294 or +972-9-9594755
osteinberg@tecnomatix.com
or
Company Investor:
Tecnomatix Technologies, Ltd.
Marsha Shalvi, +972-9-9594733 or +972-54-942180
mshalvi@tecnomatix.com
or
Investor:
Lippert/Heilshorn & Assoc.
Jody Burfening, 212/838-3777
jbs@lhai.com
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: February 13, 2003