SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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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 October 2004
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TECNOMATIX TECHNOLOGIES LTD.
(Translation of Registrant's Name into English)
Delta House, 16 Abba Eban Avenue, Herzliya 46120, Israel
(Address of Principal Corporate Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
[X] Form 20-F [_] 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): [_]
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.
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): [_]
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
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 [X] No
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-______________
The information included in the Form 6-K is incorporated by reference to the
Registrant's Registration Statement on Form F-3/A, registration number
333-115214.
Attached hereto as is the Registrant's annual report for the year ended December
31, 2003.
In addition to the annual report, the registrant has distributed to its
shareholders the registrant's annual report on Form 20-F for the year ended
December 31, 2003, which annual report was filed with the Securities and
Exchange Commission on March 31, 2003.
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.
(Registrant)
By: /s/ Jaron Lotan
----------------------------
Jaron Lotan
President & Chief Executive Officer
Dated: October 27, 2004
COMPANY CONTACT: COMPANY INVESTOR CONTACT: INVESTOR CONTACT:
Tecnomatix Technologies Ltd. Tecnomatix Technologies Ltd. The Ruth Group
Oren Steinberg Marsha Shalvi David Pasquale/Denise Roche
+972-9-9594891 +972-9-9594733 +646-536-7006/7008
osteinberg@tecnomatix.com +972-544-942180 dpasquale@theruthgroup.com
mshalvi@tecnomatix.com
TECNOMATIX ANNOUNCES THIRD QUARTER 2004 RESULTS
o RECORD QUARTERLY REVENUES WITH YEAR-OVER-YEAR GROWTH OF 26%
o NET INCOME INCREASED TO $0.05 PER DILUTED SHARE COMPARED TO A NET LOSS OF
$(0.43) IN SAME PERIOD OF 2003
Herzlia, Israel, October 27, 2004 - Tecnomatix Technologies Ltd.
(NASDAQ-TCNO), the driving force in Manufacturing Process Management (MPM),
today announced its financial results for the third quarter ended September 30,
2004.
Revenue for the third quarter of 2004 was $25.5 million, compared to $20.3
million for the third quarter of 2003, an increase of 26%. Operating income for
the third quarter of 2004 was $0.7 million, compared to an operating loss of
$(4.5) million for the third quarter of 2003 which included the special charges
of $4.4 million associated with the USDATA acquisition. Net income for the third
quarter of 2004 was $0.6 million or $0.05 per diluted share, compared to a net
loss of $(4.7) million or $(0.43) per diluted share for the third quarter of
2003.
Revenue for the nine months ended September 30, 2004 were $73.5 million,
compared to $61.1 million for the same period of 2003, an increase of 20%.
Operating income for the first nine months of 2004 was $1.7 million, compared to
an operating loss of $(6.3) million for the first nine months of 2003 which
included special charges of $5.9 million associated with restructuring and the
USDATA acquisition. Net income for the first nine months of 2004 was $1.3
million or $0.10 per diluted share, compared to a net loss of $(5.9) million or
$(0.55) per diluted share for the same period of 2003.
As of September 30, 2004, the Company had a balance of $38.7 million in
cash and cash equivalents, short-term investments and long-term investments,
compared to $38.0 million as of June 30, 2004.
"We continue to make significant progress with our strategic and financial
goals," said Jaron Lotan, president and chief executive officer of Tecnomatix
Technologies. "For the third quarter of 2004, we achieved record revenue with
growth of 26% year-over-year and we increased our operating and net profits. In
addition, we continue to report positive cash flow from operating activities.
These results are mainly attributable to the continued deployment of our MPM
enterprise solutions across a range of vertical markets.
"During the quarter, we enjoyed year-over-year growth across all
territories, which was mainly driven by our Mechanical division. Automotive OEMs
like Audi, BMW, Ford, GM/Opel, PSA and Volkswagen further expanded their eMPower
Enterprise deployments and Renault F1 placed an initial order for our eMPower
solution.
"We are particularly pleased with our success in the Tier 1 automotive
supplier industry. This $500 billion- dollar industry, which manufacturers all
the major components of a car, presents a major growth opportunity for
Tecnomatix. This quarter, two U.S. companies, Visteon and Intier, placed initial
orders for our MPM Enterprise solution, joining our impressive customer base of
more than twenty of the world's top Tier-1 suppliers.
"Outside of the automotive industry, demand for our standalone engineering
products is particularly strong. Among the companies placing orders in the third
quarter were Fanuc, a leading robot manufacturer, Fiat Avio, an Italian
aerospace company, Atomic Energy of Canada (AECL), John Deere and Westinghouse.
"We continue to gain traction in China and Taiwan, which is driving
increased market penetration through new and repeat orders. This quarter,
several automotive customers progressed with their implementation of eMPower
Enterprise solutions including Shanghai Automotive Industry Corporation (SAIC),
China's largest car producer, and Yulon Motor Company, a Taiwanese car
manufacturer. We are also seeing increased adoption of MPM by the Chinese
electronics industry, with companies like Inventec, Siemens Shanghai Mobile
Communications and UMC placing orders for our eMPower for Electronics solution.
"Our partnership with UGS is progressing well; our technical teams are
working together at several major customer sites and, this quarter, we delivered
a new version of the Teamcenter and eMPower integrated product.
"In summary, this has been a productive quarter for Tecnomatix, exhibiting
important gains in a range of vertical markets with initial and repeat orders
for our eMPower Enterprise solution and for our standalone engineering
products," continued Lotan. "Our customers continue to report significant
productivity improvements and returns on their investments. We are on track with
our ongoing objectives to deliver real value to our customers as well as
continued financial growth and increased profitability."
FORWARD-LOOKING GUIDANCE
Oren Steinberg, chief financial officer and executive vice president of
Tecnomatix Technologies said, "We are maintaining our guidelines for 2004 of
approximately 15%-20% growth over 2003 with improved profitability. In the
fourth quarter of 2004, we expect to achieve sequential and year-over-year
growth.
"Looking at 2005, based on our current performance and visibility, we
expect to grow our business and strengthen our business model. Our initial
guidance for 2005, is approximately 15% year-over-year growth, on an annual
basis, with significant improvements in profitability."
INVESTOR CONFERENCE CALL / WEBCAST DETAILS
Tecnomatix will review detailed third quarter 2004 results on October 27, 2004
at 8:30AM EST. The conference call-in number is 1-973-935-2408. A replay will be
available from 12:30PM EST on October 27 through midnight EST, November 7. The
replay number is 1-973-341-3080. The confirmation identification for both, the
live call and replay is 5260237. 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 -
Condensed Consolidated Statements of Operations
U.S $ in thousands, except per share data
Nine months ended Three months ended
9/30/2004 9/30/2003 9/30/2004 9/30/2003
----------- ----------- ----------- -----------
Revenues
Software license fees 29,694 24,139 10,944 7,925
Services 43,833 36,918 14,540 12,378
----------- ----------- ----------- -----------
Total revenues 73,527 61,057 25,484 20,303
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Costs and expenses
Software license fees 5,898 6,254 2,331 1,983
Services 14,879 10,910 5,277 3,562
Amortization of acquired intangibles 438 23 143 23
Research and development, net 12,025 10,671 4,015 3,249
Selling and marketing 35,092 29,977 11,795 10,515
General and administrative 3,539 3,623 1,222 1,055
Restructuring costs and asset impairment - 1,487
In-process R&D and acquisition related costs - 4,410 - 4,410
----------- ----------- ----------- -----------
Total costs and expenses 71,871 67,355 24,783 24,797
----------- ----------- ----------- -----------
Operating income (loss) 1,656 (6,298) 701 (4,494)
Financial income (expenses), net (91) 476 (19) (122)
----------- ----------- ----------- -----------
Income (loss) before taxes on income 1,565 (5,822) 682 (4,616)
Provision for income taxes (246) (41) (99) (40)
----------- ----------- ----------- -----------
Income (loss) after taxes on income 1,319 (5,863) 583 (4,656)
Equity share in net income (loss) of affiliate company (53) (74) 2 (25)
----------- ----------- ----------- -----------
Net income (loss) 1,266 (5,937) 585 (4,681)
=========== =========== =========== ===========
Basic earnings (loss) per share:
Net income (loss) 0.10 (0.55) 0.05 (0.43)
=========== =========== =========== ===========
Diluted earnings (loss) per share:
Net income (loss) 0.10 (0.55) 0.05 (0.43)
=========== =========== =========== ===========
Weighted average number of shares outstanding:
Basic 12,062,771 10,761,537 11,988,125 10,929,256
=========== =========== =========== ===========
Diluted 12,913,129 10,761,537 12,816,934 10,929,256
=========== =========== =========== ===========
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S $ IN THOUSANDS
9/30/2004 12/31/2003
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Current Assets:
Cash and cash equivalents 11,942 9,232
Short-term investments 23 70
Accounts receivable:
Trade 26,186 29,190
Related parties 400 -
Other and prepaid expenses 5,160 5,747
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Total current assets 43,711 44,239
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Non-current receivables 1,241 1,108
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Long-term investments:
Bonds 26,624 24,267
Zuken Tecnomatix 208 289
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Total long-term investments 26,832 24,556
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Property and equipment, net 4,444 5,628
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Goodwill, net 25,496 25,829
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Acquired intangibles, net 2,006 2,444
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Other assets, net 13,296 13,296
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Total assets 117,026 117,100
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Current Liabilities:
Current maturities of long-term loans 3,333 833
Accounts payable:
Trade 2,546 4,644
Deferred revenue 8,470 7,130
Other and accrued expenses 16,895 19,163
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Total current liabilities 31,244 31,770
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Long-term liabilities:
Accrued restructuring expense 2,829 1,716
Long-term loan from bank 21,667 24,167
Accrued severance pay, net 969 1,095
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Total long-term liabilities 25,465 26,978
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Shareholders' equity 60,317 58,352
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Total liabilities and shareholders' equity 117,026 117,100
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