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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Month of April 2000
PARADIGM GEOPHYSICAL LTD.
(Translation of Registrant's Name into English)
Shenkar Street 9, Gav Yam Center No.3, P.O.B. 2061 Herzlia B, Israel 46120
(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....
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-.....................
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Attached to the Registrant's Form 6-K for the month of April 2000 and
incorporated by reference herein is the Registrant's news release dated April
17, 2000.
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SIGNATURE
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.
PARADIGM GEOPHYSICAL LTD.
(Registrant)
By: /s/ Jonathan Keller
Jonathan Keller
Company Secretary
Dated: 18 April, 2000
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PARADIGM GEOPHYSICAL ANNOUNCES FIRST QUARTER RESULTS FOR THE PERIOD ENDED MARCH
31, 2000
HERZLIA, Israel--(BUSINESS WIRE)--April 17, 2000--Paradigm Geophysical Ltd.
(NASDAQ: PGEO) today announced its first quarter results for the period ended
March 31, 2000.
Growth Highlights:
- EPS is $0.02 for the first quarter of 2000, and $0.03 before
goodwill amortization.
- CFPS is $0.18 for the first quarter of 2000.
- Total revenues for the first quarter increased by 22 percent
over the same period in 1999.
- On a pro-forma basis, total revenues increased by 44 percent
over the same period in 1999.
Summary of Key Results and Comparisons
<TABLE>
<CAPTION>
1st Quarter
-----------
Q1'00 Q1'00
Increase/ Increase/
2000 1999 (Decrease) Q4 '99 (Decrease)
as % Q1'99 as % Q4'99
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
EPS $0.02 $(0.35) $0.02 0%
EPS before goodwill $0.03 $(0.35) $0.03 0%
CFPS $0.18 $(0.19) $0.17 6%
- ---------------------------------------------------------------------------------
(US$ mil.)
Revenues $14.1 $ 11.6 22% $16.4 (14%)
Operating
Income/(Loss) $ 0.4 $ (3.5) $ 0.4 0%
Net Income/(Loss) $ 0.3 $ (3.7) $ 0.3 0%
- ---------------------------------------------------------------------------------
</TABLE>
Management Comments:
Eldad Weiss, Chairman and CEO of Paradigm Geophysical Ltd., commented: "We
achieved our targets for this quarter. The Company has, for the second
consecutive quarter, returned to profitability and positive cash flow, and has
achieved strong growth in this quarter over the previous year's quarter. We
believe that these results, together with our wide global presence and combined
products and services offering, positions us to benefit from the sector
turn-around, now beginning."
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Detailed Results and Comparisons
<TABLE>
<CAPTION>
1st Quarter
-----------
Q1'00 Q1'00
Increase/ Increase/
2000 1999 (Decrease) Q4 '99 (Decrease)
as % Q1'99 as % Q4'99
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Product revenues $ 10.2 $ 9.6 6% $ 13.5 (24%)
Services revenues $ 3.9 $ 2.0 95% $ 2.9 34%
Operating expenses $ 13.7 $ 15.1 (9%) $ 16.0 (14%)
EBITDA $ 2.5 $ (2.0) $ 2.2 14%
- ----------------------------------------------------------------------------------
</TABLE>
Product revenues: Product revenues this quarter increased by 6 percent over the
first quarter 1999 and declined by 24 percent over the fourth quarter of 1999,
reflecting the traditionally seasonally strong forth quarter. On a pro-forma
basis product revenue growth is 30 percent compared with the first quarter 1999.
The pro-forma adjustment takes into account first quarter 1999 PTM revenues (the
"PTM" group was acquired at the close of the first quarter 1999) and excluding
hardware and the turnkey revenues.
Service revenues: During this quarter service revenues increased by 95 percent
over the same period in 1999, and 34 percent increase over the fourth quarter of
1999.
Operating expenses: A decline to 86 percent over fourth quarter 1999 expense
levels reflects one-time year-end charges in the forth quarter, and the
Company's continuing tight control on expenses.
Recent press announcements are available on Paradigm's web site:
www.paradigmgeo.com.
About Paradigm Geophysical Ltd.
Paradigm Geophysical Ltd. provides geoscience software and service solutions to
the oil and gas industry. The Company has sales, customer support and service
offices in Houston, London, Aberdeen, Bahrain, Calgary, Moscow, Caracas, Buenos
Aires, Rio de Janeiro, Perth, Brisbane, Beijing, Jakarta and Singapore.
"Paradigm Geophysical(R)" is the registered trademark of Paradigm Geophysical
Ltd.
Safe Harbor statement: This news release may contain certain forward-looking
statements relating to the Company's expectations for its future performance.
Such statements are subject to certain factors which may cause the Company's
plans to differ or results to vary from those expected including the risks
associated with the future capital expenditures by oil and gas companies,
international oil prices, the impact of competitive products and pricing,
increased investment to support product introductions, market acceptance of
products, product transitions by the Company and its competitors, currency
fluctuations, changes in product sales mix, and a variety of risks described in
the Company's 20-F filing with the U.S. Securities and Exchange Commission on
June 30, 1999. Paradigm undertakes no obligation to publicize or release results
of any of these forward-looking statements, which may be made to
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reflect events or circumstances after the date hereof or to reflect the
occurrence of unexpected results.
SEGMENT REVENUES
<TABLE>
<CAPTION>
(US$ mil.) Q1 2000 Q4 1999 Q1 1999
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
Products
Revenues $ 10.2 $ 13.5 $ 9.6
Cost of Revenues 2.8 3.1 3.4
Operating expenses(a) 2.8 3.2 2.7
-----------------------------------
Contribution 4.7 7.2 3.5
% Contribution 46% 54% 37%
EBITDA(a) 5.6 8.1 4.3
% EBITDA 55% 60% 45%
Segment Net Fixed Assets $ 2.4 $ 2.3 $ 1.6
Services
Revenues $ 3.9 $ 2.9 $ 2.0
Cost of Revenues 1.2 1.5 1.0
Operating expenses(a) 1.2 0.9 0.7
-----------------------------------
Contribution 1.4 0.5 0.3
% Contribution 37% 17% 17%
EBITDA (a) 1.9 0.9 0.6
% EBITDA 50% 30% 32%
Segment Net Fixed Assets $ 7.2 $ 6.7 $ 5.3
- ---------------------------------------------------------------------------------
</TABLE>
(a) R&D and some Marketing, G&A, Depreciation and Amortization expenses are not
allocated to segments
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PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------
U.S. dollars in thousands
<TABLE>
<CAPTION>
December 31, March 31,
1999 2000
------------ -----------
Audited Unaudited
------------ -----------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 5,457 $ 5,239
Trade receivables (net of allowance
for doubtful accounts -
$ 1,666 in 1999 and $ 1,664 in 2000) 21,612 15,179
Accrued income 9,012 12,159
Other receivables and prepaid expenses 2,443 2,888
------- -------
Total current assets 38,524 35,465
------- -------
LONG-TERM TRADE RECEIVABLES 54 336
------- -------
SEVERANCE PAY FUNDS 861 950
------- -------
FIXED ASSETS 12,007 12,061
------- -------
OTHER ASSETS:
Acquired developed technology 9,805 9,462
Other assets, net 4,914 4,610
------- -------
14,719 14,072
------- -------
$66,165 $62,884
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</TABLE>
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PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------
U.S. dollars in thousands
<TABLE>
<CAPTION>
December 31, March 31,
1999 2000
----------- ---------
Audited Unaudited
----------- ---------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term bank debt $ 2,000 $ 2,000
Current maturities of long-term bank
loans 2,639 3,111
Current maturities of capital lease
obligations 434 434
Trade payables 2,774 1,247
Other payables and accrued expenses 8,792 7,556
Deferred revenues 6,539 6,160
-------- --------
Total current liabilities 23,178 20,508
-------- --------
LONG TERM LIABILITIES:
Long-term bank loans 3,923 3,114
Capital lease obligations 742 638
Other lease obligations 759 670
Accrued severance pay 1,650 1,799
Deferred tax liability 445 405
-------- --------
Total long-term liabilities 7,519 6,626
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SHAREHOLDERS' EQUITY:
Ordinary shares:
Authorized - 20,000,000 shares of NIS
0.5 par value at December 31, 1999 and
at March 31, 2000
Issued and outstanding - 13,026,336
shares at December 31, 1999 and
13,052,634 shares at March 31, 2000 2,064 2,067
Additional paid-in capital 51,903 52,027
Accumulated other comprehensive loss (1,166) (1,293)
Accumulated deficit (17,333) (17,051)
-------- --------
Total shareholders' equity 35,468 35,750
-------- --------
$ 66,165 $ 62,884
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</TABLE>
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PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
U.S. dollars in thousands, except per share amounts
<TABLE>
<CAPTION>
Year ended Three months ended
December 31 March 31,
-----------------------
1999 1999 2000
----------- -------- --------
Audited Unaudited
----------- -----------------------
<S> <C> <C> <C>
Revenues:
Products $ 43,023 $ 9,632 $ 10,210
Services 11,483 1,979 3,875
-------- -------- --------
54,506 11,611 14,085
-------- -------- --------
Operating expenses:
Cost of products 12,418 3,427 2,752
Cost of services 5,804 967 1,236
Research and development 9,306 2,009 2,552
Selling, general and
administrative 20,638 4,514 5,092
Depreciation 3,865 782 1,124
Amortization 3,064 724 894
Non recurring expenses 2,705 2,705 --
-------- -------- --------
Total operating expenses 57,800 15,128 13,650
-------- -------- --------
Operating income (loss) (3,294) (3,517) 435
Financial expenses, net (484) (155) (102)
-------- -------- --------
Income (loss) before income
taxes (3,778) (3,672) 333
Income taxes -- -- (51)
-------- -------- --------
Net income (loss) $ (3,778) $ (3,672) $ 282
======== ======== ========
Basic income (loss) per
share $ (0.31) $ (0.35) $ 0.02
======== ======== ========
Number of shares used in
computing basic income
(loss) per share 12,205 10,515 13,021
======== ======== ========
Diluted income (loss) per
share $ (0.31) $ (0.35) $ 0.02
======== ======== ========
Number of shares used in
computing diluted income
(loss) per share 12,205 10,515 13,471
======== ======== ========
</TABLE>
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Contact:
Paradigm Geophysical Ltd.
Arita Mattsoff, Investor Relations Officer
Phone: +972-9-970-9634
Fax: +972-9-970-9319
Email: [email protected]
or
Ruder-Finn, Inc.
Magda Gagliano
Phone: +1-212-593-6319
Fax: +1-212-715-1660
Email: [email protected]
or
Cubitt Consulting
Noga Villalon
Phone: +44-171-232-4591
Fax: +44-171-232-2541
Email: [email protected]
or
Morgen Walke Israel
Maya Huli-Lustig
Phone: +972-3-561-1877
Fax: +972-3-561-1875
Email: [email protected]
