6-K 1 y57008e6-k.txt PARADIGM GEOPHYSICAL LTD. 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 January 2002 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-..................... Attached to the Registrant's Form 6-K for the month of January 2002 and incorporated by reference herein is the Registrant's news release dated January 29, 2002. 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: 29 January, 2002 [PARADIGM GEOPHYSICAL LOGO] FOR IMMEDIATE RELEASE PARADIGM GEOPHYSICAL REPORTS FOURTH QUARTER AND YEAR-END RESULTS FOURTH QUARTER REVENUE $19 MILLION, 7 PERCENT GROWTH OVER THIRD QUARTER ANNUAL REVENUE $72.8 MILLION, 15 PERCENT REVENUE GROWTH OVER 2000 NEW YORK, JANUARY 29, 2002: Paradigm Geophysical (NASDAQ:PGEO) today announced its fourth quarter and year-end results for the period ending December 31, 2001. HIGHLIGHTS FOURTH QUARTER - TOTAL REVENUES FOR THE QUARTER reached $19.0 million, an increase of 7 percent over the third quarter 2001 revenues of $17.8 million. - EPS FOR THE QUARTER before restructuring charges were pro-forma $0.06, and $0.02 after restructuring charges, compared to $0.01 for the third quarter this year. - RESTRUCTURING CHARGE of $0.5 million in fourth quarter, implementing previously announced resource optimization program, and consolidation of our operations in France. - EBITDA for the quarter was $2.7 million, a 10 percent increase over the third quarter this year. - CASH FLOW PER SHARE for the fourth quarter of this year was $0.15. YEAR OVER YEAR - TOTAL REVENUES FOR THE YEAR 2001 were $72.8 million, 15 percent growth over $63.3 million for 2000. o EPS FOR THE YEAR were pro-forma $0.18 before restructuring charges and $0.14 after restructuring charges, compared to $0.17 for 2000. - EBITDA FOR THE YEAR was $12.1 million, a 7 percent increase over $11.4 million for 2000. - CASH FLOW PER SHARE was $0.72, a 5 percent decrease over $0.76 for 2000. SUMMARY KEY RESULTS AND COMPARATORS QUARTERLY BASIS

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MANAGEMENT COMMENTS Eldad Weiss, Chairman and CEO stated, "We are pleased to report revenue growth for the year 2001 of 15 percent over 2000, and a 7 percent revenue increase over the third quarter. We view these results as positive in the context of the unfavorable energy sector and geopolitics since September 11." "We previously announced a restructuring program to consolidate our French operations and optimize resources worldwide. We have commenced this program in the fourth quarter. The associated restructuring charge is expected to be about $1.3 million, of which $0.5 million was taken the fourth quarter. "We believe that the technological innovations we announced early in the third quarter are finding increasing market acceptance. This, along with the anticipated positive impact on earnings from the restructuring program, is 3 expected to add certainty to achieving the earnings per share guidance range of between $0.33 and $0.42 for the year." DETAILED RESULTS QUARTERLY BASIS

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4 PRODUCT REVENUES: We achieved a 24 percent increase over third quarter product revenues, including renewals of several multi-year enterprise-wide software agreements. For the year 2001, product revenues increased by 9 percent over 2000. SERVICES REVENUES: The service group continues to grow, on a year over year basis. Growth for 2001 was 30 percent over 2000. The 22 percent decline in services revenues over the third quarter reflects primarily delays due to our changeover to new processing technology, and the shutdown of some lower profitability service operations. We expect service revenues to grow to $6 million in the first quarter of 2002. OPERATING EXPENSES: Operating expenses before restructuring charges were $17.8 million, a 2 percent increase over the third quarter. With the restructuring charges, the fourth quarter reflected a 5 percent increase in expenses over the third quarter. ABOUT PARADIGM Paradigm Geophysical provides information solutions to the leaders of the oil and gas industry worldwide. The company delivers technical software solutions and product-driven services to companies involved in the exploration & production of oil and gas and to oilfield service companies. The company has about 500 professionals focused on the needs of the oil and gas industry, with a global network of sales, user support and services, through 22 offices in 17 countries, serving all major oil- and gas-producing provinces in the world. "Paradigm Geophysical(R)" is a registered trademark of Paradigm Geophysical Ltd. Recent press announcements are available on Paradigm's web site: www.paradigmgeo.com. Safe Harbor statement: Certain statements contained in this press release are forward-looking in nature. These statements can be identified by the use of forward-looking terminology such as "`believes," "expects," "may," "will," "could", "should," or "anticipates" or the negative thereof or comparable terminology, or by discussions of strategy. The company's business and operations are subject to a variety of risks, and uncertainties and other factors. Consequently, actual results may materially differ from those projected stated by any forward-looking statements. Such risks, uncertainties and other factors that could cause actual results to differ from those projected include, but are not limited to, the following: (1) political risk and uncertainty in the global economy and within the energy sector, (2) regional conflicts in oil producing countries, (3) future capital expenditures by oil and gas companies, (4) fluctuations and absolute levels of international oil prices, (5) the need for increased Company investment to support new product and new service introductions, (6) the company's ability to raise needed additional capital, (7) rapid technological changes that could make the company's products less 5 desirable or obsolete, (8) market acceptance of the Company's products and services, (9) changes in product sales mix, (10) product transitions by the Company and its competitors, (11) the impact of competitive products and pricing, (12) currency fluctuations. These as well as other risks and uncertainties, are discussed in greater detail in the Company's filings with the Securities and Exchange Commission, including its most recent 20-F filed on June 29, 2001, its 2000 Annual Report and its regular Quarterly Reports. The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made. For more information please contact: PARADIGM GEOPHYSICAL LTD. Investor Relations Phone: +972-9-970-9306 Fax: +972-9-970-9319 Email: ir@paradigmgeo.com THE RUTH GROUP Denise Roche Phone: +1-646-546-7008 Fax: +1-646-536-7100 Email: droche@theruthgroup.com 6 PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS -------------------------------------------------------------------------------- U.S. DOLLARS IN THOUSANDS

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2 PARADIGM GEOPHYSICAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME -------------------------------------------------------------------------------- U.S. DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS

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PARADIGM GEOPHYSICAL LTD 6-K