RA'ANANA, Israel, May 7, 2015 /PRNewswire/ -- NICE Systems (NASDAQ: NICE) today announced results for the first quarter ended March 31, 2015.

First Quarter 2015 non-GAAP Financial Highlights:  

  • Revenues of $246 million, up 7.5% year-over-year
  • Product revenue increased 17% year-over-year
  • Operating margin of 21.3%, up from 18.2% last year
  • Fully diluted earnings per share of $0.72, up 26% year-over-year
  • Record cash from operations of $104 million, compared to $58 million last year

"We are pleased to report another strong quarter," said Barak Eilam, CEO of NICE. "We reported Non-GAAP revenue growth of 7.5%, which would have been 10% excluding the negative impact from foreign exchange rates, Non-GAAP earnings per share growth of 26%, demonstrating strong leverage in our business model, and record cash flow from operations. We owe these strong results to solid execution supported by strong growth in analytics, and the further implementation of our operational plan to streamline our business and improve profitability."

Mr. Eilam continued, "Innovation has been a cornerstone to much of our success.  We will continue to accelerate innovation and move products faster to market. With a growing addressable market and a solid leadership position, we believe that we are well-positioned to capture the many opportunities ahead of us."

Dividend Declaration   

The Company declared a cash dividend for the first quarter of 2015 of $0.16 per share. The record date will be May 20th, 2015 and the payment date will be June 3th, 2015. Tax will be withheld at a rate of 15%.

Share Repurchase Program

The Company announced that its Board of Directors has authorized a new program to repurchase up to $100 million of its issued and outstanding ordinary shares and ADRs. Repurchases may be made from time to time in the open market or in privately negotiated transactions and will be in accordance with applicable securities laws and regulations. The timing and amount of the repurchase transactions will be determined by management and may depend on a variety of factors, including market conditions, alternative investment opportunities and other considerations. The program does not obligate the Company to acquire any particular amount of ordinary shares and ADRs and the program may be modified or discontinued at any time without prior notice.

Interactions 2015 - Investor Day

The Company will be hosting its Investor Day on June 1st and 2nd in conjunction with its annual user conference in San Antonio, Texas. Analysts and investors who would like to register, please email IR@NICE.com.

Non-GAAP Financial Highlights for the First Quarter Ended March 31:

Revenues: First quarter 2015 non-GAAP total revenues were $246.1 million, up 7.5% from $229.0 million for the first quarter of 2014.

Gross Profit: First quarter 2015 non-GAAP gross profit and non-GAAP gross margin increased to $167.1 million and 67.9%, respectively, from $149.8 million and 65.4%, respectively, for the first quarter of 2014.

Operating Income: First quarter 2015 non-GAAP operating income and non-GAAP operating margin increased to $52.5 million and 21.3%, respectively, from $41.6 million and 18.2%, respectively, for the first quarter of 2014.

Net Income: First quarter 2015 non-GAAP net income and non-GAAP net margin increased to $44.1 million and 17.9%, respectively, from $34.8 million and 15.2%, respectively, for the first quarter of 2014.

Fully Diluted Earnings Per Share: First quarter 2015 non-GAAP fully diluted earnings per share increased 26.3% to $0.72, compared to $0.57 for the first quarter of 2014.

GAAP Financial Highlights for the First Quarter Ended March 31:

Revenues: First quarter 2015 total revenues increased 7.6% to $246.0 million compared to $228.6 million for the first quarter of 2014.

Gross Profit: First quarter 2015 gross profit and gross margin increased to $158.9 million and 64.6%, respectively, from $138.9 million and 60.8%, respectively, for the first quarter of 2014.

Operating Income: First quarter 2015 operating income and operating margin increased to $34.4 million and 14.0%, respectively, from $16.8 million and 7.3%, respectively, for the first quarter of 2014.

Net Income: : First quarter 2015 net income and net margin increased to $29.2 million and 11.9%, respectively, compared to $15.7 million and 6.9%, respectively, for the first quarter of 2014.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the first quarter of 2015 was $0.48 compared to $0.26 for the first quarter of 2014.

Operating Cash Flow and Cash Balance: First quarter 2015 operating cash flow was $104.1 million. In the first quarter, $6.3 million was used for share repurchases and $9.6 million for dividends. As of March 31, 2015, total cash and cash equivalents, short term investments and marketable securities were $591.2 million, with no debt.

Second Quarter and Full Year 2015 Guidance:

Second Quarter 2015: Second quarter 2015 non-GAAP total revenues are expected to be in a range of $249 million to $257 million. Second quarter 2015 non-GAAP fully diluted earnings per share are expected to be in a range of $0.67 to $0.73.

Full Year 2015: The Company continues to expect full year 2015 non-GAAP total revenues to be in a range of $1,065 million to $1,085 million. The Company increased its full year 2015 non-GAAP fully diluted earnings per share to a range of $3.10 to $3.21.

Quarterly Results Conference Call

NICE management will host its earnings conference call today, May 7th, 2015 at 8:30 AM EDT, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial in to the following numbers: United States 1-866-804-8688 or +1-718-354-1175, International +44(0)1296-480-100, United Kingdom 0-800-783-0906, Israel 1-809-242-041. The Passcode is 772 554 88. Additional access numbers can be found at http://www.btconferencing.com/globalaccess/?bid=54_attended. The call will be webcast live on the Company's website at http://www.nice.com/news-and-events/ir-events. An online replay will also be available approximately two hours following the call. A telephone replay of the call will be available for 7 days after the live broadcast, and may be accessed by dialing: United States 1-877-482-6144, International +44(0)20-7136-9233, United Kingdom 0-800-032-9687. The Passcode for the replay is 62250445.

Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, restructuring expenses, share-based compensation, certain business combination accounting entries, amortization of an investment in affiliate and tax adjustment re non-GAAP adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non-GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income.

About NICE
NICE Systems (NASDAQ: NICE) is the worldwide leading provider of software solutions that enable organizations to take the next best action in order to improve customer experience and business results, ensure compliance, fight financial crime, and safeguard people and assets. NICE's solutions empower organizations to capture, analyze, and apply, in real time, insights from both structured and unstructured Big Data. This data comes from multiple sources, including phone calls, mobile apps, emails, chat, social media, video, and transactions. NICE solutions are used by over 25,000 organizations in more than 150 countries, including over 80 of the Fortune 100 companies. www.nice.com.

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE Systems. All other marks are trademarks of their respective owners. For a full list of NICE Systems' marks, please see: http://www.nice.com/nice-trademarks. 

Investors
Marty Cohen, +1 212 574 3635, ir@nice.com, ET
Yisca Erez, +972 9 775-3798, ir@nice.com, CET

Media Contact
Erik Snider, +1 877 245 7448, erik.snider@nice.com                                                        

Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including the statements by Mr. Eilam, are based on the current beliefs, expectations and assumptions of the management of NICE-Systems Ltd. (the Company). In some cases, such forward-looking statements can be identified by terms such as believe, expect, may, will, intend, project, plan, estimate or similar words. Forward-looking statements are subject to a number of risks and uncertainties that could cause the actual results or performance of the Company to differ materially from those described herein, including but not limited to the impact of the global economic environment on the Company's customer base (particularly financial services firms) potentially impacting our business and financial condition; competition; changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements; and the effect of newly enacted or modified laws, regulation or standards on the Company and our products. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission, including the Company's Annual Report on Form 20-F. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company undertakes no obligation to update or revise them, except as required by law.

 

NICE SYSTEMS LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)













Quarter ended



March 31,



2015


2014



Unaudited


Unaudited






Revenue:





Product 

$ 92,596


$ 78,970


Services

153,393


149,604

Total revenue

245,989


228,574






Cost of revenue:





Product

25,109


28,116


Services

61,955


61,550

Total cost of revenue

87,064


89,666






Gross profit

158,925


138,908






Operating Expenses:





Research and development, net

36,931


36,529


Selling and marketing

62,225


59,937


General and administrative

21,670


18,903


Amortization of acquired intangible assets

3,734


6,439


Restructuring expenses

-


316

Total operating expenses

124,560


122,124






Operating income

34,365


16,784






Finance and other income, net

1,699


828






Income before taxes on income 

36,064


17,612

Taxes on income

6,827


1,896






Net income

$ 29,237


$ 15,716






Basic earnings per share

$     0.49


$     0.26






Diluted earnings per share

$     0.48


$     0.26






Weighted average number of shares




outstanding used to compute:









Basic earnings per share

59,371


59,896

Diluted earnings per share

61,203


61,360

 

 

NICE SYSTEMS LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share amounts)








Quarter ended



March 31,



2015


2014

GAAP revenues

$ 245,989


$ 228,574

Valuation adjustment on acquired deferred service revenue

123


386

Non-GAAP revenues

$ 246,112


$ 228,960











GAAP cost of  revenue

$   87,064


$   89,666

Amortization of acquired intangible assets on cost of product

(7,087)


(8,864)

Amortization of acquired intangible assets on cost of services

-


(327)

Cost of product revenue adjustment (1,2)

(191)


(193)

Cost of services revenue adjustment (1,2)

(761)


(1,131)

Non-GAAP cost of  revenue

$   79,025


$   79,151











GAAP gross profit

$ 158,925


$ 138,908

Gross profit adjustments

8,162


10,901

Non-GAAP gross profit

$ 167,087


$ 149,809











GAAP operating expenses

$ 124,560


$ 122,124

Research and development (1,2)

(699)


(674)

Sales and marketing (1,2)

(2,739)


(3,751)

General and administrative (1,2)

(2,822)


(2,721)

Amortization of acquired intangible assets

(3,734)


(6,439)

Restructuring expenses

-


(316)

Non-GAAP operating expenses

$ 114,566


$ 108,223











GAAP finance & other income, net

$     1,699


$        828

Amortization of an investment in affiliate

238


-

Non-GAAP finance & other income, net

$     1,937


$        828











GAAP taxes on income

$     6,827


$     1,896

Tax adjustments re non-GAAP adjustments

3,520


5,739

Non-GAAP taxes on income

$   10,347


$     7,635











GAAP net income

$   29,237


$   15,716

Valuation adjustment on acquired deferred revenue

123


386

Amortization of acquired intangible assets

10,821


15,630

Share-based compensation (1)

7,212


7,690

Re-organization expenses (2)

-


780

Restructuring expenses

-


316

Amortization of an investment in affiliate

238


-

Tax adjustments re non-GAAP adjustments

(3,520)


(5,739)

Non-GAAP net income

$   44,111


$   34,779
















GAAP diluted earnings per share 

$       0.48


$       0.26






Non-GAAP diluted earnings per share

$       0.72


$       0.57






Shares used in computing GAAP diluted earnings per share

61,203


61,360






Shares used in computing Non-GAAP diluted earnings per share

61,203


61,360














NICE SYSTEMS LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)

U.S. dollars in thousands






(1)

Share-based Compensation






Quarter ended



March 31,



2015


2014


Cost of product revenue

$      (191)


$      (193)


Cost of service revenue

(761)


(1,075)


Research and development

(699)


(674)


Sales and marketing

(2,739)


(3,178)


General and administrative

(2,822)


(2,570)



$   (7,212)


$   (7,690)











(2)

Re-organization expenses






Quarter ended



March 31,



2015


2014


Cost of service revenue

$          -


$        (56)


Sales and marketing

-


(573)


General and administrative

-


(151)



$          -


$      (780)

 

 

NICE SYSTEMS LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands 










March 31,


December 31,




2015


2014




Unaudited


Unaudited








ASSETS











CURRENT ASSETS:






Cash and cash equivalents 


$    222,491


$        187,497


Short-term investments


70,097


65,744


Trade receivables


142,235


181,605


Other receivables and prepaid expenses


40,039


34,041


Inventories


14,895


13,375


Deferred tax assets


24,146


24,174








Total current assets


513,903


506,436







LONG-TERM ASSETS:






Long-term investments


298,616


246,721


Other long-term assets


38,127


38,541


Property and equipment, net


40,740


41,875


Other intangible assets, net


100,663


113,740


Goodwill


686,150


694,778








Total long-term assets


1,164,296


1,135,655







TOTAL ASSETS


$ 1,678,199


$     1,642,091








LIABILITIES AND SHAREHOLDERS' EQUITY











CURRENT LIABILITIES:






Trade payables


$      12,858


$          11,910


Deferred revenues and advances from customers


191,397


145,250


Accrued expenses and other liabilities


194,812


221,086








Total current liabilities


399,067


378,246







LONG-TERM LIABILITIES:






Deferred tax liabilities


21,209


23,882


Other long-term liabilities


25,632


26,507








Total long-term liabilities


46,841


50,389







SHAREHOLDERS' EQUITY


1,232,291


1,213,456







TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$ 1,678,199


$     1,642,091

 

 

NICE SYSTEMS LTD. AND SUBSIDIARIES

CONSOLIDATED CASH FLOW STATEMENTS

U.S. dollars in thousands





Quarter ended




March 31,




2015


2014




Unaudited


Unaudited







Operating Activities










Net income

$   29,237


$   15,716

Adjustments to reconcile net income to net cash provided by operating activities





Depreciation and amortization

15,076


20,685


Stock based compensation

7,212


7,688


Excess tax benefit from share-based payment arrangements

(638)


(125)


Amortization of premium and discount and accrued interest on marketable securities

646


498


Deferred taxes, net

(3,520)


(5,738)


Changes in operating assets and liabilities:






Trade Receivables

36,320


23,205



Other receivables and prepaid expenses

(1,627)


(3,608)



Inventories

(1,828)


(728)



Trade payables

1,140


(2,236)



Accrued expenses and other current liabilities

(26,847)


(30,866)



Deferred revenue

48,926


34,277


Other

37


(368)









  Net cash provided by operating activities

104,134


58,400







Investing Activities











Purchase of property and equipment

(3,219)


(4,337)


Proceeds from sale of property and equipment

-


16


Purchase of Investments

(85,983)


(13,274)


Proceeds from Investments

30,982


14,591


Capitalization of software development costs

-


(242)


Payments for business acquisitions, net of cash acquired

-


(887)









  Net cash used in investing activities

(58,220)


(4,133)







Financing Activities











Proceeds from issuance of shares upon exercise of share options and ESPP

9,015


8,748


Purchase of treasury shares

(6,288)


(26,480)


Dividends paid

(9,586)


(9,706)


Excess tax benefit from share-based payment arrangements

638


125


Earnout payment related to acquisitions

(262)


-









  Net cash used in financing activities

(6,483)


(27,313)







Effect of exchange rates on cash and cash equivalents

(4,437)


238







Net change in cash and cash equivalents

34,994


27,192

Cash and cash equivalents, beginning of period

187,497


119,545







Cash and cash equivalents, end of period

$ 222,491


$ 146,737

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nice-reports-75-increase-in-non-gaap-revenue-and-26-increase-in-non-gaap-eps-for-the-first-quarter-2015-300079426.html

SOURCE NICE

Copyright 2015 PR Newswire

NICE (NASDAQ:NICE)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more NICE Charts.
NICE (NASDAQ:NICE)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more NICE Charts.