Ra’anana, Israel, May 4, 2011 - NICE Systems (NASDAQ: NICE), the worldwide leader of intent-based solutions that extract insight to impact business performance, reduce financial risk and ensure safety and security, today announced results for the first quarter ending March 31, 2011.
First Quarter 2011 non-GAAP Highlights Include:
- Revenues at $187 million, up 15% from last year; net income at $30 million, up 25% from last year
- Operating margin increased to 18.2%, up from 16.6% last year
- Earnings per fully diluted share reached $0.47, up from $0.38 last year
- Record cash flow from operations of $55 million
- Company raises annual guidance for 2011
“The first quarter of 2011 was another strong quarter for NICE, marked by revenue growth, improved profitability, and robust cash generation. We continue to demonstrate solid execution, and to benefit from the leverage in our financial model. We are seeing a continuous shift in business coming in, from our traditional products to advanced applications. We are also very pleased with the growth in demand that we are experiencing in emerging markets.” said Zeevi Bregman, President and Chief Executive Officer, NICE Systems.
“We continued to execute on our strategy to provide organizations with unique analytics-based cross-channel business applications to improve business performance, enhance compliance and safeguard people and assets. NICE enables organizations to gather insights and understand trends, as well as provide them with the ability to impact specific events in real-time.” Mr. Bregman concluded.
Non-GAAP Financial Highlights for the First Quarter Ended March 31, 2011:
Revenues: First quarter 2011 non-GAAP revenues reached $187.0 million, up 15.0% from $162.6 million in the first quarter of 2010.
Gross Profit: First quarter 2011 non-GAAP gross profit and margin increased to $123.2 million and 65.9%, respectively, from $104.2 million and 64.1% in the first quarter of 2010.
Operating Income: First quarter 2011 non-GAAP operating income and margin reached $34.1 million and 18.2%, respectively, increasing from $27.1 million and 16.6% in the first quarter of 2010.
Net Income:First quarter 2011 non-GAAP net income increased to $30.3 million from $24.2 million in the first quarter of 2010.
Earnings per Fully Diluted Share: First quarter 2011 non-GAAP earnings per fully diluted share increased to $0.47 up from $0.38 in the first quarter of 2010.
GAAP Financial Highlights for the First Quarter Ended March 31, 2011:
Revenues: First quarter 2011 revenues reached $185.3 million, up 15.9% from $159.9 million in the first quarter of 2010.
Gross Profit: First quarter 2011 gross profit and margin increased to $114.1 million and 61.6%, respectively, up from $95.3 million and 59.6% in the first quarter of 2010.
Operating Income: First quarter 2011 operating income increased to $8.4 million, up from $6.1 million in the first quarter of 2010.
Net Income: First quarter 2011 net income increased to $8.1 million, compared with $6.1 million in the first quarter of 2010.
Earnings per Fully Diluted Share:Earnings per fully diluted share in the first quarter 2011 increased to $0.13, from $0.09 in the first quarter of 2010.
Operating Cash Flow and Cash Balance: First quarter 2011 operating cash flow was $55 million. As of March 31, 2011, total cash and equivalents were $657 million, with no debt. This follows approximately $65 million that were paid for acquisitions and over $2 million that were paid for share repurchase.
Updated Fiscal Year and Introduction of Second Quarter Guidance:
Taking into account business performance, orders backlog and pipeline, the company is updating its full year 2011 guidance and introducing second quarter guidance as follows:
Fiscal Year 2011: expected full year non-GAAP revenue is raised to the range of $780 and $803 million. Expected full year non-GAAP earnings per share, on a fully diluted basis, are raised to the range of $1.98 and $2.07.
Second Quarter 2011: non-GAAP revenue for the second quarter isexpected to be between $190 and $196 million. Second quarter non-GAAP earnings per share, on a fully diluted basis, are expected to be in the range of $0.47 and $0.51.
Quarterly Results Conference Call
NICE management will host a teleconference, today, May 4, 2011 at 8:30 EDT, 15:30 Israel, to discuss the results and the company's outlook. Please call the following dial-in numbers to participate in the call: United States 1-866-229-7198 or 1-888-668-9141, International +972-3- 9180609, Israel 03-9180609. This call will be webcast live on http://www.nice.com at http://www.nice.com/news-and-events/ir-events. An online replay will also be available approximately three hours following the call. A telephone replay of the call will be available for 72 hours after the live broadcast, and may be accessed by dialing: United States 1-888-782-4291, International +972-3-9255921, Israel 03-9255921.
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, share based compensation expenses, as well as certain business combination accounting entries. 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.
NICE Systems (NASDAQ: NICE) is the worldwide leader of intent-based solutions that capture and analyze interactions and transactions, realize intent, and extract and leverage insights to deliver impact in real time. Driven by cross-channel and multi-sensor analytics, NICE solutions enable organizations to improve business performance, increase operational efficiency, prevent financial crime, ensure compliance, and enhance safety and security. NICE serves over 25,000 organizations in the enterprise and security sectors, representing a variety of sizes and industries in more than 150 countries, and 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.
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 Messer Bregman, are based on the current expectations of the management of NICE-Systems Ltd. (the Company) only, and 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) and the resulting uncertainties; 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; pressure on pricing resulting from competition; and inability to maintain certain marketing and distribution arrangements. 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.