Ra’anana, Israel, February 13, 2013 - NICE Systems (NASDAQ: NICE) today announced results for the fourth quarter and full year ended December 31, 2012.
Fourth Quarter 2012 non-GAAP Financial Highlights Include:
Record revenues of $240 million, up 12% year over year
Record operating income, up 19% year over year, and record operating margin of 19.8%
Record net income of $43.2 million, an increase of 15% compared to the fourth quarter 2011
Fully diluted earnings per share increased 17% to a record of $0.70
Record bookings resulting in book to bill substantially greater than 1
Full Year 2012 non-GAAP Financial Highlights Include:
Revenues of $892 million increased 12% compared to 2011
Operating income, up 14% year over year, and record operating margin of 19%
Net income increased 15% and earnings per share rose 18% compared to last year
Backlog at year end reached all-time high “We are pleased to report record results for the fourth quarter and full year 2012. We ended the year with strong bookings, a record backlog and a healthy pipeline, and expect 2013 to be another year of profitable growth,” said Zeevi Bregman, President and CEO of NICE Systems. Mr. Bregman continued, “Customer demand for our solutions that ensure compliance, improve financial results, achieve a better customer experience and safeguard people and assets, is stronger than ever. By leveraging our unique technology assets to further innovate, we have brought what we believe are some of the most advanced, real-time, analytic-based solutions in our industry to the market. These solutions are now, by far, the fastest growing part of our product portfolio and continue to become a bigger percentage of the overall product mix. We look forward to 2013, when we will continue to capitalize on our unique assets, including our innovative and broad product portfolio, domain expertise and large customer base.”
Dividend Program The Company also announced that its Board of Directors has approved a dividend plan under which the company intends to pay quarterly cash dividends to holders of itsordinary shares and ADRs subject to declaration by the Board. The Company expects the initial annual dividend to be $0.64 per share, or $0.16 per share quarterly. The first payment is expected to be in the second quarter of 2013. Zeevi Bregman, President and Chief Executive Officer, NICE Systems commented, “The dividend plan reflects our confidence in the strength of our business and the sustainability of its strong cash generation. The payment of a quarterly cash dividend, in addition to our continued investments to support the company’s growth, along with acquisitions, adds another element to our commitment to bring long term value to our shareholders.”
Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31, 2012:
Revenues: Fourth quarter 2012 non-GAAP total revenues were a record $239.5 million, up 12.1% from $213.6 million for the Fourth quarter of 2011. Non-GAAP total revenues for the full year 2012 increased 11.9% to $892.3 million compared to $797.7 million for the full year 2011.
Gross Profit: Fourth quarter 2012 non-GAAP gross profit and non-GAAP gross margin were a record $162.2 million and 67.7%, respectively, compared to $141.7 million and 66.3%, respectively, for the Fourth quarter of 2011. Full year 2012 non-GAAP gross profit and non-GAAP gross margin increased to $590.0 million and 66.1%, respectively, compared to $522.1 million and 65.5%, respectively, for the same period last year.
Operating Income: Fourth quarter 2012 non-GAAP operating income and non-GAAP operating margin were a record $47.5 million and 19.8%, respectively, compared to $39.8 million and 18.6%, respectively, for the Fourth quarter of 2011. Full year 2012 non-GAAP operating income and non-GAAP operating margin increased to $169.7 million and 19.0%, respectively, compared to $148.9 million and 18.7%, respectively, for the full year 2011.
Net Income: Fourth quarter 2012 non-GAAP net income and non-GAAP net margin increased to $43.2 million and 18.0%, respectively, from $37.6 million and 17.6%, respectively, for the fourth quarter of 2011. Full year 2012 non-GAAP net income and non-GAAP net margin increased to $154.1 million and 17.3%, respectively, from $134.6 million and 16.9%, respectively, for the same period last year.
Fully Diluted Earnings Per Share: Fourth quarter 2012 non-GAAP fully diluted earnings per share increased to a record $0.70, up 16.7% compared to $0.60 for the fourth quarter of 2011. Full year 2012 non-GAAP fully diluted earnings per share increased to $2.48, up 18.1% from $2.10 for the full year 2011.
GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31, 2012:
Revenues: Fourth quarter 2012 total revenues increased 11.3% to $237.7 million compared to $213.6 million for the fourth quarter of 2011. Full year 2012 total revenues increased 10.7% to $879.0 million compared to $793.8 million for the full year 2011.
Gross Profit: Fourth quarter 2012 gross profit and gross margin increased to $149.0 million and 62.7%, respectively, compared to $132.0 million and 61.8%, respectively, for the fourth quarter of 2011. Full year 2012 gross profit and gross margin were $527.8 million and 60.0%, respectively, compared with $486.5 million and 61.3%, respectively, for the same period last year.
Operating Income: Fourth quarter 2012 operating income and operating margin increased to $18.7 million and 7.9%, respectively, compared to $15.1 million and 7.1%, respectively, for the fourth quarter of 2011. Full year 2012 operating income and operating margin were $45.6 million and 5.2%, respectively, compared with $59.0 million and 7.4%, respectively, for the full year 2011.
Net Income: Fourth quarter 2012 net income and net margin increased to $32.1 million and 13.5%, respectively, compared to $15.2 million and 7.1%, respectively, for the fourth quarter of 2011. Full year 2012 net income and net margin increased to $67.9 million and 7.7%, respectively, compared to $57.3 million and 7.2%, respectively, for the full year 2011.
Fully Diluted Earnings Per Share: Fully diluted earnings per share for the fourth quarter of 2012 increased to $0.52 compared to $0.24 for the fourth quarter of 2011. Fully diluted earnings per share for the full year 2012 increased to $1.09 compared to $0.89 for the full year 2011.
Operating Cash Flow and Cash Balance: Fourth quarter 2012 operating cash flow was $42.1 million. In the fourth quarter, approximately $14 million was used for share repurchases. As of December 31, 2012, total cash and cash equivalents, short term investments and marketable securities were $444.7 million, with no debt.
First Quarter and Full Year 2013 Guidance:
First Quarter 2013: First quarter 2013 non-GAAP total revenues are expected to be in a range of $220 million to $230 million. First quarter 2013 non-GAAP fully diluted earnings per share are expected to be in a range of $0.57 to $0.62.
Full Year 2013: Full year 2013 non-GAAP total revenues are expected to be in a range of $940 million to $970 million. Full year 2013 non-GAAP fully diluted earnings per share are expected to be in a range of $2.55 to $2.65.
Quarterly Results Conference Call NICE management will host its earnings conference call today, February 13, 2013 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 946 947 31. Additional access numbers can be found at http http://www.btconferencing.com/globalaccess/?bid=54_attended. The call will be webcast live on the Company’s website at
http://www.nice.com/investor-relations/investor-relations-events. An online replay will also be available approximately two hours following the call. A telephone replay of the call will be available for 2 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 71003324. 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, settlements and related expenses, certain business combination accounting entries and prior years tax provision release and tax adjustments 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. The intangible assets created in the acquisitions of Merced are preliminary and subject to further review and completion of valuation analyses.
About NICE NICE (NASDAQ: NICE) is the worldwide leader of software solutions that deliver strategic insights by capturing and analyzing mass quantities of structured and unstructured data in real time from multiple sources, including phone calls, mobile apps, emails, chat, social media, and video. NICE’s solutions enable organizations to take the Next-Best-Action to improve customer experience and business results, ensure compliance, fight financial crime, and safeguard people and assets. NICE solutions are used by over 25,000 organizations in more than 150 countries, including over 80 of the Fortune 100 companies.
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:
Investors Marty Cohen, +1 212 574 3635,
firstname.lastname@example.org, ET Anat Earon-Heilborn, +972 9 775-3798,
MediaContact Erik Snider, +1 877 245 7448, email@example.com
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.