Paramus, New Jersey, July 28, 2016 - NICE (NASDAQ: NICE) today announced results for the second quarter ended June 30, 2016.
Second Quarter 2016 Financial Highlights
Revenue growth of 6% year-over-year||
Revenue growth of 9% year-over-year|
Gross margin of 63.9% compared to 65.8% last year||
Gross margin of 70.4% compared to 69.2% last year|
Operating profit of $24 million, down 25% year-over-year||
Operating profit of $57 million, up 18% year-over-year |
Operating margin of 10.3% compared to 14.5% last year||
Operating margin of 24.0% compared to 22.3% last year |
Diluted EPS of $0.42, same as last year
Diluted EPS of $0.79 versus $0.64 last year, 23% growth|
“We are pleased to report another strong performance for the second quarter of 2016,” said Barak Eilam, CEO. “We reported non-GAAP revenues of $235 million, which represented an increase of 9% compared to the second quarter of last year. Excluding the impact of currency exchange rates, non-GAAP revenue growth was double digit at 10% percent. Revenue growth combined with operational excellence led to another quarter of significant growth in non-GAAP earnings per share. Non-GAAP earnings per share for the second quarter of 2016 increased 23% compared to the same period last year.”
Mr. Eilam continued, “We witnessed a significant acceleration in both analytics and the cloud. Our analytics solutions continue to be the driver of overall growth as an increasing number of our customers, both existing and new, are rapidly applying our analytics to a greater amount of use cases. In addition since the announcement of the acquisition of inContact, the cloud contact center market leader, we have received very positive feedback from customers and partners. We are seeing acceleration in the number of customer service organizations moving toward the cloud and the combined NICE and inContact is well positioned to take the lead on this market shift.”
The Company declared a cash dividend for the second quarter of 2016 of $0.16 per share. The record date will be August 15th, 2016 and the payment date will be August 31st, 2016. Tax will be withheld at a rate of 15%.
GAAP Financial Highlights for the Second Quarter Ended June 30:
The following GAAP financial data, excluding cash flow and cash balance, are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2016 and 2015.
Revenues: Second quarter 2016 total revenues increased 6.0% to $228.5 million compared to $215.7 million for the second quarter of 2015.
Gross Profit: Second quarter 2016 gross profit and gross margin were $146.1 million and 63.9%, respectively, compared to $141.8 million and 65.8%, respectively, for the second quarter of 2015.
Operating Income: Second quarter 2016 operating income and operating margin were $23.5 million and 10.3%, respectively, compared to $31.4 million and 14.5%, respectively, for the second quarter of 2015.
Net Income from Continuing Operations: Second quarter 2016 net income and net margin were $25.4 million and 11.1%, respectively, compared to $25.7 million and 11.9%, respectively, for the second quarter of 2015.
Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the second quarter of 2016 was $0.42, same as in the second quarter of 2015.
Operating Cash Flow and Cash Balance: Second quarter 2016 operating cash flow was $30.3 million. In the second quarter, $9.4 million was used for share repurchases and $9.5 million for dividends. As of June 30, 2016, total cash and cash equivalents, short term investments and marketable securities were $775.6 million, with no debt.
Non-GAAP Financial Highlights for the Second Quarter Ended June 30:
The following non-GAAP financial data are from continuing operations, which exclude the results of the Intelligence and the Physical Security divisions for both 2016 and 2015.
Revenues: Second quarter 2016 non-GAAP total revenues were $235.4 million, up 9.1% from $215.7 million for the second quarter of 2015.
Gross Profit: Second quarter 2016 non-GAAP gross profit and non-GAAP gross margin increased to $165.8 million and 70.4%, respectively, from $149.3 million and 69.2%, respectively, for the second quarter of 2015.
Operating Income: Second quarter 2016 non-GAAP operating income and non-GAAP operating margin increased to $56.6 million and 24.0%, respectively, from $48.1 million and 22.3%, respectively, for the second quarter of 2015.
Net Income from Continuing Operations: Second quarter 2016 non-GAAP net income and non-GAAP net margin increased to $47.9 million and 20.4%, respectively, from $39.5 million and 18.3%, respectively, for the second quarter of 2015.
Fully Diluted Earnings Per Share from Continuing Operations: Second quarter 2016 non-GAAP fully diluted earnings per share increased 23.4% to $0.79, compared to $0.64 for the second quarter of 2015.
Third Quarter and Full Year 2016 Guidance:
Third Quarter 2016: Third quarter 2016 non-GAAP total revenues are expected to be in a range of $234 million to $244 million. Third quarter 2016 non-GAAP fully diluted earnings per share are expected to be in a range of $0.78 to $0.84.
Full Year 2016: Full year 2016 non-GAAP total revenues were reiterated to be in a range of $995 million to $1,015 million. The Company increased its full year 2016 non-GAAP fully diluted earnings per share to be in a range of $3.48 to $3.58.
Quarterly Results Conference Call
NICE management will host its earnings conference call today, July 28th, 2016 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 431 812 26. 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 111 439 27.
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, share-based compensation, and certain business combination accounting entries, settlement, 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.
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.
Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE' marks, please see:
Marty Cohen, +1 212 574 3635,
Yisca Erez, +972 9 775-3798,
Erik Snider, +1 877 245 7448, firstname.lastname@example.org
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 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.