Ra’anana, Israel, February 15, 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 fourth quarter and full year ending December 31, 2010.
Fourth Quarter 2010 non-GAAP Highlights Include:
- Revenues at a new all time high of $187 million, up from $163 million in the fourth quarter of 2009
- Earnings per fully diluted share reached $0.51, up from $0.45 last year
- Strong cash flow from operations of $44 million
- Record bookings resulting in book to bill substantially greater than 1
Full Year 2010 non-GAAP Highlights Include:
- Record revenues at $695 million, up from $589 last year
- Earnings per fully diluted share of $1.75, up from $1.54 in 2009
- Backlog at year-end reaches an all-time high
- Record cash generated from operations of $145 million
“The fourth quarter of 2010 was another strong quarter for NICE, in which bookings, backlog, revenues, gross profit, operating income, net income as well as earnings per fully diluted share, all on non-GAAP basis, reached all-time highs. During 2010, we expanded our offering with numerous new solutions across our businesses, achieved double digit growth worldwide and continued to enjoy healthy demand for our solutions. All of these developments and trends were reflected in record full-year revenues and profits as well as in robust cash generation,” said Zeevi Bregman, President and Chief Executive Officer, NICE Systems.
“We expect 2011 to be another year of growth. We are entering the year with strong backlog and pipeline, a comprehensive product portfolio and a business that is driven by multiple growth engines. We expect to continue to focus on innovating additional advanced applications. Furthermore, we intend to grow our business both organically and inorganically, as reflected in the CyberTech acquisition we announced today,” Mr. Bregman concluded.
Share Repurchase Program
The Company also announced that its Board of Directors has authorized a program to repurchase up to $100 million of its issued and outstanding ordinary shares and ADRs. Repurchases may be made from timeto 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.
Zeevi Bregman, President and Chief Executive Officer, NICE Systems commented, “The share repurchase plan reflects our confidence in the future of our business and the sustainability of its strong cash generation. It further reflects a clear focus on shareholder value. We intend to fund the plan with our cash balance, while maintaining flexibility to pursue investments to support the company’s growth, both organically and inorganically. We will continue to use our strong balance sheet for strategic acquisitions that advance our product portfolio, market position, and long-term profitable growth”.
Non-GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31, 2010:
Revenues: Fourth quarter 2010 non-GAAP revenues at a record of $186.9 million, up 14.8% from $162.8 million in the fourth quarter of 2009. Non-GAAP revenues for the year 2010 increased 18.1% to $695.3 million, from $588.6 million in 2009.
Gross Profit: Fourth quarter 2010 non-GAAP gross profit and margin increased, reaching a record $123.5 and 66.1%, respectively, from $102.9 million and 63.2% in the fourth quarter of 2009. Full year 2010 non-GAAP profit and margin increased, reaching $451.9 and 65%, respectively, from $371.1 million and 63.1% the previous year.
Operating Income: Fourth quarter 2010 non-GAAP operating income increased to $34.8 million, up from $30.7 million in the fourth quarter of 2009. Non-GAAP operating margin in the fourth quarter 2010 was 18.6%, compared with 18.9% in the previous year. Full year 2010 non-GAAP operating income and margin increased to $123.4 million and 17.8%, respectively, from $103.6 million and 17.6% in 2009.
Net Income: Fourth quarter 2010 non-GAAP net income increased to $32.7 million from $28.6 million in the fourth quarter of 2009. Full year 2010 non-GAAP net income increased to $112.1 million from $96.0 million in the previous year.
Earnings per Fully Diluted Share: Fourth quarter 2010 non-GAAP earnings per fully diluted share increased to a record $0.51 up from $0.45 in the fourth quarter of 2009. Full year 2010 non-GAAP earnings per fully diluted share increased to $1.75, up from $1.54 in 2009.
GAAP Financial Highlights for the Fourth Quarter and Full Year Ended December 31, 2010:
Revenues: Fourth quarter 2010 revenues increased 17.2% to a record $186.1 million from $158.8 million in the fourth quarter of 2009. Full year 2010 revenues increased 18.2% to a record $689.5 million from $583.1 million in 2009.
Gross Profit: Fourth quarter 2010 gross profit and margin increased to $115.9 million and 62.3%, respectively, up from $93.7 million and 59% in the fourth quarter of 2009. Full year 2010 gross profit and margin increased to $420.4 million and 61.0%, respectively, up from $345.9 million and 59.3% in the previous year.
Operating Income: Fourth quarter 2010 operating income increased to $17.2 million, up from $11.0 million in the fourth quarter of 2009. Full year 2010 operating income increased to $49.1 million, compared with $38.2 million in 2009.
Net Income: Fourth quarter 2010 net income increased to $17.4 million, compared with $12.7 million in the fourth quarter of 2009. Full year 2010 net income increased to $48.7 million, compared with $42.8 million in the previous year.
Earnings per Fully Diluted Share: Earnings per fully diluted share in the fourth quarter 2010 increased to $0.27, from $0.20 in the fourth quarter of 2009. Earnings per fully diluted share for the full year 2010 increased to $0.76, from $0.68 in the previous year.
Operating Cash Flow and Cash Balance: Fourth quarter 2010 operating cash flow was $44.1 million. As of December 31, 2010, total cash and equivalents were $663.2 million, with no debt.
Fiscal Year and First Quarter 2011 Guidance:
Guidance for the fiscal year and first quarter is introduced below and
includes the impact of the CyberTech acquisition, announced earlier today, assuming closure in March 2011. The acquisition is expected to add approximately $25 million to NICE’s 2011 non-GAAP revenues and be accretive to its non-GAAP fully diluted EPS.
Fiscal Year 2011: Full year non-GAAP revenue is expected to be between $775 and $800 million. Full year non-GAAP earnings per share, on a fully diluted basis, are expected to be in the range of $1.96 and $2.06.
First Quarter 2011: Non-GAAP revenue for the first quarter isexpected to be between $179 and $183 million. First quarter non-GAAP earnings per share, on a fully diluted basis, are expected to be in the range of $0.43 and $0.47.
Quarterly Results Conference Call
NICE management will host a teleconference, today, February 15, 2011 at 8:30 ET, 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 1-866-229-7198or 1-888-668-9141, International +972-3- 9180609, Israel 03-9180609. This call will be webcast live on
http://www.nice.com/investor-relations/investor-relations-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 1-888-326-9310, International +972-3-9255930, Israel 03-9255930.
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, share based compensation expenses, realized gain on previously impaired marketable securities 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 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.
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:
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.