Strong results reported by NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) today led to a 4% rise in it sshare price on the Tel Aviv Stock Exchange, that moderated to 2.5% by the close. On Nasdaq, the share price is currently up 2% at $64.38, giving the company a market cap of $3.84 billion. Nice handily surpassed its own guidance and analysts' estimates with non-GAAP earning per share of $0.81, $0.07 above the analysts' consensus.
Among other contributors to beating the forecasts was financial income of $3.8 million, which added $0.03 to earnings per share. At the same time, continued revenue growth and improvement in profitability following changes made by the company last year had their impact.
In 2015, Nice sold its defense business in two deals totaling $250 million to Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) and Battery Ventures, and it is now focused on its enterprise business. Nice provides customer relations and risk management solutions.
Nice's first quarter 2016 total revenues increased 4.3% to $226.0 million compared with $216.6 million for the first quarter of 2015.On a GAAP basis, its net profit from continuing operations rose 23.4% to $35.3 million. On a non-GAAP basis, Nice posted a net profit of $49.6 million on continuing operations, 17.1% up on the corresponding quarter. As mentioned, earnings per share were $0.81.
Nice also raised its annual guidance. Non-GAAP earnings per share are now expected to be in a range of $3.41 to $3.55, up from a range of $3.38 to $3.52. The annual revenue guidance is unchanged at $995 million to $1,015 million.
Nice Systems CEO Barak Eilam said, "Our continued strong quarterly performances are the result of the ongoing progress we are making in executing our strategy and the company’s transformation. Part of this strategy is an emphasis on portfolio expansion and analytics, which has led to a growing number of large deals, and has allowed us to capitalize on many growth opportunities, as well as expand our market share."
The company declared a cash dividend for the first quarter of 2016 of $0.16 per share.
NICE recently acquired US company Nexidia in a $135 million deal. The deal closed just before the end of the first quarter and made no material contribution to the results. The company's financials show that it spent $150 million on acquisitions during the quarter: besides Nexidia it made a further acquisition that was not considered material to the company. The acquisition was made overseas with the aim of expanding the company's market share in a certain product. Although it is busy with the integration of Nexidia, Nice has enough cash to make more acquisitions.
Separately today, Nice announced that CFO Sarit Sagiv, has decided to leave the company in the coming months to pursue new opportunities. Sagiv has served as NICE CFO since early 2015.
"While Sarit has been with Nice for a short period of time, she has made a number of valuable contributions that we will be able to build on and take to the next level in our ongoing transformation to a true enterprise software company. On behalf of myself and the company, I would like to thank her for her leadership and service to our company," Eilam said.
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016