Technology company NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) has reported a good third quarter, in which it outstripped the analysts' forecasts in both revenue and net profit. Nice, which provides solutions for managing customer relations and risks, posted $323 million revenue in the quarter, 36% more than in the corresponding quarter last year (which did not include the contribution of InContact, the acquisition of which was completed in late 2016) and 3.6% more than in the preceding quarter. Cloud computing revenue totaled $96.4 million, 30% of total revenue.
Nice's GAAP net profit totaled $26.2 million, down 13.6% in comparison with the third quarter of 2016. Excluding various accounting items, non-GAAP net profit grew 16.2% to $58.9 million, $0.95 per share - $0.02 per share more than the analysts' forecasts.
Nice slightly revised its guidance for the year and narrowed its revenue guidance range to $1.338-1.35 billion. The guidance for non-GAAP net profit was raised from $3.90-4.10 per share to $4-4.10 per share.
Cloud computer revenue up more than 10%
Nice generated $106 million from current activity in the quarter, and its cash flow from current activity in January-September 2017 totaled $307 million.
The company had $494 million in cash at the end of the third quarter. Nice recently acquired Workflex, a provider of human resources management solutions for an unreported price believed to be a few million dollars. The acquired company was previously a partner of Nice, and worked on Nice's open platform. Workflex's software is installed in an employee's telephone, and enables him to manage his work hours, while taking energy consumption into account. It also includes a gamification component that enables the employee to accumulate points (for volunteering for shifts at less convenient times, for example) and obtain preference for his requests to trade shifts at a later time, for example.
"We are pleased to report another excellent quarter," Nice CEO Barak Eilam said. "In the third quarter, recurring revenue accounted for nearly 70% of total revenue and we saw a double-digit sequential increase in cloud revenue compared to the second quarter of 2017. These solid results were bolstered by CXone, which is the industry’s first fully integrated, open, customer experience cloud platform for companies of all sizes." Nice's market cap is $4.9 billion.
Published by Globes [online], Israel Business News - www.globes-online.com - on November 2, 2017
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