NICE Systems reports lower profit on higher revenue

The company announced a $0.16 per share dividend.

NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) reported its second quarter results today, with revenue rising from $225.2 million in the second quarter of 2013 to $239.3 million in the second quarter of 2014, a 6.3% increase.

Non-GAAP gross profit and the non-GAAP profit margin totaled $156.0 million and 65.2%, respectively, in the second quarter of 2014, compared with $150.6 million and 66.9%, respectively, in the second quarter of 2013. The company's second quarter operating profit and operating profit margin were $41.1 million and 17.2%, respectively, compared with $43.8 million and 19.4%, respectively, in the corresponding quarter in 2013.

NICE reported a $34.7 million net profit in the second quarter, compared with $37.5 million in the corresponding quarter of last year. Non-GAAP profit per share was $0.57 in the second quarter, compared with $0.61 per share in the corresponding quarter of 2013.

The company announced a $0.16 per share dividend for the second quarter of 2014. The date of record for the dividend will be August 12, and the dividend will be paid on August 26, after 15% tax is withheld.

The company's third quarter non-GAAP revenue forecast is $240-248 million, with a non-GAAP revenue per share forecast of $0.59-$0.67, and management is forecasting a $2.68-2.80 non-GAAP profit per share on non-GAAP revenue of $995 million-$1.02 billion for 2014 as a whole.

"I'm glad to report $239 million in revenue in the second quarter of 2014. During the quarter, we continued to see strong demand from both existing customers and new customers for solutions based on our analytical tools," said NICE CEO Barak Eilam. "We're following up on our short and long-term initiatives, including a focus on technological innovation, continuation of the process of defining our long-term growth strategy, assessment of the company's operational model, and commitment to excellence. These will prove an effective and profitable path towards growth. Upon entering the second half of the year, we believe that the company's strong orders backlog, the demand we are seeing for our new products, and the opportunities awaiting us in the market put us in a good position to for a strong year-end finish."

Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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