NICE Systems beats analysts on Q1, raises guidance

Barak Eilam photo: CRC Media

Quarterly net profit was $23.5 million, up 36.1% on the corresponding quarter.

NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) has posted another positive quarter. The company's first quarter results beat analysts' estimates, and it raised its annual guidance. It second quarter guidance is similar to the consensus analysts' estimate.

NICE provides solutions for customer relations management and risk management, and is traded on Nasdaq and in Tel Aviv with a $6 billion market cap, following a 34% rise in its share price in the past year. The price is at an all-time peak, close to $100.

NICE's first quarter revenue grew 9.8% in comparison with the corresponding quarter of 2017 to $335 million. On a non-GAAP basis, revenue totaled $341 million.

On a GAAP basis, quarterly net profit was $23.5 million, up 36.1% on the corresponding quarter. On a non-GAAP basis, net profit was $54.5 million, up 17.1%. At $1.03, non-GAAP earnings per share were $0.02 ahead of the analysts' consensus estimate. The company forecasts revenue of $1.343-1.458 billion for 2018, and earnings per share of $4.43-4.63.

NICE had $647 million in cash and short and long-term investments at the end of the first quarter, and long-term debt of $450 million. This is after it generated $137 million cash from regular operations in the quarter and bought back its own shares to the tune of $4.3 million. NICE recently announced th acquisition of analytics company Mattersight for $90 million. The transaction has not yet closed.

“We are pleased with the strong start to the year as evidenced by the double-digit growth in total revenue, along with a 32% increase in cloud revenue,” said NICE Sustems CEO Barak Eilam. “Moreover, we continue to capture high quality cloud revenue as demonstrated by the continued increase in our cloud profitability. Our investments in innovation, especially cloud, analytics and artificial Intelligence, puts us in a unique position to further differentiate our offering and strengthen our competitive position.”

Published by Globes [online], Israel business news - www.globes-online.com - on May 10, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Barak Eilam photo: CRC Media
Barak Eilam photo: CRC Media
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