NICE Reports Financial Results for First Quarter 2016

PARAMUS, N.J., May 5 — NICE Systems (NASDAQ: NICE) today announced results for the first quarter ended March 31, 2016.

First Quarter 2016 non-GAAP Financial Highlights:

• Revenues of $226.1 million, up 4.3% year-over-year
• Gross margin of 70.6%, up from 69.8% last year
• Operating income of $57.8 million, up 14.6% year-over-year
• Operating margin of 25.6%, up from 23.3% last year
• Fully diluted earnings per share of $0.81, up 17.4% year-over-year
• Record cash from operations of $112.8 million, compared to $104.1 million last year

“We are pleased to begin the year on a high note, as we reported first quarter 2016 revenue of $226 million, along with year-over-year 15% growth in operating income, further improvement in the operating margin and earning per share of $0.81, which represented an increase of 17% compared to the first quarter of 2015,” said Barak Eilam, CEO of NICE.

Mr. Eilam continued, “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.”

Dividend Declaration

The Company declared a cash dividend for the first quarter of 2016 of $0.16 per share. The record date will be May 18th, 2016 and the payment date will be June 2nd, 2016. Tax will be withheld at a rate of 15%.

Investor Day – Interactions 2016

The Company will be hosting its Investor Day on May 23rd and 24th in conjunction with its annual user conference in Orlando, Florida. The user conference will host notable key speakers and more than 1,500 customers. The special program for investors will include product and technology sessions, meetings with NICE management and a tour of the solutions showcase.

Analysts and investors who would like to register, please email [email protected].

Non-GAAP Financial Highlights for the First Quarter Ended March 31:

The following non-GAAP financial data are from continuing operations, which exclude the results of the Intelligence and Physical Security divisions for both 2016 and 2015.

Revenues: First quarter 2016 non-GAAP total revenues were $226.1 million, up 4.3% from $216.7 million for the first quarter of 2015.

Gross Profit: First quarter 2016 non-GAAP gross profit and non-GAAP gross margin increased to $159.7 million and 70.6%, respectively, from $151.3 million and 69.8%, respectively, for the first quarter of 2015.

Operating Income: First quarter 2016 non-GAAP operating income and non-GAAP operating margin increased to $57.8 million and 25.6%, respectively, from $50.5 million and 23.3%, respectively, for the first quarter of 2015.

Net Income from Continuing Operations: First quarter 2016 non-GAAP net income and non-GAAP net margin increased to $49.6 million and 21.9%, respectively, from $42.3 million and 19.5%, respectively, for the first quarter of 2015.

Fully Diluted Earnings Per Share from Continuing Operations: First quarter 2016 non-GAAP fully diluted earnings per share increased 17.4% to $0.81, compared to $0.69 for the first quarter of 2015.

GAAP Financial Highlights for the First Quarter Ended March 31:

The following GAAP financial data, excluding cash flow and cash balance, are from continuing operations, which exclude the results of the Intelligence and Physical Security divisions for both 2016 and 2015.

Revenues: First quarter 2016 total revenues increased 4.3% to $226.0 million compared to $216.6 million for the first quarter of 2015.

Gross Profit: First quarter 2016 gross profit and gross margin increased to $151.1 million and 67.0%, respectively, from $143.4 million and 66.2%, respectively, for the first quarter of 2015.

Operating Income: First quarter 2016 operating income and operating margin increased to $37.5 million and 16.6%, respectively, from $33.2 million and 15.3%, respectively, for the first quarter of 2015.

Net Income from Continuing Operations: : First quarter 2016 net income and net margin increased to $35.3 million and 15.6%, respectively, compared to $28.6 million and 13.2%, respectively, for the first quarter of 2015.

Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the first quarter of 2016 was $0.58 compared to $0.47 for the first quarter of 2015.

Operating Cash Flow and Cash Balance: First quarter 2016 operating cash flow was $112.8 million. In the first quarter, $22.7 million was used for share repurchases and $9.5 million for dividends. As of March 31, 2016, total cash and cash equivalents, short term investments and marketable securities were $765.1 million, with no debt.

Second Quarter and Full Year 2016 Guidance:

Second Quarter 2016: Second quarter 2016 non-GAAP total revenues are expected to be in a range of $229 million to $239 million. Second quarter 2016 non-GAAP fully diluted earnings per share are expected to be in a range of $0.72 to $0.78.

Full Year 2016: Full year 2016 non-GAAP total revenues are expected to be in a range of $995 million to $1,015 million. The Company increased its full year 2016 non-GAAP fully diluted earnings per share to be in a range of $3.41 to $3.55.

Quarterly Results Conference Call

NICE management will host its earnings conference call today, May 5th, 2016 at 8:30 AM EDT, 13:30 GMT, 15:30 Israel, to discuss the results and the company’s outlook. To participate in the call, please dial in to the following numbers: United States 1-866-804-8688 or +1-718-354-1175, International +44(0)1296-480-100, United Kingdom 0-800-783-0906, Israel 1-809-242-041. The Passcode is 526 899 24. Additional access numbers can be found at http://www.btconferencing.com/globalaccess/?bid=54_attended. The call will be webcast live on the Company’s website at http://www.nice.com/news-and-events/ir-events. An online replay will also be available approximately two hours following the call. A telephone replay of the call will be available for 7 days after the live broadcast, and may be accessed by dialing: United States 1-877-482-6144, International +44(0)20-7136-9233, United Kingdom 0-800-032-9687. The Passcode for the replay is 482 796 13.

About NICE

NICE Systems (NASDAQ: NICE) is the worldwide leading provider of software solutions that enable organizations to take the next best action in order to improve customer experience and business results, ensure compliance, fight financial crime, and safeguard people and assets. NICE’s solutions empower organizations to capture, analyze, and apply, in real time, insights from both structured and unstructured Big Data. This data comes from multiple sources, including phone calls, mobile apps, emails, chat, social media, video, and transactions. NICE solutions are used by over 25,000 organizations in more than 150 countries, including over 80 of the Fortune 100 companies. www.nice.com.

Source: NICE