NICE Systems Reports Fourth Quarter and Full Year Financial Results

RA’ANANA, Israel, Feb. 11 — NICE Systems (NASDAQ: NICE) today announced results for the fourth quarter and the full year ended December 31, 2015.

Fourth Quarter 2015 Non-GAAP Financial Highlights:

• Revenue of $274 million, up 5% year-over-year
• Record gross margin of 72.9% compared to 72.4% last year
• Record operating profit of $81 million, 17% increase year-over-year
• Record operating margin of 29.7% compared to 26.8% last year
• Record fully diluted earnings per share of $1.09, up 12% year-over-year

Full Year 2015 Non-GAAP Financial Highlights:

• Revenue of $927 million, up 6% year-over-year
• Gross margin of 70.6% compared to 69.4% last year
• Record operating profit of $235 million, 22% increase year-over-year
• Operating margin increased to 25.4% compared to 22.1% last year
• Record fully diluted earnings per share of $3.18, up 17% year-over-year

“We are pleased to report a strong finish to the year,” said Barak Eilam, CEO of NICE. “Excluding foreign currency exchange rates, revenues grew 8.3% for the fourth quarter of 2015, compared to the same period in 2014.  In addition, we reported 12% growth in earnings per share, which was supported by a record 29.7% operating margin.”

Mr. Eilam continued, “Ending 2015 as we did, encapsulates what I believe can be characterized as a truly transformative year for NICE.  It was a year in which we managed significant and valuable changes to the business while delivering solid results.  The fundamental changes that we made will continue to benefit NICE for the long term and are part of a broader journey that we expect will have a long-lasting, positive impact on the company both operationally and financially.  As we look forward into 2016, I believe that we are well-positioned for further growth and profitability as we move ahead with our vision and strategic plan in place.”

Dividend Declaration

The Company declared a cash dividend for the fourth quarter of 2015 of $0.16 per share. The record date will be February 24th, 2016and the payment date will be March 9th, 2016. Tax will be withheld at a rate of 15%.

Non-GAAP Financial Highlights for the Fourth Quarter and Full-Year Ended December 31:

The following non-GAAP financial data are from continuing operations, which exclude the results of the Intelligence and Physical Security divisions for both 2015 and 2014.

Revenues: Fourth quarter 2015 non-GAAP total revenues were $273.6 million, up 5.4% from $259.5 million for the fourth quarter of 2014. Non-GAAP total revenues for the full year 2015 increased 6.2% to $927.0 million compared to $872.8 million for the full year 2014.

Gross Profit: Fourth quarter 2015 non-GAAP gross profit and non-GAAP gross margin increased to $199.5 million and 72.9%, respectively, from $188.0 million and 72.4%, respectively, for the fourth quarter of 2014. Full year 2015 non-GAAP gross profit and non-GAAP gross margin increased to $654.4 million and 70.6%, respectively, compared to $605.5 million and 69.4%, respectively, for the same period last year.

Operating Income: Fourth quarter 2015 non-GAAP operating income and non-GAAP operating margin increased to $81.2 million and 29.7%, respectively, from $69.6 million and 26.8%, respectively, for the fourth quarter of 2014. Full year 2015 non-GAAP operating income and non-GAAP operating margin increased to $235.5 million and 25.4%, respectively, compared to $192.5 million and 22.1%, respectively, for the full year 2014.

Net Income from Continuing Operations: Fourth quarter 2015 non-GAAP net income and non-GAAP net margin increased to $66.9 million and 24.4%, respectively, from $58.9 million and 22.7%, respectively, for the fourth quarter of 2014. Full year 2015 non-GAAP net income and non-GAAP net margin increased to $195.0 million and 21.0%, respectively, compared to $165.5 million and 19.0%, respectively, for the same period last year.

Fully Diluted Earnings Per Share from Continuing Operations: Fourth quarter 2015 non-GAAP fully diluted earnings per share increased 12.4% to $1.09, compared to $0.97 for the fourth quarter of 2014. Full year 2015 non-GAAP fully diluted earnings per share increased to $3.18, up 16.9% from $2.72 for the full year 2014.

GAAP Financial Highlights for the Fourth Quarter and Full-Year Ended December 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 2015 and 2014.

Revenues: Fourth quarter 2015 total revenues increased 5.5% to $273.6 million compared to $259.4 million for the fourth quarter of 2014. Full year 2014 total revenues increased 6.3% to $926.9 million compared to $872.0 million for the full year 2014.

Gross Profit: Fourth quarter 2015 gross profit and gross margin increased to $191.5 million and 70.0%, respectively, from $179.7 million and 69.3%, respectively, for the fourth quarter of 2014. Full year 2015 gross profit and gross margin increased to $623.3 millionand 67.2%, respectively, from $568.5 million and 65.2%, respectively, for the same period last year.

Operating Income: Fourth quarter 2015 operating income and operating margin increased to $63.7 million and 23.3%, respectively, from $55.7 million and 21.5%, respectively, for the fourth quarter of 2014. Full year 2015 operating income and operating margin increased to $166.1 million and 17.9%, respectively, compared to $106.3 million and 12.2%, respectively, for the full year 2014.

Net Income from Continuing Operations: Fourth quarter 2015 net income and net margin increased to $56.9 million and 20.8%, respectively, compared to $48.5 million and 18.7%, respectively, for the fourth quarter of 2014. Full year 2015 net income and net margin increased to $140.6 million and 15.2%, respectively, compared to $100.2 million and 11.5%, respectively, for the full year 2014.

Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the fourth quarter of 2015 increased 16.3% to $0.93, compared to $0.80 for the fourth quarter of 2014. Fully diluted earnings per share for the full year 2015 were $2.29 compared to $1.64 for the full year 2014.

Operating Cash Flow and Cash Balance: Fourth quarter 2015 operating cash flow was $53.8 million. Full year cash flow from operations reached $244.7 million. In the fourth quarter, $20.0 million was used for share repurchases and $9.6 million for dividends. As of December 31, 2015, total cash and cash equivalents, short term investments and marketable securities were $828.4 million, with no debt.

First Quarter and Full-Year 2016 Guidance:

First Quarter 2016: First quarter 2016 non-GAAP total revenues are expected to be in a range of $220 million to $230 million. First quarter 2016 non-GAAP fully diluted earnings per share are expected to be in a range of $0.71 to $0.77.

Full-Year 2016: Full-year 2016 non-GAAP total revenues are expected to be in the range of $995 million to $1,015 million. Full-year 2016 non-GAAP fully diluted earnings per share are expected to be in a range of $3.38 to $3.52. Full year guidance includes the acquisition of Nexidia, which is expected to close by the end of Q1.

Quarterly Results Conference Call 

NICE management will host its earnings conference call today, February 11th, 2016 at 8:30 AM EST, 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 469 670 43. 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 451 563 12.

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 Systems