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November 02, 2009
NICE Systems' Net Income Down 10 Percent for Q3
By Kelly McGuire, TMCnet Editor
After recently announcing that Gartner (News - Alert) selected NICE Systems, a provider of advanced solutions for companies the capture, storage, retrieval and analysis of customer interactions for contact centers and enterprises, for its leader quadrant in its workforce optimization report, the company announced its financial results for the third quarter.
The company reported non-GAAP net income of $24 million, down 10 percent year-over-year from $26.7 million in the third quarter 2008. Sequentially, however, NICE’s third quarter net income was up from $22.1 million.
According to NICE President and CEO Zeevi Bregman, the company was pleased with its third quarter performance, as its order intake continued to improve during the quarter, with book to bill ratio, on both a quarterly and yearly basis, exceeding one, resulting in a backlog reaching an all-time record high.
Total operating cash flow for the period was $28.3 million and, as of Sept. 30, the company had cash and cash equivalents of $518.4 million with no reported debt.
“We are cautiously optimistic that these trends will continue to generate gradual growth for NICE in the fourth quarter and 2010,” Bregman said.
On a GAAP basis, third quarter net income was $7.8 million, or $0.12 per share on a fully diluted basis, compared with $10.9 million, or $0.18 per share, for the same period last year. Net income for the first three quarters of 2009 increased to $30 million, up from $20.4 million in the first three quarters of 2008. Earnings per share on a fully diluted basis, for the first three quarters of 2009 increased to $0.48 from $0.33 in the first three quarters of 2008.
The company reported non-GAAP net income of $24 million, down 10 percent year-over-year from $26.7 million in the third quarter 2008. Sequentially, however, NICE’s third quarter net income was up from $22.1 million.
“Overall, we need to take [the results] as part of the global environment,” said Dafna Gruber, corporate vice president and chief financial officer with NICE Systems (News - Alert). “We had a good quarter because our ability to accumulate the booking was high and were much higher in revenues.”
According to NICE President and CEO Zeevi Bregman, the company was pleased with its third quarter performance, as its order intake continued to improve during the quarter, with book to bill ratio, on both a quarterly and yearly basis, exceeding one, resulting in a backlog reaching an all-time record high.
Total operating cash flow for the period was $28.3 million and, as of Sept. 30, the company had cash and cash equivalents of $518.4 million with no reported debt.
“We are cautiously optimistic that these trends will continue to generate gradual growth for NICE in the fourth quarter and 2010,” Bregman said.
On a GAAP basis, third quarter net income was $7.8 million, or $0.12 per share on a fully diluted basis, compared with $10.9 million, or $0.18 per share, for the same period last year. Net income for the first three quarters of 2009 increased to $30 million, up from $20.4 million in the first three quarters of 2008. Earnings per share on a fully diluted basis, for the first three quarters of 2009 increased to $0.48 from $0.33 in the first three quarters of 2008.
Gruber also said that the company’s results overall this year were higher than last year’s performance, and the fact that NICE has collected more orders in the third quarter solidifies the shift in increasing operations.
“Going forward, I hope that this trend would continue,” Gruber said. “While business was down 10 percent year-over-year, if you make a comparison of other businesses, I think we are relatively in a good place; the economy is the major factor here.”
“Going forward, I hope that this trend would continue,” Gruber said. “While business was down 10 percent year-over-year, if you make a comparison of other businesses, I think we are relatively in a good place; the economy is the major factor here.”
Kelly McGuire is a TMCnet Web editor, covering CRM and workforce technologies, and anchor of its daily TMC Newsroom video broadcast. Kelly also writes about eco-friendly "green" technologies and smart grids, compiling TMCnet's weekly e-Newsletters on those topics, as well as the cable industry. To read more of Kelly's articles, please visit her columnist page.
Edited by Michael Dinan
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