July 30, 2009

 

NICE Systems (News - Alert), a global provider of advanced solutions designed to enable organizations to “extract insight from interactions to drive performance,” has announced its second quarter 2009 results.

 

Like many of its competitors, NICE is pushing through the slumping global economy. Non-GAAP revenue for the second quarter was $140.5 million, which was 9.6 percent down from $155.3 million in the second quarter last year. At the same time however, this revenue was up 0.9 percent from $139.2 million in the first quarter.

Gross margin for Non-GAAP in the second quarter of 2009 reached 62.9 percent or $88.4 million gross profit. The second quarter of 2008 showed 65.5 percent or $101.7 million for gross margin.

Non-GAAP operating margin in the second quarter of 2009 also increased to 17.5 percent from 16.5 percent in the second quarter 2008. Non-GAAP operating profit hit $24.6 million, compared to $25.7 million in the second quarter of 2008 and up from $23.3 million in the first quarter of 2009.

For non-GAAP net income, the second quarter returned $22.1 million compared to $24.0 million or 15.4 percent of revenues in the second quarter of 2008. Second quarter 2009 non-GAAP net income was up from $21.4 million in the first quarter 2009.

For GAAP results, second quarter revenue was $140.5 million, down from $154.1 in the second quarter of 2008. First half 2009 revenue was $279.6 million, down from $298.6 million in the same period for 2008. Gross margin was 59.6 percent in the same time frame, compared with 62.0 percent in 2008.

NICE Systems achieved operating profit of $12.2 million, up from an operating loss of $0.2 million, in the second quarter of 2008; and second quarter 2009 net income increased to $11.6 million, or $0.19 per fully diluted share, up from net income of $1.5 million, or $0.02 per share, on a fully diluted basis, for the second quarter of 2008.

"In the second quarter we started to see improvement, with bookings, revenues, operating margins, and profitability coming in higher than the first quarter. Business improved in both the Americas and APAC, in the different product lines,” said Haim Shani, Chief Executive Officer, NICE Systems Ltd., in a statement

Second quarter 2009 operating cash flow was $29.2 million. Total cash and equivalents as of June 30, 2009 were $558.8 million, with no debt, up from $529.9 million as of March 31, 2009.

“Looking ahead, we believe that these trends and the strong pipeline of large security projects will translate into top and bottom line growth in the second half of 2009, compared to the first half of the year," added Shani.

NICE should be able to shore up the necessary wins to continue to push toward a recovery. The company announced recently it is working with an Urbandale, Iowa contact center provider to optimize its workforce and to achieve better business results. The company also helped to improve customer service delivery at the First International Bank of Israel.

As a result of its contact center analytics offering, NICE was recognized by industry analyst firm Datamonitor in its “Decision Matrix: Selecting a Contact Center Analytics Vendor (Competitor Focus)l Analytics and reporting as differentiators in a difficult economy.”

This report highlights NICE for its accomplishment of achieving the highest overall score in technology assessment for comprehensive contact center analytics solutions. This performance and the value it delivers to the customer should help to continue to drive growth in a sluggish economy.