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NICE Demonstrates Positive Growth Momentum and Improved Profitability in the Second Quarter
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NICE Demonstrates Positive Growth Momentum and Improved Profitability in the Second Quarter

 
August 03, 2010

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By Deepika Mala, TMCnet Contributor
 

The results for the second quarter ending June 30, 2010, have been announced by NICE Systems (News - Alert), a premier global provider of intent-based solutions that enable enterprises and security organizations to extract Insight from Interactions, transactions and surveillance to drive business performance, reduce risk and ensure safety.


The highlights of the Second Quarter 2010 non-GAAP and Business include:

--Revenues at new record of $170 million, up 21 percent year-over-year  

--Operating margin reached 17.6 percent, net income increased to $26.5 million  

--Earnings per fully diluted share increased to $0.41 from $0.36 last year

--Book-to-bill greater than 1; backlog reaches new record  

--Company generated $39 million cash from operations in the quarter

--Enhanced visibility; Company updates annual guidance provided in May 2010

"We are pleased with our performance in the second quarter. Our business continued to demonstrate positive growth momentum and improved profitability, complemented by substantial cash from operations during the quarter. Our book-to-bill ratio was once again greater than one, and we ended the quarter with record revenues and a record backlog. These achievements lead us to update our guidance for the second time this year," Zeevi Bregman, president and CEO, NICE Systems, said.

"NICE's growth continues to be driven by the various market trends we have identified - the increasing number of interactions between enterprises and their end-customers across various channels of communications; a growing number of fraud threats; enhanced demand for our holistic and unified, analytics-based integrated security solutions; and compliance with regulations, which is a major growth driver for NICE. All of these needs are addressed by our intent-base business solutions."

"We also announced the recently completed acquisition of eglue (News - Alert), which is highly strategic and complements our business applications offering. Since we closed the transaction, we have announced new integrated solutions for contact centers and back office operations, including the most recent announcement from earlier today. We believe that these new and innovative solutions will constitute additional growth engines for NICE," Mr. Bregman concluded.

The GAAP Financial highlights for the Second Quarter Ended June 30, 2010 include:

--Revenues: Second quarter 2010 revenues increased 20% to $168.5 million from $140.5 million in the second quarter of 2009

--Gross Profit: Second quarter 2010 gross profit and margin increased to $101.3 million and 60.1%, respectively, up from $83.7 million and 59.6% in the second quarter of 2009

--Operating Income: Second quarter 2010 operating income increased to $13.2 million, compared with $12.2 million in the second quarter of 2009

--Net Income: Second quarter 2010 net income increased to $12.7 million, compared to $11.6 million in the second quarter of 2009

--Earnings per Fully Diluted Share: Earnings per fully diluted share in the second quarter 2010 increased to $0.20, from $0.19 in the second quarter of 2009

--Operating Cash Flow and Cash Balance: Second quarter 2010 operating cash flow was $38.8 million. As of June 30, 2010, total cash and equivalents were $596 million, with no debt

In related news, NICE Systems will be highlighting its IP telephony recording solutions for the Public Safety sector at the 2010 APCO Conference, as part of its Next Generation 9-1-1 suite of solutions.


Deepika Mala is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Juliana Kenny

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