RA'ANANA, Israel, May 8, 2013 /PRNewswire/ -- NICE
Systems (NASDAQ: NICE) today announced results for the first
quarter ended March 31, 2013.
First Quarter 2013 non-GAAP Financial Highlights
Include:
- Revenues of $225 million, up
4.5% year over year
- Gross margin at 66.9%, up from 64.8% for the first quarter
of 2012
- Operating margin at 19.4%, compared to 18.3% for the first
quarter of 2012
- Fully diluted earnings per share increased 7% to
$0.61
- Cash flow from operations of $58
million
"We are pleased to report another quarter of profitable growth
at NICE and we believe we are on track to meet our annual
expectations. We continue to deliver to our customers the most
innovative and industry leading, next generation analytics and
advanced applications," said Zeevi Bregman, President and CEO of
NICE Systems.
Mr. Bregman continued, "These innovative solutions, including
our newly announced customer engagements analytics platform, which
better enables our customers to operationalize Big Data, are
helping companies improve business results, comply with
regulations, prevent fraud, improve customer experience and enhance
safety and security, all areas of growing importance for our
customers. The expanding use of our solutions and the positive
feedback we are receiving from our customers tells us that we are
delivering great value to them, timely addressing their needs."
Dividend Declaration
The Company also announced that its Board of Directors, at its
meeting on May 7, 2013, declared a
cash dividend for the first quarter of 2013 of $0.16 per share. The record date will be
May 23, 2013, and the payment date
will be June 6, 2013. Tax will be
withheld at a rate of 15%.
Non-GAAP Financial Highlights for the First Quarter Ended
March 31, 2013:
Revenues: First quarter 2013 non-GAAP total revenues were
$224.7 million, up 4.5% from
$215.2 million for the first quarter
of 2012.
Gross Profit: First quarter 2013 non-GAAP gross profit
and non-GAAP gross margin increased to 150.4 million and 66.9%,
respectively, from $139.5 million and
64.8%, respectively, for the first quarter of 2012.
Operating Income: First quarter 2013 non-GAAP operating
income and non-GAAP operating margin increased to $43.5 million and 19.4%, respectively, from
$39.3 million and 18.3%,
respectively, for the first quarter of 2012.
Net Income: First quarter 2013 non-GAAP net income and
non-GAAP net margin increased to $37.6
million and 16.7%, respectively, from $35.6 million and 16.6%, respectively, for the
first quarter of 2012.
Fully Diluted Earnings Per Share: First quarter 2013
non-GAAP fully diluted earnings per share increased to $0.61, up 7.0% compared to $0.57 for the first quarter of 2012.
GAAP Financial Highlights for the First Quarter Ended
March 31, 2013:
Revenues: First quarter 2013 total revenues increased
6.6% to $224.3 million compared to
$210.4 million for the first quarter
of 2012.
Gross Profit: First quarter 2013 gross profit and gross
margin increased to $138.5 million
and 61.7%, respectively, compared to $122.8
million and 58.4%, respectively, for the first quarter of
2012.
Operating Income: First quarter 2013 operating income and
operating margin increased to $18.6
million and 8.3%, respectively, compared to $4.6 million and 2.2%, respectively, for the
first quarter of 2012.
Net Income: First quarter 2013 net income and net margin
increased to $17.8 million and 7.9%,
respectively, compared to $7.8
million and 3.7%, respectively, for the first quarter of
2012.
Fully Diluted Earnings Per Share: Fully diluted earnings
per share for the first quarter of 2013 increased to $0.29 compared to $0.12 for the first quarter of 2012.
Operating Cash Flow and Cash Balance: First quarter 2013
operating cash flow was $58 million.
In the first quarter, approximately $7.7
million was used for share repurchases. As March 31, 2013, total cash and cash equivalents,
short term investments and marketable securities were $501 million, with no debt.
Second Quarter and Full Year 2013 Guidance:
Second Quarter 2013: Second quarter 2013 non-GAAP total
revenues are expected to be in a range of $220 million to $230 million. Second quarter 2013
non-GAAP fully diluted earnings per share are expected to be in a
range of $0.58 to $0.64.
Full Year 2013: Full year 2013 non-GAAP total revenues
are expected to be in a range of $940
million to $970 million. Full year 2013 non-GAAP fully
diluted earnings per share are expected to be in a range of
$2.55 to $2.65.
Quarterly Results Conference Call
NICE management will host its earnings conference call today,
May 8th, 2013 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 283 054 72. 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 2 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 89219923.
Non-GAAP financial measures consist of GAAP financial measures
adjusted to exclude: amortization of acquired intangible assets,
re-organization expenses, share-based compensation, certain
business combination accounting entries and the related tax effects
thereon . The purpose of such adjustments is to give an indication
of our performance exclusive of non-cash charges and other items
that are considered by management to be outside of our core
operating results. Our non-GAAP financial measures are not meant to
be considered in isolation or as a substitute for comparable GAAP
measures, and should be read only in conjunction with our
consolidated financial statements prepared in accordance with GAAP.
Our management regularly uses our supplemental non-GAAP financial
measures internally to understand, manage and evaluate our business
and make operating decisions. These non-GAAP measures are among the
primary factors management uses in planning for and forecasting
future periods. Business combination accounting rules requires us
to recognize a legal performance obligation related to a revenue
arrangement of an acquired entity. The amount assigned to that
liability should be based on its fair value at the date of
acquisition. The non-GAAP adjustment is intended to reflect the
full amount of such revenue. We believe this adjustment is useful
to investors as a measure of the ongoing performance of our
business. We believe these non-GAAP financial measures provide
consistent and comparable measures to help investors understand our
current and future operating cash flow performance. These non-GAAP
financial measures may differ materially from the non-GAAP
financial measures used by other companies. Reconciliation between
results on a GAAP and non-GAAP basis is provided in a table
immediately following the Consolidated Statements of Income. The
intangible assets created in the acquisitions of Merced are
preliminary and subject to further review and completion of
valuation analyses.
About NICE
NICE (NASDAQ: NICE) is the worldwide leader
of software solutions that deliver strategic insights by capturing
and analyzing mass quantities of structured and unstructured data
in real time from multiple sources, including phone calls, mobile
apps, emails, chat, social media, and video. NICE's solutions
enable organizations to take the Next-Best-Action to improve
customer experience and business results, ensure compliance, fight
financial crime, and safeguard people and assets. 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.
Trademark Note: NICE and the NICE logo are trademarks or
registered trademarks of NICE Systems. All other marks
are trademarks of their respective owners. For a full list of
NICE Systems' marks, please see:
http://www.nice.com/nice-trademarks.
Investors
Marty Cohen, +1 212 574 3635,
ir@nice.com, ET
Anat Earon-Heilborn, +972 9
775-3798, ir@nice.com, CET
Media Contact
Erik
Snider, +1 877 245 7448, erik.snider@nice.com
Forward-Looking Statements
This press release
contains forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements, including the statements by
Messer Bregman, are based on the
current expectations of the management of NICE-Systems Ltd. (the
Company) only, and are subject to a number of risks and
uncertainties that could cause the actual results or performance of
the Company to differ materially from those described herein,
including but not limited to the impact of the global economic
environment on the Company's customer base (particularly financial
services firms) and the resulting uncertainties; changes in
technology and market requirements; decline in demand for the
Company's products; inability to timely develop and introduce new
technologies, products and applications; difficulties or delays in
absorbing and integrating acquired operations, products,
technologies and personnel; loss of market share; pressure on
pricing resulting from competition; and inability to maintain
certain marketing and distribution arrangements. For a more
detailed description of the risk factors and uncertainties
affecting the company, refer to the Company's reports filed from
time to time with the Securities and Exchange Commission, including
the Company's Annual Report on Form 20-F. The forward-looking
statements contained in this press release are made as of the date
of this press release, and the Company undertakes no obligation to
update or revise them, except as required by law.
|
|
|
NICE
SYSTEMS LTD. AND SUBSIDIARIES
|
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
U.S.
dollars in thousands (except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
Revenue:
|
|
|
|
|
Product
|
$
90,803
|
|
$
91,309
|
|
Services
|
133,524
|
|
119,052
|
Total
revenue
|
224,327
|
|
210,361
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
Product
|
29,322
|
|
31,905
|
|
Services
|
56,519
|
|
55,680
|
Total cost
of revenue
|
85,841
|
|
87,585
|
|
|
|
|
|
Gross
profit
|
138,486
|
|
122,776
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
Research
and development, net
|
31,623
|
|
30,222
|
|
Selling
and marketing
|
58,631
|
|
53,178
|
|
General
and administrative
|
21,500
|
|
26,846
|
|
Amortization of acquired intangible assets
|
8,154
|
|
7,903
|
Total
operating expenses
|
119,908
|
|
118,149
|
|
|
|
|
|
Operating
income
|
18,578
|
|
4,627
|
|
|
|
|
|
Finance
and other income, net*
|
1,191
|
|
3,553
|
|
|
|
|
|
Income
before taxes on income
|
19,769
|
|
8,180
|
Taxes on
income*
|
1,968
|
|
373
|
|
|
|
|
|
Net
income
|
$
17,801
|
|
$
7,807
|
|
|
|
|
|
Basic
earnings per share
|
$
0.29
|
|
$
0.13
|
|
|
|
|
|
Diluted
earnings per share
|
$
0.29
|
|
$
0.12
|
|
|
|
|
|
Weighted
average number of shares
|
|
|
|
outstanding used to compute:
|
|
|
|
|
|
|
|
|
Basic
earnings per share
|
60,360
|
|
61,425
|
Diluted
earnings per share
|
61,800
|
|
62,884
|
|
|
|
|
|
*Certain
comparative figures have been reclassified to conform to the
current year presentation.
|
|
|
|
|
|
|
|
|
|
NICE
SYSTEMS LTD. AND SUBSIDIARIES
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS
|
|
|
|
U.S.
dollars in thousands (except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
GAAP
revenues
|
$
224,327
|
|
$
210,361
|
Valuation
adjustment on acquired deferred product revenue
|
77
|
|
1,964
|
Valuation
adjustment on acquired deferred service revenue
|
323
|
|
2,826
|
Non-GAAP
revenues
|
$
224,727
|
|
$
215,151
|
|
|
|
|
|
|
|
|
|
|
GAAP cost
of revenue
|
$
85,841
|
|
$
87,585
|
Amortization of acquired intangible assets on cost of
product
|
(9,419)
|
|
(10,120)
|
Amortization of acquired intangible assets on cost of
services
|
(993)
|
|
(691)
|
Valuation
adjustment on acquired deferred cost of services
|
9
|
|
83
|
Cost of
product revenue adjustment (1,2,4)
|
(138)
|
|
(149)
|
Cost of
services revenue adjustment (1,2,3,4)
|
(968)
|
|
(1,078)
|
Non-GAAP
cost of revenue
|
$
74,332
|
|
$
75,630
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
138,486
|
|
$
122,776
|
Gross
profit adjustments
|
11,909
|
|
16,745
|
Non-GAAP
gross profit
|
$
150,395
|
|
$
139,521
|
|
|
|
|
|
|
|
|
|
|
GAAP
operating expenses
|
$
119,908
|
|
$
118,149
|
Research
and development (1,2,3)
|
(358)
|
|
(1,188)
|
Sales and
marketing (1,2,3)
|
(2,265)
|
|
(2,129)
|
General
and administrative (1,2,3)
|
(2,245)
|
|
(2,580)
|
Amortization of acquired intangible assets
|
(8,154)
|
|
(7,903)
|
Acquisition related expenses (4)
|
-
|
|
(4,140)
|
Non-GAAP
operating expenses
|
$
106,886
|
|
$
100,209
|
|
|
|
|
|
|
|
|
|
|
GAAP taxes
on income
|
$
1,968
|
|
$
373
|
Tax
adjustments re non-GAAP adjustments
|
5,182
|
|
6,870
|
Non-GAAP
taxes on income
|
$
7,150
|
|
$
7,243
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
17,801
|
|
$
7,807
|
Valuation
adjustment on acquired deferred revenue
|
400
|
|
4,790
|
Valuation
adjustment on acquired deferred cost of services
|
(9)
|
|
(83)
|
Amortization of acquired intangible assets
|
18,566
|
|
18,714
|
Share-based compensation (1)
|
5,835
|
|
6,608
|
Re-organization expenses (2)
|
127
|
|
324
|
Acquisition related compensation expense
(3)
|
12
|
|
148
|
Acquisition related expenses (4)
|
-
|
|
4,184
|
Tax
adjustments re non-gaap adjustments
|
(5,182)
|
|
(6,870)
|
Non-GAAP
net income
|
$
37,550
|
|
$
35,622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
diluted earnings per share
|
$
0.29
|
|
$
0.12
|
|
|
|
|
|
Non-GAAP
diluted earnings per share
|
$
0.61
|
|
$
0.57
|
|
|
|
|
|
Shares
used in computing GAAP diluted earnings per share
|
61,800
|
|
62,884
|
|
|
|
|
|
Shares
used in computing Non-GAAP diluted earnings per share
|
61,800
|
|
62,884
|
|
|
|
|
|
|
|
|
|
NICE
SYSTEMS LTD. AND SUBSIDIARIES
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(continued)
|
|
|
U.S.
dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Share-based Compensation
|
|
|
|
|
|
Quarter
ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
|
Cost of
product revenue
|
$
(138)
|
|
$
(144)
|
|
Cost of
service revenue
|
(968)
|
|
(975)
|
|
Research
and development
|
(344)
|
|
(921)
|
|
Sales and
marketing
|
(2,214)
|
|
(1,988)
|
|
General
and administrative
|
(2,171)
|
|
(2,580)
|
|
|
$
(5,835)
|
|
$
(6,608)
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Re-organization expenses
|
|
|
|
|
|
Quarter
ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
|
Cost of
service revenue
|
$
-
|
|
$
(52)
|
|
Research
and development
|
-
|
|
(146)
|
|
Sales and
marketing
|
(53)
|
|
(126)
|
|
General
and administrative
|
(74)
|
|
-
|
|
|
$
(127)
|
|
$
(324)
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Acquisition related compensation
expense
|
|
|
|
|
|
Quarter
ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
|
Cost of
service revenue
|
$
-
|
|
$
(12)
|
|
Research
and development
|
(14)
|
|
(121)
|
|
Sales and
marketing
|
2
|
|
(15)
|
|
|
$
(12)
|
|
$
(148)
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Acquisition related expenses
|
|
|
|
|
|
Quarter
ended
|
|
|
March
31,
|
|
|
2013
|
|
2012
|
|
Cost of
product revenue
|
$
-
|
|
$
(5)
|
|
Cost of
service revenue
|
-
|
|
(39)
|
|
Research
and development
|
-
|
|
(31)
|
|
Sales and
marketing
|
-
|
|
100
|
|
General
and administrative
|
-
|
|
(4,209)
|
|
|
$
-
|
|
$
(4,184)
|
|
|
|
|
|
|
|
|
|
|
NICE
SYSTEMS LTD. AND SUBSIDIARIES
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
|
U.S.
dollars in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
120,163
|
|
$
98,596
|
|
Short-term
investments
|
|
177,665
|
|
199,955
|
|
Trade
receivables
|
|
150,298
|
|
155,426
|
|
Other
receivables and prepaid expenses
|
|
42,552
|
|
37,626
|
|
Inventories
|
|
13,167
|
|
13,897
|
|
Deferred
tax assets
|
|
15,405
|
|
15,564
|
|
|
|
|
|
|
|
Total
current assets
|
|
519,250
|
|
521,064
|
|
|
|
|
|
|
LONG-TERM ASSETS:
|
|
|
|
|
|
Marketable
securities
|
|
203,468
|
|
146,154
|
|
Other
long-term assets
|
|
29,869
|
|
28,676
|
|
Property
and equipment, net
|
|
40,982
|
|
41,278
|
|
Other
intangible assets, net
|
|
205,801
|
|
228,746
|
|
Goodwill
|
|
686,226
|
|
695,027
|
|
|
|
|
|
|
|
Total
long-term assets
|
|
1,166,346
|
|
1,139,881
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
1,685,596
|
|
$
1,660,945
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Trade
payables
|
|
$
19,964
|
|
$
20,553
|
|
Deferred
revenues
|
|
179,918
|
|
150,424
|
|
Accrued
expenses and other liabilities
|
|
197,927
|
|
212,452
|
|
|
|
|
|
|
|
Total
current liabilities
|
|
397,809
|
|
383,429
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
Deferred
tax liabilities
|
|
53,131
|
|
58,341
|
|
Other
long-term liabilities
|
|
28,402
|
|
28,087
|
|
|
|
|
|
|
|
Total
long-term liabilities
|
|
81,533
|
|
86,428
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
1,206,254
|
|
1,191,088
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
1,685,596
|
|
$
1,660,945
|
|
|
|
|
|
|
|
|
|
|
NICE
SYSTEMS LTD. AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED CASH FLOW STATEMENTS
|
|
|
|
U.S.
dollars in thousands
|
|
|
|
|
|
|
Quarter
ended
|
|
|
|
March
31,
|
|
|
|
2013
|
|
2012
|
|
|
|
Unaudited
|
|
Unaudited
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
17,801
|
|
$
7,807
|
Adjustments to reconcile net income to net cash
provided by operating activities
|
|
|
|
|
Depreciation, amortization and other
|
23,102
|
|
22,811
|
|
Stock
based compensation
|
5,835
|
|
6,608
|
|
Excess tax
shortfall (benefit) from share-based payment
arrangements
|
35
|
|
(35)
|
|
Net
recognized losses (gains) on investments and derivatives
|
302
|
|
(1,061)
|
|
Gain on
sale of intangible assets
|
-
|
|
(1,125)
|
|
Deferred
taxes, net
|
(5,352)
|
|
(6,477)
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
Trade
Receivables
|
1,898
|
|
11,781
|
|
|
Other
receivables and prepaid expenses
|
(3,466)
|
|
(65)
|
|
|
Inventories
|
498
|
|
754
|
|
|
Trade
payables
|
(495)
|
|
3,654
|
|
|
Accrued
expenses and other current liabilities*
|
(14,105)
|
|
(3,326)
|
|
|
Deferred
revenue*
|
32,335
|
|
29,075
|
|
|
Other
long-term liabilities
|
(175)
|
|
(211)
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities
|
58,213
|
|
70,190
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
Purchase
of property and equipment
|
(4,137)
|
|
(6,611)
|
|
Proceeds
from sale of property and equipment
|
4
|
|
970
|
|
Purchase
of investments
|
(78,724)
|
|
(2,428)
|
|
Proceeds
from investments
|
45,513
|
|
45,432
|
|
Capitalization of software development
costs
|
(306)
|
|
(388)
|
|
Proceeds
from sale of intangible assets, net
|
-
|
|
1,500
|
|
Payments
for acquisitions, net of cash acquired
|
-
|
|
(135,503)
|
|
|
|
|
|
|
|
|
Net
cash used in investing activities
|
(37,650)
|
|
(97,028)
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from issuance of shares upon exercise of share options and
ESPP
|
8,639
|
|
7,701
|
|
Purchase
of treasury shares
|
(7,656)
|
|
(35,239)
|
|
Excess tax
benefit (shortfall) from share-based payment
arrangements
|
(35)
|
|
35
|
|
|
|
|
|
|
|
|
Net
cash provided by (used in) financing activities
|
948
|
|
(27,503)
|
|
|
|
|
|
|
Effect of
exchange rates on cash and cash equivalents
|
56
|
|
(604)
|
|
|
|
|
|
|
Net change
in cash and cash equivalents
|
21,567
|
|
(54,945)
|
Cash and
cash equivalents, beginning of period
|
98,596
|
|
204,437
|
|
|
|
|
|
|
Cash and
cash equivalents, end of period
|
$
120,163
|
|
$
149,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Certain
comparative figures have been reclassified to conform to the
current year presentation.
|
|
|
|
|
|
|
SOURCE NICE