Ra’anana, Israel, August 02, 2006 - NICE Systems (NASDAQ: NICE) (Company
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Studies), the global provider of advanced solutions that enable organizations to extract Insight from Interactions™ to drive performance, today announced results for the second quarter of 2006.
Second quarter 2006 revenue was a record $97.7 million, representing a 35.3% increase from $72.2 million in the second quarter of 2005.
Pro-forma gross profit in the second quarter was a record $58.4 million, or 59.8% pro-forma gross margin, up from $40.9 million, or 56.7% gross margin in the second quarter 2005.
The company also reported a record pro-forma operating profit for the quarter, of $14.6 million and operating margin of 14.9%, compared with $7.1 million and 9.8%, respectively, in the second quarter of 2005.
Second quarter 2006 pro-forma net income was a record $14.6 million, up 99.6% from $7.3 million in the second quarter of 2005. Pro-forma earnings per fully diluted share were at $0.28 up from $0.18 in the same quarter of 2005, post split.
On a GAAP basis: second quarter 2006 gross margin was 58.2%, compared with 56.3% in the second quarter of 2005; operating profit was $9.8 million and operating margin was 10.0%, compared with $6.6 million and 9.1%, respectively, in the second quarter of 2005; and second quarter 2006 net income was $10.8 million, or $0.21 per fully diluted share, compared with net income of $6.8 million, or $0.17 per share, on a fully diluted basis, for the second quarter of 2005, post split.
Total cash and equivalents at June 30, 2006 was at $421.1 million. This follows the approximately $13 million that were paid for Performix during the quarter and does not include the $200 million paid for IEX on July 6th.
Commenting on the results, Haim Shani, Chief Executive Officer of NICE said, "Following on the strong results of the first quarter this year, we are very pleased to announce another record quarter for NICE. These results reflect very strong market demand for our Insight from Interactions solutions, coming in from all regions and all market segments.”
Ran Oz, NICE’s Corporate Vice President and Chief Financial Officer, stated, “Following a very strong first half of 2006, the increasing demand for our Insight from Interactions solutions, and a growing backlog we are raising previously announced full year guidance for 2006, with revenues at $408 - $417 million up from $395 - $405 million, and pro-forma EPS at a range of $1.06 – $1.15 up from $1.00 - $1.06 per fully diluted share, post split.”
Mr. Oz continued “We provide first time Q3 2006 guidance as follows: We expect revenue to be between $108 and $112 million, and pro-forma EPS per fully diluted share in the range of $0.27– $0.31.”
Pro-forma
Pro-forma results exclude the amortization of acquired intangible assets of $1.6 million net of taxes in Q2 2006 and $0.5 million in Q2 2005, expensing of options of $2.2 million net of taxes for Q2 2006, A reconciliation between results on a GAAP and pro-forma basis is provided in a table immediately following the Consolidated Statement of Operations (Pro-Forma Basis).
About NICE
NICE Systems (NASDAQ: NICE) is the leading provider of Insight from Interactions™, offering comprehensive performance management and interaction analytics solutions for the enterprise and public safety and security markets. Advanced interaction analytics are performed on unstructured multimedia content – from telephony, web, radio and video communications. NICE brings the power of Insight from Interactions to IP contact centers, branches, and command and control centers. NICE’s solutions are changing the way organizations make decisions, enabling them to proactively improve business and operational performance and address security threats. NICE has over 24,000 customers in 100 countries, including over 75 of the Fortune 100 companies. More information is available at www.nice.com.
Trademark Note: Insight from Interactions™, 3600 View™, Executive Connect®, Executive Insight™*, Freedom®, Investigator®, Mirra®, Universe®, My Universe™, NICE®, NiceCall®, NiceCall Focus™, NiceCLS™, NICE Learning™, eNiceLink™, NiceLog®, Playback Organizer™, Renaissance®, ScreenSense™, NiceScreen™, NICE Storage Center™, NiceTrack™, NiceUniverse®, NiceVision®, NiceVision Harmony™, NiceVision Mobile™, NiceVision Pro™, NiceVision NVSAT™, NiceVision Alto™, Scenario Replay™, Tienna®, Wordnet®, NICE Perform™, NICE Inform™, NICE Analyzer™, Last Message Replay™, NiceUniverse Compact™, Customer Feedback™, Interaction Capture Unit™, Dispatcher Assessment™, Encorder™, Freedom Connect®, FAST®, FAST Alpha Silver™, FAST Alpha Blue™ and Alpha®, Emvolve Performance Manager™, Performix Technologies™, IEX®, TotalNet®, TotalView® and other product names and services mentioned herein are trademarks and registered trademarks of NICE Systems Ltd. All other registered and unregistered trademarks are the property of their respective owners.
*in Australia only
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations of the management of NICE Systems Ltd. (the Company) only, and are subject to a number of risk factors and uncertainties, including but not limited to 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, which could cause the actual results or performance of the Company to differ materially from those described therein. We undertake no obligation to update these forward-looking statements. 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.
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