NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) has lowered its guidance for the second half of 2012 due to "delays in closing deals."
The announcement was made as the digital recording and management solutions company reported record revenue of $216.7 million for the second quarter of 2012, up 10.2% from the corresponding quarter of 2011.
Second quarter 2012 non-GAAP profit increased to $35.7 million, up 16.5% from $32.3 million in the corresponding quarter of 2011. Non-GAAP earnings per share in the second quarter rose to $0.57, up 14% from $0.50 in the corresponding quarter of 2011.
Second quarter operating cash flow was $11.8 million. The company said that in the second quarter about $20 million was used for acquisitions and $29.9 million was used for share repurchases. As of June 30, 2012, total cash and cash equivalents, short term investments and marketable securities were $439.1 million, with no debt.
The results fell short of the analysts expectation of $221 million revenue but met earnings per share estimates of $0.57.
NICE also lowered its guidance. Third quarter revenue is expected to be in a range of $217 million to $225 million. Third quarter non-GAAP fully diluted earnings per share are expected to be in a range of $0.56 to $0.60. The company also updated full year 2012 non-GAAP revenue and fully diluted earnings per share. 2012 revenue is expected to be in a range of $890 million to $910 million. Non-GAAP fully diluted earnings per share for 2012 is expected to be in a range of $2.28 to $2.38.
NICE Systems president and CEO Zeevi Bregman said, "We reported solid results for the second quarter of 2012 supported by the growth of our analytics based advanced applications. We expect a stronger second half of the year compared to the first half, and to end the year with growth in bookings, backlog, revenues and profitability. At the same time, macroeconomic headwinds are causing delays in deal closures and we expect that our total revenue growth rate for the full year of 2012 will be lower than we originally expected."
NICE Systems share price was down 5.7% in early afternoon trading on the TASE at NIS 134, and closed at $36 on Nasdaq yesterday, giving a market cap of $2.21 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on August 1, 2012
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