NICE Systems releases trapped profits

In its third quarter financials, NICE said it will release $31 million in trapped profits and will pay a one-time tax expense of $19.2 million.

NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) president and CEO Zeevi Bregman says that the company is well-positioned for a strong finish to the year, after it reported higher revenue but lower profit for the third quarter, and released trapped profits in Israel.

Revenue rose 4.2% to $230.1 million for the third quarter from $220.9 million for the corresponding quarter of 2012. Non-GAAP operating profit rose to $42.2 million for the third quarter from $42.1 million for the corresponding quarter. GAAP-based net loss was $3.7 million ($0.06 per share) for the third quarter, compared with a net profit of $16.8 million for the corresponding quarter, and non-GAAP net profit fell to $38.2 million ($0.62 per share) from $39.7 million.

NICE settled a multi-year tax audit and took advantage of a special program initiated by the Israeli government to release its trapped profits. Under the agreement, NICE will release $31 million in trapped profits and will pay a one-time tax expense of $19.2 million ($0.31 per share).

In its guidance for the fourth quarter, NICE predicts non-GAAP earnings per share of $0.72-0.77 on $260-275 million revenue. In forecasts full-year non-GAAP earnings per share of $2.55-2.60on $940-955 million revenue. The guidance is within the analysts' consensus of non-GAAP earnings per share of $2.59 on $948.8 million revenue.

" We reported solid results for the third quarter of 2013, and we believe that with the robust demand for our products and a healthy pipeline of large, multi-product deals, we are well-positioned for a strong finish to the year," said Bregman.

Published by Globes [online], Israel business news - www.globes-online.com - on October 30, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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