NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE) reported a sharp increase in its net profit for the second quarter on Thursday, outperforming analysts' forecasts. The Ra'anana-based firm reported revenue of $235 million, an increase of 6%, and net profit of $43 million, a 21% jump from the corresponding quarter last year.
While analysts estimated a non-GAAP EPS of $0.66, the firm saw its earnings per share rise to $0.70. They also expected revenue of $233 million, meaning NICE beat two important forecasts for its bottom line.
“We are pleased to report another strong quarter,” said NICE Systems CEO Barak Eilam. “Excluding the impact of foreign currency exchange rates, revenue growth was 9%. Earnings per share, which increased 21%, also came in at the high end of our guidance range driven by a significant increase in our operating margin to 22.3%. As these strong growth rates are all organic, they reflect the continued successful execution of our operational plan to improve both top and bottom line results.”
He added: “The keys to our success have been accelerated innovation and our ability to rapidly and effectively take our products to market, where we can leverage our strong strategic and competitive position, our market leadership, and our established industry-leading assets, including our customer base, our sales teams and our brand. As we head into the second half of the year, we continue to see many opportunities ahead for further growth and profitability as we continue to implement our strategic plan.”
The report further shows that NICE's operating cash flow rose by over 100% to $57 million. The firm will pay out a dividend of $0.16 per share on August 27.
NICE's expectations for the third quarter were reported as revenue of $236-246 million and net profit of $0.68-0.74 cents per share, with analysts expecting $0.72 per share and revenue of $244 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2015
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