NICE Systems announced results for the second quarter and first half of the year ended June 30, 2015. Non-GAAP revenue US$235 million, up 6 percent year-over-year.
NICE Systems announced results for the second quarter and first half of the year ended June 30, 2015.
Second Quarter 2015 Non-GAAP Financial Highlights:
- Revenue of US$235 million, up 6 percent year-over-year
- Product revenue increased 12 percent year-over-year
- Operating profit increased to $52 million, up 25 percent year-over-year
- Operating margin increased to 22.3 percent compared to 18.9 percent last year
- Fully diluted earnings per share of $0.70, up 21 percent year-over-year
- Cash flow from operations more than doubled to $57 million compared to last year
“We are pleased to report another strong quarter,” said Barak Eilam, CEO of NICE. “Excluding the impact of foreign currency exchange rates, revenue growth was 9%. Earnings per share, which increased 21 percent, also came in at the high end of our guidance range driven by a significant increase in our operating margin to 22.3 percent. 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.”
Mr. Eilam continued, “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.”
Dividend Declaration
The Company declared a cash dividend for the second quarter of 2015 of $0.16 per share. The record date will be August 11th, 2015 and the payment date will be August 27th, 2015. Tax will be withheld at a rate of 15 percent.
Non-GAAP Financial Highlights for the Second Quarter Ended June 30:
The following non-GAAP financial data are from continuing operations, which exclude the results of the Intelligence division for both 2015 and 2014.
Revenues: Second quarter 2015 non-GAAP total revenues were $234.8 million, up 6.0 percent from $221.6 million for the second quarter of 2014.
Gross Profit: Second quarter 2015 non-GAAP gross profit and non-GAAP gross margin increased to $161.2 million and 68.7 percent, respectively, from $149.0 million and 67.3 percent, respectively, for the second quarter of 2014.
Operating Income: Second quarter 2015 non-GAAP operating income and non-GAAP operating margin increased to $52.4 million and 22.3 percent, respectively, from $41.9 million and 18.9 percent, respectively, for the second quarter of 2014.
Net Income from Continuing Operations: Second quarter 2015 non-GAAP net income and non-GAAP net margin increased to $43.0 million and 18.3 percent, respectively, from $35.4 million and 16.0 percent, respectively, for the second quarter of 2014.
Fully Diluted Earnings Per Share from Continuing Operations: Second quarter 2015 non-GAAP fully diluted earnings per share increased 20.7 percent to $0.70, compared to $0.58 for the second quarter of 2014.
GAAP Financial Highlights for the Second Quarter Ended June 30:
The following GAAP financial data, excluding cash flow and cash balance, are from continuing operations, which exclude the results of the Intelligence division for both 2015 and 2014.
Revenues: Second quarter 2015 total revenues increased 6.1 percent to $234.7 million compared to $221.3 million for the second quarter of 2014.
Gross Profit: Second quarter 2015 gross profit and gross margin increased to $153.7 million and 65.5 percent, respectively, from $138.5 million and 62.6 percent, respectively, for the second quarter of 2014.
Operating Income: Second quarter 2015 operating income and operating margin increased to $35.3 million and 15.0 percent, respectively, from $13.7 million and 6.2 percent, respectively, for the second quarter of 2014.
Net Income from Continuing Operations: Second quarter 2015 net income and net margin increased to $28.8 million and 12.3 percent, respectively, compared to $11.9 million and 5.4 percent, respectively, for the second quarter of 2014.
Fully Diluted Earnings Per Share from Continuing Operations: Fully diluted earnings per share for the second quarter of 2015 was $0.47 compared to $0.19 for the second quarter of 2014.
Operating Cash Flow and Cash Balance: Second quarter 2015 operating cash flow was $57.0 million. In the second quarter, $12.1 million was used for share repurchases and $9.5 million for dividends. As of June 30, 2015, total cash and cash equivalents, short term investments and marketable securities were $628.8 million, with no debt.
Third Quarter and Full-Year 2015 Guidance:
Third Quarter 2015: Third quarter 2015 non-GAAP total revenues are expected to be in a range of $236 million to $246 million. Third quarter 2015 non-GAAP fully diluted earnings per share are expected to be in a range of $0.68 to $0.74.
Full-Year 2015: The Company continues to expect full-year 2015 non-GAAP total revenues to be in a range of $985 million to $1,005 million. The Company increased its full-year 2015 non-GAAP fully diluted earnings per share to be in a range of $3.04 to $3.15.