NICE Systems Reports Record Results for Fourth Quarter and Fiscal Year 2007
February 13, 2008
By Anshu Shrivastava, TMCnet Contributor
NICE Systems (News - Alert) annual revenues for the first time crossed the $500 million mark, according to results announced for the fourth quarter and full year ending December 31, 2007.
As per the fiscal year 2007 non-GAAP results, the company earned revenues of $523 million, which is 25 percent growth over 2006. Compared to 15.1 percent in 2006, NICE Systems recorded operating margins of 16.7 percent in 2007.
Also, results report that the $118 million cash was generated from operations and earnings per fully diluted share is of $1.44.
The record fourth quarter 2007 non-GAAP results include revenues of $146 million; earnings per fully diluted share of $0.39. In addition, record bookings; book-to-bill greater than one for the 15th consecutive quarter, and 36 7-digit deals, which are said to be three times higher than fourth quarter 2006.
Fourth quarter 2007 non-GAAP revenue was a record $145.8 million, which is a 21.1 percent increase from $120.4 million in the fourth quarter of 2006, according to a company’s statement. Additionally, non-GAAP revenues for fiscal year 2007 reached a record high of $522.7 million, a 25.0 percent increase from $418.1 million in 2006.
The results show that fourth quarter 2007 non-GAAP gross margin reached a record 64.7 percent, up from 64.3 percent in the fourth quarter 2006, while non-GAAP gross margin for the year reached a record 63.5 percent compared with 60.4 percent for the year 2006.
Also, fourth quarter 2007 non-GAAP operating profit totaled $25.6 million, with operating margin of 17.6 percent, compared with $21.6 million, and 17.9 percent operating margin, in the fourth quarter of 2006.
For the year, non-GAAP operating profit increased to $87.2 million, up from $63.2 million in 2006 and non GAAP operating margins reached 16.7 percent, up from 15.1 percent in 2006.
Company states that fourth quarter 2007 non-GAAP net income was $24.1 million, which is up from $19.7 million in the same quarter of 2006, while non-GAAP net income for the year was $81.5 million compared with net income of $61.1 million for 2006.
“2007 was a record year for our company as we crossed the $500 million mark for the first time. Our strong results are a reflection of the excellent execution of our growth strategy in both the enterprise and security markets,” Haim Shani, CEO at NICE Systems, said in a statement.
He also said that his company had an excellent fourth quarter, which was driven by strong demand for solutions across the board, and especially in financial services. He added, “Looking forward to 2008 we believe that NICE will further expand its global footprint in its respective markets.”
On a GAAP basis, fourth quarter 2007 revenue was $143.6 million, up from $116.5 million in the fourth quarter of 2006, while fourth quarter 2007 gross profit was $86.5 million, up from $70.5 million.
Total cash and equivalents as at December 31, 2007 rose by $40.4 million during the quarter reaching to $398.2 million, with no debt, compared to $357.8 million at the end of September 30, 2007, according to the company.
Anshu Shrivastava is a contributing editor for TMCnet. To see more of her articles, please visit her columnist page.