NICE Systems Returns Strong Fourth Quarter, Robust 2008
February 11, 2009
By Susan J. Campbell, TMCnet Contributing Editor
NICE Systems, a global provider of advanced solutions designed to enable organizations to extract Insight from Interactions to drive performance, has announced its strong results for the fourth quarter and full year ending December 31, 2008.
The company turned in a robust fourth quarter with revenues of $163.3 million. Earnings per fully diluted share reached $0.50 with a book-to-bill greater than 1. For a positive look into the future, the backlog is at a record level of 39 with 7-digit deals won.
For the fiscal year ending 2008, NICE enjoyed revenue growth of 30 percent to $628.4 million. The company’s net income increased 27 percent to $103.2 million. Cash generated from operations equaled $136 million, an increase from $118 million in 2007.
Cash and equivalents balance at the end of December moved past the $500 million mark, while earnings per fully diluted share were $1.67, up from $1.44 in 2007. NICE Systems (News - Alert) also enjoyed the successful closing of more than 100 7-digit deals in the year.
In terms of 2008 non-GAAP revenue, NICE enjoyed a record $163.3 million, a 12.1 percent increase from $145.8 million in the same quarter of 2007. Non-GAAP gross margin also increased to 65.1 percent over 63.5 percent in 2007.
For the year, non-GAAP revenues reached $628.4 million, a 20.2 increase from 2007. Non-GAAP gross margin for the year reached a record 65.1 percent compared with 63.5 percent for the year 2007.
GAAP revenue for the fourth quarter was $163.1 million, an increase from $143.6 million in 2007. Fourth quarter 2008 gross profit was also a record $101.7 million, up from $86.5 million in the same quarter of 2007. Yearly revenues reached a record $624.2 million, up from $517.4 million. Gross profit also increased to $385.4 million, up from $311.0 million the previous year.
Total cash and equivalents as of December 31, 2008 were at a record $501.4 million, with no debt, up from $454.9 million at the end of September 30, 2008.
“2008 was a successful year for NICE. We met our targets despite the challenging economic environment. We achieved strong performance in both the enterprise and security sectors throughout the year,” said Haim Shani, Chief Executive Officer, NICE Systems, in a Wednesday statement.
“The advanced solutions we offer help our enterprise customers comply with regulations and mitigate risk, enhance operational efficiency and improve customer relations, which are key to maintaining their competitive edge and their survival. On the security front, we successfully executed our strategy of integrating multiple security solutions to deliver a single comprehensive, unique and powerful offering.
We continue to focus on winning large-scale projects for protecting city centers, critical facilities and transportations systems. Our market leading position, record backlog and pipeline, coupled with our very solid financial standing of over $500 million in cash and equivalents, will enable us to seize new and exciting opportunities and emerge from this downturn as an even stronger company,” said Shani.
NICE has certainly returned not only a strong quarter, but also a strong year. The company has proven its ability to be nearly recession-proof, offering solutions that meet real-world, everyday needs that continue, no matter what the economic condition.
The real challenge will be continuing this growth and delivering an equal performance in 2009. Considering the strong outlook the company has and its strategic positioning, it is likely that we will continue to see positive outcomes.
Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.
Edited by Stefania Viscusi