Publish date:

Profit Climbs at Nice Systems

Revenue rises 33%.

Security and data recording services provider

Nice Systems

(NICE) - Get NICE Ltd Sponsored ADR Report

beat Wall Street first-quarter earnings expectations as net income rose 22.5%, while guiding in line for the coming quarter.

Net income rose to $8.7 million, or 16 cents a share, compared with net $7.1 million, or 14 cents a share, a year earlier.

Excluding stock-based compensation of $3.6 million, deferred revenue of $800,000 and amortization of $3.5 million, net income was $16.6 million, or 31 cents a share, up from $10.8 million, or 21 cents a share.

TheStreet Recommends

Analysts polled by Thomson Financial were expecting earnings of 30 cents a share.

Revenue rose 33% to $117 million, roughly in line with analysts' expectations of $116.8 million.

Gross margin in the first quarter was 62.4%, up from 55.7% the year-earlier period.

Shares of Israel-based Nice Systems were down 4.5% to $37.75 in recent trading.

For the second quarter, Nice guided revenue to $121 million to $126 million, and earnings in the range of 32 cents to 36 cents a share. Analysts were expecting revenue of $121.8 million and earnings of 34 cents a share.

The company reaffirmed its guidance for fiscal 2007, with revenue to be between $487 million and $502 million and earnings in the range of $1.36 to $1.46 a share, bracketing Street expectations of revenue of $499.5 million and earnings of $1.43 a share.