Nice sees boost after Boston bombing
Israel-based software provider reports Q1 profit towards top end of analysts' estimates, expects increase in demand for its video analysis systems
Nice has benefited from growing demand for tools to delve into large amounts of data as companies look to improve their businesses, spot fraud and fend off security threats.
It also makes sure call centers work efficiently, while its systems aid in surveillance for security forces trying to protect buildings and transport networks against attack.
"In Boston ... we witnessed a good example of collaboration between the public and private sector in video surveillance and in supporting better security and safety," Dafna Gruber, Nice's chief financial officer, told Reuters after the company reported first-quarter profit towards the top end of analysts' estimates.
Three people were killed and 264 were injured in last month's bombing.
"We are definitely seeing good interest and I believe it will have a favorable impact on our business," Gruber said of Nice's video analyzing products.
Nice, which did not break down how much revenue it makes from video analysis, said on Wednesday it earned 61 cents per diluted share (EPS) excluding one-time items in the first quarter, up from 57 cents a year earlier. Revenue grew 4.5% to $224.7 million.
Regulation trend
The company was forecast to earn 60 cents a share on revenue of $226.9 million, according to Thomson Reuters I/B/E/S. Nice itself had projected revenue of $220-$230 million and EPS of 57-62 cents.
"The majority of revenue is from people buying our products because they need to comply with regulations," Gruber said. "The regulation trend and wave is still very strong out there and that continues to drive demand for our solutions."
Analytics-based applications, such as against financial crime and for compliance and security, have driven Nice's growth of late and remain its fastest growing segment, Gruber said.
Nice forecast second-quarter revenue of $220-$230 million and adjusted EPS of 58 to 64 cents. It also reiterated its 2013 expectations for revenue of $940-$970 million and EPS ex-items of $2.55-$2.65.
Nice declared a quarterly dividend of 16 cents a share. In February, it said it would pay a dividend of 64 cents in 2013.
"All in all, we view Nice's ongoing execution and market position favorably," said Oppenheimer & Co analyst Shaul Eyal.
Gruber said the company remained committed to stepping up its share buyback program while it continued to seek acquisitions with its $500 million of cash.
