Nice CEO Barak Eilam: We are in a very strong competitive position to capitalize on the changes taking place in our markets.
Israeli software company Nice Systems Ltd. (Nasdaq: NICE; TASE: NICE), which specializes in customer engagement, and financial crime and compliance, reports non-GAAP revenue for the fourth quarter of 2019 of $431.1 million, up 4.3% from $413.4 million for the fourth quarter of 2018. The analysts' consensus estimate was for quarterly revenue of $429.11 million.
Fourth quarter non-GAAP net profit was $102.6 million, which compares with $94.3 million for the fourth quarter of 2018. Earnings per share were $1.58, compared with $1.48 for the fourth quarter of 2018. Here too, Nice Systems beat the analysts' consensus, which was $1.53 per share.
Non-GAAP revenue for the full year 2019 increased 8.5% to $1,577.5 million compared with $1,453.4 million for 2018.
Full year 2019 non-GAAP net profit was $343.4 million, up from $300.6 million in 2018. Full year 2019 non-GAAP earnings per share were up 11.8%, at $5.31, compared with $4.75 for 2018.
On a GAAP basis, Nice Systems reported a net profit for the fourth quarter of 2019 of $61.7 million, which compares with $62.3 million for the fourth quarter of 2018.
Full year 2019 net profit was $185.9 million, up from $159.3 million in 2018.
Full year operating cash flow reached $374.2 million. At the end of 2019, Nice Systems had cash and cash equivalents, short and long term investments totaling $981.5 million, and total debt was $464.9 million.
For the first quarter of 2020, the company expects total revenue to be in a range of $406 million to $416 million. First quarter 2020 non-GAAP earnings per share are expected to be in a range of $1.27 to $1.37. For 2020 as a whole, non-GAAP total revenue is expected to be in a range of $1,690 million to $1,710 million, and non-GAAP earnings per share are expected to be in a range of $5.65 to $5.85.
"We are pleased to end the year on a high note with strong overall financial results, which were driven by continued strength in cloud revenue," said Nice Systems CEO Barak Eilam. "Our cloud revenue, which represented 38% of total revenues for the full-year 2019 compared to 32% for 2018, is being powered by the ongoing rapid adoption in all market segments of our CXone cloud platform. In 2019, we also maintained a sharp focus on operational efficiency demonstrated by continued strong growth in the operating margin and bottom line earnings per share.
"2019 was a pivotal year as it marked the end point of our NICE 2020 plan. We far exceeded the goals we set for ourselves at the onset of NICE 2020, and the success we had is paving the way for NICE 2025. Over the next several years, we will continue to witness rapid changes in our markets, including cloud becoming the default choice for enterprises of all sizes globally, digital engagements growing exponentially and virtually every process being powered by AI and analytics. We are in the driver's seat and in a very strong competitive position to capitalize on these changes taking place with the three most robust platforms in our markets - CXone for Customer Experience, X-Sight for Financial Crime and Compliance and NICE Investigate for Public Safety."
Nice Systems' board of directors has authorized a new program to repurchase up to $200 million of its issued and outstanding ordinary shares and ADRs.