SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the month of May 2006 (report no. 2)

 

Commission File Number: 0-27466

 

NICE-SYSTEMS LTD.

(Translation of Registrant's Name into English)

 

 

8 Hapnina Street, P.O. Box 690, Ra'anana, Israel

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the Registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F    X       Form 40-F  ___

 

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulations S-T Rule 101(b)(1):

 

Yes  ____  No    X  

 

Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation

S-T Rule 101(b)(7):

 

Yes  ____  No    X  

 

Indicate by check mark whether by furnishing the information contained in this Form 6-K, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes  ____  No    X  

 

If "Yes" is marked, indicate below the file number assigned to the Registrant in connection with Rule 12g3-2(b):  82- _N/A__

 

 

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THE FINANCIAL STATEMENTS ATTACHED TO THE PRESS RELEASE IN EXHIBIT 99.1 OF THIS REPORT ON FORM 6-K ARE HEREBY INCORPORATED BY REFERENCE INTO NICE-SYSTEMS LTD.`S ("NICE") REGISTRATION STATEMENTS ON FORM F-3 (REGISTRATION STATEMENTS NOS. 333-127883, 333-12350, 333-12996, AND 333-109766) AND NICE`S REGISTRATION STATEMENTS ON FORM S-8 (REGISTRATION STATEMENT NOS. 333-11842, 333-9352, 333-11154, 333-13686, 333-111112 AND 333-111113), AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS SUBMITTED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

 

CONTENTS

This Report on Form 6-K of NICE consists of the following document, which is attached hereto and incorporated by reference herein:

99.1 Press Release: NICE Systems Delivers Another Strong Quarter with Q1 2006 Results. Dated May 10, 2006.

 

 

 

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SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

NICE-SYSTEMS LTD.

 

 

By:   /s/ Yechiam Cohen

Name: Yechiam Cohen

Title: General Counsel

 

 

 

 

Dated:  May 10, 2006

 

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EXHIBIT INDEX

 

99.1 Press Release: NICE Systems Delivers Another Strong Quarter with Q1 2006 Results. Dated May 10, 2006.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NICE Systems Delivers Another Strong Quarter with Q1 2006 Results

First quarter revenue growth of 33% translates into pro-forma net income growth of 81%

 

Ra`anana, Israel, May 10, 2006 - NICE Systems (NASDAQ: NICE), the global provider of advanced solutions that enable organizations to extract Insight from Interactions(TM) to drive performance, today announced results for the first quarter of 2006.

 

Highlights of the first quarter 2006 include:

 

●        Growing number of repeat orders for NICE Perform(TM), crossing 10% mark of enterprise business

●        Record revenues and bookings in Public Safety and Security business

●        Strong results from video security business include contribution from completion of FAST integration

 

First quarter 2006 revenue was $87.9 million, representing a 33.0% increase from $66.1 million in the first quarter of 2005.

 

Pro-forma gross margin in the first quarter was $48.9 million, or 55.7%, up from $36.7 million, or 55.5% in the first quarter 2005.  

 

The company also reported first quarter 2006 pro-forma operating profit of $9.3 million and operating margin of 10.5%, compared with $5.6 million and 8.5%, respectively, in the first quarter of 2005.

 

First quarter 2006 pro-forma net income was $10.8 million, up 80.9% from $6.0 million in the first quarter of 2005.  Pro-forma earnings per fully diluted share were at $0.42 up from $0.30 in the same quarter of 2005.  

 

On a GAAP basis: first quarter 2006 gross margin was 54.3%, compared with 55.3% in the first quarter of 2005; operating profit was $5.3 million and operating margin was 6.1%, compared with $5.4 million and 8.2%, respectively, in the first quarter of 2005; and first quarter 2006 net income was $7.1 million, or $0.28 per fully diluted share, compared with net income of $5.8 million, or $0.29 per share, on a fully diluted basis, for the first quarter of 2005.  

 

Total cash and equivalents at March 31, 2006 rose to $420.1 million compared with $411.6 million at December 31, 2005. The net increase of $8.5 million after payment of approximately $21 million in cash for the FAST acquisition.

 

Commenting on the results, Haim Shani, Chief Executive Officer of NICE said, "The first quarter of 2006 was a very strong quarter for NICE, following another record year in 2005.  With the momentum of NICE Perform, our next generation security solutions, and our leadership of the burgeoning market for Contact Center Business Management and Analytics with the announced acquisitions of IEX and Performix, this has been a very exciting year so far."

 

Mr. Shani continued, "We are proud to head these new paradigm shifts in the way organizations make critical business decisions and improve performance, whether their operation is a contact center, a commercial enterprise, or is focused on public safety and security.

 

Ran Oz, NICE`s Corporate Vice President and Chief Financial Officer, stated, "Once again we have demonstrated the leverage of our business model, translating top line growth into much greater bottom line growth."

 

Mr. Oz continued, "As we remain confident about the increasing demand for our Insight from Interactions solutions and given our strong visibility, we provide first time Q2 2006 guidance as follows: we expect revenue to be between $89 and $92 million, and pro-forma EPS per fully diluted share in the range of $0.44 - $0.48. We reiterate recently announced full year guidance for 2006, with revenues at $395 - $405 million, and pro-forma EPS at a range of $2.00 - $2.12 per fully diluted share."

 

Conference Call

NICE will host a conference call to discuss the results and its business outlook today at 8:30 a.m. EST (15:30 Israel).  Participants may access the conference call by dialing US toll-free 1-866-860-9642; international: +972-3-918-0610; Israel: 03-918-0610.  The call will also be broadcast live on the internet via NICE's website at www.nice.com.  A telephone replay will be available for up to 72 hours three hours after the call. The replay information: US Toll-free: 1-866-276-1485; international: + 972-3-925-5930; Israel: 03-925-5930.

 

Pro-forma results exclude the amortization of acquired intangible assets of $1.4 million net of taxes in Q1 2006 and $0.2 million in Q1 2005, expensing of options of $2.2 million for Q1 2006, and in-process R&D of $0.2 million in Q1 2006.  A reconciliation between results on a GAAP and pro-forma basis is provided in a table immediately following the Consolidated Statement of Operations (Pro-Forma Basis).  

 

About NICE

NICE Systems (NASDAQ: NICE) is the leading provider of Insight from Interactions(TM), based on advanced content analytics - of traditional telephony and IP, web, radio and video communications.  NICE's solutions improve business and operational performance, as well as security.  NICE has over 23,000 customers in 100 countries, including the world's top 10 banks and over 75 of the Fortune 100.  More information is available at www.nice.com.

  

Media
Galit Belkind	NICE Systems   galit.belkind@nice.com	+1 877 245 7448
Investors
Daphna Golden	NICE Systems ir@nice.com	+1 877 245 7449

      

Trademark Note:  360o View, Alpha Technologies, Customer Feedback, Dispatcher Assessment, Encorder, eNiceLink, Executive Connect, Executive Insight*, FAST, FAST alpha blue, FAST alpha silver, Freedom, Freedom Connect, Interaction Capture Unit, Insight from Interactions, Investigator, Last Message Replay, Mirra, My Universe, NICE, NICE Analyzer, NiceCall, NiceCall Focus, NiceCLS, NICE Inform, NICE Learning, NiceLog, NICE Perform, NICE Playback Organizer, NiceScreen, NICE Storage Center, NiceTrack, NiceUniverse, NiceUniverse Compact, NiceVision, NiceVision ALTO, NiceVision Harmony, NiceVision Mobile, NiceVision NVSAT, NiceVision PRO, Renaissance, Scenario Replay, ScreenSense, Tienna, Universe, Wordnet and other product names and services mentioned herein are trademarks and registered trademarks of NICE Systems Ltd. All other registered and unregistered trademarks are the property of their respective owners.

 

*in Australia only

 

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations of the management of NICE Systems Ltd. (the Company) only, and are subject to a number of risk factors and uncertainties, including but not limited to changes in technology and market requirements, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products and applications, difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel, loss of market share, pressure on pricing resulting from competition, and inability to maintain certain marketing and distribution arrangements, which could cause the actual results or performance of the Company to differ materially from those described therein. We undertake no obligation to update these forward-looking statements. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports filed from time to time with the Securities and Exchange Commission.

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NICE SYSTEMS LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)

	Three months ended
	March 31,
	2005		2006
	Unaudited		Unaudited
Revenue
Product	$ 47,277		$ 57,274
Services	18,845		30,641
Total revenue	66,122		87,915
Cost of revenue
Product	15,557		19,799
Services	13,991		20,401
Total cost of revenue	29,548		40,200
Gross Profit	36,574		47,715
Operating Expenses:
Research and development, net	6,756		9,269
Selling and marketing	16,030		20,299
General and administrative	8,340		11,998
Amortization of acquired intangible assets	39		598
In-process research and development	-		212
Total operating expenses	31,165		42,376
Operating income	5,409		5,339
Financial income, net	1,052		3,866
Income before taxes on income	6,461		9,205
Income tax expense (benefit)	685		2,135
Net income	$   5,776		$   7,070
Basic income per share	$     0.31		$     0.29
Diluted income per share	$     0.29		$     0.28
Weighted average number of shares
outstanding used to compute:
Basic income per share	18,411		24,333
Diluted income per share	19,861		25,693

 

 

 

 

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NICE SYSTEMS LTD. AND SUBSIDIARIES

NON-GAAP CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)

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NICE SYSTEMS LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands

 

 

 

 

 

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NICE SYSTEMS LTD. AND SUBSIDIARIES

CONSOLIDATED CASH FLOW STATEMENTS

U.S. dollars in thousands

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