Nice Ltd (NASDAQ:NICE) Q1 2016 Earnings Conference Call - Final Transcript

May 05, 2016 • 08:30 am ET

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Nice Ltd (NASDAQ:NICE) Q1 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the NICE Systems Conference Call discussing First Quarter 2016 Results. [Operator Instructions]. I would now like to turn this call over to Mr. Marty Cohen, VP of Investor Relations at NICE. Please go ahead, sir.

Executive
Marty Cohen

Thank you, operator. With me on the call today are Barak Eilam, Chief Executive Officer and Sarit Sagiv, Chief Financial Officer. Before we start, I would like to point out that some of the statements made on this call will constitute forward-looking statements in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please be advised that the company's actual results could differ materially from these forward-looking statements.

Additional information regarding the factors that could cause actual results or performance of the company to differ materially is contained in the section entitled Risk Factors in Item 3 of the company's 2015 annual report on Form 20-F as filed with the Securities and Exchange Commission. During today's call, we will present a more detailed discussion of first quarter 2016 results and the company's guidance for the second quarter and full year 2016. Following our comments, there will be an opportunity for questions.

Let me remind you that, unless otherwise noted on this call, we will be commenting on our adjusted results of operations which differ in certain respects from Generally Accepted Accounting Principles as reflected mainly in accounting for acquisition-related revenues and expenses, amortization of intangible assets and accounting for stock-based compensation. The differences between the non-GAAP adjusted results and the equivalent GAAP figures are detailed in today's press release.

We would also like to remind you that we're hosting our Investor Day on May 23 and May 24 in conjunction with our Annual User Conference in Orlando called Interactions. A special program for analyst and investors will include meeting with nice executives, presentations from customers, product and technology sessions, and access to the solutions showcase. If you haven't registered and would like to do so, please email us at ir.nice.com

I will now turn over the call to Barak.

Executive
Barak Eilam

Thank you, Marty, and welcome everyone. I'm glad to be on the call with you today. We're pleased to begin the year on a high note with a strong Q1 as we reported revenue of $226 million. We also continue to execute operationally as reflected in the 15% growth in operating income which led to Q1 operating margin of 25.6%. These represented solid growth, although the 23.3% operating margin was reported in Q1 last year.

The stronger results on both top-line and for operating income produced another good quarter on the bottom line. We reported earnings per share of $0.81 which represented an increase of 17% compared to the first quarter of 2015. As I described last quarter, we're focused in our long-term strategy, moving forward in our transformation to become a true enterprise total company with a large and growing portfolio of solutions. A portfolio that we have tied together for our analytics platform and a portfolio that