NICE Systems (NICE) Sees Q4 Results at or Above Mid-Point of Guidance; Approves $150M Buyback

NICE (NASDAQ: NICE) announced today that it is taking a number of steps to enhance its capital structure and capital return policy following the recent closing of its acquisition of inContact.

As disclosed in a separate press release, NICE intends to offer exchangeable bonds and use the net proceeds to pay down current bank debt incurred in the inContact acquisition. The offering is expected to result in several benefits to the existing capital structure, including: (i) a low fixed interest rate; (ii) a longer maturity of 7 years; and (iii) enhanced balance sheet flexibility.

NICE also announced that, while it has not completed its financial close and audit for 2016, its Q4 and full year 2016 Non-GAAP revenue and Non-GAAP earnings per share results are expected to be at or above the mid-point of the Company’s previously announced guidance ranges.

In light of continued growth opportunities, NICE is enhancing its capital return strategy to optimize the Company’s long term growth profile. Therefore, the board authorized a shift in capital returns towards share repurchases by authorizing a new and enlarged share repurchase program of $150 million, and by eliminating the dividend beginning in Q1 2017. The final dividend payment will be made for Q4 2016, payable in Q1 2017.

Barak Eilam, CEO, stated, “We are pleased to finish 2016 on a high note. The progress we have made with the acquisitions of inContact and Nexidia and the continued execution of our strategic plan have created a wealth of new growth opportunities for NICE. We believe the enhancements we are introducing are the best way to capitalize on these opportunities and create long term shareholder value.”

“This new capital structure and shareholder return strategy creates the right balance to allow the company to deploy our capital in an optimal way and to enhance shareholder returns” added Beth Gaspich, CFO of NICE.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

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