Nice Systems cuts 2014 estimates, Q1 profit misses estimates

Reuters

* Q1 EPS ex-items $0.57 vs $0.61 forecast, revs +1.9 pct

* Cuts 2014 rev range to $995 mln-$1.025 bln, EPS ex-items to $2.68-$2.80

* Sees Q2 revenue $230-$240 mln, EPS ex-items $0.55-$0.62

JERUSALEM, May 8 (Reuters) - Israeli software provider Nice Systems trimmed 2014 estimates after first-quarter profit and revenue fell short of expectations.

Nice said on Thursday it earned 57 cents per diluted share excluding one-time items, compared with 61 cents a year earlier. Revenue rose 1.9 percent to $229 million.

The company was forecast to earn 61 cents a share on revenue of $235.9 million, according to Thomson Reuters I/B/E/S. Nice itself had projected revenue of $230-$240 million and EPS ex-items of 58-63 cents.

Nice has seen slowing growth of systems helping call centres and surveillance of buildings and transport networks. Its analytical tools meanwhile, which allow companies to delve into large amounts of data to spot fraud and fend off security threats, were growing much faster.

It foresees 2014 revenue of $995 million to $1.025 billion and EPS ex-items of $2.68 to $2.80, a reduction from a prior estimate of $1.01 billion to $1.035 billion in revenue and $2.73 to $2.85 in EPS.

Analysts had forecast 2014 revenue of $1.02 billion and EPS of $2.79.

The results come after Barak Eilam took over as chief executive a month ago. Eilam said Nice has a strong financial position that will enable the firm to invest in future growth, internally and through acquisitions.

"In the coming months, I will focus my efforts on further defining Nice's long-term growth strategy and thoroughly reviewing our operational model," he said.

For the second quarter, Nice predicts revenue of $230-$240 million and EPS ex-items of 55-62 cents, versus analysts' expectations of $243.9 million in revenue and EPS of 64 cents.

Nice said it would pay a quarterly dividend of 16 cents a share, unchanged from the fourth quarter.

(Reporting by Steven Scheer)

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