David Hernandez
Long/short equity, medium-term horizon, growth at reasonable price, ETF investing

Lackluster Growth A Problem For Nice Systems

Nice Systems (NASDAQ:NICE) is a data analytics software provider. Their software solutions are used for customer service optimization, security, crime detection, and compliance. Nice Systems recently announced mixed second quarter results. Revenue was higher than expect but EPS was slightly lower. The company reported EPS of $0.57 which missed analysts' estimates by $0.02. Revenue was $239.3 million which was $4.38 million higher than expected. Naturally, the majority of the attention was directed toward the earnings miss and on profitability. Over the last few years, Nice's profitability has declined.

The company's net income margin was 7.7% in 2011 but declined to 5.8% in 2013. In Q2 2014, net income margin fell even further reaching 4.3%. Management blames the...

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