NICE Paying Quite The Price For 'Cloudification' Via inContact
inContact Should Get A Lift From The Rising Tide
Darspal S Mann
Darspal S Mann
inContact Executing On An Accelerating Opportunity Set
Wed, May 18, 12:46 PM
Wed, May 18, 9:15 AM
Wed, May 18, 8:01 AM
- Israeli software provider Nice Systems (NASDAQ:NICE) agrees to acquire U.S.-based inContact (NASDAQ:SAAS), a maker of cloud software for call centers, for ~$940M.
- Nice will pay $14/share in cash, a 55% premium to yesterday's closing price, and plans to finance the deal with cash on hand plus debt of up to $475M.
- Analysts say the acquisition will help Nice, which currently focuses on very large financial companies, to expand into the mid-market and expand its product range.
- SAAS +53.7% premarket, NICE +2.3%.
Thu, May 5, 4:57 PM
Wed, May 4, 5:35 PM
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Tue, Feb. 16, 4:26 PM
- InContact (SAAS +7.5%) is up 3.4% after hours after posting record results for its fourth quarter and guiding above analyst expectations for 2016 EPS.
- EBITDA of $5.8M nearly quadrupled from the prior year and beat an expected $3.83M. Gross margin for the software segment bumped up to 60% from 59%; on a non-GAAP basis, it was 64% (up from a prior 63%). Network connectivity gross margin was 40%, up from a previous 36%.
- Revenue by segment: Software, $40.5M (up 33.6%); Network connectivity, $21M (up 10%). About 97% of network connectivity revenues were derived from contracts with customers using the company's contact center software.
- The company closed 144 total contracts in the quarter (93 new logo customers, 51 expansion deals).
- For 2016, it's expecting software revenues of $177M-$183M (growth of 23-27%) and total revenues of $257M-$263M, vs. a consensus of $258.4M. It's forecasting a net loss (non-GAAP) of $0.06 to $0.09 per share vs. expectations for a loss of $0.33/share.
- Conference call to come at 4:30 p.m. ET.
- Press Release
Tue, Feb. 16, 4:12 PM
Mon, Feb. 15, 5:35 PM
Mon, Feb. 8, 2:37 PM
- Many tech stocks are seeing 6%+ losses as investors flee to safety yet again. The Nasdaq is down 3.4%, and the S&P 2.7%.
- As was the case on Friday following Tableau and LinkedIn's disappointing guidance, a slew of enterprise tech stocks are seeing big losses, with cloud software and security tech names well-represented on the casualty list.
- Also: Solar stocks are having another brutal day (TAN -6.7%) as energy stocks get routed amid fears Chesapeake Energy is close to bankruptcy. WTI crude oil is once more near $30/barrel.
- Enterprise software decliners: Adobe (ADBE -9.6%), Paylocity (PCTY -19.1%), Salesforce (CRM -9.9%), Workday (WDAY -12%), Guidewire (GWRE -12.5%), ServiceNow (NOW -11.5%), Zendesk (ZEN -13.8%), Paycom (PAYC -13.4%), Marin Software (MRIN -10.3%), Castlight (CSLT -8.4%), Cornerstone OnDemand (CSOD -12.1%), Atlassian (TEAM -13.2%), inContact (SAAS -9.6%), and Bazaarvoice (BV -14.5%).
- Enterprise security decliners: Palo Alto Networks (PANW -12.2%), FireEye (FEYE -9.8%), CyberArk (CYBR -11.5%), Proofpoint (PFPT -12.7%), Qualys (QLYS -8.9%), Imperva (IMPV -9.7%), Rapid7 (RPD -9.4%), and Barracuda (CUDA -8.4%).
- Solar decliners: SunEdison (SUNE -11.3%), SunPower (SPWR -8.8%), JinkoSolar (JKS -7.6%), SolarEdge (SEDG -7.9%), Yingli (YGE -7.1%), TerraForm Power (TERP -10.7%), and TerraForm Global (GLBL -9.2%).
- Other major decliners: Micron (MU -9.1%), Western Digital (WDC -10.5%), Arista (ANET -10.9%), Universal Display (OLED -10.6%), Rackspace (RAX -11.3%), Fitbit (FIT -8.7%), Nimble Storage (NMBL -11.3%), Sierra Wireless (SWIR -9.9%), Rocket Fuel (FUEL -9.8%), Knowles (KN -9%), Mitel (MITL -8.9%), and Alarm.com (ALRM -8.9%).
- Previously covered: Yelp, Cognizant, Tableau, Globant, Ambarella, European tech stocks
Fri, Feb. 5, 3:59 PM
- Add Red Hat (RHT -8.1%), Autodesk (ADSK -6.9%), and Teradata (TDC -8%) to the list of enterprise tech firms nosediving following weak Q1/2016 guidance from business intelligence/data visualization software firm Tableau and professional social networking/online jobs leader LinkedIn. The Nasdaq is down 3.4%, and the S&P 2%, in the wake of this morning's jobs report.
- Other big decliners include Varonis (VRNS -13.4%), Gigamon (GIMO -9.7%), Pegasystems (PEGA -10.3%), SGI (SGI -7.5%), LogMeIn (LOGM -8.6%), inContact (SAAS -10.8%), Attunity (ATTU -14.4%), Textura (TXTR -6.8%), and Tableau rival MicroStrategy (MSTR -6.6%). A slew of other enterprise names were previously covered here - the group includes many cloud software and security tech firms.
- Teradata is just a day removed from rallying in the wake of a Q4 sales beat and healthy 2016 guidance.
Tue, Feb. 2, 11:30 AM
- Contact center specialist inContact (SAAS +2.3%) has named Randy Littleson its chief marketing officer.
- Littleson has held executive roles with firms including Kinaxis, Interface Software, InstallShield Software, and Spyglass. Most recently he was with Flexera Software, responsible for marketing, product management and corporate development.
- At inContact, he'll cover direction, strategy and overall management of the firm's marketing efforts.
- The company recently approved raises for its key C-suite executives.
- Previously: InContact signs off on raises for key execs (Jan. 26 2016)
Tue, Jan. 26, 6:21 PM
- InContact (NASDAQ:SAAS) says its compensation committee has approved raises for its executives.
- CEO Paul Jarman will receive base pay of $375K, with a performance-based bonus of $225K; CFO Gregory Ayers is set to receive $315K, with a bonus of $130K; CTO Julian Critchfield is set for a base of $325K, with a bonus of $130K; and William Robinson, executive VP of sales, is set for base pay of $280K.
- IN addition, the execs received stock options at an exercise price of $8.36 (125,649 for Jarman, 69,107 each for Ayers and Robinson, and 62,824 for Critchfield) and restricted stock units at a grant date price of $8.36 (59,809 for Jarman, 32,895 each for Ayers and Robinson, and 29,904 for Critchfield).
- Shares closed tdoay up 0.2% to $8.44.
- Meanwhile, a 13G filing today shows that BlackRock has taken an 8.5% stake in the company.
Dec. 7, 2015, 10:29 AM
- InContact (NASDAQ:SAAS) is bucking a down market this morning, +0.4%, as Summit Research launches coverage at Buy.
- Analyst Jonathan Kees has set a price target of $12; shares closed yesterday at $9.70 and are currently at $9.74, implying 23% upside.
- "Though it may be considered a speculative investment, SAAS is a market leader in the high growth contact-center-as-a-service cloud market and should continue to exhibit above market growth due to share gains, strong partnerships, increased deal wins, strong integration with third-party applications, and technology leads," he writes.
- "Our concerns revolve around possible disruptions towards profitability and cash generation, increasing sales costs, and greater competition."
Oct. 30, 2015, 12:45 PM
Oct. 29, 2015, 5:17 PM
- InContact (SAAS -2.4%) has jumped 20.2% in postmarket action after its Q3 report showed beats on top and bottom lines and boosted full-year guidance.
- Software revenues were a strength and margins grew substantially as well: Operating margin improved by 50% and gross margin overall rose to 52% from 47%. Software gross margin rose to 60% vs. a year-ago 54%.
- The company posted a net loss of $5.7M, narrower than the previous year's loss of $6.7M. EBITDA of $4M quadrupled from last year and beat an expected $2.9M.
- Revenue by segment: Software, $36.7M (up 39.7%); Network connectivity, $19.4M (up 8.2%).
- For full 2016, the company is guiding to total revenues of $254M-$262M (above a consensus of $250M) and software revenues of $175M-$182M.
Oct. 29, 2015, 4:37 PM
- inContact (NASDAQ:SAAS): Q3 EPS of -$0.09 beats by $0.02.
- Revenue of $56.08M (+26.9% Y/Y) beats by $1.62M.
inContact, Inc. operates as a reseller of network connectivity services, which provides cloud contact center software solutions. It helps contact centers around the world create effective customer experiences through powerful portfolio of cloud contact center call routing, self-service and agent... More
Industry: Application Software
Country: United States
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