COMPANY PRESS RELEASE: NICE Systems a worldwide leader of multimedia digital recording solutions, applications and related professional services, has announced its fourth quarter financial results and audited results for the year ending December 31, 2001.
Revenue for the fourth quarter of 2001 rose 12% from the previous quarter to $37.7 million. Revenue for the fourth quarter of 2000 was $36.3 million.
Excluding the amortization of acquired intangibles and one-time expense, the fourth quarter loss was reduced to $668,000, or $0.05 per share, from a loss of $3.3 million or $0.26 per share in the third quarter of 2001. The comparable loss for the fourth quarter of 2000 was $11.6 million, or $0.92 per share.
On a GAAP basis, the Company reported a net loss, of $5.9 million, or $0.45 per share in the fourth quarter of 2001, compared with a net loss of $4.1 million, or $0.32 per share in the third quarter of 2001. The fourth quarter 2001 net loss included amortization of intangibles of $813,000 and a one-time expense of $4.4 million following the settlement of a dispute with Stevens Communications relating to certain post-closing adjustments in connection with its acquisition by NICE.
Cash and cash equivalents, including long term marketable securities, totaled $89.0 million at December 31, 2001. Receivables remained at about the Q3 level and inventory was further reduced to $11.1 million.
Commenting on the financial results, Haim Shani, President and CEO of NICE, said, We are proud of our performance in the fourth quarter. We were particularly pleased with the strong performance of our digital video business where revenues increased 45% sequentially to $5 million. CEM revenues were up 11% and we added over 100 new customers again this quarter. The latest report from Datamonitor confirms that we regained the leading market position in Q3 and we are focused on expanding our lead by continuing to gain market share.
We are reiterating our earlier guidance for 2002 of 20-30% year over year growth. For the remainder of 2002 and beyond, we have identified numerous promising new product opportunities in the contact center market that will further leverage our market-leading total recording platform. Although the financial trading floor market was weak during 2001, we are planning several new products that will take advantage of the upgrade cycle that we expect to begin during 2002. Our second core business, digital video security, is expected to show very strong growth, driven by greater demand in the corporate security market and continued success in transportation security. Recently introduced products are expected to drive growth in the law enforcement and national security markets as well. In fact, we have already been awarded contracts for these new products. In addition to our internal development efforts, we expect to speed our time to market whenever possible by working closely with strategic partners offering complementary products. Finally, our strong balance sheet and positive cash flow affords us the financial flexibility to pursue external growth opportunities as well.