Nice Systems Opens Singapore Office to Spur Sales Growth in Asia
Stock Chart for NICE Systems Ltd (NICE)
Nice Systems Ltd. (NICE), a maker of digital surveillance and monitoring systems, opened its Asian headquarters in Singapore today to boost sales in its fastest growing region, Chief Executive Officer Zeevi Bregman said.
“Asia is our fastest growing region and we believe it can potentially be much larger,” Bregman said in an interview today, declining to provide specific targets. “Singapore provides good accessibility to the markets.”
Nice, which previously had its main Asian office in Hong Kong, moved to Singapore because of its strategic location between India and Australia, lower costs and a more diverse talent pool, Bregman said. Last week, the Ra’anana, Israel- based company reported higher profit and raised its earnings forecast, citing increased demand for its products in Asia.
On July 27, Nice said second-quarter net income rose 22 percent to $15.5 million from a year earlier. The company raised its 2011 outlook for adjusted earnings per share to a range of $2 to $2.08 from between $1.98 and $2.07 before.
On the second-quarter conference call, Bregman noted “remarkable growth” in the Asia Pacific, saying that expansion at the start of last year was paying off as the company’s products against financial crime become more relevant in the region. Overall results in the Asia Pacific are still small and “can be a bit lumpy going forward,” Bregman said at the time.
China’s Tianjin Metro bought Nice’s video security system in May and its technology was used to secure the Beijing Olympics. Overall, Asia Pacific accounted for 12 percent of the company sales of $196.7 million in the second quarter and about 11 percent of total 2010 sales.
Nice competitor Verint Systems Inc. (VRNT) is also seeing sales grow in China. On July 28, Verint said China CITIC Bank Corp. bought its workforce management system.
Nice dropped 1.2 percent to 11,880 shekels at 2:16 p.m. in Tel Aviv. The shares have jumped 8.1 percent in the past 12 months compared with a 5 percent gain for the benchmark TA-25 index. The shares trade at 16 times estimated 2011 earnings, compared with 11 times for the TA-25.
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