Nice Rises to 2007 High as Web Attacks Aid Sales: Tel Aviv Mover
Nice Systems Ltd. (NICE) headed for its highest close in more than four years after the Israeli maker of analytical telecommunications software reported “record” sales as demand for Internet security applications rose.
Shares of the Ra’anana, Israel-based company advanced 2.4 percent to 139.50 shekels at 2 p.m. in Tel Aviv, set for the strongest close since November 2007.
Companies from Sony Corp. to Citigroup Inc. have been targeted in web attacks in the past year, with about $37 billion lost to online fraud or theft in 2010, according to Javelin Strategy & Research. Sales of computer applications used to recover fraudulent payments will rise 9 percent annually through 2015, Interactive Data Corp (IDC). estimates show.
“Nice is strongly placed in the field of fraud detection and video surveillance activity,” Ori Licht, head of research at I.B.I.-Israel Brokerage & Investments Ltd., said by phone today.
Nice said fourth-quarter sales rose 15 percent to $214 million and net income fell to $15 million from $17 million a year earlier as operating expenses grew. The company forecast 2012 adjusted revenue to be in the range of $930 million and $950 million.
“We ended the fourth quarter with very strong bookings, a record backlog, and a healthy pipeline,” Zeevi Bregman, president and chief executive officer of Nice, said in a PR Newswire statement.
Nice spent a record amount on acquisitions last year, following the $150 million purchase of Merced Systems Inc., whose fraud-detection technology is used by companies including Coca-Cola Co. (KO), and Dell Inc. (DELL)
“They’re at the right place at the right time in terms of market dynamics,” Daniel Ives, an analyst at FBR Capital Markets & Co., said by telephone from New York yesterday. Demand from customers such as Citigroup and BT Group Plc (BT/A), the U.K.’s largest fixed-line phone company, will have supported Nice’s profit, he said.
Sony, the world’s second-largest maker of video-game machines, saw its worst hacker attacks in April, when intruders compromised more than 100 million customer accounts in the second-largest online data breach in U.S. history. Sony suspended those services until July and budgeted 14 billion yen ($178 million) in costs last year.
Citigroup said about 3,400 customers lost about $2.7 million when their credit-card information was accessed by computer hackers last year.
Increased demand for customer-service software from companies such as BT Group has also shored up Nice’s profit, according to Daniel Meron, an analyst at RBC Capital Markets in Tel Aviv, who rates the stock “outperform.”
“Nice continues to benefit from ongoing investments in customer interaction to improve service and contact-center efficiencies,” Meron wrote in an e-mailed report sent yesterday.
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