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Nice Systems To Sell Physical Security Unit To Battery Ventures, Trims 2015 View

Nice Systems (NICE) agreed to sell its Physical Security business unit to technology investment firm Battery Ventures for a total consideration of up to $100 million, comprising of $85 million in cash and up to additional $15 million based on future performance.

Nice's Physical Security business unit provides video surveillance technologies and capabilities to security-aware organizations.

The transaction, subject to certain conditions and satisfaction of terms, is scheduled to close during the third quarter of 2015.

The divestiture will allow Nice to focus on its key markets and enterprise software business as part of the execution of its long-term strategic plan.

The company expects the divestiture to be non-dilutive to earnings in 2016.

Looking ahead to the third quarter, the company expects adjusted total revenues from continued operations to be in a range of $215 million to $225 million, down from the previous guidance range of $236 million to $246 million. It also projects adjusted earnings from continued operations in a range of $0.65 to $0.71 per share, down from the prior projection of $0.68 to $0.74 per share.

Analysts expect earnings of $0.72 per share on quarterly revenues of $242.62 million.

For fiscal 2015, the company trimmed adjusted earnings to a range of $2.97 to $3.08 per share from the previous guidance range of $3.04 to $3.15 per share. The company also projected adjusted revenues between $914 million and $934 million, down from the previous guidance between $985 million and $1.005 billion. Street is currently looking for full-year 2015 earnings of $3.09 per share on annual revenues of $996.57 million.

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