NICE Systems 1Q profit falls on higher costs

Net income dropped 9.2 percent to $7.9 million or 13 cents per share from $8.7 million or 16 cents per share in the 2007 first quarter.

Excluding one-time costs and gains, the company made $22 million or 36 cents per share compared with $16.6 million or 31 cents per share in the 2007 quarter.

Sales rose 24.6 percent to $144.4 million, with product sales rising to $83.7 million from $73.2 million. Service sales increased to $60.8 million from $42.7 million.

While profit was down, adjusted earnings matched Wall Street estimates of 36 cents per share on sales of $144.3 million, according to Thomson Financial.

Operating expenses rose to $82.3 million from $61.5 million, including an increase in selling and marketing costs to $35.8 million from $27.4 million.

Israel-based NICE makes software and hardware that stores telephone conversations, personal computer screenshots and video communication to assess interactions with customers. It also provides voice recording and communications systems for government agencies.