Nice quarter from Nice Systems

Nice Systems Ltd. (Nasdaq: NICE) pleasantly surprised Wall Street Wednesday with first quarter earnings of 44 cents a share. First Call Corp. consensus was 42 cents a share.

Shares of provider of digital recording and quality management software closed at 64 7/8 Tuesday, having fallen below their 52-week high of 100. The stock started a steep ascent in November after the company topped estimates in its third quarter.

Revenue rose 42 percent to $37.5 million compared with $26.5 million for the first quarter of 1999. Net income increased by almost 100 percent to $6 million compared with $3.1 million for the same quarter of last year.

Diluted earnings were up 63 percent to 44 cents a share, compared with 27 cents a share for the first quarter of 1999. Basic earnings were 51 cents a share, compared with 28 cents a share for the first quarter of 1999.

The company said increased demand for products across all market segments, particularly from the financial trading sector and the air traffic control business have contributed to growth.

Nice's competitors include Comverse Technology (Nasdaq: CMVT).