EX-99.1 2 exhibit_99-1.htm EXHIBIT 99.1

Exhibit 99.1

NICE Reports 23% Year-Over-Year Cloud Revenue Growth in Second Quarter 2023


Double Digit Growth in Revenue, Operating Income and EPS

Company Raises Full Year 2023 Guidance for Revenue and EPS

Hoboken, New Jersey, August 17, 2023 - NICE (NASDAQ: NICE) today announced results for the second quarter ended June 30, 2023, as compared to the corresponding period of the previous year.

Second Quarter 2023 Financial Highlights

GAAP
Non-GAAP
Total revenue was $581.1 million and increased 10%
Total revenue was $581.1 million and increased 10%
Cloud revenue was $381.9 million and increased 23%
Cloud revenue was $381.9 million and increased 23%
Cloud gross margin was 64.7% compared to 63.6% last year
Cloud gross margin was 70.3% compared to 70.1% last year
Operating income was $105.4 million and increased 24%
Operating income was $169.6 million and increased 10%
Operating margin was 18.1% compared to 16.0% last year
Operating margin was 29.2% compared to 29.0% last year
Diluted EPS was $1.31 and increased 33%
Diluted EPS was $2.13 and increased 15%
Operating cash flow was $65.3 million
 

“Our second quarter results were marked by a strong financial performance across the board with 10% total revenue growth driven by a 23% increase in cloud revenue. Additionally, our industry-leading profitability continued unabated with further expansion in our cloud gross margin along with double-digit growth in operating income and earnings per share,” said Barak Eilam, CEO of NICE.

Mr. Eilam continued, “The market is characterized by a fast-moving transition to the cloud by large enterprises coupled with strong demand to incorporate AI into their customer service organizations. NICE is well positioned to leverage these dynamics as we have been smartly investing over the past several years in both the cloud and AI to deliver the industry-leading, AI powered cloud platform in CXone. Supported by a robust capital structure and industry-best profitability, our investments continue to deliver results highlighted by 70% growth in digital bookings and a record bookings quarter for Enlighten, our AI foundation, that underlies the entire CXone platform.”


GAAP Financial Highlights for the Second Quarter Ended June 30:

Revenues: Second quarter 2023 total revenues increased 10% to $581.1 million compared to $530.6 million for the second quarter of 2022.

Gross Profit: Second quarter 2023 gross profit was $391.4 million compared to $365.7 million for the second quarter of 2022. Second quarter 2023 gross margin was 67.4% compared to 68.9% for the second quarter of 2022.

Operating Income: Second quarter 2023 operating income increased 24% to $105.4 million compared to $84.7 million for the second quarter of 2022. Second quarter 2023 operating margin was 18.1% compared to 16.0% for the second quarter of 2022.

Net Income: Second quarter 2023 net income increased 33% to $87.4 million compared to $65.6 million for the second quarter of 2022. Second quarter 2023 net income margin was 15.0% compared to 12.4% for the second quarter of 2022.

Fully Diluted Earnings Per Share: Fully diluted earnings per share for the second quarter of 2023 increased 33% to $1.31 compared to $0.99 in the second quarter of 2022.

Operating Cash Flow and Cash Balance: Second quarter 2023 operating cash flow was $65.3 million. In the second quarter 2023, $65.2 million was used for share repurchases. As of June 30, 2023, total cash and cash equivalents, and short-term investments were $1,662.4 million. Our debt, net of a hedge instrument, was $543.1 million, resulting in net cash and investments of $1,119.3 million.
 
Non-GAAP Financial Highlights for the Second Quarter Ended June 30:
 
Revenues: Second quarter 2023 total revenues increased 10% to $581.1 million compared to $530.6 million for the second quarter of 2022.

Gross Profit: Second quarter 2023 Non-GAAP gross profit increased to $416.3 million compared to $388.9 million for the second quarter of 2022. Second quarter 2023 Non-GAAP gross margin was 71.6% compared to 73.3% for the second quarter of 2022.

Operating Income: Second quarter 2023 Non-GAAP operating income increased 10% to $169.6 million compared to $154.0 million for the second quarter of 2022. Second quarter 2023 Non-GAAP operating margin was 29.2% compared to 29.0% for the second quarter of 2022.

Net Income: Second quarter 2023 Non-GAAP net income increased 15% to $141.5 million compared to $123.2 million for the second quarter of 2022. Second quarter 2023 Non-GAAP net income margin totaled 24.4% compared to 23.2% for the second quarter of 2022.

Fully Diluted Earnings Per Share: Second quarter 2023 Non-GAAP fully diluted earnings per share increased 15% to $2.13 compared to $1.86 for the second quarter of 2022.

Third Quarter and Full Year 2023 Guidance:
 
Third Quarter 2023:
Third quarter 2023 Non-GAAP total revenues are expected to be in a range of $590 million to $600 million, representing 7% growth year over year at the midpoint.

Third quarter 2023 Non-GAAP fully diluted earnings per share are expected to be in a range of $2.10 to $2.20, representing 12% growth year over year at the midpoint.

Raising Full Year 2023 Guidance:
The Company increased full-year 2023 Non-GAAP total revenues to an expected range of $2,353 million to $2,373 million, representing 8% growth at the midpoint compared to full year 2022.

The Company increased full-year 2023 Non-GAAP fully diluted earnings per share to an expected range of $8.40 to $8.60, representing 12% growth at the midpoint compared to full year 2022.



Quarterly Results Conference Call

NICE management will host its earnings conference call today August 17, 2023, at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and the company's outlook. To participate in the call, please dial into the following numbers: United States 1-877-407-4018 or +1-201-689-8471, United Kingdom 0-800-756-3429, Israel 1-809-406-247.

The call will be webcast live on the Company’s website at https://www.nice.com/investor-relations/upcoming-event.

Explanation of Non-GAAP measures
Non-GAAP financial measures are included in this press release. Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude share-based compensation, amortization of acquired intangible assets, acquisition related expenses, amortization of discount on debt and loss from extinguishment of debt and the tax effect of the Non-GAAP adjustments.

The Company believes that these Non-GAAP financial measures, used in conjunction with the corresponding GAAP measures, provide investors with useful supplemental information about the financial performance of our business. We believe Non-GAAP financial measures are useful to investors as a measure of the ongoing performance of our business. Our management regularly uses our supplemental Non-GAAP financial measures internally to understand, manage and evaluate our business and to make financial, strategic and operating decisions. These Non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Our Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. These Non-GAAP financial measures may differ materially from the Non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and Non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income. The Company provides guidance only on a Non-GAAP basis. A reconciliation of guidance from a GAAP to Non-GAAP basis is not available due to the unpredictability and uncertainty associated with future events that would be reported in GAAP results and would require adjustments between GAAP and Non-GAAP financial measures, including the impact of future possible business acquisitions. Accordingly, a reconciliation of the guidance based on Non-GAAP financial measures to corresponding GAAP financial measures for future periods is not available without unreasonable effort.

About NICE
NICE (Nasdaq: NICE) is the worldwide leading provider of both cloud and on-premises enterprise software solutions that empower organizations to make smarter decisions based on advanced analytics of structured and unstructured data. NICE helps organizations of all sizes deliver better customer service, ensure compliance, combat fraud and safeguard citizens. Over 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions. www.nice.com.

Investor Relations Contact
Marty Cohen, +1 551 256 5354, ir@nice.com, ET
Omri Arens, +972 3 763-0127, ir@nice.com, CET

Media Contact
Chris Irwin-Dudek, +1 (551) 256-5140, Chris.Irwin-Dudek@nice.com          

Trademark Note: NICE and the NICE logo are trademarks or registered trademarks of NICE. All other marks are trademarks of their respective owners. For a full list of NICE' marks, please see: http://www.nice.com/nice-trademarks.



Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as “believe,” “expect,” “seek,” “may,” “will,” “intend,” “should,” “project,” “anticipate,” “plan,” and similar expressions. Forward-looking statements are based on the current beliefs, expectations and assumptions of the Company’s management regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Examples of forward-looking statements include guidance regarding the Company’s revenue and earnings and the growth of our cloud, analytics and artificial intelligence business.
 
Forward looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance, and investors should not place undue reliance on them. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements.  These factors, include, but are not limited to, risks associated with changes in economic and business conditions, competition, successful execution of the Company’s growth strategy, success and growth of the Company’s cloud Software-as-a-Service business, difficulties in making additional acquisitions or effectively integrating acquired operations, products, technologies and personnel, the Company’s dependency on third-party cloud computing platform providers, hosting facilities and service partners, rapidly changing technology, cyber security attacks or other security breaches against the Company, privacy concerns and legislation impacting the Company’s business, changes in currency exchange rates and interest rates, the effects of additional tax liabilities resulting from our global operations, the effect of unexpected events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business and the global economy and various other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”).
 
You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and our other filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance. The forward-looking statements contained in this press release speak only as of the date hereof, and the Company undertakes no obligation to update or revise them, whether as a result of new information, future developments or otherwise, except as required by law.
 



NICE LTD. AND SUBSIDIARIES
       
CONDENSED CONSOLIDATED BALANCE SHEETS
       
U.S. dollars in thousands
       

   
June 30,
   
December 31,
 
   
2023
   
2022
 
   
Unaudited
   
Audited
 
             
ASSETS
           
             
CURRENT ASSETS:
           
Cash and cash equivalents
 
$
598,079
   
$
529,596
 
Short-term investments
   
1,064,304
     
1,041,943
 
Trade receivables
   
513,881
     
518,517
 
Debt hedge option
   
133,517
     
122,323
 
Prepaid expenses and other current assets
   
204,080
     
204,754
 
                 
Total current assets
   
2,513,861
     
2,417,133
 
                 
LONG-TERM ASSETS:
               
Property and equipment, net
   
171,203
     
159,285
 
Deferred tax assets
   
132,264
     
116,889
 
Other intangible assets, net
   
162,044
     
209,605
 
Operating lease right-of-use assets
   
100,022
     
102,893
 
Goodwill
   
1,623,549
     
1,617,118
 
Prepaid expenses and other long-term assets
   
226,395
     
231,496
 
                 
Total long-term assets
   
2,415,477
     
2,437,286
 
                 
TOTAL ASSETS
 
$
4,929,338
   
$
4,854,419
 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
CURRENT LIABILITIES:
               
Trade payables
 
$
45,269
   
$
56,019
 
Deferred revenues and advances from customers
   
361,764
     
338,930
 
Current maturities of operating leases
   
12,911
     
13,525
 
Debt
   
220,427
     
209,292
 
Accrued expenses and other liabilities
   
446,299
     
523,451
 
                 
Total current liabilities
   
1,086,670
     
1,141,217
 
                 
LONG-TERM LIABILITIES:
               
Deferred revenues and advances from customers
   
50,946
     
57,211
 
Operating leases
   
95,100
     
99,262
 
Deferred tax liabilities
   
6,709
     
7,336
 
Debt
   
456,223
     
455,382
 
Other long-term liabilities
   
38,888
     
38,588
 
                 
Total long-term liabilities
   
647,866
     
657,779
 
                 
SHAREHOLDERS' EQUITY
               
Nice Ltd's equity
   
3,182,461
     
3,042,085
 
Non-controlling interests
   
12,341
     
13,338
 
                 
Total shareholders' equity
   
3,194,802
     
3,055,423
 
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
 
$
4,929,338
   
$
4,854,419
 



NICE LTD. AND SUBSIDIARIES
           
CONSOLIDATED STATEMENTS OF INCOME
           
U.S. dollars in thousands (except per share amounts)
           

   
Quarter ended
   
Year to date
 
   
June 30,
   
June 30,
 
   
2023
   
2022
   
2023
   
2022
 
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
                         
Revenue:
                       
Cloud
 
$
381,948
   
$
311,394
   
$
749,515
   
$
605,986
 
Services
   
158,945
     
166,733
     
318,802
     
323,707
 
Product
   
40,220
     
52,454
     
84,655
     
128,317
 
Total revenue
   
581,113
     
530,581
     
1,152,972
     
1,058,010
 
                                 
Cost of revenue:
                               
Cloud
   
134,984
     
113,441
     
266,580
     
226,790
 
Services
   
47,019
     
44,994
     
94,924
     
91,902
 
Product
   
7,710
     
6,489
     
14,805
     
13,234
 
Total cost of revenue
   
189,713
     
164,924
     
376,309
     
331,926
 
                                 
Gross profit
   
391,400
     
365,657
     
776,663
     
726,084
 
                                 
Operating expenses:
                               
Research and development, net
   
78,640
     
73,482
     
156,741
     
150,060
 
Selling and marketing
   
151,964
     
150,410
     
300,443
     
303,028
 
General and administrative
   
55,367
     
57,075
     
120,543
     
115,942
 
Total operating expenses
   
285,971
     
280,967
     
577,727
     
569,030
 
                                 
Operating income
   
105,429
     
84,690
     
198,936
     
157,054
 
                                 
Financial and other expense/(income), net
   
(9,350
)
   
50
     
(18,071
)
   
(436
)
                                 
Income before tax
   
114,779
     
84,640
     
217,007
     
157,490
 
Taxes on income
   
27,424
     
19,068
     
52,711
     
33,977
 
Net income
 
$
87,355
   
$
65,572
   
$
164,296
   
$
123,513
 
                                 
Earnings per share:
                               
Basic
 
$
1.37
   
$
1.03
   
$
2.57
   
$
1.94
 
Diluted
 
$
1.31
   
$
0.99
   
$
2.47
   
$
1.86
 
                                 
Weighted average shares outstanding:
                               
Basic
   
63,723
     
63,806
     
63,831
     
63,775
 
Diluted
   
66,435
     
66,274
     
66,548
     
66,563
 



NICE LTD. AND SUBSIDIARIES
             
CONSOLIDATED CASH FLOW STATEMENTS
             
U.S. dollars in thousands
             

   
Quarter ended
   
Year to date
 
   
June 30,
   
June 30,
 
   
2023
   
2022
   
2023
   
2022
 
   
Unaudited
   
Unaudited
   
Unaudited
   
Unaudited
 
Operating Activities
                       
Net income
 
$
87,355
   
$
65,572
   
$
164,296
   
$
123,513
 
Adjustments to reconcile net income to net cash provided by operating activities:
                 
Depreciation and amortization
   
42,033
     
42,202
     
83,879
     
86,483
 
Share-based compensation
   
39,314
     
43,109
     
84,275
     
91,293
 
Amortization of premium and discount and accrued interest on marketable securities
   
(224
)
   
1,254
     
1,046
     
5,072
 
Deferred taxes, net
   
(8,994
)
   
(10,248
)
   
(16,872
)
   
(12,044
)
Changes in operating assets and liabilities:
                               
Trade Receivables, net
   
(8,665
)
   
(49,596
)
   
8,087
     
(70,855
)
Prepaid expenses and other current assets
   
(10,674
)
   
(11,479
)
   
(22,046
)
   
(40,410
)
Operating lease right-of-use assets
   
2,435
     
3,941
     
5,503
     
7,883
 
Trade payables
   
(9,668
)
   
15,354
     
(10,848
)
   
24,432
 
Accrued expenses and other current liabilities
   
(48,832
)
   
(63,560
)
   
(49,526
)
   
(34,331
)
Deferred revenue
   
(18,424
)
   
(15,718
)
   
14,823
     
36,631
 
Operating lease liabilities
   
(3,494
)
   
(6,997
)
   
(7,401
)
   
(11,994
)
Amortization of discount on long-term debt
   
1,129
     
1,151
     
2,283
     
2,288
 
Loss from extinguishment of debt
   
37
     
113
     
37
     
1,205
 
Other
   
1,926
     
933
     
2,789
     
(424
)
  Net cash provided by operating activities
   
65,254
     
16,031
     
260,325
     
208,742
 
                                 
Investing Activities
                               
Purchase of property and equipment
   
(4,513
)
   
(5,301
)
   
(17,619
)
   
(14,885
)
Purchase of Investments
   
(121,817
)
   
(123,536
)
   
(191,359
)
   
(221,802
)
Proceeds from Investments
   
107,653
     
79,924
     
172,552
     
181,590
 
Capitalization of internal use software costs
   
(14,491
)
   
(13,073
)
   
(28,627
)
   
(23,744
)
Other
   
-
     
276
     
-
     
276
 
  Net cash used in investing activities
   
(33,168
)
   
(61,710
)
   
(65,053
)
   
(78,565
)
                                 
Financing Activities
                               
Proceeds from issuance of shares upon exercise of options
   
765
     
198
     
1,724
     
273
 
Purchase of treasury shares
   
(65,196
)
   
(34,070
)
   
(129,911
)
   
(97,912
)
Dividends paid to noncontrolling interest
   
-
     
(376
)
   
(1,480
)
   
(376
)
Repayment of debt
   
(1,534
)
   
(2,017
)
   
(1,534
)
   
(20,110
)
 Net cash used in financing activities
   
(65,965
)
   
(36,265
)
   
(131,201
)
   
(118,125
)
                                 
Effect of exchange rates on cash and cash equivalents
   
546
     
(5,702
)
   
1,713
     
(6,639
)
                                 
Net change in cash, cash equivalents and restricted cash
   
(33,333
)
   
(87,646
)
   
65,784
     
5,413
 
Cash, cash equivalents and restricted cash, beginning of period
 
$
632,212
   
$
471,715
   
$
533,095
   
$
378,656
 
                                 
Cash, cash equivalents and restricted cash, end of period
 
$
598,879
   
$
384,069
   
$
598,879
   
$
384,069
 
                                 
Reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet:
         
Cash and cash equivalents
 
$
598,079
   
$
382,219
   
$
598,079
   
$
382,219
 
Restricted cash included in other current assets
 
$
800
   
$
1,850
   
$
800
   
$
1,850
 
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
 
$
598,879
   
$
384,069
   
$
598,879
   
$
384,069
 



NICE LTD. AND SUBSIDIARIES

       
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
         
U.S. dollars in thousands (except per share amounts)
         

   
Quarter ended
   
Year to date
 
   
June 30,
   
June 30,
 
   
2023
   
2022
   
2023
   
2022
 
GAAP revenues
 
$
581,113
   
$
530,581
   
$
1,152,972
   
$
1,058,010
 
Non-GAAP revenues
 
$
581,113
   
$
530,581
   
$
1,152,972
   
$
1,058,010
 
                                 
GAAP cost of revenue
 
$
189,713
   
$
164,924
   
$
376,309
   
$
331,926
 
Amortization of acquired intangible assets on cost of cloud
   
(19,396
)
   
(18,623
)
   
(38,765
)
   
(37,287
)
Amortization of acquired intangible assets on cost of services
   
-
     
-
     
-
     
(377
)
Amortization of acquired intangible assets on cost of product
   
(257
)
   
(258
)
   
(506
)
   
(534
)
Valuation adjustment on acquired deferred cost of cloud
   
-
     
13
     
-
     
28
 
Cost of cloud revenue adjustment (1)
   
(2,253
)
   
(1,741
)
   
(4,200
)
   
(4,070
)
Cost of services revenue adjustment (1)
   
(2,864
)
   
(2,519
)
   
(5,748
)
   
(5,486
)
Cost of product revenue adjustment (1)
   
(140
)
   
(134
)
   
(278
)
   
(266
)
Non-GAAP cost of revenue
 
$
164,803
   
$
141,662
   
$
326,812
   
$
283,934
 
                                 
GAAP gross profit
 
$
391,400
   
$
365,657
   
$
776,663
   
$
726,084
 
Gross profit adjustments
   
24,910
     
23,262
     
49,497
     
47,992
 
Non-GAAP gross profit
 
$
416,310
   
$
388,919
   
$
826,160
   
$
774,076
 
                                 
GAAP operating expenses
 
$
285,971
   
$
280,967
   
$
577,727
   
$
569,030
 
Research and development (1)
   
(7,783
)
   
(7,886
)
   
(16,181
)
   
(16,401
)
Sales and marketing (1)
   
(13,055
)
   
(13,129
)
   
(24,157
)
   
(29,398
)
General and administrative (1)
   
(14,059
)
   
(18,086
)
   
(35,355
)
   
(36,486
)
Amortization of acquired intangible assets
   
(4,428
)
   
(6,963
)
   
(8,943
)
   
(15,774
)
Valuation adjustment on acquired deferred commission
   
36
     
52
     
76
     
105
 
Non-GAAP operating expenses
 
$
246,682
   
$
234,955
   
$
493,167
   
$
471,076
 
                                 
GAAP financial and other income, net
 
$
(9,350
)
 
$
50
   
$
(18,071
)
 
$
(436
)
Amortization of discount and loss of extinguishment on debt
   
(1,166
)
   
(1,264
)
   
(2,320
)
   
(3,493
)
Change in fair value of contingent consideration
   
(578
)
   
-
     
(578
)
   
-
 
Non-GAAP financial and other income, net
   
(11,094
)
   
(1,214
)
   
(20,969
)
   
(3,929
)
                                 
GAAP taxes on income
 
$
27,424
   
$
19,068
   
$
52,711
   
$
33,977
 
Tax adjustments re non-GAAP adjustments
   
11,793
     
12,911
     
24,101
     
29,262
 
Non-GAAP taxes on income
 
$
39,217
   
$
31,979
   
$
76,812
   
$
63,239
 
                                 
GAAP net income
 
$
87,355
   
$
65,572
   
$
164,296
   
$
123,513
 
Valuation adjustment on acquired deferred cost of cloud revenue
   
-
     
(13
)
   
-
     
(28
)
Amortization of acquired intangible assets
   
24,081
     
25,844
     
48,214
     
53,972
 
Valuation adjustment on acquired deferred commission
   
(36
)
   
(52
)
   
(76
)
   
(105
)
Share-based compensation (1)
   
40,154
     
43,495
     
85,919
     
92,109
 
Amortization of discount and loss of extinguishment on debt
   
1,166
     
1,264
     
2,320
     
3,493
 
Change in fair value of contingent consideration
   
578
     
-
     
578
     
-
 
Tax adjustments re non-GAAP adjustments
   
(11,793
)
   
(12,911
)
   
(24,101
)
   
(29,262
)
Non-GAAP net income
 
$
141,505
   
$
123,199
   
$
277,150
   
$
243,692
 
                                 
GAAP diluted earnings per share
 
$
1.31
   
$
0.99
   
$
2.47
   
$
1.86
 
                                 
Non-GAAP diluted earnings per share
 
$
2.13
   
$
1.86
   
$
4.16
   
$
3.66
 
                                 
Shares used in computing GAAP diluted earnings per share
   
66,435
     
66,274
     
66,548
     
66,563
 
                                 
Shares used in computing non-GAAP diluted earnings per share
   
66,435
     
66,274
     
66,548
     
66,563
 



NICE LTD. AND SUBSIDIARIES
           
RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)
         
U.S. dollars in thousands
           

(1)   Share-based Compensation

    
Quarter ended
   
Year to date
 
   
June 30,
   
June 30,
 
   
2023
   
2022
   
2023
   
2022
 
                         
Cost of cloud revenue
 
$
2,253
   
$
1,741
   
$
4,200
   
$
4,070
 
Cost of services revenue
   
2,864
     
2,519
     
5,748
     
5,486
 
Cost of product revenue
   
140
     
134
     
278
     
266
 
Research and development
   
7,783
     
7,886
     
16,181
     
16,401
 
Sales and marketing
   
13,055
     
13,129
     
24,157
     
29,398
 
General and administrative
   
14,059
     
18,086
     
35,355
     
36,486
 
    
$
40,154
   
$
43,495
   
$
85,919
   
$
92,107