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Post Earnings Coverage as Verint Quarterly Revenue Increased 5%

Upcoming AWS Coverage on Aspen Technology

LONDON, UK / ACCESSWIRE / April 10, 2017 / Active Wall St. announces its post-earnings coverage on Verint Systems Inc. (NASDAQ: VRNT). The Company posted its fourth quarter and fiscal 2017 financial results on March 28, 2017. The maker of software for analyzing intercepted communications surpassed top- and bottom-line expectations. Register with us now for your free membership at:


One of Verint Systems' competitors within the Business Software & Services space, Aspen Technology, Inc. (NASDAQ: AZPN), is estimated to report earnings on April 27, 2017. AWS will be initiating a research report on Aspen Technology following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on VRNT; touching on AZPN. Get our free coverage by signing up to:


Earnings Reviewed

For the three months ended January 31, 2017, Verint generated $300 million of non-GAAP revenue, or $302 million on a constant currency basis, compared to $282 million of non-GAAP revenue in the year ago same quarter. The Company's revenue numbers exceeded analysts' consensus of $294 million. For the full year, Verint generated $1.07 billion of non-GAAP revenue, or $1.08 billion on a constant currency basis, compared to $1.14 billion of non-GAAP revenue in the prior year.

For Q4 FY17, Verint's segment revenues were $191 million in Customer Engagement, or $193 million on a constant currency basis, and $109 million in Cyber Intelligence compared to $180 million in Customer Engagement and $102 million in Cyber Intelligence. For the full year, the Company's segment revenues were $716 million in Customer Engagement, or $726 million on a constant currency basis, and $357 million in Cyber Intelligence., with $698 million in Customer Engagement and $437 million in Cyber Intelligence.

On geographical basis, Verint generated non-GAAP revenue of $166 million in the Americas, $92 million in EMEA and $42 million in APAC, compared to $140 million in the Americas, $87 million in EMEA, and $55 million in APAC in the year ago same period. In terms of geography, the Company generated non-GAAP revenue of $582 million in the Americas, $323 million in EMEA and $168 million in APAC, compared to $583 million in the Americas, $353 million in EMEA, and $199 million in APAC in the prior year.

During the reported quarter, Verint generated non-GAAP operating income of $72.4 million with an operating margin of 24.2%. For the year, the Company's non-GAAP operating income was $205 million with an operating margin of 19.1%. On a fully allocated basis, Verint's Customer Engagement operating margins were in the low 20s, while its Cyber Intelligence operating margins were just above 10%.

Verint reported fiscal fourth-quarter earnings of $8.02 million, or $0.13 per share, compared to earnings of $17.5 million, or $0.28 per share. Earnings, adjusted for one-time gains and costs, came in at $0.90 per share. The results topped Wall Street's expectations for earnings of $0.86 per share.

Balance Sheet

As of January 31, 2017, Verint had $374 million of cash and short-term investments, including short-term and long-term restricted cash. Cash flow from operations on a GAAP basis in Q4 was $101 million, bringing cash from operations for the year to $172 million, up approximately 10% from $157 million last year.

During the fourth quarter, Verint repurchased an additional 306,000 shares. Year-to-date, the Company repurchased 1.3 million shares for $47 million, leaving it with approximately $100 million still authorized under its program.

Verint ended the quarter with net debt of $435 million, including long-term restricted cash and excluding discounts and issuance costs primarily associated with its convertible debt.


For FY18, Verint expect revenue of $1.14 billion with a range of plus or minus 2%. The Company is expecting non-GAAP diluted earnings per share at the midpoint of its revenue guidance to be approximately $2.70.

For revenue in Q1 FY18, Verint is forecasting mid-single-digit growth on a year-over-year basis, which is approximately $260 million.

Stock Performance

At the closing bell, on Friday, April 07, 2017, Verint Systems' stock slightly dropped 0.98%, ending the trading session at $40.45. A total volume of 924.53 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 445.75 thousand shares. In the last month and previous three months, shares of the Company have surged 5.34% and 10.82%, respectively. Moreover, the stock rallied 14.75% since the start of the year. The stock currently has a market cap of $2.55 billion.

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SOURCE: Active Wall Street