Post Earnings Coverage as Verint Systems Reported Mixed Results

LONDON, UK / ACCESSWIRE / September 12, 2016 / Active Wall St. announces its post-earnings coverage on Verint Systems Inc. (NASDAQ: VRNT). The company reported its second quarter fiscal 2016 numbers on September 07th, 2016. The Enterprise Intelligence solutions provider reported mixed results as its Enterprise segment grew 6%, while Cyber Intelligence sales declined. Register with us now for your free membership at: http://www.activewallst.com/register/.

Today, AWS is promoting its earnings coverage on VRNT. Get our free coverage by signing up to: http://www.activewallst.com/registration-3/?symbol=VRNT.

Earnings Reviewed

For Q2 FY16, Verint reported revenue of $261.9 million and $0.19 of diluted net loss per share compared to revenue of $295.82 million and $0.11 of diluted net loss per share in the year ago period. On a non-GAAP basis, the company delivered $264.2 million of revenue and $0.57 of diluted net income per share. The company’s earnings result met analysts’ expectation of earnings of 0.57 per share; however revenue was below forecast of $265.5 million.

“We are pleased with our second quarter results and the progress we made in the first half of the year and believe we are well positioned for long-term growth in both the enterprise and security markets,” said Dan Bodner, Verint’s CEO and President.

Segment Results

During Q2 FY16, Verint’s Enterprise segment posted $169 million of non-GAAP revenue, representing approximately 6% y-o-y non-GAAP revenue growth. The company noted that it has grown its cloud customer-base to over 1,000 active cloud deployments, and is well positioned for the ongoing market transition to the cloud.

For its Cyber Intelligence unit, the company reported revenue of $74.37 million, down from revenue of $107.00 million reported in the year ago period. The company is optimistic on the cyber intelligence market as crime, cyber attacks, and terror threats continue around the world, and governments continue to face new technological challenges requiring sophisticated solutions.

For its Video Intelligence division, the company reported revenue of $23 million, down from $30 million in the year ago quarter.

On a geographical basis, Verint generated Q2 FY16 non-GAAP revenue of $139 million in the Americas, $82 million in EMEA, and $43 million in APAC. This compares to $151 million in the Americas, $100 million in EMEA, and $46 million in APAC in Q2 FY15.

Earnings Metrics

During Q2 FY16, Verint’s non-GAAP gross margins were 65.6%. Additionally, the company generated non-GAAP operating income of $48.4 million, with an operating margin of 18.3% during the reported quarter.

Cash Flow & Balance Sheet

As of July 31, 2016, Verint had $376 million of cash and short-term investments, including restricted cash. Cash flow from operations on a GAAP basis for the first half came in at $69 million compared to $66 million last year. The company ended the reported quarter with net debt of $436 million, excluding discounts and issuance costs primarily associated with its convertible debt.

Outlook

For the fiscal year ending January 31, 2017, Verint is forecasting revenue to be in the range of $1.11 billion +/- 2.0%. The company is projecting diluted earnings to be $2.85 per share at the mid-point of its revenue guidance.

Stock Performance

Verint Systems’ stock closed the trading session at $37.50, falling 1.57% from its previous closing price of $38.10, last Friday. A total volume of 680.66 thousand shares have exchanged hands, which was higher than the 3-month average volume of 529.40 thousand shares. Verint Systems’ stock price advanced 3.19% in the last month, 2.74% in the past three months, and 5.34% in the previous six months.

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SOURCE: Active Wall Street

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