Verint Systems Inc. (Nasdaq: VRNT) reported fourth quarter results last Thursday that missed analysts' estimates, and the company's share price responded with a sharp fall, although it corrected by 3% on Friday. The company has a market cap of $2.24 billion, after a 12.5% decline in its share price so far this year.
Verint, managed by Dan Bodner, provides business intelligence and security products. It posted a loss of $8.2 million in its third quarter (to the end of October), which compares with a profit of $7.6 million in the corresponding quarter of 2015. The loss per share was $0.13. On a non-GAAP basis, the company reported earnings per share of $0.59, which compares with an average analysts' estimate of $0.71.
Revenue continued to fall. The company reported third quarter revenue of $259 million, 8.8% down on the corresponding quarter. The analysts' estimate was $270 million.
For the nine months to the end of October, Verint reported revenue of $766 million, 10% on the corresponding period in 2015, and a switch to a loss, of $37 million, compared with a token profit of $133,000 in the corresponding period.
Verint's guidance, on a non-GAAP basis, is for revenue of $1.07 billion in the year to January 31, 2017, and earnings per share of $2.50.
Verint has regularly disappointed the market in the past few quarters. In May, it estimated that its annual revenue would be $1.13 billion, almost unchanged from the previous year, but the revenue guidance was lowered after a weak quarter.
"Verint is an actionable intelligence leader in two markets, Customer Engagement and Cyber Intelligence. In Customer Engagement, we continue to focus our strategy across four pillars: expanding our portfolio; delivering advanced analytics; offering deployment flexibility; and, growing our partner network. We are pleased with the progress we have made year-to-date on our strategy, and expect our Customer Engagement business to achieve mid-single digit non-GAAP revenue growth on a constant currency basis for the year, and similar growth next fiscal year," said Bodner, "In Cyber Intelligence, we are pleased with our strong recent order activity reflecting governments' need for sophisticated cyber intelligence solutions to address pressing security threats. We expect to finish the year with a strong fourth quarter and expect mid-to-high single digit revenue growth on a constant currency basis next year in Cyber Intelligence," he added.
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2016
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