Technology company Verint Systems Inc. (Nasdaq: VRNT) published its financial statements, which matched the market's expectations, after the end of trading yesterday. Analysts covering the company regard this as a positive sign, after the company disappointed them more than once in previous quarters. Verint, managed by president and CEO Dan Bodner, supplies systems and services for business and security intelligence. The company's market cap is $2.2 billion, following a 28% decline in its share price over the past year.
In Verint's second financial quarter (ending on July 31), it posted $262 million in revenue, 11.5% less than in the corresponding quarter last year, and an $11.7 million net loss, 65.2% larger than in the corresponding quarter last year. Revenue in the civilian sector was up 3%, while revenue in the defense sector shrank 28.5%.
On a non-GAAP basis, excluding various accounting items, Verint posted $264 million in revenue in the second quarter, with a $35.7 million net profit, amounting to $0.57 per share. Verint expects to finish the year with $1.11 billion in revenue and a $28.50 profit per share, slightly below the analysts' forecasts.
"In cyber intelligence, we are pleased to report early signs of improvement in certain emerging market countries, including receiving several large contracts," Bodner stated, adding that the company had won a large government project with a potential in excess of $200 million.
Deutsche Bank wrote that Verint's performance had improved, but that the company still had to prove itself. Credit Suisse commented that the quarterly results were "OK," while JP Morgan said that the large contract had improved Verint's forward visibility.
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2016
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