Verint Systems Testing Multi-Year Highs by Topping Analysts in Q4

Andrew Klips |

Verint Systems Inc. (VRNT) saw shares push higher on its fourth-quarter financial report that sailed past analyst expectations as revenues grew and production costs dropped.

The Melville, New York-based software and surveillance equipment maker reported revenue for the quarter ended January 31, 2013 of $228.97 million, up 8 percent from $211.99 million in the year prior quarter. Fourth-quarter profits rose to $21.9 million, or 50 cents per share, from $13.4 million, 0r 34 cents per share a year earlier. Adjusted earnings, a non-GAAP measure which exclude one-time expenses, increased to 91 cents per share versus 75 cents per share in the fourth quarter the year prior.

Wall Street was expecting adjusted earnings of 75 cents per share on revenue of $$226.3 million.

Product expenses were lower by $7.6 million (21%), offsetting and increase in service and support costs for the quarter.



Saying he was “very pleased” with the quarterly results in a prepared statement, Dan Bodner, president and chief executive of Verint Systems, offered, “We believe we are well positioned for long-term growth in both the enterprise and security intelligence markets due to our broad product portfolio and strong competitive position.”

For the complete year, revenue equaled $839.54 million, up 7.3 percent from $782.65 million in the year ended January 31, 2012. GAAP-based profits increased to $38.53 million, or 96 cents per share, for the year, compared to $22.20 million, or 56 cents per share, the year earlier. Non-GAAP earnings swelled to $2.64 per share for the year.

For the current year, Verint sees revenue increasing 6 percent to 7 percent compared to the recently ended fiscal year. Based on revenue for the recent year, a 6.5 percent increase puts revenue at $894.11 million. EPS outlook was in the range of $2.70 to $2.80 per share, although it warned that seasonal trends in enterprise software will likely lead to a Q1 revenue and earnings being lower in Q1 compared to Q4.

Wall Street was expecting EPS of $2.78 on revenue of $905.01 million for the current year.

Shares of VRNT has closed Wednesday’s regular trading session down by 0.6% at $34.83, but leapt upward in Thursday following the financial report to end to as high as $37 (up over 6 percent). Shares made new 52-week highs earlier this month at $35.89, but if the increases hold in morning trading, the stock price will be staring down highs of $38.10 from January 2011.

Share value hasn’t breached that level since February of 2006.

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Companies

Symbol Name Price Change % Volume
DWI.WT:CA DragonWave Inc. Common share purchase warrants n/a n/a n/a 0
VRNT Verint Systems Inc. 42.55 -0.15 -0.35 491,280 Trade

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