Increases Outlook for the Year Ending January 31, 2019
Following Acquisition of Next IT, a Developer of Conversational
Artificial Intelligence Solutions
Verint® Systems Inc. (Nasdaq: VRNT) today announced that it has
acquired all of the outstanding equity interests in Next IT
Corporation and its affiliate Next IT Innovation Labs, LLC
(collectively, “Next IT”), a developer of conversational artificial
intelligence-powered intelligent virtual assistants. The purchase
price consisted of close to $30 million of cash paid at closing,
plus potential additional future cash payments.
“We continue to execute our innovation strategy, including
making acquisitions that expand our self-service portfolio,
accelerate Verint’s cloud and automation capabilities, and are
accretive to earnings. We believe that Verint’s ongoing innovation
in artificial intelligence technologies—such as machine learning,
robotics and natural language processing—positions us for
accelerated growth by helping organizations modernize their
customer engagement operations with greater automation,” says Dan
Bodner, CEO, Verint.
Updated Outlook for the Year Ending
January 31, 2019
Although this is a small acquisition for Verint, because we just
recently provided preliminary guidance for the year ending January
31, 2019, we are updating our outlook. For the year ending January
31, 2019, we are adding $10 million of revenue and 3 cents of
diluted earnings per share to our non-GAAP outlook as follows:
- We are increasing our outlook for
revenue growth in our Customer Engagement™ segment from around 5%
to around 6%.
- We are maintaining our outlook for
revenue growth in our Cyber Intelligence™ segment of around
10%.
- We are increasing our outlook for total
revenue from $1.215 billion to $1.225 billion with a range of +/-
2%.
- We are increasing our outlook for
diluted earnings per share at the midpoint of our revenue guidance
from $3.00 to $3.03, reflecting approximately 10% year-over-year
growth.
Our growth rate outlook is expressed relative to our existing
outlook for the year ending January 31, 2018.
Our preliminary non-GAAP outlook for the year ending January 31,
2019 excludes the following GAAP measure, which we are able to
quantify with reasonable certainty:
- Amortization of discount on convertible
notes of approximately $12 million.
Our preliminary non-GAAP outlook for the year ending January 31,
2019 excludes the following GAAP measures for which we are able to
provide a range of probable significance:
- Amortization of intangible assets is
expected to be between approximately $49 million and $53 million
for the year ending January 31, 2019.
- Revenue adjustments related to
completed acquisitions are expected to be between approximately $5
million and $9 million for the year ending January 31, 2019.
- Stock-based compensation is expected to
be between approximately $60 million and $70 million for the year
ending January 31, 2019, assuming market prices for our common
stock approximately consistent with current levels.
Our preliminary non-GAAP outlook does not include the potential
impact of any in-process business acquisitions that may close after
the date hereof, and, unless otherwise specified, reflects foreign
currency exchange rates approximately consistent with current
rates.
We are unable, without unreasonable efforts, to provide a
reconciliation for other GAAP measures which are excluded from our
preliminary non-GAAP outlook, including the impact of future
business acquisitions or acquisition expenses, future restructuring
expenses, and non-GAAP income tax adjustments due to the level of
unpredictability and uncertainty associated with these items. For
these same reasons, we are unable to assess the probable
significance of these excluded items.
About Verint Systems Inc.
Verint® (Nasdaq: VRNT) is a global leader in Actionable
Intelligence® solutions with a focus on customer engagement
optimization, security intelligence, and fraud, risk and
compliance. Today, over 10,000 organizations in more than 180
countries—including over 80 percent of the Fortune 100—count on
intelligence from Verint solutions to make more informed, effective
and timely decisions. Learn more about how we’re creating A Smarter
World with Actionable Intelligence® at www.verint.com.
Cautions About Forward-Looking Statements
This press release contains forward-looking statements,
including statements regarding expectations, predictions, views,
opportunities, plans, strategies, beliefs, and statements of
similar effect relating to Verint Systems Inc. These
forward-looking statements are not guarantees of future performance
and they are based on management's expectations that involve a
number of known and unknown risks, uncertainties, assumptions, and
other important factors, any of which could cause our actual
results or conditions to differ materially from those expressed in
or implied by the forward-looking statements. Some of the factors
that could cause our actual results or conditions to differ
materially from current expectations include, among others:
uncertainties regarding the impact of general economic conditions
in the United States and abroad, particularly in information
technology spending and government budgets, on our business; risks
associated with our ability to keep pace with technological
changes, evolving industry standards, and customer challenges, such
as the proliferation and strengthening of encryption, and the
transition of portions of the software market to the cloud, to
adapt to changing market potential from area to area within our
markets, and to successfully develop, launch, and drive demand for
new, innovative, high-quality products that meet or exceed customer
needs, while simultaneously preserving our legacy businesses and
migrating away from areas of commoditization; risks due to
aggressive competition in all of our markets, including with
respect to maintaining margins and sufficient levels of investment
in our business; risks created by the continued consolidation of
our competitors or the introduction of large competitors in our
markets with greater resources than we have; risks associated with
our ability to successfully compete for, consummate, and implement
mergers and acquisitions, including risks associated with
valuations, capital constraints, costs and expenses, maintaining
profitability levels, expansion into new areas, management
distraction, post-acquisition integration activities, and potential
asset impairments; risks relating to our ability to effectively and
efficiently enhance our existing operations and execute on our
growth strategy and profitability goals, including managing
investments in our business and operations, managing our cloud
transition and our revenue mix, and enhancing and securing our
internal and external operations; risks associated with our ability
to effectively and efficiently allocate limited financial and human
resources to business, developmental, strategic, or other
opportunities, and risk that such investments may not come to
fruition or produce satisfactory returns; risks that we may be
unable to establish and maintain relationships with key resellers,
partners, and systems integrators; risks associated with our
reliance on third-party suppliers, partners, or original equipment
manufacturers (“OEMs”) for certain components, products, or
services, including companies that may compete with us or work with
our competitors; risks associated with the mishandling or perceived
mishandling of sensitive or confidential information and with
security vulnerabilities or lapses, including information
technology system breaches, failures, or disruptions; risks that
our products or services, or those of third-party suppliers,
partners, or OEMs which we use in or with our offerings or
otherwise rely on, may contain defects or may be vulnerable to
cyber-attacks; risks associated with our significant international
operations, including, among others, in Israel, Europe, and Asia,
exposure to regions subject to political or economic instability,
fluctuations in foreign exchange rates, and challenges associated
with a significant portion of our cash being held overseas; risks
associated with a significant amount of our business coming from
domestic and foreign government customers, including the ability to
maintain security clearances for applicable projects and
reputational risks associated with our security solutions; risks
associated with complex and changing local and foreign regulatory
environments in the jurisdictions in which we operate, including,
among others, with respect to privacy, information security, trade
compliance, anti-corruption, and regulations related to our
security solutions; risks associated with our ability to retain and
recruit qualified personnel in regions in which we operate,
including in new markets and growth areas we may enter; challenges
associated with selling sophisticated solutions, including with
respect to educating our customers on the benefits of our solutions
or assisting them in realizing such benefits; challenges associated
with pursuing larger sales opportunities, including with respect to
longer sales cycles, transaction reductions, deferrals, or
cancellations during the sales cycle, risk of customer
concentration, our ability to accurately forecast when a sales
opportunity will convert to an order, or to forecast revenue and
expenses, and increased volatility of our operating results from
period to period; risks that our intellectual property rights may
not be adequate to protect our business or assets or that others
may make claims on our intellectual property or claim infringement
on their intellectual property rights; risks that our customers or
partners delay or cancel orders or are unable to honor contractual
commitments due to liquidity issues, challenges in their business,
or otherwise; risks that we may experience liquidity or working
capital issues and related risks that financing sources may be
unavailable to us on reasonable terms or at all; risks associated
with significant leverage resulting from our current debt position
or our ability to incur additional debt, including with respect to
liquidity considerations, covenant limitations and compliance,
fluctuations in interest rates, dilution considerations (with
respect to our convertible notes), and our ability to maintain our
credit ratings; risks arising as a result of contingent or other
obligations or liabilities assumed in our acquisition of our former
parent company, Comverse Technology, Inc. (“CTI”), or associated
with formerly being consolidated with, and part of a consolidated
tax group with, CTI, or as a result of CTI's former subsidiary,
Comverse, Inc. (now known as Mavenir, Inc.), being unwilling or
unable to provide us with certain indemnities to which we are
entitled; risks relating to the adequacy of our existing
infrastructure, systems, processes, policies, procedures, and
personnel and our ability to successfully implement and maintain
enhancements to the foregoing and adequate systems and internal
controls for our current and future operations and reporting needs,
including related risks of financial statement omissions,
misstatements, restatements, or filing delays; and risks associated
with changing accounting principles or standards, tax rates, tax
laws and regulations, and the continuing availability of expected
tax benefits. We assume no obligation to revise or update any
forward-looking statement, except as otherwise required by law. For
a detailed discussion of these risk factors, see our Annual Report
on Form 10-K for the fiscal year ended January 31, 2017, our
Quarterly Report on Form 10-Q for the quarter ended October 31,
2017, and other filings we make with the SEC.
VERINT, ACTIONABLE INTELLIGENCE, MAKE BIG DATA ACTIONABLE,
CUSTOMER-INSPIRED EXCELLENCE, INTELLIGENCE IN ACTION, IMPACT 360,
WITNESS, VERINT VERIFIED, KANA, LAGAN, VOVICI, GMT, VICTRIO,
AUDIOLOG, CONTACT SOLUTIONS, OPINIONLAB, ADTECH, VERBA, CUSTOMER
ENGAGEMENT SOLUTIONS, CYBER INTELLIGENCE SOLUTIONS, VOICE OF THE
CUSTOMER ANALYTICS, NEXTIVA, EDGEVR, RELIANT, VANTAGE, STAR-GATE,
ENGAGE, CYBERVISION, FOCALINFO, SUNTECH, and VIGIA are trademarks
or registered trademarks of Verint Systems Inc. or its
subsidiaries. Other trademarks mentioned are the property of their
respective owners.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171219006309/en/
Verint Systems Inc.Media
Relations:Anne Patton,
678-243-4815anne.patton@verint.comorInvestor Relations:Alan Roden,
631-962-9304alan.roden@verint.com
Verint Systems (NASDAQ:VRNT)
Historical Stock Chart
From May 2024 to Jun 2024
Verint Systems (NASDAQ:VRNT)
Historical Stock Chart
From Jun 2023 to Jun 2024