"Welcome back to the market," a JP Morgan analyst told the management of Verint Systems Inc. (Pink Sheets: VRNT) at the company's conference call yesterday. This was the first conference call a long time, as the company did not publish financial reports for years because of the backdating scandal at its parent, Comverse Technology Inc. (Pink Sheets: CMVT).
Verint develops actionable intelligence solutions - audio and video monitoring and analysis systems for security agencies and enterprises. The company has 2,500 employees, including 950 in Israel, and is the main rival of NICE Systems Ltd. (Nasdaq: NICE; TASE: NICE).
Verint held the conference after publishing its financial report for the first fiscal quarter of 2011, which ended in April 2010. Revenue fell 1.4% $172.6 million from $175.1 million for the corresponding quarter. Gross profit margin narrowed to 66.5% from 67.4%.
Verint swung to an operating loss of $4 million for the first fiscal quarter compared with an operating profit of $36 million for the corresponding quarter. The loss was due to a $20 million provision for expenses related to its delayed filings. At the conference call, Verint executives said that the company would probably make another, albeit smaller, provision for this item for the second fiscal quarter.
Net loss rose to $19.6 million ($0.60 per share) for the first fiscal quarter from $16.4 million for the corresponding quarter.
Verint raised its full-year revenue guidance from $700 million to $700-715 million. The guidance is below the analysts' consensus of $719.8 million. Verint also raised its non-GAAP operating margin target from 20% to a range of 20% to 23%. However, the company did not provide a pro forma profit guidance. In response to an analyst's question, Verint CEO Dan Bodner said, "We're not in a position to provide a non-GAAP profit guidance."
Verint's share closed at $24.50 yesterday, giving a market cap of $803 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 10, 2010
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