Verint Systems Q3 Profit Down 53%, But Results Beat View

(RTTNews) - Enterprise software provider Verint Systems, Inc. (VRNT) on Wednesday reported a 53 percent decline in profit for the third quarter from last year, as double-digit revenue growth was more than offset by higher costs and expenses.

However, both revenue and adjusted earnings per share for the quarter beat analysts' expectations. Looking ahead to fiscal 2015, the company affirmed its earnings outlook and tightened its revenue guidance.

Dan Bodner, CEO and President of Verint said, "We are pleased with our strong third quarter results which reflect our focus on innovation and our expanding portfolio of actionable intelligence solutions for a smarter world. Our third quarter performance follows the strong execution we had in our first two quarters, and we believe we are well positioned to finish the year strong, and to sustain long-term growth."

Verint provides analytic software and hardware for the security, surveillance, and business intelligence markets.

The Melville, New York-based company's net income for the third quarter was $10.67 million or $0.17 per share, down from $22.49 million or $0.42 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter were $0.84 per share, compared to $0.80 per share in the year-ago quarter. On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.75 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 26 percent to $282.57 million from $224.31 million last year, and adjusted revenues grew 28 percent to $288.52 million from $224.76 million in the same quarter last year. Analysts' had a consensus estimate for the quarter of $286.58 million.

Total cost of revenue for the quarter rose 40 percent from last year to $101.10 million, while operating expenses increased 37 percent to $157.11 million.

Looking ahead to fiscal 2015, Verint affirmed its outlook for adjusted earnings in a range of $3.35 to $3.50 per share. The company now sees adjusted revenues of $1.140 billion to $1.165 billion, compared to the prior outlook in a range of $1.125 to $1.175 billion.

Street is currently looking for earnings of $3.42 per share for the year on revenues of $1.16 billion.

For fiscal 2016, Verint issued a preliminary forecast for adjusted earnings of $3.65 to $3.85 per share on revenues of $1.225 billion to $1.275 billion. Analysts currently expect earnings of $3.75 per share for the year on revenues of $1.26 billion.

VRNT closed Wednesday's regular trading session at $60.93, up $0.28 or 0.46 percent on a volume of 0.78 million shares. However, in after-hours, the stock declined $3.13 or 5.14 percent to $57.80.