Verint Systems Inc. (NASDAQ:VRNT), announced record sales of $63,989,000 for the third quarter of fiscal 2004, ended October 31, 2004, a 31% increase compared with $49,012,000 for the third quarter of fiscal 2003. Verint's sales increased approximately 6% sequentially, compared with $60,167,000 for the second quarter of fiscal 2004.
Net income on a generally accepted accounting principles ("GAAP") basis was $5,180,000 for the third quarter of fiscal 2004 ($0.16 per diluted share), compared with a net income of $5,671,000 ($0.17 per diluted share) for the second quarter of fiscal 2004, and net income of $4,667,000 ($0.15 per diluted share) for the third quarter of fiscal 2003. Net income on a pro forma basis was $6,903,000 for the third quarter of fiscal 2004, ($0.21 per diluted share), compared with a pro forma net income of $6,438,000 ($0.20 per diluted share) for the second quarter of fiscal 2004, and pro forma net income of $5,034,000 ($0.16 per diluted share) for the third quarter of fiscal 2003. A reconciliation between results on a GAAP basis and results on a pro forma basis is provided in a table immediately following the Pro Forma Consolidated Statement of Operations.
Dan Bodner, President and CEO of Verint, stated, "Our record third quarter sales were due to demand for our actionable intelligence solutions in the security and business intelligence markets. Pro forma income from operations of $6.9 million, which was also a record, grew 42.6% year-over-year."
The Company ended the quarter with cash, cash equivalents and short-term investments of $225,602,000, working capital of $188,416,000 total assets of $387,076,000, and stockholders' equity of $275,455,000.
Conference Call Information
The Company will be conducting a conference call to review its fiscal 2004 third quarter results today at 4:30 PM EDT. An on-line, real-time Web cast of the conference call will be available on our website at www.verint.com. The conference call can also be accessed live via telephone at 703-639-1375. Please dial in 5-10 minutes prior to the scheduled start time.
A replay of the conference call will be available on our website at www.verint.com until January, 31 2005 and by telephone at 703-925-2533, passcode 554696, for 7 days.
About Verint Systems Inc.
Verint Systems Inc., headquartered in Melville, New York, is a leading provider of analytic software-based solutions for communications interception, digital video security and surveillance, and enterprise business intelligence. Verint software, which is used by over 1,000 organizations in over 50 countries worldwide, generates actionable intelligence through the collection, retention and analysis of voice, fax, video, email, Internet and data transmissions from multiple communications networks. Verint is a subsidiary of Comverse Technology Inc. (NASDAQ: CMVT). Visit us at our website www.verint.com.
Note: Certain statements concerning Verint's future revenues, earnings per share, results or prospects are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. There can be no assurances that forward-looking statements will be achieved, and actual results could differ materially from forecasts and estimates. Important risks, uncertainties and other important factors that could cause actual results to differ materially include, among others: changes in the demand for Verint's products; further decline in information technology spending; risks associated with acquiring and integrating the assets and business acquired from ECtel and RP Security including products and technologies, as well as retaining key employees and customers, which could result in a substantial diversion of management resources, the incurrence of contingent liabilities, amortization of certain identifiable intangible assets, research and development write-offs and other acquisition-related expenses; the uncertainty of customer acceptance of Verint's products; aggressive competition may force Verint to reduce prices; Verint's lengthy and variable sales cycle makes it difficult to predict operating results; dependence on contracts with governments for a significant portion of Verint's revenues; inability to expand gross margin by reducing hardware in its product offerings; markets for Verint's products failing to develop; risks that Verint's intellectual property rights may not be adequate to protect its business; risks associated with rapidly changing technology and the ability of Verint to introduce new products on a timely and cost-effective basis; inability to maintain relationships with value added resellers and systems integrators; risks associated with Verint's ability to retain existing personnel and recruit and retain qualified personnel; risks associated with changes in the competitive or regulatory environment in which Verint operates; risks associated with significant foreign operations, including fluctuations in foreign currency exchange rates; risks associated with Comverse Technology, Inc. controlling Verint's business and affairs; and other risks described in filings with the Securities and Exchange Commission. All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov or from Verint's website at www.verint.com. Verint makes no commitment to revise or update any forward-looking statements.
Verint, the Verint word mark, Actionable Intelligence, Powering Actionable Intelligence, STAR-GATE, RELIANT, LORONIX, SmartSight, Lanex and ULTRA are trademarks of Verint Systems Inc. Other names may be trademarks of their respective owners.