[ACCESSWIRE]
Upcoming AWS Coverage on Guidewire Software Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 15, 2016 / Active Wall St. announces its post-earnings coverage on Verint Systems Inc. (NASDAQ: VRNT). The Company posted its third quarter fiscal 2017 earnings results on December 07, 2016. The maker of software for analyzing intercepted communications posted a loss on GAAP basis after posting profit in the prior year's same quarter. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Verint Systems' competitors within the Business Software & Services space, Guidewire Software, Inc. (NYSE: GWRE), reported on November 22, 2016, its financial results for the fiscal quarter ended October 31, 2016. AWS will be initiating a research report on Guidewire Software in the coming days.
Today, AWS is promoting its earnings coverage on VRNT; touching on GWRE. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=VRNT
http://www.activewallst.com/registration-3/?symbol=GWRE
Earnings Reviewed
For the three months ended on October 31, 2016, Verint posted on a GAAP basis $258.9 million of revenue, or $262 million on a constant currency basis, compared to revenue of $284.05 million in the year ago quarter. On a non-GAAP basis, the company delivered $260 million of revenue, or $263 million on a constant currency basis. The Company's revenue fell short of analysts' estimates of $270.6 million.
During Q3 FY17, Verint generated revenues of $174 million, or $177 million on a constant currency basis, from its customer engagement segment, while the company reported $86 million from its cyber intelligence. In Q3 FY16, Verint had reported revenue of $177 million in customer engagement, and $108 million from the cyber intelligence division.
On a geographical basis, Verint generated non-GAAP revenue of $138 million in the Americas, $75 million in EMEA, and $47 million in APAC, compared to $153 million in the Americas, $83 million in EMEA, and $49 million in APAC in the year ago comparable quarter.
For Q3 FY17, Verint generated non-GAAP operating income of $49 million, with an operating margin of 18.9%, slightly better than its Q2 FY17 operating income of $48.4 million and operating margin of 18.3%, respectively. From an operating margin perspective, for FY17, on a fully allocated basis, the company expects customer engagement operating margins to be in the low 20%, and cyber intelligence operating margins of around 10%. The company's adjusted EBITDA for the reported quarter came in at $56 million, or 21.5% of revenue.
Verint reported Q3 FY17 loss of $8.2 million, after reporting a profit of $7.6 million in the same period a year earlier. On a per-share basis, the corporation reported loss of $0.13 per share compared to earnings of $0.12 per share in Q3 FY16. Earnings, adjusted for amortization costs and stock option expense, were $0.59 per share, missing Wall Street's expectations for earnings of $0.71 per share.
Liquidity and Capital Resources
As of October 31, 2016, Verint had $321 million of cash and short-term investments including short-term restricted cash. Cash flow from operations on a GAAP basis for the nine months ended October 31, 2016 came in at $72 million. The company stated that post the completion of Q3 FY17 it received a payment of $26 million that was originally expected during the reported quarter.
During Q3 FY17, Verint had repurchased an additional 500,000 shares. Year-to-date the company has repurchased one million shares for $36 million, leaving it with over $100 million still authorized under its repurchase program announced earlier this year. Verint ended Q3 FY17 with net debt of $490 million excluding discount and issuance costs primarily associated with the company's convertible debt.
Financial Outlook
For FY17, ending January 31, 2017, Verint is forecasting total revenue to be $1.075 billion +/- 2.0% and diluted earnings per share to be approximately $2.50 at the mid-point of the Company's revenue guidance. For FY18, ending January 31, 2018, Verint is projecting that its Customer Engagement segment would generate mid-single digit revenue growth on a constant currency basis. In the Cyber Intelligence segment, the company expects mid-to-high single digit revenue growth on a constant currency basis. Overall, Verint is estimating earnings to grow slightly faster than revenue with some operating margin improvement.
Stock Performance
At the close of trading session on December 14, 2016, Verint Systems' stock price rose slightly by 0.57% to end the day at $35.15. A total volume of 758.16 thousand shares were exchanged during the session, which was above the 3-month average volume of 497.21 thousand shares. The stock currently has a market cap of $2.21 billion.
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