Verint Profit Tops Estimates - Update

(RTTNews) - Verint Systems Inc. (VRNT) Wednesday reported a better-than-expected jump in third-quarter profit, helped by higher revenue and margins.

The company raised its outlook for the full year.

"We are pleased with our strong Q3 results which are driven by our leadership in the Actionable Intelligence market," said CEO Dan Bodner.

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

The Melville, New York-based company posted quarterly net income to common shares of $22.5 million or $0.42 per share, compared with $1.6 million or $0.04 per share last year.

Results for the recent quarter included unfavorable adjustments of $20.6 million, compared with $26.8 million a year ago.

Excluding items, adjusted earnings for the quarter were $0.80 per share, compared with $0.63 per share a year ago.

On average, 9 analysts polled by Thomson Reuters expected earnings of $0.65 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter climbed to $224.3 million from $201.5 million in the prior year. Analysts expected revenue of $223.6 million.

Growth was led by Video and Communication Intelligence segment, and Enterprise Intelligence also chipped in.

Operating expenses for the quarter were lower at $114 million, compared with $119 million a year ago.

For the fiscal year ending January 2014, the company raised the mid-point of its adjusted earnings guidance and projects earnings of $2.75 to $2.80 per share. It expects adjusted revenue growth of 6.5 to 7.5 percent, from prior range of 6 to 7 percent. Analysts expect earnings of $2.78 per share on revenue growth of 6.5 percent.

Verint said that its full-year guidance implies fourth-quarter adjusted earnings of $0.81 to $.86 per share and adjusted revenue of $250 million to $259 million. Analysts expect earnings of $0.99 per share on revenue of $228.41 million.

Additionally, for the year ending January 2015, Verint expects adjusted revenue to increase 7 to 9 percent compared to the mid-point of the guidance for the year ending January 2014 and adjusted earnings to grow at a similar rate.

Verint stock closed Wednesday at $37.89, down $0.50 or 1.30%, on a volume of 659 thousand shares on the Nasdaq. In after hours, the stock gained $0.32 or 0.84% at $38.21.