Verint Systems Inc. (VRNT) swung to a net loss for the quarter ended Oct. 31, 2016. The company has made a net loss of $8.24 million, or $ 0.13 a share in the quarter, against a net profit of $7.63 million, or $0.12 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $37.21 million, or $0.59 a share compared with $49.26 million or $0.78 a share, a year ago.
Revenue during the quarter dropped 8.85 percent to $258.90 million from $284.05 million in the previous year period. Gross margin for the quarter contracted 272 basis points over the previous year period to 60.14 percent. Total expenses were 97.87 percent of quarterly revenues, up from 92.14 percent for the same period last year. That has resulted in a contraction of 573 basis points in operating margin to 2.13 percent.
Operating income for the quarter was $5.52 million, compared with $22.33 million in the previous year period.
However, the adjusted operating income for the quarter stood at $49.04 million compared to $63.17 million in the prior year period. At the same time, adjusted operating margin contracted 330 basis points in the quarter to 18.94 percent from 22.24 percent in the last year period.
"Verint is an actionable intelligence leader in two markets, Customer Engagement and Cyber Intelligence. In Customer Engagement, we continue to focus our strategy across four pillars: expanding our portfolio; delivering advanced analytics; offering deployment flexibility; and, growing our partner network. We are pleased with the progress we have made year-to-date on our strategy, and expect our Customer Engagement business to achieve mid-single digit non-GAAP revenue growth on a constant currency basis for the year, and similar growth next fiscal year," said Dan Bodner, Verint chief executive officer and president.
For fiscal year 2017, Verint Systems Inc. projects revenue to be in the range of $1,053 million to $1,097 million. The company projects diluted earnings per share to be $2.50.
Operating cash flow declines
Verint Systems Inc. has generated cash of $71.69 million from operating activities during the nine month period, down 18.14 percent or $15.88 million, when compared with the last year period. The company has spent $80.63 million cash to meet investing activities during the nine month period as against cash outgo of $94.94 million in the last year period.
The company has spent $42.19 million cash to carry out financing activities during the nine month period as against cash outgo of $5.06 million in the last year period.
Cash and cash equivalents stood at $295.83 million as on Oct. 31, 2016, up 8.66 percent or $23.57 million from $272.26 million on Oct. 31, 2015.
Working capital declines
Verint Systems Inc. has witnessed a decline in the working capital over the last year. It stood at $265.36 million as at Oct. 31, 2016, down 15.69 percent or $49.38 million from $314.74 million on Oct. 31, 2015. Current ratio was at 1.65 as on Oct. 31, 2016, down from 1.75 on Oct. 31, 2015.
Cash conversion cycle (CCC) has increased to 42 days for the quarter from 37 days for the last year period. Days sales outstanding went up to 90 days for the quarter compared with 81 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 16 days for the previous year period. At the same time, days payable outstanding went down to 57 days for the quarter from 60 for the same period last year.
Debt remains almost stable
Total debt of Verint Systems Inc. remained almost stable for the quarter at $742.07 million, when compared with the last year period. Long-term debt of Verint Systems remained almost stable for the quarter at $742.07 million, when compared with the last year period. Total debt was 32.81 percent of total assets as on Oct. 31, 2016, compared with 31.37 percent on Oct. 31, 2015. Debt to equity ratio was at 0.74 as on Oct. 31, 2016, up from 0.69 as on Oct. 31, 2015. Interest coverage ratio deteriorated to 0.63 for the quarter from 2.64 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
