PRESS RELEASE
CONTACT
INVESTOR RELATIONS
Alan Roden
Verint Systems Inc.
(631) 962-9304
alan.roden@verint.com
VERINT ANNOUNCES RECORD 2006 FIRST QUARTER SALES AND SCHEDULES
CONFERENCE CALL TO DISCUSS SELECTED UNAUDITED 1ST QUARTER RESULTS AND REVIEW
BUSINESS TRENDS ON JUNE 22, 2006 AT 4:30 PM ET
MELVILLE, NY, JUNE 12, 2006 - Verint Systems Inc. (Nasdaq: VRNT), announced
record sales of $87,736,500 for the first quarter of fiscal 2006, ended April
30, 2006, approximately a 21.8% increase compared with $72,039,000 in sales for
the first quarter of fiscal 2005. Verint's sales increased approximately 4.3%
sequentially, compared with $84,080,000 for the fourth quarter of fiscal 2005.
Conference Call Details
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Verint will be conducting a conference call to review selected fiscal 2006-first
quarter results (quarter ended April 30, 2006) and review business trends on
Thursday June 22, 2006 at 4:30 PM ET.
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 706-634-7052. 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 July 31, 2006.
FILING OF QUARTERLY REPORT ON FORM 10-Q DELAYED DUE TO ONGOING REVIEW
AT COMVERSE
For the reasons previously announced by Verint relating to the ongoing
investigation by a special committee of the Board of Directors of Comverse
Technology, Inc. ("Comverse"), the 57% stockholder of Verint, of Comverse's
stock option practices and its preliminary conclusion that the actual dates of
measurement for certain past awards granted by Comverse differed from the
recorded grant dates, for such awards, and the potential impact of such stock
option practices on Verint's Financial Statements, Verint will not file its
Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2006 on the
required filing date. Verint expects to file its Form 10-Q as soon as
practicable, but does not currently expect that it will be filed on or before
the fifth calendar day following the required filing date as prescribed in Rule
12b-25 of the Securities Exchange Act of 1934.
NASDAQ MATTERS
Verint has notified The Nasdaq Stock Market that it will not timely file its
Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2006 and,
accordingly, Verint expects to receive an additional Staff Determination Letter
from The Nasdaq Stock Market indicating that the delay in the filing of the Form
10-Q could serve as an additional basis for the delisting of Verint's securities
from Nasdaq, under Nasdaq Marketplace Rule 4310(c)(14).
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As previously disclosed by Verint, due to the delay in the filing of Verint's
Annual Report on Form 10-K for the fiscal year ended January 31, 2006, as well
as Verint's failure to file a Current Report on Form 8-K/A, which would have
amended the Current Report on Form 8-K dated January 9, 2006 to include the
financial information required by Form 8-K in connection with the January 9,
2006 acquisition by Verint of MultiVision Intelligence Surveillance Limited's
networked video security business, Verint had received a Staff Determination
Letter from The Nasdaq Stock Market indicating that Verint's securities were
subject to delisting, unless Verint requested a hearing before the Nasdaq
Listing Qualifications Panel. Verint presented its plan to regain compliance
with Nasdaq's filing requirement at an in-person hearing before the Nasdaq
Panel. The Nasdaq Panel has not yet issued a decision as a result of that
hearing. There can be no assurance that the Nasdaq Panel will grant Verint's
request for continued listing on Nasdaq.
ABOUT VERINT SYSTEMS INC.
Verint(R) Systems Inc., headquartered in Melville, New York, is a leading
provider of analytic software-based solutions for security and 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: potential impact on Verint's financial results related to
Comverse's creation of a special committee of the Board of Directors of Comverse
to review matters relating to grants of Comverse stock options, including but
not limited to, the accuracy of the stated dates of Comverse option grants and
whether Comverse followed all of its proper corporate procedures and the results
of the Comverse special committee's review; the effect of Verint's failure to
timely file all required reports under the Securities Exchange Act of 1934, and
the resultant potential delisting of Verint's common stock from Nasdaq;
introducing quality products on a timely basis that satisfy customer
requirements and achieve market acceptance; lengthy and variable sales cycles
create difficulty in forecasting the timing of revenue; integrating the business
and personnel of CM Insight; risks associated with significant foreign
operations, including fluctuations in foreign currency exchange rates;
aggressive competition in all of Verint's markets, which creates pricing
pressure; integrating the business and personnel of MultiVision, including
implementation of adequate internal controls; managing our expansion in the Asia
Pacific region; risks that Verint's intellectual property rights may not be
adequate to protect its business or that others may claim that Verint infringes
upon their intellectual property rights; risks associated with integrating the
business and employees of Opus and RP Sicherheissysteme GMBH; risks associated
with Verint's ability to retain existing personnel and recruit and retain
qualified personnel in all geographies in which Verint operates; decline in
information technology spending; changes in the demand for Verint's products;
challenges in increasing gross margins; risks associated with changes in the
competitive or regulatory environment in which Verint operates; dependence on
government contracts; expected increase in Verint's effective tax rate;
perception that Verint improperly handles sensitive or confidential information;
inability to maintain relationships with value added resellers and systems
integrators; difficulty of improving Verint's infrastructure in order to be able
to continue to grow; 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 except as
otherwise required by law.
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Verint, the Verint word mark, Actionable Intelligence, Powering Actionable
Intelligence, STAR-GATE, RELIANT, NEXTIVA, LORONIX, SmartSight, Lanex and ULTRA
are trademarks of Verint Systems Inc. Other names may be trademarks of their
respective owners.