PRESS RELEASE
CONTACT
INVESTOR RELATIONS
Alan Roden
Verint Systems Inc.
(631) 962-9304
alan.roden@verint.com
VERINT RECEIVES NOTIFICATION FROM NASDAQ DUE TO LATE FILING OF FORM 10-Q
MELVILLE, NY, JUNE 16, 2006 - Verint Systems Inc. (Nasdaq: VRNT) ("Verint" or
the "Company") today announced that the Company received a letter on June 13,
2006 from The Nasdaq Stock Market indicating that the Company's failure to file
with the Securities and Exchange Commission the Company's Quarterly Report on
Form 10-Q for the period ended April 30, 2006 on the required date could serve
as an additional basis for the delisting of Verint's securities from Nasdaq,
under Nasdaq Marketplace Rule 4310(c)(14). Nasdaq Marketplace Rule 4310(c)(14)
requires the Company to make on a timely basis all filings with the Securities
and Exchange Commission, as required by the Securities Exchange Act of 1934, as
amended.
Verint did not file its Quarterly Report on Form 10-Q for the fiscal quarter
ended April 30, 2006 on the required filing date 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.
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 requested a hearing and 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. Verint intends to submit to the Nasdaq Panel, within the
permissible timeframe, its plan to file the Form 10-Q for the quarterly period
ended April 30, 2006. It is expected that the Nasdaq Panel's hearing decision
will address the late Form 8-K, the late Form 10-K and late Form 10-Q filings
referenced above. However, 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.
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