EXHIBIT 99.1
[VERINT LOGO]
PRESS RELEASE
CONTACT
Alan Roden
VP, Corporate Development and Investor Relations
(631) 962-9304
ALAN.RODEN@VERINTSYSTEMS.COM
VERINT SYSTEMS REPORTS RECORD FISCAL 2003 FIRST QUARTER RESULTS
SALES GROW TO $44.4 MILLION; INCREASES 22% y-o-y
DILUTED EARNINGS PER SHARE OF $0.14
MELVILLE, N.Y, JUNE 3, 2003 - Verint Systems Inc. (NASDAQ: VRNT), announced
record sales of $44,415,000 for the first quarter of fiscal 2003, ended April
30, 2003, a 22% increase compared with $36,317,000 for the first quarter of
fiscal 2002.
The Company posted record net income of $3,512,000 for the first quarter of
fiscal 2003 ($0.14 per diluted share), compared with net income of $1,707,000
($0.08 per diluted share) for the first quarter of fiscal 2002.
Dan Bodner, President and CEO of Verint, stated, "Our record first quarter
results, which also represent our sixth consecutive quarter of sequential
growth, were primarily due to strong sales of our actionable intelligence
solutions in the security market. Our margins continued to improve during the
quarter, and combined with our sales growth, resulted in a 16% sequential
increase in income from operations."
The Company ended the quarter with cash and cash equivalents of $94,833,000,
working capital of $71,582,000, total assets of $173,698,000, and stockholders'
equity of $101,123,000.
CONFERENCE CALL INFORMATION
The Company will be conducting a conference call to review its fiscal 2003 first
quarter results today at 4:30 PM EDT. An on-line, real-time Web cast of the
conference call will be available on our website at WWW.VERINTSYSTEMS.COM. The
conference call can also be accessed live via telephone at 703-871-3092. Please
dial in 5-10 minutes prior to the scheduled start time.
A replay of the conference call will be available for seven days on our website
at WWW.VERINTSYSTEMS.COM and by telephone at 703-925-2533, passcode 6441815.
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VERINT SYSTEMS REPORTS RECORD FISCAL 2003 FIRST QUARTER RESULTS
JUNE 3, 2003
PAGE 2
Financial highlights at and for the three month periods ended April 30, 2002 and
2003 are as follows:
FINANCIAL HIGHLIGHTS
(In thousands, except per share data, unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA:
THREE MONTHS
ENDED APRIL 30,
2002 2003
------- -------
Sales $36,317 $44,415
Cost of sales 18,564 20,912
------- -------
Gross profit 17,753 23,503
Operating Expenses
Research and development, net 3,892 5,335
Selling, general and administrative 11,786 14,669
------- -------
Income from operations 2,075 3,499
Interest and other income, net 113 515
------- -------
Income before income taxes 2,188 4,014
Income taxes 481 502
------- -------
Net income $ 1,707 $ 3,512
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Earnings per share:
Basic $ 0.09 $ 0.15
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Diluted $ 0.08 $ 0.14
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Weighted average shares:
Basic 18,897 23,708
Diluted 20,542 25,236
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VERINT SYSTEMS REPORTS RECORD FISCAL 2003 FIRST QUARTER RESULTS
JUNE 3, 2003
PAGE 3
(In thousands)
CONDENSED CONSOLIDATED BALANCE SHEET DATA:
APRIL 30,
JANUARY 31, 2003
ASSETS 2003 (UNAUDITED)
---------- -----------
CURRENT ASSETS:
Cash and cash equivalents $133,933 $ 94,833
Accounts receivable, net 27,279 32,380
Inventories 8,866 8,840
Prepaid expenses and other current assets 4,079 3,692
-------- --------
TOTAL CURRENT ASSETS 174,157 139,745
PROPERTY AND EQUIPMENT, net 12,965 13,603
OTHER ASSETS 19,928 20,350
-------- --------
TOTAL ASSETS $207,050 $173,698
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 43,622 $ 46,170
Advance payments from customers 19,013 19,586
Current maturities of long-term bank loans 42,199 207
Convertible Note -- 2,200
-------- --------
TOTAL CURRENT LIABILITIES 104,834 68,163
LONG-TERM BANK LOANS 1,678 1,691
CONVERTIBLE NOTE 2,200 --
OTHER LIABILITIES 2,172 2,721
-------- --------
TOTAL LIABILITIES 110,884 72,575
STOCKHOLDERS' EQUITY 96,166 101,123
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $207,050 $173,698
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VERINT SYSTEMS REPORTS RECORD FISCAL 2003 FIRST QUARTER RESULTS
JUNE 3, 2003
PAGE 4
ABOUT VERINT SYSTEMS INC.
Verint Systems Inc., headquartered in Woodbury, New York, is a leading provider
of software-based analytic solutions for communications interception, digital
video security and surveillance, and enterprise 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.VERINTSYSTEMS.COM.
NOTE: CERTAIN STATEMENTS CONCERNING VERINT'S FUTURE 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 FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY INCLUDE: CHANGES IN THE DEMAND FOR VERINT'S PRODUCTS; FURTHER
DECLINE IN INFORMATION TECHNOLOGY SPENDING; THE UNCERTAINTY OF CUSTOMER
ACCEPTANCE OF VERINT'S PRODUCTS; VERINT'S LENGTHY AND VARIABLE SALES CYCLE
MAKES IT DIFFICULT TO PREDICT OPERATING RESULTS; DEPENDENCE ON CONTRACTS WITH
GOVERNMENTS FOR A SIGNIFICANT PORTION OF VERINT'S REVENUES; MARKETS FOR
VERINT'S PRODUCTS FAILING TO DEVELOP; RISKS THAT VERINT'S INTELLECTUAL
PROPERTY RIGHTS MAY NOT BE ADEQUATE TO PROTECT ITS BUSINESS; RISKS ASSOCIATED
WITH RAPIDLY CHANGING TECHNOLOGY AND THE ABILITY OF VERINT TO INTRODUCE NEW
PRODUCTS ON A TIMELY AND COST-EFFECTIVE BASIS; VERINT'S INABILITY TO MAINTAIN
RELATIONSHIPS WITH VALUE ADDED RESELLERS AND SYSTEMS INTEGRATORS; RISKS
ASSOCIATED WITH VERINT'S ABILITY TO RETAIN EXISTING PERSONNEL AND RECRUIT AND
RETAIN QUALIFIED PERSONNEL; RISKS ASSOCIATED WITH CHANGES IN THE COMPETITIVE
OR REGULATORY ENVIRONMENT IN WHICH VERINT OPERATES; RISKS ASSOCIATED WITH
SIGNIFICANT FOREIGN OPERATIONS, INCLUDING FLUCTUATIONS IN FOREIGN CURRENCY
EXCHANGE RATES; RISKS ASSOCIATED WITH COMVERSE TECHNOLOGY, INC. CONTROLLING
VERINT'S BUSINESS AND AFFAIRS; AND OTHER RISKS DESCRIBED IN FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE RISKS AND UNCERTAINTIES, AS WELL AS
OTHERS, ARE DISCUSSED IN GREATER DETAIL IN THE FILINGS OF VERINT WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE FILINGS 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.VERINTSYSTEMS.COM. VERINT MAKES
NO COMMITMENT TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS.
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Verint, the Verint word mark, STAR-GATE, RELIANT, LORONIX and ULTRA are
trademarks of Verint Systems Inc. Other names may be trademarks of their
respective owners.