Exhibit 99.1
Press Release
Contact
Alan Roden
VP, Corporate Development and Investor Relations
(631) 962-9304
alan.roden@verint.com
Verint Systems Reports Record Fiscal 2003 Third Quarter Results
Sales Grow to $49.0 Million; Increases 21% y-o-y
Diluted Earnings Per Share of $0.15
MELVILLE, N.Y, December 3, 2003 - Verint Systems Inc. (NASDAQ: VRNT), announced
record sales of $49,012,000 for the third quarter of fiscal 2003, ended October
31, 2003, a 21% increase compared with $40,671,000 for the third quarter of
fiscal 2002.
The Company posted record net income of $4,667,000 for the third quarter of
fiscal 2003 ($0.15 per diluted share), compared with net income of $2,759,000
($0.11 per diluted share) for the third quarter of fiscal 2002.
Dan Bodner, President and CEO of Verint, stated, "Our record third quarter
results, which also represent our eighth consecutive quarter of sequential
growth, were due to strong sales of our actionable intelligence solutions in the
security market, as well as growing demand in the business intelligence market.
Our margins continued to improve during the quarter, and combined with our sales
growth, resulted in an 8% sequential increase in income from operations."
The Company ended the quarter with record cash and cash equivalents of
$223,686,000, working capital of $198,624,000, total assets of $323,923,000, and
stockholders' equity of $238,421,000.
Conference Call Information
The Company will be conducting a conference call to review its fiscal 2003 third
quarter results today at 4:30 PM EST. 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 703-871-3092. 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 and by telephone at 703-925-2533, passcode 810826.
Verint Systems Reports Record Fiscal 2003 Third Quarter Results
December 3, 2003
Page 2
Financial highlights at and for the nine and three month periods ended October
31, 2002 and 2003 are as follows:
Financial Highlights
(In thousands, except per share data, unaudited)
Condensed Consolidated Statements of Operations Data:
- --------------------------------------------------------------------------------
Nine Months Three Months
-------------------------------- ---------------------------
Ended October 31, Ended October 31,
-------------------------------- ---------------------------
2002 2003 2002 2003
------ ------ ---- -----
Sales $ 115,458 $ 140,319 $40,671 $49,012
Cost of sales 57,701 65,238 19,749 22,560
------ ------ ------ ------
Gross Profit 57,757 75,081 20,922 26,452
Operating Expenses
Research and development, net 12,594 16,979 4,464 5,952
Selling, general and administrative 38,139 46,014 13,741 16,044
------ ------ ------ ------
Income from operations 7,024 12,088 2,717 4,456
Interest and other income, net 1,310 1,813 637 878
------ ------ ------ ------
Income before income taxes 8,334 13,901 3,354 5,334
Income taxes 1,646 1,745 595 667
------ ------ ------ ------
Net income $ 6,688 $ 12,156 $ 2,759 $ 4,667
======= ======== ======= =======
Earnings per share:
Basic $ 0.31 $ 0.45 $ 0.12 $ 0.16
======= ======== ======= =======
Diluted $ 0.29 $ 0.42 $ 0.11 $ 0.15
======= ======== ======= =======
Weighted average shares:
Basic 21,706 26,895 23,434 29,870
Diluted 22,977 28,645 24,231 31,621
Verint Systems Reports Record Fiscal 2003 Third Quarter Results
December 3, 2003
Page 3
(In thousands)
Condensed Consolidated Balance Sheet Data:
------------------------------------------------------------------------------
ASSETS
January 31, October 31,
2003
2003 (Unaudited)
------------- -------------
CURRENT ASSETS:
Cash and cash equivalents $ 133,933 $223,686
Accounts receivable, net 27,279 33,533
Inventories 8,866 15,621
Prepaid expenses and other current assets 4,079 6,714
------- -------
TOTAL CURRENT ASSETS 174,157 279,554
PROPERTY AND EQUIPMENT, net 12,965 13,787
OTHER ASSETS 19,928 30,582
------- -------
TOTAL ASSETS $ 207,050 $ 323,923
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 43,622 $ 55,687
Advance payments from customers 19,013 22,612
Current maturities of long-term bank loans 42,199 431
Convertible note - 2,200
------- ------
TOTAL CURRENT LIABILITIES 104,834 80,930
LONG-TERM BANK LOANS 1,678 1,821
CONVERTIBLE NOTE 2,200 -
OTHER LIABILITIES 2,172 2,751
------- ------
TOTAL LIABILITIES 110,884 85,502
STOCKHOLDERS' EQUITY 96,166 238,421
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 207,050 $ 323,923
========= =========
Verint Systems Reports Record Fiscal 2003 Third Quarter Results
December 3, 2003
Page 4
About Verint Systems Inc.
Verint Systems Inc., headquartered in Melville, New York, is a leading
provider of analytic software-based 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.verint.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; 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. 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.
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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.