Verint Systems 2Q net income doubles; shares jump
NEW YORK (AP) — Verint Systems Inc., which makes software for analyzing intercepted communications, said Wednesday its net income doubled in its fiscal second quarter as its one-time costs decreased and service and support revenue improved.
Its earnings and revenue were stronger than Wall Street expected, and Verint shares rose more than 7 percent in morning trading.
The company said its net income rose to $17.5 million, or 33 cents per share, for the three months ended July 31 from $8.7 million, or 22 cents per share, a year ago.
Excluding special items, Verint said it earned 70 cents per share. Analysts surveyed by FactSet expected adjusted earnings of 52 cents per share.
A year ago Verint's results included a larger income tax provision and a dividend payment on preferred stock.
Revenue rose 5 percent to $222.4 million from $212.4 million. Analysts expected revenue of $216.5 million.
The company said product sales fell but service and support revenue improved.
The Melville, N.Y., company maintained its annual guidance, saying it expects net income of $2.70 to $2.80 per share and revenue up 6 to 7 percent in the fiscal year ending Jan. 31. That implies $899 million to $907.4 million in total revenue.
Analysts expect earnings of $2.74 per share and $902.8 million in revenue on average.
Its shares advanced $2.47, or 7.5 percent, to $35.50 in morning trading. They are near the upper end of their 52-week range of $24.60 to $37.04.