================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT September 8, 2003
(Date of Earliest Event Reported)
VERINT SYSTEMS INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Commission File No. 0-15502
Delaware 11-3200514
- ------------------------ -------------------
(State of Incorporation) (I.R.S. Employer
Identification No.)
330 South Service Road, Melville, New York 11747
- ------------------------------------------ --------
(Address of principal Zip Code
executive offices)
Registrant's telephone number, including area code: (631) 962-9600
================================================================================
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit No. Description
----------- -----------
99.1 Press Release of Verint Systems Inc., dated September 8, 2003.
Item 12. Results of Operations and Financial Condition.
On September 8, 2003, Verint Systems Inc. issued an earnings release
announcing its financial results for the quarter ended July 31, 2003. A copy of
the earnings release is attached hereto as Exhibit 99.1 and is incorporated by
reference herein.
The information in this Current Report on Form 8-K, including the exhibits
attached hereto, is furnished pursuant to Item 12 and shall not be deemed to be
"filed" for the purposes of Section 18 of the Securities Exchange Act of 1934,
or otherwise subject to the liabilities of that section.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
VERINT SYSTEMS INC.
By: /s/ Igal Nissim
--------------------------
Name: Igal Nissim
Title: Chief Financial Officer
Dated: September 8, 2003
EXHIBIT INDEX
Exhibit No. Description
- ----------- ---------------------------------------------
99.1 Text of Press Release dated September 8, 2003
Exhibit 99.1
Press Release
Contact
Alan Roden
VP, Corporate Development and Investor Relations
(631) 962-9304
alan.roden@verintsystems.com
Verint Systems Reports Record Fiscal 2003 Second Quarter Results
Sales Grow to $46.9 Million; Increases 22% y-o-y
Diluted Earnings Per Share of $0.14
MELVILLE, N.Y, September 8, 2003 - Verint Systems Inc. (NASDAQ: VRNT),
announced record sales of $46,892,000 for the second quarter of fiscal 2003,
ended July 31, 2003, a 22% increase compared with $38,470,000 for the second
quarter of fiscal 2002.
The Company posted record net income of $3,977,000 for the second quarter
of fiscal 2003 ($0.14 per diluted share), compared with net income of $2,222,000
($0.09 per diluted share) for the second quarter of fiscal 2002.
Dan Bodner, President and CEO of Verint, stated, "Our record second quarter
results, which also represent our seventh 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 18% sequential
increase in income from operations."
The Company ended the quarter with record cash and cash equivalents of
$216,711,000, working capital of $193,864,000, total assets of $309,072,000, and
stockholders' equity of $231,382,000.
Conference Call Information
The Company will be conducting a conference call to review its fiscal 2003
second 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.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 245704.
Verint Systems Reports Record Fiscal 2003 Second Quarter Results
September 8, 2003
Page 2
Financial highlights at and for the six and three month periods ended July
31, 2002 and 2003 are as follows:
Financial Highlights
(In thousands, except per share data, unaudited)
Condensed Consolidated Statements of Operations Data:
- -------------------------------------------------------------------------------------------------------------------------
Six Months Three Months
Ended July 31, Ended July 31,
2002 2003 2002 2003
---- ---- ---- -----
Sales $ 74,787 $91,307 $38,470 $46,892
Cost of sales 37,952 42,678 19,388 21,766
------ ------ ------ ------
Gross Profit 36,835 48,629 19,082 25,126
Operating Expenses
Research and development, net 8,130 11,027 4,238 5,692
Selling, general and administrative 24,398 29,970 12,612 15,301
------ ------ ------ ------
Income from operations 4,307 7,632 2,232 4,133
Interest and other income, net 673 935 560 420
------ ------ ------ ------
Income before income taxes 4,980 8,567 2,792 4,553
Income taxes 1,051 1,078 570 576
------ ------ ------ ------
Net income $ 3,929 $ 7,489 $2,222 $ 3,977
========= ======= ====== =======
Earnings per share:
Basic $ 0.19 $ 0.29 $ 0.10 $ 0.15
========= ======= ====== =======
Diluted $ 0.18 $ 0.28 $ 0.09 $ 0.14
========= ======= ====== =======
Weighted average shares:
Basic 20,827 25,408 22,695 27,067
Diluted 22,264 27,157 23,858 29,007
Verint Systems Reports Record Fiscal 2003 Second Quarter Results
September 8, 2003
Page 3
(In thousands)
Condensed Consolidated Balance Sheet Data:
ASSETS
January 31, July 31,
2003 2003
(Unaudited)
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 133,933 $216,711
Accounts receivable, net 27,279 35,154
Inventories 8,866 9,579
Prepaid expenses and other current assets 4,079 5,324
------- -------
TOTAL CURRENT ASSETS 174,157 266,768
PROPERTY AND EQUIPMENT, net 12,965 13,899
OTHER ASSETS 19,928 28,405
------- -------
TOTAL ASSETS $ 207,050 $ 309,072
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 43,622 $ 52,812
Advance payments from customers 19,013 17,603
Current maturities of long-term bank loans 42,199 289
Convertible note - 2,200
------- -------
TOTAL CURRENT LIABILITIES 104,834 72,904
LONG-TERM BANK LOANS 1,678 1,940
CONVERTIBLE NOTE 2,200 -
OTHER LIABILITIES 2,172 2,846
------- -------
TOTAL LIABILITIES 110,884 77,690
STOCKHOLDERS' EQUITY 96,166 231,382
------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 207,050 $ 309,072
========= =========
Verint Systems Reports Record Fiscal 2003 Second Quarter Results
September 8, 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.
###
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.
