Verint(VRNT)2024-06-04 21:02Financial Performance - Total revenue for the three months ended April 30, 2024, was $221,277,000, a 2.6% increase from $216,566,000 in the same period of 2023[21]. - Net income attributable to Verint Systems Inc. for the three months ended April 30, 2024, was $15,241,000, compared to $3,295,000 in the same period of 2023, representing a significant increase[21]. - Operating income increased to $24,445,000 for the three months ended April 30, 2024, compared to $8,772,000 in the same period of 2023, reflecting a strong operational performance[21]. - The company reported a comprehensive income of $7,962,000 for the three months ended April 30, 2024, down from $11,805,000 in the same period of 2023, primarily due to foreign currency translation adjustments[23]. - The diluted net income per common share attributable to Verint Systems Inc. was $0.16 for the three months ended April 30, 2024, compared to a loss of $0.03 in the same period of 2023[21]. - Net income attributable to Verint Systems Inc. for Q1 2024 was $15.2 million, compared to $3.3 million in Q1 2023, indicating a substantial increase of 361.5%[59]. - Basic net income per common share for Q1 2024 was $0.16, a recovery from a loss of $0.03 per share in Q1 2023[60]. Assets and Liabilities - Total current assets decreased from $573.2 million as of January 31, 2024, to $530.1 million as of April 30, 2024, a decline of approximately 7.5%[19]. - Accounts receivable decreased from $190.5 million to $155.9 million, reflecting a reduction of about 18.2%[19]. - Total liabilities decreased from $957.4 million to $934.8 million, a decrease of approximately 2.4%[19]. - Long-term debt remained relatively stable, increasing slightly from $411.0 million to $411.4 million[19]. - Stockholders' equity decreased from $832.7 million to $818.9 million, a decline of about 1.7%[19]. - Cash and cash equivalents decreased from $241.4 million to $236.6 million, a decline of about 2.3%[19]. - Contract liabilities decreased from $254.4 million to $242.5 million, a reduction of approximately 4.7%[19]. - Total cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period were $237,666,000, down from $260,783,000 at the end of the same period in 2023[29]. - Remaining performance obligations totaled $717.4 million as of April 30, 2024, down from $744.3 million as of January 31, 2024[58]. - Total inventories increased to $16.589 million as of April 30, 2024, from $14.209 million on January 31, 2024[104]. - Accrued expenses and other current liabilities totaled $122.391 million as of April 30, 2024, compared to $137.433 million on January 31, 2024[106]. Cash Flow and Expenses - Cash flows from operating activities were $60,717,000 for the three months ended April 30, 2024, slightly up from $60,007,000 in the same period of 2023[29]. - The company incurred total operating expenses of $133,071,000 for the three months ended April 30, 2024, compared to $139,391,000 in the same period of 2023, showing improved cost management[21]. - Research and development expenses rose to $36,730,000 for the three months ended April 30, 2024, up from $31,782,000 in the same period of 2023, indicating increased investment in innovation[21]. - Total interest expense for the 2021 Notes was $643,000 for the three months ended April 30, 2024, compared to $640,000 for the same period in 2023[103]. - The company reported cash payments for interest of $2.210 million for the three months ended April 30, 2024, down from $2.513 million in 2023[108]. Strategic Initiatives - The company is focusing on enhancing its software as a service (SaaS) transition and improving subscription renewal rates[10]. - Future growth strategies include potential mergers and acquisitions to expand market presence and capabilities[10]. - The company completed the acquisition of an AI-powered analytics company for a total consideration of $13.9 million, including $8.8 million in cash and $5.1 million in contingent consideration and previously held investment[67]. - The company invested approximately $1.7 million in a privately-held company via SAFE agreements, which were consolidated into its financial statements following the acquisition[161]. Stock and Dividends - The company repurchased and retired common stock amounting to $38,118,000 during the three months ended April 30, 2024[29]. - The company did not declare or pay any cash dividends on common stock during the three months ended April 30, 2024 and 2023 due to restrictions under its Credit Agreement[128]. - For the three months ended April 30, 2024, the company paid $10.4 million in preferred stock dividends, with $6.9 million of cumulative undeclared and unpaid preferred stock dividends[115]. - The company has a stock repurchase program authorized for up to $200.0 million from December 12, 2022, until January 31, 2025[131]. Legal and Regulatory Matters - Verint agreed to pay a total of $16.0 million as compensation to plaintiffs and class members, with payments structured in three phases[192]. - The company collected a total of $14.5 million in insurance recovery related to legal settlements, offsetting settlement and legal expenses[200]. - The Israeli Supreme Court rejected CTI's motion to appeal, allowing proceedings in the District Court to resume[191]. - Verint's financial results may be influenced by macroeconomic conditions, including inflation and geopolitical events[204]. Tax and Compliance - The effective income tax rate for the three months ended April 30, 2024, was 34.1%, with an income tax provision of $8.0 million on pretax income of $23.3 million[140]. - As of April 30, 2024, the company had unrecognized income tax benefits of $82.5 million, which could decrease by approximately $8.1 million in the next twelve months due to potential settlements of tax audits[144]. - The company is monitoring the OECD Pillar 2 guidelines, which propose a global minimum tax of 15% effective for tax years beginning in 2024, but does not anticipate a material impact on its income tax provision this year[145].