Company profile

Ticker
VRNT
Exchange
Website
CEO
Daniel Bodner
Employees
Incorporated in
Location
Fiscal year end
SEC CIK
IRS number
113200514

VRNT stock data

(
)

Calendar

4 Sep 19
22 Nov 19
31 Jan 20

News

Company financial data Financial data

Quarter (USD) Jul 19 Apr 19 Jan 19 Oct 18
Revenue 324.31M 315.26M 330.23M 303.98M
Net income 10.56M 1.58M 27.31M 18.92M
Diluted EPS 0.16 0.02 0.41 0.29
Net profit margin 3.26% 0.50% 8.27% 6.22%
Operating income 15.28M 14.47M 43.55M 33.67M
Net change in cash -23.48M 42.05M 16.55M -21.66M
Cash on hand 388.55M 412.02M 369.98M 353.42M
Cost of revenue 116.44M 114.19M 110.58M 111.24M
Annual (USD) Jan 19 Jan 18 Jan 17 Jan 16
Revenue 1.23B 1.14B 1.06B 1.13B
Net income 65.99M -6.63M -29.38M 17.64M
Diluted EPS 1 -0.1 -0.47 0.28
Net profit margin 5.37% -0.58% -2.77% 1.56%
Operating income 114.24M 48.63M 17.37M 67.85M
Net change in cash 32.03M 30.58M -44.74M 67.03M
Cash on hand 369.98M 337.94M 307.36M 352.11M
Cost of revenue 449.21M 446.79M 422.63M 428.91M

Financial data from company earnings reports

Financial report summary

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Risks
  • Our business is impacted by changes in general economic conditions, and information technology and government spending in particular.
  • The industry in which we operate is characterized by rapid technological changes, evolving industry standards and challenges, and changing market potential from area to area, and if we cannot anticipate and react to such changes our results may suffer.
  • Intense competition in our markets and competitors with greater resources than us may limit our market share, profitability, and growth.
  • Our future success depends on our ability to properly manage investments in our business and operations, execute on growth initiatives, and enhance our existing operations and infrastructure.
  • We may not be able to identify suitable targets for acquisition or investment, or complete acquisitions or investments on terms acceptable to us, which could negatively impact our ability to implement our growth strategy.
  • Our acquisition and investment activity presents certain risks to our business, operations, and financial position.
  • Sales processes for sophisticated solutions and a broad solution portfolio like ours present significant challenges.
  • If we are unable to establish and maintain our relationships with third parties that market and sell our products, our business and ability to grow could be materially adversely affected.
  • For certain products, components, or services, including our cloud hosting operations, we rely on third-party suppliers, manufacturers, and partners, which may create significant exposure for us.
  • If we cannot retain and recruit qualified personnel, our ability to operate and grow our business may be impaired.
  • Because we have significant foreign operations and business, we are subject to geopolitical and other risks that could materially adversely affect our results.
  • Conditions in and our relationship to Israel may materially adversely affect our operations and personnel and may limit our ability to produce and sell our products or engage in certain transactions.
  • Political factors related to our business or operations may adversely affect us.
  • Contracting with government entities exposes us to additional risks inherent in the government procurement process.
  • We are subject to complex, evolving regulatory requirements that may be difficult and expensive to comply with and that could negatively impact our business.
  • Increasing regulatory focus on information security and data privacy issues and expanding laws in these areas may result in increased compliance costs, impact our business models, and expose us to increased liability.
  • The mishandling or the perceived mishandling of sensitive information could harm our business.
  • Our solutions may contain defects or may be vulnerable to cyber-attacks, which could expose us to both financial and non-financial damages.
  • We may be subject to information technology system breaches, failures, or disruptions that could harm our operations, financial condition, or reputation.
  • Our intellectual property may not be adequately protected.
  • Our products may infringe or may be alleged to infringe on the intellectual property rights of others, which could lead to costly disputes or disruptions for us and may require us to indemnify our customers and resellers for any damages they suffer.
  • Use of free or open source software could expose our products to unintended restrictions and could materially adversely affect our business.
  • We have a significant amount of indebtedness, which exposes us to leverage risks and subjects us to covenants which may adversely affect our operations.
  • If we are not able to generate sufficient cash domestically in order to fund our U.S. operations, strategic opportunities, and to service our debt, we may incur withholding taxes in order to repatriate certain overseas cash balances, or we may need to raise additional capital in the future.
  • We may be adversely affected by our acquisition of CTI or our historical affiliation with CTI and its former subsidiaries.
  • Our financial results may be significantly impacted by changes in our tax position.
  • Changes in accounting principles, or interpretations thereof, could adversely impact our financial condition or operating results.
  • Our internal controls over financial reporting may not prevent misstatements and material weaknesses or deficiencies could arise in the future which could lead to restatements or filing delays.
  • If our goodwill or other intangible assets become impaired, our financial condition and results of operations could be negatively affected.
  • Our international operations subject us to currency exchange risk.
  • The prices of our common stock and the Notes have been, and may continue to be, volatile and your investment could lose value.
Management Discussion
  • As is typical for many software and technology companies, our business is subject to seasonal and cyclical factors. In most years, our revenue and operating income are typically highest in the fourth quarter and lowest in the first quarter (prior to the impact of unusual or nonrecurring items). Moreover, revenue and operating income in the first quarter of a new year may be lower than in the fourth quarter of the preceding year, in some years, by a significant margin. In addition, we generally receive a higher volume of orders in the last month of a quarter, with orders concentrated in the later part of that month. We believe that
  • these seasonal and cyclical factors primarily reflect customer spending patterns and budget cycles, as well as the impact of incentive compensation plans for our sales personnel. While seasonal and cyclical factors such as these are common in the software and technology industry, this pattern should not be considered a reliable indicator of our future revenue or financial performance. Many other factors, including general economic conditions, may also have an impact on our business and financial results.
  • Three Months Ended July 31, 2019 compared to Three Months Ended July 31, 2018. Our revenue increased approximately $18.0 million, or 6%, to $324.3 million in the three months ended July 31, 2019 from $306.3 million in the three months ended July 31, 2018. The increase is due to an $18.0 million increase in service and support revenue. In our Customer Engagement segment, revenue increased $10.6 million, or approximately 5%, from $200.8 million in the three months ended July 31, 2018 to $211.4 million in the three months ended July 31, 2019. The increase consisted of an $11.6 million increase in service and support revenue and a $1.0 million decrease in product revenue. In our Cyber Intelligence segment, revenue increased approximately $7.4 million, or 7%, from $105.5 million in the three months ended July 31, 2018 to $112.9 million in the three months ended July 31, 2019. The increase consisted of a $6.4 million increase in service and support revenue and a $1.0 million increase in product revenue. For additional details on our revenue by segment, see “—Revenue by Operating Segment”.  Revenue in the Americas, in Europe, the Middle East and Africa (“EMEA”), and in the Asia-Pacific (“APAC”) regions represented approximately 52%, 29%, and 19% of our total revenue, respectively, in the three months ended July 31, 2019, compared to approximately 54%, 25%, and 21%, respectively, in the three months ended July 31, 2018. Further details of changes in revenue are provided below.
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