Cognyte Software Ltd (NASDAQ:CGNT) stock felt 3.29% (As on Sep 21, 11:22:38 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the second quarter of FY 21 & raised FY 22 EPS guidance. During the second quarter, the company has received multiple seven and eight figure orders and the company continues to see strong market demand for security analytics.

CGNT in the second quarter of FY 21 has reported the adjusted earnings per share of 17 cents, beating the analysts’ estimates for the adjusted earnings per share of 15 cents, according to analysts polled by Thomson Reuters. The company had reported the adjusted revenue growth of 10 percent to $116.38 million in the second quarter of FY 21, beating the analysts’ estimates for revenue of $115.57 million. Non-GAAP gross profit came in at $85.6 million, up more than 13% year-over-year. Adjusted EBITDA was $18.5 million in the second quarter.

Moreover, in the first half of the year, over 50% of the revenue was recurring and 89% of the revenue came from software, up 200 basis points year-over-year, driven by the adoption of the analytics platform and the reduction of hardware reselling and professional services. The H1 non-GAAP gross margin increased over 300 basis points to 73%, and the non-GAAP gross profit increased approximately 16% year-over-year as a result of this improved mix.

The company expects FY 22 EPS to be of $0.82 for the period, compared to the Thomson Reuters consensus EPS estimate of $0.80. The company issued revenue guidance of $490 million (with a range of plus/minus 2%), compared to the consensus revenue estimate of $489.98 million.

The company expects Q3 revenue to be in a range of $112 million to $117 million and to finish the year with the typical strong Q4. The company expects Q3 EPS to be $0.10 and to finish the year with the typical strong Q4. The analysts expect the company to report profit per share of $0.19 on revenue of $123.93 million.

The costs to complete separation of Cognyte from Verint Systems Inc. (hereafter “Verint”) and establish Cognyte as an independent public company of between approximately $0.5 million and $1 million and between approximately $11 million and $12 million for the three months ending October 31, 2021, and FYE22, respectively.