Verint Systems Inc.(NASDAQ: VRNT) stock lost over 8.3% on December 7th, 2017 (as of 10:33AM EST; Source: Google finance) post their third quarter of 2018 update
Non-GAAP gross margins of the group’s cyber intelligence segment are lower than the overall gross margins reflecting mix of hardware, software, and services including from third-party vendors in that business. This contributed to weak stock sentiment of the firm. The group expects the total non-GAAP gross margins to be in the mid-60s for FY18 in line with their earlier year performance. For customer engagement, they forecast over 5% revenue growth, in cyber intelligence and over 10% revenue growth, and overall they forecast a revenue of 1.14 billion with a range of plus or minus 1%.
Cyber intelligence segment revenue enhanced 15% yoy to $99 million while cyber intelligence segment margin reached 11% which is a one percentage point of expansion against the same period in the prior year. This is the third quarter in a row of double-digits on a year-over-year revenue growth.
For the third quarter of 2018 on a GAAP basis, the group reported a $281 million revenue which is a rise of 8% on a year-over-year basis. Non-GAAP revenue enhanced 6% yoy to $185 million. The group’s cloud revenue continued to witness a solid growth and forecasts a 5% revenue growth overall with the cloud portion of their revenue growing faster at a rate of over 25%. They forecast over 60% of their revenue to be generated from recurring sources while forecast a segment margins to expand to around 24% this year.
The group won over $5 million in orders from a leading business process outsourcer for its speech analytics solutions. They got orders from a major shipping firm leading the total orders from this customer to $8 million over the last year for multiple components of their portfolio. The group got orders from a BPO company bringing total orders from this customer to nearly $5 million this year. They got over $4 million in orders from global logistics company as part of a new strategic initiative to modernize their customer engagement operation.