What led to Verint Systems Inc. (NASDAQ: VRNT) stock crash

Free $100 Forex No-Deposit Bonus

Verint Systems Inc. (NASDAQ: VRNT) stock lost over 12.6% on 10th June, 2020 (as of 11:26 am GMT-4; Source: Google finance) after the company posted lower than expected results for the first quarter of FY 20. Verint has lost $1.6 million in the first quarter compared to a profit of $1.5 million, in the year-ago quarter. Going forward as offices are reopening and travel restrictions are being lifted, the company expects a sequential improvement in Q2 and continued improvement in the second half of the year. The company has already made “significant progress” on its plan for creation of two standalone public companies. Verint did not provide specific guidance but expects its results “to improve throughout the year.” the company had posted bookings growth in February and March, many customers delayed project in April, mainly on-premises deployments.

VRNT in the first quarter of FY 20 has reported the adjusted earnings per share of 52 cents, missing the analysts’ estimates for the adjusted earnings per share of 68 cents, according to analysts polled by FactSet. The company had reported the adjusted revenue of $287 million in the first quarter of FY 20, missing the analysts’ estimates for revenue of $323 million.

Moreover, in Q1, on a constant currency basis, Customer Engagement GAAP revenue had declined by 9% and non-GAAP revenue has fallen down 12% year-over-year on the back of a decline in perpetual license revenue as on-premises deals were delayed. Perpetual equivalents were also down for the same reason, although new SaaS ACV was up 45%. The company expects improvement in Q2 and the second half of the year as on-premises deals come back and the cloud momentum continues. In Q1, non-GAAP estimated fully allocated operating margin for Customer Engagement came in at about 20%, reflecting the April weakness. In Q1, the percentage of the revenue, software revenue which is recurring came in at 82%, reflecting an increase of approximately 900 bips year-over-year. This significant increase was on the back of cloud mix shift and strong renewal rates. The Q1 recurring renewal rate was around 90%, which is similar to last fiscal year and came in a few points stronger when excluding the renewal rates for ForeSee’s legacy products.

Additionally, including the first tranche of the Apax investment, the company has more than $800 million of cash and short-term investments and a leverage ratio of less than 1 times net debt to last 12 months EBITDA on an adjusted basis. The company generated cash flow from operations on a GAAP basis of $76 million in Q1.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.