Verint swings to 1Q loss over debt, expenses

Melville-based Verint Systems Inc. attributed its $9.2 million Melville-based Verint Systems Inc. attributed its $9.2 million first-quarter loss to expenses and eliminating debt. (March 27, 2013) Photo Credit: Ana Maria Rico

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Despite higher sales, Verint Systems Inc. swung to a loss during the first quarter as the Melville-based software maker paid down debt and incurred higher expenses.

Revenue climbed 4 percent year over year, to $205 million, during the three months ending in April, as concerns over terrorism and cybercrime drove up demand for the company's programs to help corporations pinpoint security threats.

Nonetheless, Verint reported a loss of $9.2 million, or 18 cents a share, compared with a year-earlier profit of $10 million, or 16 cents a share. Verint chief executive and president Dan Bodner said the results were in line with the company's expectation.

"We believe we are well positioned for another year of growth with our broad portfolio of innovative analytical solutions and strong competitive position in the enterprise and security intelligence markets," Bodner said.

Verint's operating expenses grew 9.7 percent from a year earlier to $117.8 million. The company also reported a $9.7 million loss related to extinguishing debt.

During a call Monday with analysts, Bodner reaffirmed Verint's 2013 earnings forecast, saying he expected sales to rise 6 percent to 7 percent.

Verint, founded in 1994, produces software used by businesses and government agencies to sift through data from telephone calls and surveillance cameras to evaluate performance and detect potential problems.

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Analysts had forecast revenue of $203 million and earnings per share of 52 cents, according to data compiled by Bloomberg. The company released its earnings report after Wall Street closed. In after hours trading, Verint's stock was down roughly 3 percent, to $33.

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