Verint Systems 2Q profits, sales up
Verint Systems Inc., a maker of data-analysis and security software, said its second-quarter profits rose sharply amid increased global concerns about terrorism and cybercrimes.
The Melville company, whose programs help corporations pinpoint security threats and evaluate employee performance, said net income climbed 40 percent to $18.5 million, or 33 cents per share, during the three months ended in July compared to the same period a year earlier. Sales rose 5 percent to $222.5 million.
"We believe that terrorism, criminal activities, cyber and other security threats, combined with the expanding forms of communications, devices and protocols are driving demand for innovative security solutions," Verint chief executive Dan Bodner said during a call with analysts.
Verint's $222.5 million in revenue beat the expectations of analysts, who had forecast $216.4 million, according to data compiled by Bloomberg. The company's shares rose 7.48 percent Wednesday to $35.50.
Bodner told analysts he expected the company's growth to continue this year, with sales rising between 6 percent and 7 percent.
The company's rise in profits was also boosted by lower expenses. Verint cut its operating costs during the quarter by 8 percent, including nearly $8.4 million from selling, general and administrative costs. It also lowered the amount it set aside for income taxes by $1.9 million.
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. The company's customers include more than 10,000 organizations in about 150 countries, including 80 percent of Fortune 100 companies.