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Verint profit rises; firm to buy Comverse

Verint Systems Inc., a Melville-based software company, said its fiscal second-quarter net income jumped 18 percent from a year ago to $13.3 million. Revenue rose 9 percent to $212.4 million in the quarter, which ended July 31.

Earnings per share climbed to 22 cents from 17 cents the year before. The company released the report Wednesday after the stock market closed. Verint shares rose 3 cents to $27.80 in after-hours trading.

Securities analyst Daniel Ives, who follows the company at FBR Capital Markets in Manhattan, said Verint managed to grow despite restrained spending by businesses.

"The company is showing healthy growth in a tough macro environment," said Ives, managing director at FBR.

Verint produces software used by businesses and government agencies to sift through data from telephone calls and surveillance cameras to detect potential problems.

Ives said the company is in a transition as it prepares to acquire Comverse Technology Inc., Verint's parent, which owns about 60 percent of the Melville company. The deal is scheduled to close in February.

The changeover is significant, Ives said, because of the controversy overhanging Comverse since its involvement in alleged backdating of stock options to boost executive pay.

In November 2010, Comverse co-founder and former chief executive Jacob "Kobi" Alexander agreed to pay $53.6 million to settle Securities and Exchange Commission charges. Federal prosecutors are still trying to extradite him from Namibia.

"Strategically they should be in a much better situation post the completion of the merger," Ives said, "where they basically become free and clear of Comverse."

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