Verint acquires Next IT, updates outlook for year ending January 31, 2019
Verint Systems Inc. recently announced that it has acquired all of the outstanding equity interests in Next IT Corporation and its affiliate Next IT Innovation Labs, LLC (collectively, “Next IT”), a developer of artificial intelligence-powered intelligent virtual assistants.
The purchase price consisted of close to $30 million of cash paid at closing, plus potential additional future cash payments.
“We continue to execute our innovation strategy, including making acquisitions that expand our self-service portfolio, accelerate Verint’s cloud and automation capabilities, and are accretive to earnings. We believe that Verint’s ongoing innovation in artificial intelligence technologies — such as machine learning, robotics and natural language processing — positions us for accelerated growth by helping organizations modernize their customer engagement operations with greater automation,” said Dan Bodner, CEO, Verint.
Verint also announced an updated outlook for the year ending January 31, 2019. The company is adding $10 million of revenue and three cents of diluted earnings per share to its non-GAAP outlook as follows:
• Increasing its outlook for revenue growth in its Customer Engagement segment from around five per cent to around six per cent
• Maintaining its outlook for revenue growth in its Cyber Intelligence segment of around 10 per cent
• Increasing its outlook for total revenue from $1.215 billion to $1.225 billion with a range of ±2 per cent
• Increasing its outlook for diluted earnings per share at the midpoint of its revenue guidance from $3.00 to $3.03, reflecting approximately 10 per cent year-over-year growth
Verint’s growth outlook is expressed relative to the company’s existing outlook for the year ending January 31, 2018.
The company’s preliminary non-GAAP outlook for the year ending January 31, 2019 excludes the amortization of discount on convertible notes of approximately $12 million, which the company says it is able to quantify with reasonable certainty.
It also excludes the following GAAP measures for which the company is able to provide a range of probable significance:
• Amortization of intangible assets is expected to be between $49 million and $53 million for the year ending January 31, 2019
• Revenue adjustments related to completed acquisitions are expected to be between approximately $5 million and $9 million for that same year
• Stock-based compensation is expected to be between $60 million and $70 million for that year
Verint’s preliminary non-GAAP outlook does not include the potential impact of any in-process business acquisitions that may close after the date hereof.
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