Verint Systems helps business take an honest look at structured and unstructured data. The company provides analytic software for capturing and analyzing data from sources such as voice, video, and text, with a focus on unstructured content. Its software and services are used by enterprise customers to improve customer service interactions and operations, and by law enforcement and government agencies for combatting crime and providing security. Verint customers are in more than 150 countries and include more than 85% of the FORTUNE 100. It has about 30 offices in some 15 countries and generates more than half of its sales outside the US. Verint is set to acquire parent Comverse Technology (CTI) in 2013.
CTI spun off its Comverse, Inc. subsidiary in November 2012. As part of the deal, Verint will also free itself from CTI by acquiring the holding company in an all-stock deal worth about $805 million. The acquisition of CTI is expected to be completed in the first fiscal quarter (ending April 30, 2013). These transactions will give CTI shareholders direct ownership in two independent publicly traded companies.
Impact 360 and Voice of the Customer Analytics are the core products in Verint's enterprise intelligence segment. It helps with optimizing workforce functions and operations, specifically in customer-centric applications. It addresses areas such as customer interactions, quality monitoring, performance coaching, and customer feedback analytics.
Verint's communications segment, sold under brands such as ENGAGE, RELIANT, and VANTAGE, also encompasses cyber intelligence. Products are used for such functions as intercepting communications, mobile location tracking, Web intelligence, and tactical communications intelligence to combat terrorist threats and handle criminal activity such as financial fraud, drug trafficking, and cyber attacks. Video Intelligence products, sold under the Nextiva brand, provide networked IP video technology as a much-improved version of traditional analog CCTV technology. Communications and video are both used by law enforcement and government agencies. About a quarter of Verint's business is through government contracts around the world at local, state, and federal levels.
Sales in the US recovered in fiscal 2012 after falling the previous year, rising 17% over 2011 and nearly 5% over 2010. UK sales went the opposite route. After climbing 55% in 2011, revenues in the UK dropped off 18% to less than $84 million. Combined sales from all other regions continued to increase, gaining 7% in fiscal 2012. Regional sales reflect Verint's direct customers -- distributors, resellers, systems integrators -- and not necessarily the end users.
By segment, Verint saw gains in two of its three segments. Its largest business, enterprise intelligence (formerly called workforce optimization), grew 7%, while its smallest segment, video intelligence, rose 3%. The remaining segment, communications intelligence, suffered a 14% decline for fiscal 2012, which followed year in which it dipped 1%. Enterprise intelligence sales were driven primarily by an increased customer base and the attendant support revenue, helped secondarily by acquisitions.
The main contributor among its 2011 acquisitions was Vovici, a provider of feedback management software. Later in the year, Verint bought Atlanta-based workforce management company Global Management Technologies (GMT). GMT brought a focus on technology asset optimization and sales performance help, particularly for branch banks.
In 2010 Verint paid $22 million for Iontas, a provider of desktop analytic software used to analyze workflows and application usage to improve efficiency in call centers and branch offices. – less