Imperial Capital Believes Currency Headwinds Could Negatively Impact Revenue Transition For Verint Systems

In a report published Wednesday, Imperial Capital analyst Jeff Kessler reiterated an Outperform rating and $70.00 price target on Verint Systems, Inc. (NASDAQ: VRNT).In the report, Imperial Capital noted, "We are maintaining our Outperform rating and one-year price target of $70, about 13% above the recent share price. On 3/25/15, Verint reported mixed 4Q15 results: non-GAAP revenue of $316mn (GAAP revenue was $312mn) was below our estimate of $339mn, but was largely impacted by currency translation. Adjusted EBITDA of $94mn was above the consensus estimate of $89mn, and diluted EPS of $1.06 was below our estimate of $1.17 and the consensus estimate of $1.15. Excluding $8mn in foreign exchange charges related to balance sheet translations, non-GAAP diluted EPS was $1.19."As a result of the currency headwinds and taking into account management's FY16 (CY15) guidance, we are lowering our FY16E EPS to $3.65 from $3.82, lowering our EBITDA estimate to $303mn from $326mn, and lowering our revenue estimate to $1.23bn from $1.26bn. We are also lowering our FY17E EPS to $4.14 from $4.26, lowering our EBITDA estimate to $346mn from $364mn, and lowering our revenue estimate to $1.37bn from $1.41bn."Verint Systems closed on Tuesday at $61.93.