Verint Systems, Inc.
A Short Cloud Call
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Verint Systems, Inc.
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Research Overview

INDEX:
S&P 500
Sector:
Technology
Position:
Short
Date:
May 23, 2019

After conducting a forensic financial and accounting review, Spruce Point believes Verint Systems Inc. (Nasdaq: VRNT), a call center software provider which has fallen far behind the industry’s evolving technological standards, is making up for slow growth with aggressive M&A and dubious accounting. Based on our investigation, we estimate 60% to 70% downside risk or $17.00 - $25.00 per share.

The report highlights several key concerns with the company, including:

  • We believe the company is relying on low-quality M&A to obfuscate struggling organic growth
  • We believe the company is using a dubious definition of cloud business
  • Evidence that the Company’s aggressive accounting add backs driving results
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