The ratings on Melville, N.Y.-based Verint Systems Inc. reflect the company's acquisitive growth strategy, integration risk related to the Witness acquisition, high leverage, and noncompliance with SEC filing regulations. These factors are offset partially by favorable market growth, a predictable and growing revenue base stemming from high renewal rates, and more balanced product and service offerings following the transaction. The outlook is developing, meaning that we could raise or lower the ratings, because the company is not current on its SEC filings as a result of an investigation at Comverse Technology Inc., its majority shareholder, for backdating stock option grants and certain accounting matters, and a related internal investigation at Verint. Verint operates in a fragmented and competitive security and
