Standard&Poor's Ratings Services' ratings on Melville, N.Y.-based Verint Systems Inc. reflect the highly competitive nature of the software industry, its reliance on specialized product offerings, and an aggressive financial profile characterized by a fairly acquisitive growth strategy and elevated leverage. The rating also incorporates concerns that after an extended period of noncompliance with SEC financial reporting requirements, Verint's internal controls are subject to numerous material weaknesses, which could potentially result in future restatements or filing delays. Favorable market growth--particularly through the recession, a predictable and growing revenue base stemming from high renewal rates, and diversified portfolio of products and services partially offset those factors. Verint operates in the competitive security and business intelligence industry, with vendors ranging from
