The ratings on Melville, N.Y.-based Verint Systems Inc. reflect the intense competition in the company's three segments, 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 the company's majority owner, Comverse Technology Inc., which had experienced years of legal, accounting, and operational issues, is the majority owner and controls four of the nine board seats. Favorable market growth--particularly through the recession--a somewhat predictable and growing recurring revenue base, and a diversified portfolio of products and services partially offsets those factors. Verint operates in the competitive security and business intelligence software industry, with customers ranging from large diversified companies and governments to small
