The 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 risk 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 has experienced ongoing legal, accounting, and operational issues, controls five of the eight board seats. Favorable market growth--particularly through the recession, a somewhat predictable and growing revenue base stemming from high renewal rates and orders from existing customers, and a diversified portfolio of products and services partially offsets those factors. Verint operates in the competitive security and business intelligence industry, with vendors ranging from large diversified companies
