Diversified portfolio of products and services, as well as geographic end markets; and Solid and growing recurring revenue base. Concerns regarding majority owner's strategies and financial position; Highly competitive and fragmented end markets with larger and better capitalized competitors; and Acquisitive growth strategy. 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 the company's majority owner, Comverse Technology Inc., which is experiencing ongoing legal, accounting, and operational issues, controls four of the eight board seats. Favorable market growth--particularly through the recession,
