Verint’s quarterly results were significantly above our and Street expectations for both revenue and pro forma earnings per share, primarily driven by the company’s enterprise intelligence business. This business grew 47% over the prior-year quarter on a non-GAAP basis (37.1% on a GAAP basis), driven by strong activity in both the acquired KANA business but also the legacy business (the latter of which grew 11%, year-over-year).
The KANA business contributed $41 million to non-GAAP revenue. Verint also announced a $100 million, three-year deal for cybersecurity solutions, none of which was recognized during the first quarter. We were encouraged by the strong revenue growth during the year and the reception to KANA. Management reported strong business activity in its end-markets as well as strong customer interest in the company’s strategy of providing suite-based solutions, further extending what we viewed as its already-broad suite of offerings.
The company’s cybersecurity business signed a significant deal for $100 million, which will contribute primarily to fiscal 2016 and 2017, and with no revenue recognized in the May quarter just reported. The EMEA region was particularly strong, growing more than 81% year-over-year.
The Americas grew more than 27%, while APAC declined slightly over the same period. Management’s revised outlook for fiscal 2015 is for revenue growth of 24.7% (including $150 million-$160 million from acquisitions) and pro forma EPS growing at a slower rate of 19.4% (mainly because of higher interest expenses from the acquisitions).