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  "documentTitle": "Verint Systems, Inc. (VRNT)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2019-05-23 00:00:00",
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  "notes": "The slide uses a red box to highlight the discrepancy between total acquisition spend and incremental growth.",
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      "kind": "callout",
      "text": "VRNT Q4 FY17 Earnings Call",
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      "text": "Any reasonable estimate of Verint's M&A sales contribution would suggest that the Company is experiencing dramatic organic top-line contraction – yet management almost never addresses organic growth on calls, nor is it asked about it by analysts.",
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      "text": "acquisition spend: $970M",
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      "text": "Source: VRNT SEC Filings",
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      "text": "Since FY15, Verint has spent ~$970M on acquisitions. Over the same time period, sales have grown by just ~$320M, and cash flow from operations by just ~$40M.",
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      "kind": "quote",
      "text": "And just one for Doug, can you tell us what the revenue contribution in the quarter was from Contact Solutions and OpinionLab...",
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      "kind": "quote",
      "text": "The Contact Solutions was a tuck-in acquisition we did earlier in the year... Those companies typically do not make money...",
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      "kind": "quote",
      "text": "\"The Contact Solutions was a tuck-in acquisition we did earlier in the year. OpinionLab is another company we did in Q4, I believe in November. And you know, our M&A strategy has been since we - the last deal, relatively big deal we did was over three years ago with Kana. Since then our strategy is to do tuck-in acquisitions, basically buy small companies with good products. Those companies typically do not make money, and when we bring the product to our large sales force and large customer base, we have an opportunity over time to scale the business and make it profitable.\" — Doug Robinson – CFO, Verint",
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      "text": "Frequent M&A Masks Poor Organic Growth",
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