{ "docId": "019dd923-622c-750b-8b98-b531f2b0553d", "docSlug": "c54d9b8bb206", "documentTitle": "Verint Systems, Inc. (VRNT)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2019-05-23 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 66, "pageCount": 108, "prevPage": 65, "nextPage": 67, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a comparison table and direct quotes to highlight a lack of transparency by Verint compared to NICE.", "elementsJson": [ "headline_text", "paragraph", "quote_block", "comparison_table" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b98-b531f2b0553d/66", "deckHref": "/decks/019dd923-622c-750b-8b98-b531f2b0553d", "deckJsonHref": "/decks/019dd923-622c-750b-8b98-b531f2b0553d.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-b531f2b0553d#slide-66", "components": [ { "bbox": null, "kind": "callout", "text": "Since NICE adopted ASC 606 accounting standards at the beginning of its FY18, its management team has been significantly more transparent on the impact of the change than Verint.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-2b65-734e-a974-0eb8ddb7409d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.96, "x": 0.02, "y": 0.16 }, "kind": "paragraph", "text": "Since NICE adopted ASC 606 accounting standards at the beginning of its FY18, its management team has been significantly more transparent on the impact of the change than Verint. NICE's press releases, for example, disclosed results under both ASC 605 and ASC 606 standards throughout the course of the year. Further, and importantly, NICE provided an apples-to-apples comparison of current and historical financial results under ASC 605 standards, thus giving investors a clear view into organic changes in the business. It also provided FY18 guidance under ASC 605 standards for the same reason. VRNT's reported results, meanwhile, did not provide a similar apple-to-apples comparison, as current results were reported exclusively under ASC 606 standards, against historical results reported under ASC 605.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "b0883d7e-268d-4867-81b8-af0d7aa44764", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.48, "x": 0.02, "y": 0.37 }, "kind": "quote", "text": "Before I speak about guidance, a few words on the adoption of ASC 606.... at this point, we don't expect a material impact. In that regard, while we will be providing 2018 financial data in both ASC 606 and ASC 605, we elected to provide guidance for Q1 2018 and the full-year 2018 using the accounting standard ASC 605. We chose to do this to provide better transparency and comparability to 2017 financial data, which was reported in ASC 605.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "aa169e11-1ded-4198-ad83-9464c834b97c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.46, "x": 0.52, "y": 0.37 }, "kind": "quote", "text": "With regard to the new 606 revenue accounting pronouncement, which is effective for us at the beginning of the current year, we do not see an overall material impact to our results, and our guidance already reflects the changes required under 606.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bbc93785-79c4-477a-8ae1-3baf341e7969", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "“Before I speak about guidance, a few words on the adoption of ASC 606.... at this point, we don't expect a material impact. In that regard, while we will be providing 2018 financial data in both ASC 606 and ASC 605, we elected to provide guidance for Q1 2018 and the full-year 2018 using the accounting standard ASC 605. We chose to do this to provide better transparency and comparability to 2017 financial data, which was reported in ASC 605.” — NICE Q4 FY17 Earnings Call", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-2b65-734e-a974-13f0833d7342", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.35, "w": 0.7, "x": 0.15, "y": 0.54 }, "kind": "table", "text": "VRNT vs. NICE: Summary of Communication With Investors About Topic 606", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eb9f7794-018f-4fa6-846a-20da487938ee", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.65, "x": 0.305, "y": 0.025 }, "kind": "title", "text": "NICE Far More Transparent On Effects Of Change In Accounting Standards", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "471f2a20-91cf-4b91-b491-f8fa28e06ac8", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "comparison_frame", "slug": null, "matchId": "0c1316ed-7885-4623-92df-eb9f2b7db37b", "evidence": "Direct comparison table between two companies on specific disclosure metrics.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }