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  "docSlug": "c54d9b8bb206",
  "documentTitle": "Verint Systems, Inc. (VRNT)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-05-23 00:00:00",
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  "pageNumber": 68,
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  "nDataPoints": 32,
  "notes": "The slide uses red arrows to link specific non-GAAP adjustments in the reconciliation tables to critical questions about the validity of those adjustments.",
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      "kind": "callout",
      "text": "Why should Verint add back acquisition-related sales which, per GAAP rules, it will never see?",
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      "kind": "callout",
      "text": "Is stock-based compensation not a real expense?",
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      "kind": "callout",
      "text": "Forced to offer compensation in the form of stock with cash trapped in foreign markets?",
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      "text": "Why is interest expense added back to operating cash flow?",
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      "text": "Of what, exactly, is this composed?",
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      "text": "compensation payout: 123%",
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      "text": "We note that management beat its one-year and multi-year revenue targets by only 2% each in FY19. As we show on subsequent slides, we do not believe that management would have hit its targets after Verint results are adjusted for inorganic sources of revenue, income, and cash flow.",
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      "kind": "paragraph",
      "text": "We also note that management uses an adjusted measure of revenue, operating income, and operating cash flow when setting compensation targets in its proxy statement, and that management would have failed to meet each of its targets except sales had it been measured against GAAP metrics.",
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      "text": "VRNT FY19 Proxy Statement performance tables",
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      "text": "Reconciliation tables for Revenue, Operating Income, and Operating Cash Flow",
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      "kind": "title",
      "text": "Aggressive Accounting And M&A Allow Management To Achieve Performance Targets",
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