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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 comparative table structure to show that while NICE offsets revenue add-backs with cost adjustments, Verint does not, implying lower quality earnings.",
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      "text": "Why doesn't Verint do the same?",
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      "text": "While NICE also recognizes an acquisition-related revenue adjustment add-back in its calculation of Non-GAAP earnings, it offsets this add-back with a corresponding adjustment for the value of deferred costs associated with acquisitions. That is to say, NICE does not recognize its acquisition-related revenue adjustments at a 100% margin. Why doesn't Verint do the same?",
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      "text": "Even if you were to give management credit for the revenue adjustment for its representation of run-rate sales, it would be entirely inappropriate to give it credit for this as an EBITDA or net income add-back, since the revenue adjustment is a non-cash add-back and, at 100% assumed margin, is not representative of underlying earnings or cash flow from associated acquisitions. Any investor using Verint's Non-GAAP EBITDA or Non-GAAP net income to value the business – probably most of them – are capturing very low-quality components of Company-defined earnings.",
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      "text": "Sources: VRNT Earnings Press Releases, NICE Earnings Press Releases",
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