Robertson Stephens initiates Verint Systems (VRNT ) with buy.
Analyst Marianne Wolk says she views the company as a pure play on accelerating spending on national, personal and information defense. She says many of its solutions are now mandated purchases, especially in the U.S. Wolk notes that the company leverages two technologies (wiretapping and video surveillance) across two market segments (security and business intelligence).
She sees $0.36 fiscal 2003 (Jan) earnings per share and $0.50 for fiscal 2004. Wolk believes Verint could demonstrate upside surprises to her forecasts from incremental margin expansion or a rebound in its enterprise call center business if IT spending recovers in late 2002 or 2003.