EX-12.1 5 vrnt-ex121_20150131xform10.htm EXHIBIT 12.1 VRNT-EX12.1_2015.01.31 - Form 10-K



EXHIBIT 12.1



Verint Systems Inc. and Subsidiaries
Ratios of Earnings to Fixed Charges
and
Ratios of Earnings to Combined Fixed Charges and Preference Security Dividends



 
 
Year Ended January 31,
(in thousands, except ratios)
 
2015
 
2014
 
2013
 
2012
 
2011
Earnings:
 
 
 
 
 
 
 
 
 
 
Income before provision (benefit) for income taxes
 
$
21,403

 
$
63,315

 
$
67,764

 
$
46,157

 
$
38,525

Add: Fixed charges
 
42,151

 
34,330

 
35,900

 
37,423

 
34,063

Subtract: Noncontrolling interest in pre-tax income of subsidiaries
 
(6,293
)
 
(6,081
)
 
(5,783
)
 
(4,376
)
 
(3,632
)
 
 
$
57,261

 
$
91,564

 
$
97,881

 
$
79,204

 
$
68,956

 
 
 
 

 
 
 
 
 
 
Fixed Charges and Preference Security Dividends:
 
 
 
 
 
 
 
 
 
 
Interest expense, including amortization of discounts
 
$
27,529

 
$
27,119

 
$
27,544

 
$
29,237

 
$
27,109

Amortization of deferred debt-related costs
 
9,133

 
2,662

 
3,489

 
3,120

 
2,788

Interest component of rent expense
 
5,489

 
4,549

 
4,867

 
5,066

 
4,166

   Total Fixed Charges
 
42,151

 
34,330

 
35,900

 
37,423

 
34,063

Dividends on convertible preferred stock (pre-tax)
 

 
211

 
18,883

 
18,118

 
17,433

   Total Fixed Charges and Preference Security Dividends
 
$
42,151

 
$
34,541

 
$
54,783

 
$
55,541

 
$
51,496

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
 
1.4

 
2.7

 
2.7

 
2.1

 
2.0

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges and Preference Security Dividends
 
1.4

 
2.7

 
1.8

 
1.4

 
1.3



Earnings consists of our consolidated net income before income taxes, plus fixed charges, reduced by the non-controlling interest in the pre-tax income of a consolidated subsidiary that did not incur fixed charges. Fixed charges consist of interest expense (including only interest expense on third party indebtedness and excluding interest expense accrued on uncertain tax positions), amortization of debt discounts and capitalized expenses related to indebtedness as well as a portion of rental expense deemed by us to be representative of the interest factor within rental payments under operating leases. Preference security dividends represent the estimated amount of pre-tax earnings necessary to pay dividends on our previously outstanding Series A Convertible Preferred Stock. Dividends on our Series A Convertible Preferred Stock were cumulative. Our Series A Convertible Preferred Stock was canceled on February 4, 2013, in connection with our acquisition of CTI. No dividends had been declared or paid on our Series A Convertible Preferred Stock.