SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

Summarized condensed quarterly financial information for the years ended January 31, 2018 and 2017 appears in the following tables:



	Three Months Ended
	April 30,			July 31,			October 31,		January 31,
(in thousands, except per share data)	2017			2017			2017		2018
Revenue	$	260,995		$	274,777		$	280,726	$	318,731
Gross profit	$	150,192		$	164,103		$	169,321	$	204,826
(Loss) income before (benefit) provision for income taxes	$	(19,932	)	$	(1,314	)	$	9,010	$	31,136
Net (loss) income	$	(19,040	)	$	(5,766	)	$	3,066	$	18,286
Net (loss) income attributable to Verint Systems Inc.	$	(19,786	)	$	(6,427	)	$	2,489	$	17,097

Net (loss) income per common share attributable to Verint Systems Inc.
Basic	$	(0.32	)	$	(0.10	)	$	0.04	$	0.27
Diluted	$	(0.32	)	$	(0.10	)	$	0.04	$	0.26



	Three Months Ended
	April 30,			July 31,			October 31,			January 31,
(in thousands, except per share data)	2016			2016			2016			2017
Revenue	$	245,424		$	261,921		$	258,902		$	295,859
Gross profit	$	144,730		$	159,460		$	155,696		$	179,591
(Loss) income before provision for income taxes	$	(15,863	)	$	(10,020	)	$	(4,075	)	$	6,484
Net (loss) income	$	(16,193	)	$	(11,078	)	$	(7,434	)	$	8,459
Net (loss) income attributable to Verint Systems Inc.	$	(17,456	)	$	(11,705	)	$	(8,237	)	$	8,018

Net (loss) income per common share attributable to Verint Systems Inc.
Basic	$	(0.28	)	$	(0.19	)	$	(0.13	)	$	0.13
Diluted	$	(0.28	)	$	(0.19	)	$	(0.13	)	$	0.13

Net (loss) income per common share attributable to Verint Systems Inc. is computed independently for each quarterly period and for the year. Therefore, the sum of quarterly net (loss) income per common share amounts may not equal the amounts reported for the years.

During the three months ended January 31, 2018, we recognized provisional deferred income tax withholding expense of $15.0 million on foreign earnings that may be repatriated to the U.S., in connection with the 2017 Tax Act, which was enacted into law in December 2017. The quarterly operating results for the year ended January 31, 2017 did not include any material unusual or infrequently occurring items.

As is typical for many software and technology companies, our business is subject to seasonal and cyclical factors. In most years, our revenue and operating income are typically highest in the fourth quarter and lowest in the first quarter (prior to the impact of unusual or nonrecurring items). Moreover, revenue and operating income in the first quarter of a new year may be lower than in the fourth quarter of the preceding year, in some years, potentially by a significant margin. In addition, we generally receive a higher volume of orders in the last month of a quarter, with orders concentrated in the later part of that month. We believe that these seasonal and cyclical factors primarily reflects customer spending patterns and budget cycles, as well as the impact of compensation incentive plans for our sales personnel. While seasonal and cyclical factors such as these are common in the software and technology industry, this pattern should not be considered a reliable indicator of our future revenue or financial performance. Many other factors, including general economic conditions, also have an impact on our business and financial results. See “Risk Factors” under Item 1A of this report for a more detailed discussion of factors which may affect our business and financial results.