NET INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC.

6 Months Ended

Jul. 31, 2013

Earnings Per Share [Abstract]

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC.

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO VERINT SYSTEMS INC.

The following table summarizes the calculation of basic and diluted net income per common share attributable to Verint Systems Inc. for the three and six months ended July 31, 2013 and 2012:

	Three Months Ended  July 31,					Six Months Ended  July 31,
(in thousands, except per share amounts)	2013		2012			2013			2012
Net income	$	18,505	$	13,265		$	10,568		$	24,895
Net income attributable to noncontrolling interest	969		658			2,185			2,253
Net income attributable to Verint Systems Inc.	17,536		12,607			8,383			22,642
Dividends on Preferred Stock	—		(3,868		)	(174		)	(7,612		)
Net income attributable to Verint Systems Inc. for basic net income per common share	17,536		8,739			8,209			15,030
Dilutive effect of dividends on Preferred Stock	—		—			—			—
Net income attributable to Verint Systems Inc. for diluted net income per common share	$	17,536	$	8,739		$	8,209		$	15,030
Weighted-average shares outstanding:
Basic	52,977		39,712			52,484			39,392
Dilutive effect of employee equity award plans	660		360			692			546
Dilutive effect of assumed conversion of Preferred Stock	—		—			—			—
Diluted	53,637		40,072			53,176			39,938
Net income per common share attributable to Verint Systems Inc.:
Basic	$	0.33	$	0.22		$	0.16		$	0.38
Diluted	$	0.33	$	0.22		$	0.15		$	0.38

We excluded the following weighted-average common shares underlying stock-based awards and the assumed conversion of our Preferred Stock from the calculations of diluted net income per common share because their inclusion would have been anti-dilutive: 

	Three Months Ended July 31,		Six Months Ended July 31,
(in thousands)	2013	2012	2013	2012
Common shares excluded from calculation:
Stock options and restricted stock-based awards	875	1,224	882	1,068
Convertible Preferred Stock	—	10,988	248	10,935

Our Preferred Stock was canceled in conjunction with the CTI Merger on February 4, 2013. The weighted-average common shares underlying the assumed conversion of the Preferred Stock for the six months ended July 31, 2013 in the table above reflect the Preferred Stock as outstanding for only four days during the six months ended July 31, 2013. Further details regarding the CTI Merger appear in Note 4, "Merger with CTI".