UPDATE 1-Neuberger urges Verint investors to back its board nominees
(Adds Verint's response, details from source, stock performance)
By Shariq Khan
May 13 (Reuters) - Asset manager Neuberger Berman on Monday urged shareholders of Verint Systems to vote for its three director nominees and asked the data analytics company to detail its cloud strategy.
Verint should also disclose segment-level financials for its customer engagement (CES) and cyber intelligence solutions (CIS) units so that investors can value each of them individually, the investor said in a letter to shareholders.
Verint needs to make a "compelling case" for keeping ownership of both units, which it says serves different markets and do not present "operational synergies," Neuberger said.
Neuberger, which holds a 2.7% stake in the company, said it has owned Verint's stock since 2006 and has tried to engage with the company's board for the last two years.
The asset manager said a robust share buyback plan should be an important part for a "low-growth" company like Verint.
Verint defended its strategy in an emailed statement to Reuters, citing plans to grow its cloud business by about 40% this year as well as its better-than-expected first-quarter revenue.
"Verint is performing very strongly and is delivering significant value to our stockholders," the company said. Shares of the company have risen 41.5% so far this year.
Verint also said it had added three new directors over the last three years, including one director at Neuberger Berman's suggestion in 2017.
A source familiar with the matter told Reuters that Neuberger remains willing to resolve its disputes with Verint.
Verint shareholders are set to vote on the proposals, including the nomination of directors, at the company's annual meeting on June 20. (Reporting by Shariq Khan in Bengaluru; Editing by Arun Koyyur and Sonya Hepinstall)
