Revenues: With the combination of Verint and KANA, Customer Engagement Optimization has become the industry’s first end-to-end solution. This acquisition has brought approximately 900 global customers, driving revenue growth above historical averages. Advanced cyber intelligence systems in large-scale and government organizations, will be another top line catalyst. Both solutions have an increasing demand. The company will continue to grow through selective and strategic acquisitions, and through new developed products. EBITDA: Cost reductions generated from KANA acquisition's economies of scale and operating economies, and the increasing demand in cyber security, will increase EBITDA margins in the short run, and will enable the company to maintain margins down to historical average in the long run. …show more content…
Adjustments to the CTI consolidated group's tax liability for periods prior to the CTI Merger could also affect the net operating losses ("NOLs") allocated to Verint as a result of the CTI Merger and cause Verint to incur additional tax liability in future periods. Tax rate will be around 9% due to its net operating losses and the amount of income generated in lower tax rate jurisdictions in the short run, and then goes back to historical averages. CAPEX Growth: The major portion of capital expenditures will come from the continuous M&A's. Aquisitions in 2014 of KANA and UTX were $600 million, of which $183 million were paid on cash. The remaining portion will come from maintenance capex. Working Capital: The company has periodically reported a working capital deficit, due largely to the impact of changes in its deferred revenue balances, effect that will continue in the next