Verint Systems VRNT reported second-quarter fiscal 2022 non-GAAP earnings of 58 cents per share, which beat the Zacks Consensus Estimate by 31.8%. On a year-over-year basis, the bottom line deteriorated 25.6%.Non-GAAP revenues increased 4% year over year to $216 million and beat the Zacks Consensus Estimate by 3.2%. GAAP revenues of $215 million increased 5% year over year. The top line was driven by strength in the cloud business.Following the earnings announcement, shares of Verint dropped 1.9% and closed at $43.25 on Sep 10. In the past year, shares have declined 12.4% compared with the industry’s growth of 36.7%.Verint Systems Inc. Price, Consensus and EPS Surprise Verint Systems Inc. price-consensus-eps-surprise-chart | Verint Systems Inc. Quote Quarter DetailsNon-GAAP recurring revenues (72.9% of total non-GAAP revenues) increased 10.4% year over year to $157.2 million.Non-GAAP nonrecurring revenues (27.1%) declined 9.8% year over year to $58.4 million.On a non-GAAP basis, the company’s cloud revenues were up 43.7% to $94.3 million. Non-GAAP software-as-a-service (SaaS) revenue increased 51.5% to $77.3 million.The company’s new perpetual license equivalent (PLE) bookings soared 17.4% year over year to $73.1 million. Percentage of new perpetual license equivalent bookings from SaaS stood at 52.6% in the fiscal second quarter compared with 43.1% reported in the prior-year quarter.New SaaS annual contract value (or ACV) increased 59.1% to $26.6 millionOperating DetailsNon-GAAP gross profit increased 1.9% year over year to $149 million. Non-GAAP gross margin contracted 150 basis points (bps) to 69.1%.Total operating expenses increased 12.9% year over year to $130.5 million.As a percentage of non-GAAP revenues, non-GAAP research and development expenses as well as non-GAAP selling, general and administrative expenses stood at 13.7% and 31.4%, respectively in the fiscal second quarter.Adjusted EBITDA declined 18% year over year to $57.8 million. Adjusted EBIDTA margin contracted 730 bps to 26.8%.Non-GAAP operating income fell 18.6% year over year to $51.8 million and operating margin contracted 670 bps to 24%.Balance Sheet and Cash FlowAs of Jul 31, 2021, Verint had cash and cash equivalents of $320.4 million compared with $359.4 million as of Apr 30, 2021. The company’s long-term debt stood at $405.9 million as of Jul 31, 2021 compared with $405.6 million as of Apr 30, 2021.Remaining performance obligations were $627 million, up 29% on a year over year basis.GuidanceFor fiscal 2022 (ending on Jan 31, 2022), the company now expects cloud revenues to increase 35% compared with the earlier projected range of 30-35% rise. New PLE bookings growth is now expected to be 15% compared with the earlier guidance of 10% growth.Non-GAAP revenue guidance has been revised to $872 (+/-2%) from $860 million projected earlier.Additionally, non-GAAP earnings per share are expected to be $2.25 compared with the earlier projection of $2.23.For the fiscal third quarter (ending on Oct 31, 2021), the company projects non-GAAP revenues in the range of $215-$220 million. Non-GAAP earnings per share are expected to be 53 cents.Zacks Rank & Stocks to ConsiderCurrently, Verint carries a Zacks Rank #3 (Hold).Some other better-ranked stocks in the Computer Technology sector include Microsoft MSFT, Cadence Design Systems CDNS and PTC PTC. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.Long-term earnings growth rate for Microsoft, Cadence and PTC is pegged at 11.1%, 11.7% and 23.2%, respectively. Tech IPOs With Massive Profit Potential: Last years top IPOs surged as much as 299% within the first two months. With record amounts of cash flooding into IPOs and a record-setting stock market, this year could be even more lucrative. See Zacks’ Hottest Tech IPOs Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report PTC Inc. (PTC): Free Stock Analysis Report Verint Systems Inc. (VRNT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research