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Cognyte secures $20M deal to boost EMEA security with AI

Published 12/09/2024, 08:16 AM
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CGNT
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HERZLIYA, Israel - Cognyte Software (ETR:SOWGn) Ltd. (NASDAQ: CGNT), a provider of investigative analytics software, today announced a significant contract exceeding $20 million with a key national security customer in the Europe-Middle East-Africa (EMEA) region. The deal is set to expand the agency's operational capabilities and integrate advanced artificial intelligence (AI) to enhance the speed and accuracy of its investigations.

This announcement is based on a press release statement and does not include any forward-looking statements. Cognyte has not provided specific projections for the business growth resulting from this agreement. Trading near its 52-week high of $9.12, the stock currently sits above its InvestingPro Fair Value, suggesting investors should carefully consider their entry points. The company's recent filings with the SEC, including its annual report on Form 20-F filed on April 9, 2024, and amended on April 19, 2024, outline potential risks and uncertainties that could impact its actual results.

Cognyte's solutions are designed to provide actionable intelligence that can preempt and neutralize potential security threats such as terrorism, drug trafficking, and weapons smuggling. According to Gil Cohen, Cognyte's Chief Product Officer, the agreement reflects the trust that national security agencies have in Cognyte's innovative solutions to meet the demands of evolving security landscapes.

The company, which serves hundreds of customers worldwide, positions itself as a leader in actionable intelligence solutions aimed at enhancing the effectiveness of investigations and decision-making processes across government and other sectors.

This announcement is based on a press release statement and does not include any forward-looking statements. Cognyte has not provided specific projections for the business growth resulting from this agreement. Trading near its 52-week high of $9.12, the stock currently sits above its InvestingPro Fair Value, suggesting investors should carefully consider their entry points. The company's recent filings with the SEC, including its annual report on Form 20-F filed on April 9, 2024, and amended on April 19, 2024, outline potential risks and uncertainties that could impact its actual results.

In other recent news, Cognyte Software Ltd. has authorized a share repurchase program of up to $20 million, reflecting the company's confidence in its growth trajectory and cash flow generation. The buyback program, which is scheduled to last 18 months, is part of a broader capital allocation strategy aimed at enhancing shareholder value. The company has the flexibility to execute these repurchases through various methods compliant with U.S. securities regulations.

In the financial realm, Cognyte reported a robust Q2 performance for the fiscal year 2025, leading to an upward revision of its full-year revenue outlook. The company's revenue increased by 10% year-over-year to $84 million, with non-GAAP gross profit rising to $60.2 million, and the balance sheet showed $100 million in cash and no debt. This strong performance led to a revised full-year revenue outlook of approximately $347 million, indicating an 11% growth.

Furthermore, the company has been focusing on expanding customer engagement with AI-driven solutions and has secured significant contracts with international security and law enforcement agencies. Despite a sequential decline of 5% in software and software service revenue, the company's recurring revenue grew to $46.6 million in Q2, a 40% increase year-over-year. These recent developments underscore Cognyte's strategic focus on AI-driven solutions and customer engagement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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