Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Comverse Technology Q4 Profit Falls - Update

Comverse Technology, Inc. (CMVT: Quote) reported Tuesday a sharp decline in fourth-quarter profit, reflecting mainly a fall in service revenues and a provision for income taxes compared to a benefit last year.

Comverse Technology is a holding company that conducts business through its subsidiaries, principally its wholly-owned subsidiary Comverse, Inc. and its majority-owned subsidiaries Verint Systems Inc and Starhome B.V.

Comverse subsidiary operating margin declined to 5.5 percent from 7.1 percent in the prior year. Comverse VAS operating margin was 31.1 percent, compared to 46.7 percent a year ago. Comverse BSS operating margin increased to 24 percent from 19.5 percent last year.

Charles Burdick, chairman and chief executive officer of the company said, "Although due to several project deferrals we did not experience expected fourth quarter strength in BSS customer solution order activity, our pipeline remains strong and we expect growth in BSS customer order activity."

In the fourth quarter, net income attributable to the company plunged to $4.48 million or $0.02 per share from $15.43 million or $0.07 per share reported last year.

Adjusted earnings were $0.14 per share, significantly down from $0.57 per share in the prior year.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

The recent quarter recorded an income tax provision of $7.16 million, while the prior year had a tax benefit of $12.23 million.

Total revenue declined to $405.46 million from $430.84 million in the same quarter last year, which also came below analysts' estimate of $427.35 million. Product revenues increased to $177.52 million from $166.98 million a year ago, while Service revenues dropped to $227.93 million from $263.85 million in the preceding year.

"We achieved operating income and positive operating cash flow for the quarter in each of our three subsidiaries, building a solid foundation to support our future success," Burdick added.

CMVT is currently trading at $6.58, down 3.95 percent, on a volume of 1.27 million shares.

Register
To receive FREE breaking news email alerts for Comverse Technology Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Consumers spent less in July than in the previous month, a surprise retreat that complicates the prevailing belief that the U.S. economic situation is improving. Along with the unexpected drop in spending, government figures released on Friday showed that incomes rose at a slower pace in July than in the previous month. Meanwhile, data on prices indicated that inflation pressures remain tame. India's economy grew faster-than-expected in the three months to June and at the strongest pace in two years, preliminary figures from the Central Statistics Office revealed Friday. Gross domestic product grew 5.7 percent in the April to June quarter, which exceeded economists' forecast for 5.5 percent expansion. The economy grew 4.6 percent in the previous three months. Eurozone inflation slowed as expected in August on falling energy prices giving room for the central bank to support demand and economic recovery without stoking inflation and help the region to create more jobs. The unemployment rate remained unchanged at an elevated level in July. Nonetheless, it was at the lowest since September 2012.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.