Comverse Technology, Inc. (CMVT) on Friday reported a loss for the second quarter that narrowed from last year, reflecting higher service revenues as well as lower costs and expenses.
Comverse Technology, a provider of software-based products, is a holding company that conducts business principally through its wholly-owned subsidiary Comverse, Inc. and its majority-owned subsidiaries Verint Systems Inc. (VRNT) as well as Starhome B.V.
The New York-based company's product revenue for the quarter declined 5 percent to $153.94 million, while service revenue rose 6 percent to $229.71 million in the same period last year.
Total costs and expenses for the quarter declined 3 percent to $357.80 million. Restructuring charges declined 78 percent from last year to $427 thousand.
Comverse said that it expects the previously-announced sale of its majority-owned subsidiary Starhome to close by mid-October, yielding proceeds of about $37.4 million.
In addition, Comverse Technology plans to be acquired by its majority-owned subsidiary and surveillance products maker Verint Systems in early 2013 in a stock-for-stock transaction announced in August.
Comverse Technology also said it remains on track to spin-off its subsidiary and billing software maker Comverse as a publicly-traded company, with distribution targeted for October 31.
The company's net loss for the second quarter narrowed to $0.27 million from $39.70 million in the year-ago period. On a per share basis, the company reported breakeven for the quarter compared to loss of $0.19 last year.
Adjusted net income rose to $24.09 million or $0.11 per share from $20.87 million or $0.10 per share last year. On average, 6 analysts polled by Thomson Reuters expected earnings per share of $0.08 for the quarter. Analysts' estimates typically exclude one-time items.
Total revenue for the quarter rose 2 percent to $383.65 million from $377.01 million in the prior-year quarter. Analysts had a consensus revenue estimate of $390.36 million.
CMVT closed Thursday's trading at $6.01, up $0.17 on a volume of 3.55 million shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.