Comverse Technology Q2 Loss Narrows On Higher Revenues, Lower Expenses

9/7/2012 8:32 AM ET

Comverse Technology, Inc. (CMVT: Quote) 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: Quote) 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.

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

More Breaking News

<<Previous 67 Articles Next>>

Editors Pick

Red Hat Results Edge Past Estimates

Red Hat Inc., the world's largest seller of Linux software, said Wednesday after the markets closed that its first quarter profit rose 8% from last year, as revenue increased 15% amid strong consumer demand. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue.

Negative Reaction To Fed Leads To Sell-Off On Wall Street - U.S. Commentary

After moving mostly higher over the course of the two previous sessions, stocks pulled back sharply during trading on Wednesday. A negative reaction to the Federal Reserve's monetary policy announcement weighed on the markets in afternoon trading. The major averages saw some volatility following the announcement from the Fed, closing firmly in the red.

CBO Finds Senate Immigration Bill Would Reduce Budget Deficit

Providing a potential boost to comprehensive immigration reform, the non-partisan Congressional Budget Office has estimated that the immigration bill currently being debated in the Senate would result in a notable reduction to the federal budget deficit.