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.
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