Comverse Technology Announces Second Quarter Results: Sales Of $345,090,000, EPS -Diluted- Of $0.28, Excluding Non-Recurring Charges.Business Editors WOODBURY, N.Y.--(BUSINESS WIRE)--Aug. 28, 2001 Comverse Technology Comverse Technology, Inc. (Pink Sheets: CMVT) is an American Technology company located in Woodbury, New York, which develops and markets telecommunications software. Founded in 1982, the company focuses on providing services to third party telecommunication service providers. , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CMVT CMVT Converse Technology ) announced for the second quarter of fiscal year 2001, ended July 31, 2001, net income, excluding non-recurring charges, of $50,012,000 ($0.28 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share), compared with net income, excluding non-recurring charges, of $62,489,000 ($0.36 per diluted share) for the second quarter of fiscal 2000. The Company posted sales of $345,090,000 for the second quarter of fiscal 2001, compared with the $292,070,000 posted for the second quarter of fiscal 2000. During the second quarter of fiscal 2001, the Company incurred non-recurring after-tax charges totaling $22,028,000 for costs related to a previously announced workforce reduction and write-down of investments. During the second quarter of fiscal 2000, the Company incurred non-recurring after-tax charges totaling $10,786,000 for acquisition-related costs. Kobi Alexander Jacob "Kobi" Alexander is the founder and the former CEO of New York-based Comverse Technology. Alexander founded Comverse Technology (NASDAQ: CMVT) in 1982 and built it up from a 3-person Israeli startup to employing over 5,000, becoming the leading provider of software and , Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Comverse Technology, stated, "Our second quarter results reflect the impact of the global capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. recession, and the worldwide economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. . At the same time, we remain well-positioned as a leader in our major markets, and believe that these markets offer attractive opportunities for long-term growth. In particular, we believe that communications service providers A Communications Service Provider or CSP is a company that transports information electronically. The term encompasses public and private companies in the wireline, wireless, Internet, cable, satellite, and managed services businesses. view enhanced services Enhanced service is service offered over commercial carrier transmission facilities used in interstate communications, that employs computer processing applications that act on the format, content, code, protocol, or similar aspects of the subscriber's transmitted information; as an increasingly important strategic weapon for revenue generation, differentiation, and churn churn: see butter. reduction. More than 375 wireless and wireline telecommunications network A telecommunications network is a of telecommunications links and nodes arranged so that messages may be passed from one part of the network to another over multiple links and through various nodes. operators have selected Comverse's enhanced services systems and software, which enable the provision of value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. including call answering with one-touch call return, short messaging See SMS. services, IP-based unified messaging Having access to e-mail, voice mail and faxes via a common computer application or by telephone. For example, unified messaging may send faxes and digitized voice mail to a mail server that turns them into e-mail attachments. (voice, fax, and email in a single mailbox A simulated mailbox in the computer that holds e-mail messages. Mailboxes are stored on disk as a file of messages, a database of messages or as an individual file for each message. The standard mailboxes are usually In, Out, Trash and Junk (Spam). ), 2.5G/3G multimedia messaging (MMS (Multimedia Messaging Service) An enhanced transmission service that enables graphics, video clips and sound files to be transmitted via cellphones. Developed as part of the 3GPP project, MMS phones are generally backward compatible with SMS and EMS. ), wireless instant messaging Exchanging text messages in real time between two or more people logged into a particular instant messaging (IM) service. Instant messaging is more interactive than e-mail because messages are sent immediately, whereas e-mail messages can be queued up in a mail server for seconds or , wireless data and Internet-based services, voice-controlled dialing, messaging and browsing See browse. , prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. wireless services, and additional personal
communication services (communications) Personal Communication Services - (PCS) Telecommunications services that bundle voice communications, numeric and text messaging, voice-mail and various other features into one device, service contract and bill. PCS are carried over cellular links, most often digital. . In addition, our Comverse Infosys division
continues to expand its market share, as more customers use our
multimedia monitoring, business intelligence and customer relationship
management products, and our Ulticom division continues to benefit from
the growth in intelligent network services, as well as the convergence
of circuit and packet communications technologies Noun 1. communications technology - the activity of designing and constructing and maintaining communication systemsengineering, technology - the practical application of science to commerce or industry ." The Company ended the quarter with cash and cash equivalents, bank time deposits and short-term investments of $1,770,778,000, working capital of $1,979,810,000, total assets of $2,718,463,000 and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of $1,655,160,000, all of which represent record levels. Financial highlights at and for the six and three month periods ended July 31, 2001 and prior year comparisons are as follows:
Financial Highlights
(In thousands, except per share data; unaudited)
Operations Data (excluding non-recurring charges):
Six Months Ended Three Months Ended
July 31, July 31, July 31, July 31,
2000 2001 2000 2001
Sales $560,539 $710,127 $292,070 $345,090
-------- -------- -------- --------
Cost of sales 212,040 277,727 109,989 141,289
-------- -------- -------- --------
Research and
development, net 105,845 145,188 55,128 74,990
-------- -------- -------- --------
Selling, general and
administrative 118,217 159,174 61,705 80,985
-------- -------- -------- --------
Royalties and license fees 10,207 11,546 5,327 5,362
-------- -------- -------- --------
Income from operations 114,230 116,492 59,921 42,464
-------- -------- -------- --------
Interest and other income,
net 13,950 21,821 7,405 11,441
-------- -------- -------- --------
Income before income tax
provision 128,180 138,313 67,326 53,905
-------- -------- -------- --------
Income tax provision 9,485 9,345 4,837 3,893
-------- -------- -------- --------
Net income $118,695 $128,968 $ 62,489 $ 50,012
-------- -------- -------- --------
Net income per share,
diluted $ 0.68 $ 0.70 $ 0.36 $ 0.28
-------- -------- -------- --------
Net income per share,
basic $ 0.75 $ 0.75 $ 0.40 $ 0.29
-------- -------- -------- --------
Note: The above amounts for the three months and six months ended
July 31, 2001 have been adjusted to eliminate the non-recurring
charges recognized during the second quarter ended July 31, 2001, of
$22,028, net of tax. The above amounts for the three months and six
months ended July 31, 2000 have been adjusted to eliminate the
non-recurring charges recognized during the second quarter ended July
31, 2000, of $10,786, net of tax.
Financial Highlights
(In thousands, except per share data; unaudited)
Operations Data (including non-recurring charges recognized during
the second quarter ended July 31, 2001, of $22,028, net of tax, and
non-recurring charges recognized during the second quarter ended July
31, 2000, of $10,786, net of tax):
Six Months Ended Three Months Ended
July 31, July 31, July 31, July 31,
2000 2001 2000 2001
Sales $560,539 $710,127 $292,070 $345,090
-------- -------- -------- --------
Cost of sales 212,040 277,727 109,989 141,289
-------- -------- -------- --------
Research and development,
net 105,845 145,188 55,128 74,990
-------- -------- -------- --------
Selling, general and
administrative 118,217 159,174 61,705 80,985
-------- -------- -------- --------
Royalties and license fees 10,207 11,546 5,327 5,362
-------- -------- -------- --------
Acquisition- and
operations-related
non-recurring charges 11,623 8,875 11,623 8,875
-------- -------- -------- --------
Income from operations 102,607 107,617 48,298 33,589
-------- -------- -------- --------
Interest and other income,
net 13,950 21,821 7,405 11,441
-------- -------- -------- --------
Investment-related
non-recurring charges - 14,862 - 14,862
-------- -------- -------- --------
Income before income
tax provision 116,557 114,576 55,703 30,168
-------- -------- -------- --------
Income tax provision 8,648 7,636 4,000 2,184
-------- -------- -------- --------
Net income $107,909 $106,940 $ 51,703 $ 27,984
-------- -------- -------- --------
Net income per share,
diluted $ 0.62 $ 0.59 $ 0.30 $ 0.15
-------- -------- -------- --------
Net income per share,
basic $ 0.68 $ 0.62 $ 0.33 $ 0.16
-------- -------- -------- --------
Financial Highlights
(In thousands)
Balance Sheet Data:
ASSETS
January 31, July 31,
2001 2001
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 1,275,105 $ 1,374,117
----------- -----------
Bank time deposits and
short-term investments 460,735 396,661
----------- -----------
Accounts receivable, net 359,317 441,574
----------- -----------
Inventories 115,799 80,678
----------- -----------
Prepaid expenses and
other current assets 64,729 66,577
----------- -----------
TOTAL CURRENT ASSETS 2,275,685 2,359,607
----------- -----------
PROPERTY AND EQUIPMENT, net 183,444 191,710
----------- -----------
INVESTMENTS 96,870 99,028
----------- -----------
OTHER ASSETS 69,265 68,118
----------- -----------
TOTAL ASSETS $ 2,625,264 $ 2,718,463
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 288,921 $ 303,868
----------- -----------
Advance payments from customers 122,175 71,552
----------- -----------
Other current liabilities 4,210 4,377
----------- -----------
TOTAL CURRENT LIABILITIES 415,306 379,797
----------- -----------
CONVERTIBLE DEBENTURES 900,000 600,000
----------- -----------
LIABILITY FOR SEVERANCE PAY 7,924 10,487
----------- -----------
OTHER LIABILITIES 12,404 12,266
----------- -----------
TOTAL LIABILITIES 1,335,634 1,002,550
----------- -----------
MINORITY INTEREST 53,465 60,753
----------- -----------
STOCKHOLDERS' EQUITY 1,236,165 1,655,160
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,625,264 $ 2,718,463
----------- -----------
Conference Call Information A conference call to discuss the company's results will be conducted Tuesday, August 28, 2001, at 4:30pm EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . Participants should dial 703-736-7228. A replay will be available for 72 hours at 703-925-2533, access code 5482061. About Comverse Technology, Inc. Comverse Technology, Inc., headquartered in Woodbury, New York Woodbury is the name of some places in the U.S. state of New York:
Note: This release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. There can be no assurances that forward-looking statements will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially include: changes in the demand for the company's products; changes in capital spending among the company's current and prospective customers; the risks associated with the sale of large, complex, high capacity systems and with new product introductions as well as the uncertainty of customer acceptance of these new or enhanced products from either the company or its competition; risks associated with rapidly changing technology and the ability of the company to introduce new products on a timely and cost-effective basis; risks associated with changes in the competitive or regulatory environment in which the company operates; risks associated with significant foreign operations and international sales and investment activities, including fluctuations in foreign currency exchange rates, interest rates, and valuations of public and private equity; the volatility of macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. and industry conditions and the international marketplace; risks associated with the company's ability to retain existing personnel and recruit and retain qualified personnel; and other risks described in filings with the Securities and Exchange Commission. These risks and uncertainties, as well as others, are discussed in greater detail in the filings of the company with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and its subsequent Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date any such statement is made. |
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