Comverse Technology Reports First Quarter Fiscal 2003 Results: Sales of $180,552,000, GAAP Loss Per Share of $0.03, Pro Forma Loss Per Share of $0.04.Business Editors WOODBURY, N.Y.--(BUSINESS WIRE)--June 3, 2003 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 sales of $180,552,000 for the first quarter of fiscal year 2003, ended April 30, 2003, compared to sales of $211,194,000 for the first quarter of fiscal 2002, ended April 30, 2002. Net loss on a generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") basis for the first quarter of fiscal 2003 was $5,819,000 ($0.03 per share) compared to a net loss of $23,576,000 ($0.13 per share) for the first quarter of fiscal 2002. The GAAP results for the first quarter of fiscal 2003 include a charge of $1,043,000 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the write-down of investments and a gain of $2,809,000 resulting from the repurchase of $44,550,000 face value of the Company's 1.5% convertible debt, and for the first quarter of fiscal 2002 include a charge of $15,393,000 for the write-down of investments. Excluding these charges and gains, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, the net loss was $7,585,000 ($0.04 per share) in the first quarter of fiscal 2003 and $8,183,000 ($0.04 per share) in the first quarter of fiscal 2002. 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, "In the first quarter, we achieved sequential revenue growth in each of our three major operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , and we once again generated positive operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. . Our two telecom-focused units, Comverse, our network systems division, and Ulticom, both saw sequential sales growth, while operating in a carrier 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. environment that continues to be very difficult. Our Verint Systems Verint Systems (Pink Sheets: VRNT) is a leading provider of analytic software and hardware based solutions for the security and business intelligence markets. See also
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The Company ended the quarter with cash and cash equivalents, bank time deposits and short-term investments of $1,753,742,000, working capital of $1,729,049,000, total assets of $2,302,223,000 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 $1,547,066,000. Financial highlights at and for the three month period ended April 30, 2003 and prior year comparisons are as follows:
Financial Highlights
(In thousands, except per share data)
Operations Data (GAAP basis, including certain net gains, net of tax,
of $1,766 for the three months ended April 30, 2003, and certain net
charges, net of tax, of $15,393 for the three months ended April 30,
2002.)
Three Months Ended
(unaudited)
------------------
April 30, April 30,
2002 2003
---- ----
Sales $211,194 $180,552
Cost of sales 91,777 80,373
Research and development, net 62,923 54,488
Selling, general and administrative 73,513 62,072
Loss from operations (17,019) (16,381)
Interest and other income, net (5,244) 12,542
Loss before income tax provision (22,263) (3,839)
Income tax provision 1,313 1,980
Net loss $(23,576) $(5,819)
Loss per share:
Diluted $(0.13) $(0.03)
Basic $(0.13) $(0.03)
Weighted average shares:
Diluted 186,569 188,094
Basic 186,569 188,094
Comverse Technology provides pro forma net income (loss) and pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. (loss) per share data as additional information for its operating results. These measures are not in accordance with, or an alternative for, GAAP and may be different from pro forma measures used by other companies. The Company believes that this presentation of pro forma data provides useful information to management and investors regarding certain additional financial and business trends relating to its financial condition and results of operations. In addition, the Company's management uses these measures for reviewing the financial results of the Company and for budget planning purposes.
Financial Highlights
(In thousands, except per share data)
Operations Data (Pro forma basis, excluding certain net gains, net of
tax, of $1,766 for the three months ended April 30, 2003, and certain
net charges, net of tax, of $15,393 for the three months ended April
30, 2002.)
Three Months Ended
(unaudited)
--------------------
April 30, April 30,
2002 2003
---- ----
Sales $211,194 $180,552
Cost of sales 91,777 80,373
Research and development, net 62,923 54,488
Selling, general and administrative 73,513 62,072
Loss from operations (17,019) (16,381)
Interest and other income, net 10,149 10,776
Loss before income tax provision (6,870) (5,605)
Income tax provision 1,313 1,980
Pro forma net loss $(8,183) $(7,585)
Pro forma loss per share:
Diluted $(0.04) $(0.04)
Basic $(0.04) $(0.04)
Weighted average shares:
Diluted 186,569 188,094
Basic 186,569 188,094
Reconciliation of GAAP basis net loss to pro forma basis net loss:
GAAP basis net loss $ (23,576) $ (5,819)
Adjustments:
Write-down of investments 15,393 1,043
Gain on extinguishment of debt - (2,809)
Pro forma basis net loss $(8,183) $(7,585)
Financial Highlights
(In thousands)
Balance Sheet Data:
ASSETS January 31, April 30,
2003 2003
---- ----
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents $1,402,783 $1,418,238
Bank time deposits and short-term
investments 406,089 335,504
Accounts receivable, net 212,953 184,027
Inventories 40,015 43,315
Prepaid expenses and other current
assets 65,018 53,285
TOTAL CURRENT ASSETS 2,126,858 2,034,369
PROPERTY AND EQUIPMENT, net 146,380 140,601
OTHER ASSETS 130,421 127,253
TOTAL ASSETS $2,403,659 $2,302,223
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $260,810 $249,683
Advance payments from customers 53,496 52,614
Other current liabilities 46,045 3,023
TOTAL CURRENT LIABILITIES 360,351 305,320
CONVERTIBLE DEBENTURES 390,838 346,288
OTHER LIABILITIES 19,230 17,807
TOTAL LIABILITIES 770,419 669,415
MINORITY INTEREST 83,548 85,742
STOCKHOLDERS' EQUITY 1,549,692 1,547,066
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 2,403,659 $ 2,302,223
Conference Call Information A conference call to discuss the company's results will be conducted Tuesday, June 3, 2003, at 5:30 pm 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 706-643-1670. A replay will be available for seven days at 706-645-9291, access code 924549. A live webcast can be accessed at cmvt.com. The webcast will be available for replay for seven days. About Comverse Technology, Inc. Comverse Technology, Inc. (NASDAQ: CMVT) is the world's leading provider of software and systems enabling network-based multimedia enhanced communications services. More than 400 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, in more than 100 countries, have selected Comverse's enhanced services systems and software, which enable the provision of revenue-generating value-added services 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 information and entertainment services, voice-controlled dialing, messaging and browsing, prepaid 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. . Other Comverse Technology business units include: Verint Systems (NASDAQ: VRNT), a leading provider of analytic solutions for communications interception, digital video security and surveillance, and enterprise business intelligence; and Ulticom (NASDAQ: ULCM ULCM United Lutheran Church Men ), a leading provider of service enabling network software for wireless, wireline, and Internet communications. Comverse Technology is an S&P 500 and NASDAQ-100 Index company. For additional information, visit the Comverse Technology web site at www.cmvt.com. 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. . These documents are available through the company, or its website, www.cmvt.com, or through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR Edgar or Eadgar (both: ĕd`gər), 943?–975, king of the English (959–75), son of Edmund, king of Wessex. In 957 the Mercians and Northumbrians rebelled against Edgar's brother Edwy and chose Edgar as their king. ) at www.sec.gov. The company makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made. |
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