Comverse Technology Reports Selected Unaudited Q2 Financial Results: Record Sales Of $394.1 million, Up 37.9% y-o-y; Delay In Fi
September 12 2006 - 7:15AM
Business Wire
Comverse Technology, Inc. (NASDAQ: CMVT) today announced sales of
$394,090,000 for the second quarter of fiscal 2006, ended July 31,
2006, an increase of 37.9% year-over-year, representing the
company's fifteenth consecutive quarter of sequential sales growth,
and the highest quarterly sales in the company's history. The
company ended the quarter with an orders backlog of $750,514,000,
an increase of 27.5% year-over-year, and 1.2% sequentially. Raz
Alon, interim Chief Executive Officer of Comverse Technology, Inc.,
said, "We achieved both year-over-year and sequential revenue
growth at each of our three main operating units. Our Comverse
subsidiary is building on its established leadership in
network-based messaging, mobile content and billing, and leveraging
that leadership to advance its position in emerging areas such as
converged messaging, IMS, FMC, quad play, and real-time converged
billing and customer care. Our Verint subsidiary continues to
reinforce its leadership in software-based analytics for security
and business intelligence, and our Ulticom subsidiary continues to
position itself to address new and emerging growth opportunities
through its launch of IMS-ready signaling products. We also
continue to look for ways to expand our addressable market
opportunity across each of our business units through new product
development and acquisitions, such as our recent purchase of
Netonomy, which closed after quarter-end, and has strengthened our
Comverse subsidiary's portfolio in real-time converged billing and
customer care." The company ended the quarter with cash and cash
equivalents, bank time deposits and short-term investments of
$1,870,160,000, and convertible debt of $419,688,000. Delay in
Filing of Quarterly Report on Form 10-Q and Earnings Release As a
result of the ongoing review by the Special Committee of the
company's Board of Directors relating to the company's stock option
grants, the company will today file a Form 12b-25 with the
Securities and Exchange Commission (the "SEC") indicating that its
Quarterly Report on Form 10-Q for the quarter ended July 31, 2006
has not been filed with the SEC by the SEC deadline of September
11, 2006. The company will not seek a 5-day filing extension
because it does not believe it will file the Quarterly Report
within the extension period. The company intends to issue results
for the quarterly periods ended April 30, 2006 and July 31, 2006
and the fiscal year ended January 31, 2006, and to file its
Quarterly Reports on Form 10-Q for the quarters ended April 30,
2006 and July 31, 2006 and Annual Report on Form 10-K for the
fiscal year ended January 31, 2006, together with any restated
historical financial statements, as soon as practicable. NASDAQ
Listing Update The company has notified The NASDAQ Stock Market
that it will not timely file its Quarterly Report on Form 10-Q for
the fiscal quarter ended July 31, 2006 and, accordingly, the
company expects to receive an additional Staff Determination Letter
from The NASDAQ Stock Market indicating that the delay in the
filing of the Form 10-Q could serve as an additional basis for the
potential delisting of the company's securities from NASDAQ, under
NASDAQ Marketplace Rule 4310(c)(14). As previously disclosed, on
August 18, 2006 the company announced that the NASDAQ Listing
Qualifications Panel has granted the company's request for
continued listing on The NASDAQ National Market subject to the
requirement that the company file its Annual Report on Form 10-K
for the fiscal year ended January 31, 2006 and its Quarterly Report
on Form 10-Q for the fiscal quarter ended April 30, 2006 by no
later than September 25, 2006. The Panel has advised the company
that should it be unable to meet the deadline, it will issue a
final determination to delist the company's shares from The NASDAQ
Stock Market. On September 5, 2006, the company announced that it
made a submission to the NASDAQ Listing and Hearing Review Council
requesting that the Listing Council grant a stay of the Panel's
August 18, 2006 decision establishing a deadline of September 25,
2006 for the company to complete the restatements of its financial
statements and to file its annual report for the fiscal year ended
January 31, 2006 and quarterly report for the quarter ended April
30, 2006. The company also requested an additional 60-day extension
from the Listing Council's decision to make the necessary filings.
It is expected that the Listing Council's decision will address the
late Form 10-K for the fiscal year ended January 31, 2006 and late
Form 10-Q filings for the fiscal quarters ended April 30, 2006 and
July 31, 2006. There can be no assurance that the Listing Council
will grant a stay or an extension or that the company's securities
will remain listed on the NASDAQ Stock Market. About Comverse
Technology, Inc. Comverse Technology, Inc. (NASDAQ: CMVT), through
its Comverse, Inc. subsidiary, is the world's leading provider of
software and systems enabling network-based multimedia enhanced
communication and billing services. The company's Total
Communication portfolio includes value-added messaging,
personalized data and content-based services, and real-time
converged billing solutions. Over 450 communication and content
service providers in more than 120 countries use Comverse products
to generate revenues, strengthen customer loyalty and improve
operational efficiency. Other Comverse Technology subsidiaries
include: Verint Systems (NASDAQ: VRNT), a leading provider of
analytic software-based solutions for communications interception,
networked video security and business intelligence; and Ulticom
(NASDAQ: ULCM), a leading provider of service enabling signaling
software for wireline, wireless and Internet communications.
Comverse Technology is an S&P 500 and NASDAQ-100 Index company.
For additional information, visit the Comverse website at
www.comverse.com or the Comverse Technology website at www.cmvt.com
All product and company names mentioned herein may be registered
trademarks or trademarks of Comverse or the respective referenced
company(s). Note: This release contains "forward-looking
statements" under the Private Securities Litigation Reform Act of
1995 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: the results of the review of the Special
Committee, appointed by the Board of Directors on March 14, 2006,
of matters relating to the company's stock option grants,
including, but not limited to, the accuracy of the stated dates of
option grants and whether all proper corporate procedures were
followed; the impact of any restatement of financial statements of
the company or other actions that may be taken or required as a
result of such reviews; the company's inability to file reports
with the Securities and Exchange Commission; risks associated with
the company's inability to meet NASDAQ requirements for continued
listing, including possible delisting; risks of litigation and of
governmental investigations or proceedings arising out of or
related to the company's stock option grants or any restatement of
the financial statements of the company; risks associated with
integrating the businesses and employees of the GSS division of CSG
Systems, International, Netcentrex S.A., and Netonomy, Inc.;
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; aggressive competition may force the company to reduce
prices; a failure to compensate any decrease in the sale of the
company's traditional products with a corresponding increase in
sales of new products; risks associated with changes in the
competitive or regulatory environment in which the company
operates; risks associated with prosecuting or defending
allegations or claims of infringement of intellectual property
rights; 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 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 and subsequent Quarterly Reports on Form
10-Q and Current Reports on Form 8-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) 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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