and the cheerleading continues ...
story via the globes follows. a bit dated (and nothing tremendously insightful), but hey, that never stopped me.
-----
High Tech Features
Sunday, Jun 6, 1999
Comverse Exhausts Superlatives
By Adi Mendelson
This week, Comverse beat its own records with a financial report that thoroughly vindicated the faith the US market places in it, as well as its astronomical market value of about $5 billion, which has won it the title of top Israeli company on Wall Street.
Comverse's Q1 revenues totaled $200.5 million. This is the first time Comverse has crossed the $200 million quarterly sales mark. In so doing, Comverse is headed towards catching up with Teva and ECI Telecom, each with Q1 revenues of $280 million.
Comverse's present performance means $800 million annual sales, compared with $700 million last year, which was a record year for the company. The way things are now, Comverse may well break its own record quite fast.
Comverse's rapid growth is also reflected in its net profit. After deduction of a one-time $934,000 charge for the acquisition of US company Amerax Technology, Comverse posted $36.5 million in the first quarter, a 13% rise compared with the previous quarter, and a 52% surge compared with the same quarter last year.
Comverse's swift growth impacts not only its net profit line, but its gross profit line as well. Last year, Comverse had a gross profit margins level of 59%, but over the last two quarters it succeeded in stabilizing them at a 60% level.
In the current quarter, however, Comverse made yet another quantum leap, with its profit margins hitting the 61% level. Comverse Vice President for Finance Eilon Michaeli told "Globes" that Comverse hopes to keep up this high gross profit level in coming quarters as well.
Comverse's rosy future is discernible in its current order backlog of $176 million, a 7% rise compared to the previous quarter.
Comverse Technology recently announced it was splitting into two separate companies: Comverse Network Systems and Comverse Infosys. Comverse Network Systems will focus largely on the development of advanced digital service systems for the world's telephony giants.
According to Comverse CEO Kobi Alexander, Comverse's services are currently in use by 290 wireline and wireless telephone operators, which means that 10 new companies joined Comverse's clients during the quarter.
Comverse Network Systems' flagship product is the Trilogue system. So far the system provided voice information services, but Comverse plans to deepen its operations in value added services, such as prepaid telephony services for cellular operators, as well as Internet-supported fax and document mailing services. These products have already started generating revenues, which analysts estimate to be quite limited. These revenues are, however, expected to rise in the future.
Comverse Network Systems accounts for 90% of Comverse Technology's revenues, whereas Comverse Infosys's share is a modest 10%. Comverse Infosys develops digital recording and playback systems, an area in which Nice, another Israeli company, is also involved.
Comverse's statement a few weeks ago that it was realigning itself into two separate companies may caused rumors about a Nice-Comverse merger or business cooperation.
So far, however, nothing seems to have happened. In a recent Lehman Brothers. Update estimates that the rumors are groundless. Basing himself on conversations with the heads of the two companies, Lehman Brothers' analyst asserts that there have been no contacts between Comverse and Nice, and that no merger or business cooperation plan is on the agenda at the moment.
This assertion is corroborated by Comverse VP for Finance Eilon Michaeli's statements to "Globes" today, in response to a question on the issue: "I'd like to make it unequivocally clear that we have not conducted any merger talks with Nice. If any conversations have taken place at all between people from Comverse and Nice, they may have had football as a subject, but certainly not any professional matters."
globes.co.il |
