CMVT ( $16-$12-$14)p/e=47 Cap=2.6Bil Forecasts Continued Revenue Fall
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Mar 14, 2002 (ComputerWire via COMTEX) -- Telecoms software developer Comverse Technology Inc is forecasting a futher slide in revenue to $220m and another loss in its first quarter as struggling carriers continue to hold back investment in messaging systems.
Its shares crashed 16% to $13.31 on the news as analysts had been confidently forecasting a profit for the first quarter. Its dismal forecast confounded hopes that the sector had hit rock bottom and would now show a slow improvement.
Comverse says that despite the ongoing difficult telecom capital spending climate, it remains well positioned as a leader in all major markets. The Woodbury, New York-based company is resting its hopes on a belief that over time, service providers will view enhanced services as an increasingly important strategic weapon. With liquid resources of $1.4bn, Comverse is planning small cash acquisitions.
In the fourth quarter to January 31, the net loss was $54m, down from income of $76.9m on revenue of $265m, down from $346.5m; for the year net income is $54.6m, down from $249.1m on revenue 3.6% higher at $1.27bn.
Network Briefing Daily: Issue , March 14, 2002 |
