WOODBURY, N.Y., Nov 30, 1999 (BUSINESS WIRE) --
Sales Up 25%, Net Income Up 53% To Record Levels, Excluding One-Time
Acquisition Charge Of $0.01 Per Share
Comverse Technology, Inc. (Nasdaq:CMVT) announced for the third
quarter of fiscal year 1999, ended Oct. 31, 1999, net income growth of 53%,
excluding one-time acquisition charges, to a record $44,609,000 ($0.56 per
diluted share), compared with $29,121,000 ($0.41 per diluted share) for the third
quarter of fiscal 1998.
The Company posted record sales of $221,814,000 for the third
quarter of fiscal 1999, an increase of 25% over the third quarter of fiscal 1998.
Kobi Alexander, Chairman, President and CEO of Comverse, stated,
"The increase in third quarter sales reflects continued strong demand
for Comverse's products. More than 310 wireless and wireline
telecommunications network operators have selected Comverse Network
Systems Division's enhanced services systems and software, which
enable the provision of revenue-generating value-added services
including call answering, wireless data and Internet-based information
services, prepaid wireless services, Internet-based unified messaging
(voice, fax, and e-mail in a single mailbox), one-touch call return,
voice-controlled web portal and other speech recognition-based
services, and additional personal communication services. In addition,
our Comverse Infosys Division, which markets digital multimedia
recording and monitoring systems, continues to benefit from the
increased use of monitoring as a quality assurance tool for call
centers and financial institutions."
The Company ended the quarter with cash and cash equivalents,
bank time deposits and short-term investments of $726,884,000, working
capital of $798,353,000, total assets of $1,241,130,000 and stockholders'
equity of $647,567,000, all of which represent record levels.
Financial highlights at and for the nine and three month periods
ended October 31, 1999 and prior year comparisons are as follows:
Financial Highlights
(In thousands, except per share data; unaudited)
Operations Data (excluding one-time acquisition charges):
Nine Months Ended Three Months Ended
October 31, October 31, October 31, October 31,
1998 1999 1998 1999 Sales $505,992 $631,601 $178,107 $221,814 Cost of
sales $204,530 $239, 718 $ 70,949 $ 83,225 Research
and development, net $ 96,812 $121,691 $ 34,226 $ 42,820 Selling, general
and
administrative $110,806 $133,716 $ 38,644 $ 46,722 Royalties and license fees
$ 11,890 $ 14,070 $ 4,375 $ 4,598 Income from
operations $ 81,954 $122,406 $ 29,913 $ 44,449 Interest and other income,
net $ 5,717 $ 10,505 $ 2,263 $ 4,177 Income before income tax provision $
87,671 $132,911 $ 32,176 $ 48,626 Income tax
provision $ 8,513 $ 11,330 $ 3,055 $ 4,017 Net income $ 79,158 $121,581 $
29,121 $ 44,609 Net income
per share, diluted $ 1.12 $ 1.55 $ 0.41 $ 0.56 Net income
per share,
basic $ 1.20 $ 1.72 $ 0.44 $ 0.62 Note: The above amounts for the nine months
ended Oct. 31, 1999, have been adjusted to eliminate the one-time
acquisition-related charges of $1,854, net of tax, or $0.02 per diluted share. The
above amounts for the three months ended Oct. 31, 1999, have been adjusted
to eliminate the one-time time acquisition-related charge of $920, net of tax, or
$0.01 per diluted share.
Financial Highlights
(In thousands, except per share data; unaudited) Operations Data (including
one-time acquisition charges, recognized during the nine months and three
months ended October 31, 1999, of $1, 854, net of tax, or $0.02 per diluted
share, and of $920, net of tax, or $0.01 per diluted share, respectively):
Nine Months Ended Three Months Ended October 31, October 31, October 31,
October 31,
1998 1999 1998 1999 Sales $505,992 $631,601 $178,107 $221,814 Cost of
sales $204,530 $239, 718 $ 70,949 $ 83,225 Research and
development, net $ 96,812 $121,691 $ 34,226 $ 42,820 Selling, general and
administrative $110,806 $133,716 $ 38,644 $ 46,722 Royalties and license fees
$ 11,890 $ 14,070 $ 4,375 $ 4,598 One-time
acquisition -related charges $ -- $ 2,016 $ -- $ 998 Income from operations $
81,954 $120,390 $ 29,913 $ 43,451 Interest and
other income, net $ 5,717 $ 10,505 $ 2,263 $ 4,177 Income before income tax
provision $ 87,671 $130,895 $ 32,176 $ 47,628 Income tax provision $ 8, 513 $
11,168 $ 3,055 $ 3,939 Net income $ 79,158 $119,727 $ 29,121 $ 43, 689
Net income per share, diluted $ 1.12 $ 1.53 $ 0.41 $ 0.55 Net income
per share, basic $ 1.20 $ 1.70 $ 0.44 $ 0.61
Balance Sheet Data (in thousands):
January 31, October 31,
1999 1999
(unaudited) Cash, cash equivalents, bank time $ 657,617 $ 726,884 deposits
and short-term
investments Total assets $1,031,393 $1,241,130 Working capital $ 707,281 $
798,353 Stockholders' equity $ 381,662 $ 647,567
*T Comverse Technology, Inc., headquartered in Woodbury, N.Y., designs,
develops, manufactures and markets computer and telecommunications
systems and software for communications and information processing
applications. Comverse's Network Systems Division's products include:
multimedia enhanced services systems and software, which are currently used
by more than 310 wireless and wireline telecommunications network operators
to provide revenue-generating services such as call answering, wireless data
and Internet-based information services, prepaid wireless services,
mailbox-to-mailbox messaging, Internet-based unified messaging (voice, fax,
and e-mail in a single mailbox), interactive voice response, virtual phone/fax,
one-touch call return, personal number service, call screening/caller
introduction, voice-controlled web portal and other speech recognition-based
services, Internet messaging, Internet call waiting, and other personal
communication services. Comverse's Infosys Division's products include:
multiple channel, multimedia digital monitoring systems marketed to law
enforcement and intelligence agencies; and multiple channel, multimedia digital
recording, logging, and quality monitoring systems marketed to call centers,
financial institutions and other organizations. Comverse's Ulticom Division's
products include: network software and middleware for communications
signaling, such as Signaling System No. 7 (SS7). Comverse Technology is an
S&P 500 and NASDAQ-100 Index company. Visit Comverse Technology's Web
site at comverse.com.
Copyright (C) 1999 Business Wire. All rights reserved.
Distributed via COMTEX.
-0-
CONTACT: Comverse Technology, Inc., Woodbury
Kobi Alexander/Paul D. Baker, 516/677-7200
WEB PAGE: businesswire.com
GEOGRAPHY: NEW YORK
INDUSTRY CODE: SOFTWARE
TELECOMMUNICATIONS
INTERNET
EARNINGS
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