Comverse Technology Announces Record Second Quarter Results: Excluding One-Time Acquisition Charges, EPS -Diluted- Of $0.36 Vs. $0.26; Sales Up 35%, Net Income Up 52% To Record Levels
Business Wire - August 29, 2000 16:41
WOODBURY, N.Y.--(BUSINESS WIRE)--Aug. 29, 2000--Comverse Technology, Inc. (NASDAQ:CMVT) announced for the second quarter of fiscal year 2000, ended July 31, 2000, net income growth of 52%, excluding one-time acquisition charges, to a record $62,489,000 ($0.36 per diluted share), compared with $41,023,000 ($0.26 per diluted share) for the second quarter of fiscal 1999.
The Company also achieved record sales of $292,070,000 for the second quarter of fiscal 2000, an increase of 35% over the $216,810,000 posted for the second quarter of fiscal 1999.
During the second quarter of fiscal 2000, Comverse acquired Loronix Information Systems, Inc. and Syborg Informationsysteme GmbH, and took one-time after-tax charges totaling $10,786,000 for acquisition related costs. Prior-period figures have been restated to account for the pooling-of-interests transaction with Loronix.
Kobi Alexander, Chairman, President and CEO of Comverse, stated, "The acceleration in our second quarter sales growth reflects continued strong demand for Comverse's products, particularly among wireless network operators, which account for the majority of our sales. More than 340 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, unified messaging (voice, fax, and email in a single mailbox), one-touch call return, voice-controlled wireless web portal and other speech recognition-based services, and other personal communication services. In addition, our Comverse Infosys Division, which markets digital multimedia recording and monitoring systems and contact center quality assurance and customer relationship management tools, continues to benefit from the growth in contact centers and the increased use of performance evaluation and improvement tools."
The Company ended the quarter with cash and cash equivalents, bank time deposits and short-term investments of $895,059,000, working capital of $1,013,577,000, total assets of $1,606,656,000 and stockholders' equity of $915,696,000, all of which represent record levels.
Financial highlights at and for the six and three month periods ended July 31, 2000 and prior year comparisons are as follows:
Financial Highlights
(In thousands, except per share data; unaudited)
Operations Data (excluding one-time acquisition charges):
Six Months Ended Three Months Ended
July 31, July 31, July 31, July 31,
1999 2000 1999 2000
Sales $ 424,707 $ 560,539 $ 216,810 $292,070
Cost of sales 165,800 212,040 83,839 109,989
Research and
development, net 79,713 105,845 40,913 55,128
Selling, general
and administrative 90,544 118,217 45,812 61,705
Royalties and
license fees 9,472 10,207 4,732 5,327
Income from operations 79,178 114,230 41,514 59,921
Interest and other
income, net 6,332 13,950 3,322 7,405
Income before income
tax provision 85,510 128,180 44,836 67,326
Income tax provision 7,361 9,485 3,813 4,837
Net income $ 78,149 $ 118,695 $ 41,023 $ 62,489
Net income per
share, diluted $ 0.50 $ 0.68 $ 0.26 $ 0.36
Net income per
share, basic $ 0.55 $ 0.75 $ 0.29 $ 0.40
Note: The above amounts for the three months and six months ended
July 31, 2000 have been adjusted to eliminate the one-time
acquisition-related charges, recognized during the second quarter
ended July 31, 2000, of $10,786, net of tax. The above amounts for the
six months ended July 31, 1999 have been adjusted to eliminate the
one-time acquisition-related charges, recognized during the first
quarter ended April 30, 1999, of $934, net of tax.
Financial Highlights
(In thousands, except per share data; unaudited)
Operations Data (including one-time acquisition charges,
recognized during the second quarter ended July 31, 2000, of $10,786,
net of tax, and one-time acquisition-related charges, recognized
during the first quarter ended April 30, 1999, of $934, net of tax):
Six Months Ended Three Months Ended
July 31, July 31, July 31, July 31,
1999 2000 1999 2000
Sales $ 424,707 $ 560,539 $ 216,810 $292,070
Cost of sales 165,800 212,040 83,839 109,989
Research and
development, net 79,713 105,845 40,913 55,128
Selling, general and
administrative 90,544 118,217 45,812 61,705
Royalties and license fees 9,472 10,207 4,732 5,327
One-time acquisition-
related charges 1,018 11,623 - 11,623
Income from operations 78,160 102,607 41,514 48,298
Interest and other
income, net 6,332 13,950 3,322 7,405
Income before income
tax provision 84,492 116,557 44,836 55,703
Income tax provision 7,277 8,648 3,813 4,000
Net income $ 77,215 $107,909 $ 41,023 $ 51,703
Net income per share,
diluted $ 0.49 $ 0.62 $ 0.26 $ 0.30
Net income per share,
basic $ 0.55 $ 0.68 $ 0.29 $ 0.33
Financial Highlights
(In thousands)
Balance Sheet Data:
ASSETS
January 31, July 31,
2000 2000
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 342,535 $ 474,900
Bank time deposits and short-term
investments 439,054 420,159
Accounts receivable, net 266,203 306,141
Inventories 101,728 116,688
Prepaid expenses and
other current assets 41,243 53,209
TOTAL CURRENT ASSETS 1,190,763 1,371,097
PROPERTY AND EQUIPMENT, net 126,101 141,660
INVESTMENTS 19,749 42,702
OTHER ASSETS 36,234 51,197
TOTAL ASSETS $ 1,372,847 $ 1,606,656
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 235,860 $ 249,376
Advance payments from customers 94,777 104,556
Other current liabilities 1,822 3,588
TOTAL CURRENT LIABILITIES 332,459 357,520
CONVERTIBLE SUBORDINATED DEBENTURES 300,000 300,000
LIABILITY FOR SEVERANCE PAY 6,185 8,090
OTHER LIABILITIES 9,364 25,350
TOTAL LIABILITIES 648,008 690,960
STOCKHOLDERS' EQUITY:
Common stock, $0.10 par value -
authorized, 300,000,000
shares; issued and outstanding,
155,776,298 and 159,006,020 shares 15,577 15,901
Additional paid-in capital 424,075 505,875
Retained earnings 282,764 390,148
Accumulated other
comprehensive income 2,423 3,772
TOTAL STOCKHOLDERS' EQUITY 724,839 915,696
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,372,847 $ 1,606,656
Comverse Technology, Inc., headquartered in Woodbury, New York, 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 340 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 email 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, customer relationship management and quality monitoring systems marketed to contact centers, financial institutions and other organizations. Comverse's Ulticom Division's products include: network signaling software. Comverse Technology is an S&P 500 and NASDAQ-100 Index company. Visit Comverse Technology's web site at comverse.com.
CONTACT: Comverse Technology, Inc., Woodbury
Paul D. Baker, 516/677-7226
FWIW, Brian Finnerty of CB Unterberg Towin just mentioned he will be buying on any dip in the am, and that this is the stock to own for the next 6 months, totally undervalued. |
