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To: 2MAR$ who wrote (72726)	9/10/2002 8:15:23 PM
From: 2MAR$	Respond to of 208838

UPDATE 3-Comverse posts loss, sees revenue drop (rewrites headline) By Sinead Carew NEW YORK, Sept 10 (Reuters) - Communications software company Comverse Technology Inc. <CMVT.O> posted a fiscal second quarter loss, excluding items on Tuesday and said it would post a wider-than-expected third-quarter loss due to the telecommunications slump. Comverse, which sells voice messaging systems, said it posted a loss of $12.7 million, or 7 cents a share, excluding nonrecurring items, versus a year-ago profit of $50 million, or 28 cents a share and a first quarter loss of $8.2 million. Analysts polled by First Call expected Comverse to report a loss of 12 cents a share. After gains for debt repurchases and charges for investment write-downs and lay-offs Comverse said it had a profit of $3.9 million, or 2 cents a share for quarter ended July 31 versus a year-ago net profit of $27.9 million, or 15 cents a share. "There was nothing really surprising in these results. But right now I'm looking at whether their backlog is stabilizing," Salomon Smith Barney analyst Robin Nazarzadeh said. Comverse Chairman and Chief Executive Kobi Alexander told analysts during a conference call that it expects a third-quarter loss of about 15 cents, excluding items, on revenue of about $165 million, plus or minus 5 percent. Analysts polled by First Call were expecting a third-quarter loss of 8 cents on revenue of $177.57 million. The company said its second-quarter revenue fell to $181.2 million from $345.1 million a year ago and below analyst expectations of $183.1 million. Alexander also said that the company expects to return to profitability some time next year. It expects to be able to break even if its revenue rises to $190 million. Alexander, told analysts its revenue from telecommunication customers declined as the severe global capital spending slowdown persisted. Telephone companies are reluctant to spend money on new projects, Alexander said. Some customers are even sacrificing quality of services for cost cutting by putting off spending on their existing network services, he said. However, the company's security and surveillance subsidiary Verint Systems Inc. <VRNT.O> posted a revenue increase to $38.5 million from $32 million a year ago due to a renewed focus on homeland security, the company said. Comverse said in July it would lay off about 1,200 employees, or about 21 percent of its work force, in order to cut costs. The cutback affected the company's network systems division which serves the telecommunications market. It expects to take third and fourth quarter charges for these cutbacks, which it plans to complete by year end. Comverse is based in Woodbury, New York but its research and development facility, which employs about 45 percent of its work force is based in Israel. Comverse stock traded at $8.64 on the Instinet electronic trading system after closing at $8.29 on the Nasdaq stock exchange. Its 52-week high was $28.28. ((Sinead Carew, New York technology desk 1 646 223 6186)) REUTERS * end of story *

To: 2MAR$ who wrote (72726)	9/10/2002 8:19:22 PM
From: 2MAR$	Respond to of 208838

U.S. magazine ad revenue growth dips in August NEW YORK, Sept 10 (Reuters) - Hopes for a strong advertising rebound seemed to vanish in August as U.S. magazine revenue rose only 2.7 percent, a far cry from the strong results the previous month which had led many to believe a healthy recovery was on its way. Total magazine advertising rose 2.7 percent to $1.1 billion in August, according to the latest report by Publishers Information Bureau (PIB) which tracks trends in U.S. consumer magazines. In July, ad revenue rose 8.6 percent. Advertising pages in August fell into negative territory again, down 5.8 percent to 14,498 compared to an 0.5 percent increase the previous month, its first advance since December 2000. "The third quarter remains the strongest in 2002, despite the dip in August numbers," said Ellen Oppenheim, Executive vice president and chief marketing officer for Magazine Publishers of America. MPA represents more than 240 U.S.-based publishing firms with some 1,400 titles and 80 international publishers. The Financial, Insurance & Real Estate and Home Furnishings & Supplies categories posted the largest increases in advertising revenue in August, while Retail, Apparel & Accessories and Media & Advertising were among the top decliners. ((--Cyntia Barrera Diaz, New York newsdesk 646 223 6192, cyntia.barrera@reuters.com)) REUTERS