"Comverse remains on track with its own filing process and is positioned to meet its February 2010 target," said Barclays Capital today in response to the announcement by Comverse Technology Inc. (Pink Sheets: CMVT) subsidiary Verint Systems Inc. (Pink Sheets: VRNT) on Thursday that it will publish its financial reports for fiscal years 2006-09 (which ended on January 2009), and for the first three quarters of fiscal year 2010 by the end of January.
Verint will follow its sister company Ulticom Inc. (Nasdaq: ULCM) in publishing audited financial reports. The announcement indicates that Comverse is probably not far behind in publishing its own consolidated financials. Comverse and its subsidiaries have not published financial reports since the options backdating scandal in 2006. Former Comverse CEO Kobi Alexander subsequently fled to Namibia to avoid prosecution, and other former company officials have been indicted and jailed in the US over the affair.
Barclays analysts Amir Rozwadowski and Jeff Kvaal said, "We also believe that both Comverse and Verint are likely to follow a similar filing strategy to Ulticom. Specifically, we anticipate that both companies are likely to provide historical financials on a rolling basis, potentially ahead of their target dates with the goal of being fully complete by their respective deadlines."
The analysts give Comverse an "Overweight" recommendation with a target price of $11, compared with the share's closing price of $8.77 on Friday.
Published by Globes [online], Israel business news - www.globes-online.com - on December 7, 2009
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